Materials Resource Planning, better known as MRP, is designed to control inventory and production most specifically. Enterprise Resource Planning, aka ERP, is an overall business solution that includes modules for MRP manufacturing processes.
MRP helps enterprises control and streamline processes synonymous with order fulfillment. MRP Software is designed to analyze production demands from current sales orders, short and long term sales forecasts, and then procures the exact information for what is needed to manufacture each order. MRP software considers factors like expected lead times, order quantities, and the level of safety stock in inventory when generating it’s list of materials to purchase. What MRP Software lacks, ERP Software is likely to have. MRP is useful for inventory and production optimization, but not built to facilitate sales or accounting processes. Continue reading