What is MRP?


Common Questions about ERP Software

The Definition of MRP Software

The term “MRP” has evolved over the years as computer systems have become more sophisticated. It was initially an abbreviation for “Material Requirements Planning,” from back in the ’60s when computers were infancy. It was a big calculator, helping companies track inventory and plan for needs based on real and forecasted customer orders. Input how many widgets you need by what date, and if you set it up correctly, it would tell you the quantities of raw material required by what date and help you decide what to order.

Today any solution that only meets the original definition would be a “data silo” - key data unconnected to the whole of a manufacturer’s information. However, because old terminology dies hard, some technology companies still market their programs as MRP. Now they may define it as either “Manufacturing Resource Planning” or “Master Requirements Planning.” Both these definitions allude to a technology solution capable of handling the many intricacies of tracking money, materials, labor, time, and all other costs in one database.

Common Questions about ERP Software

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