MRP II

MRP II means Manufacturing Resource Planning. The basic idea of the inventor of MRP II, Oliver Wight, is a holistic market and resource-oriented planning of sales, production and inventory quantities (Wight 1995, p. 56)

MRP vs MRP II

Manufacturing Resource Planning (MRP II) is an extension of MRP, which only covers Material Requirements Planning (MRP) (Wight 1995, p. 56).

Goals of MRP II

The goals of MRP II are the minimization of storage times, idle times and set-up times as well as the maximization of the capacity utilization of resources (especially machines and manpower). MRP II aims to achieve end-to-end planning - from the business plan to the sales plan to the production plan (Wight 1995, p. 143).

Requirements for MRP II

MRP II assumes that essential planning parameters such as capacities, order throughput times and processing times can be predicted with a high degree of certainty. Production bottlenecks must always be overcome by capacity adjustments. Above all, however, it must be possible to predict the production program with sufficient accuracy, which in turn requires a reliable sales forecast or planning. Ideally, these requirements are most likely to be met in mass or large-scale production (Kurbel 2016, p. 133).

References

Wight, O. (1995). Manufacturing resource planning: MRP II: unlocking America's productivity potential. John Wiley & Sons. Higgins, P., Le Roy, P., & Tierney, L. (1996). Manufacturing planning and control: Beyond MRP II. Springer Science & Business Media. Kurbel, K. (2016). Enterprise Resource Planning und Supply Chain Management in der Industrie: Von MRP bis Industrie 4.0. Walter de Gruyter GmbH & Co KG.

Author: Tom Alende