MRP I is a historical and academic term. For all intents today, any MRP software on the market is effectively an MRP II system.
MRP systems (I and II) help plan and optimize manufacturing production lines. The difference being, MRP II uses additional data from accounting records and sales for further analysis and forecasting of manufacturing requirements.
MRP I stands for material requirements planning, while MRP II stands for manufacturing resource planning. However, the terms are often used interchangeably.
MRP is about taking inputs (material cost, material availability, expected demand, forecasted demand, staffing ability, machinery capacity) all in order to make sure you have the right amount of materials/labor/machinery on hand at any given time to satisfy the market or your company production goals.
These are some of the basic features and functionalities of MRP I and MRP I:
|Features||MRP I||MRP II|
|Bill of Materials (BOM)||X||X|
|Master Production Scheduling (MPS)||X||X|
|Equipment Maintenance Scheduling||X|
|Accounting & Financial Planning||X|
Enterprise resource planning (ERP) software was developed to build upon the existing functionalities of MRP II software.
ERP systems are historically and most commonly used by manufacturing and distribution companies. However, the term has been extended to any type of organization that want to use data from customer demand to help manage staffing and inventory levels.
To learn more about the types of MRP systems available or to read more into the functionalities provided by MRP software in today’s age, visit our MRP software page.