In: Operations Management
How are MRP and ERP related?
MRP: Material Requirement Planning is software that helps to manufacturing companies to find out what material they require at what time and what is the total quantity.
ERP: Enterprise Resource Planning is software which is used by the organization to maintain the database of various departments of the organization. ERP solutions helps to integrate the all department of the organization like purchases, sales, manufacturing, human resources, services, inventory, etc. and improve the business processes.
Both MRP and ERP are related to each other because they are designed to minimize the risk of material shortage, inventory excess etc. MRP and ERP are often used interchangeably. They are similar because both of them are used to ensure that the raw materials are in right place at right time with correct amount. ERP is also containing the purchase information, customer information, contracts etc. ERP is implementation of MRP