Manufacturing Resources planning
What is MRP?
Manufacturing Resource Planning is an automated tool to estimate quantities of raw materials and later than an advanced version of which is now known as Manufacturing Resources planning II, also incorporated marketing, finance, accounting, engineering, and human resource planning.
ERP material management is a broader concept that has expanded technology to link various verticals within an entire business enterprise. As data analysis and technology become more sohisacted and modern consequencing into one of the best ERP material management software.
The Core process in Material Planning Erp is as follows :
- BOM ( BIll OF Material )
A Bill of Material deciding an extensive list of raw materials, components, and instructions, required to build, manufacture or repair a product or services.
- Inventory tracking
Once the stock is inventoried, maintaining is the second step. Knowing about how much stocks are in the warehouse, how many is the process of sales. Everything is maintained in inventory tracking.
- Master Planning scheduling
This is the step here, how much to produce and when to produce and how much to ? considering cost, supply and demand curve and other important aspects.
Thus the MRP ERP System enables effective demand forecasting. It also enables manufacturers to liaise with all the other functional areas of the company. The most evolved software a firm should have.