MRP Software Key Terms

Some terms you might find as you review MRP software

MRP software is used for materials resource planning (MRP) and manufacturing resource planning (MRPII). MRP is a type of software that helps users with inventory control and production planning. MRPII software helps users ensure that manufacturers get their products made and delivered to consumers as quickly as possible.

MRP software has several purposes: to control and plan materials needed, to make sure products meet customer demands, and to interface with accounting processes. Getting familiar with MRP software terminology makes research, selection and implementation much easier.

Enterprise resource planning (ERP)

Enterprise resource planning (ERP) is an enterprise-wide system that incorporates all the functions of MRPII and is used to plan and support manufacturing, finance, distribution, maintenance and engineering in a manufacturing facility. ERP is one of the functions of MRP software and serves as the central storehouse for data.

Master production schedule (MPS)

A master production schedule (MPS) is a plan that is used for production, inventory and staffing in a manufacturing environment. The MPS drives the manufacturing activity created by user input and constant tweaking. Once the MPS is developed, it is interfaced with MRP software by specifying the dates of production and quantities required.

Advanced Planning & Scheduling

An advanced planning & scheduling system is a program that determines how raw materials and production capacity can be allocated to meet demand. MRP software is used to develop these step-by-step procedures.

Acceptable quality level (AQL)

Acceptable quality level, also referred to as AQL, is an inspection standard that defines the maximum number of defects that are acceptable in a random sampling. AQL can be built into MRP software when it is customized for a particular application.

Bill of material

A bill of material is a list of raw materials for parts, components and sub-assemblies built into MRP software. The bill of material also details the quantities needed to manufacture a product.

Capacity planning

Capacity planning is a process establishing the production capacity required for a manufacturing facility to meet the demands for its products. MRP software helps with the process of capacity planning.

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