When we talk MRP things get a little hazy because of the evolution of this type of software over time. The truth is you are actually probably looking for ERP software (we’ll explain why below). This article will briefly explain how MRP evolved into ERP and it will also give information on what to look for when buying MRP software.
During the 20th century corporations understood, for the first time, that holding inventory has a cost. Corporations struggled to find a balance between carrying costs and stock-out costs. They came up with all sorts of algorithms for calculating the optimal reordering point. As you can imagine keeping track of this information on paper was near impossible for businesses with a large variety of products.
The invent of the computer made it easier to track all of this information. Specifically, programmers built material requirement planning (MRP) software. This software tracked where materials were and when they should be reordered for manufacturing purposes. It also calculated the optimal amount of materials to reorder.
MRP ii software known as manufacturing resource planning software evolved from materials requirement planning. Basically it does all the same things as the original MRP but it also looks at production scheduling, shop-floor design, and capacity issues. This type of manufacturing MRP software is still in use today.
People liked manufacturing resource planning software so much that they decided they might as well extend its use to the entire business; hence, ERP was born. Enterprise resource planning takes MRP and applies it to all areas of the business. This software helps with the revenue, purchasing, production, human resources, and billing cycles.
Tips
If you just want software to control the manufacturing portion of your business, look for MRP software. However, if you are looking for entity wide software to control almost all aspects of the business, then search for ERP software.
Finding free MRP software is possible; however, we wouldn’t recommend relying completely on free software. If you are trying to develop your own in-house MRP program, then this may be a good place to begin.
There is a resource out there named ctsguides.com that may be of some assistance for those who are looking to get the right type of MRP system for their business. This type of software is very expensive and this site will provide you with some information that will help you avoid making a bad decision. The site provides a free 10-minute call with an expert in the area as well as other tools to know whether you should even be thinking about MRP software right now. Note: this site offers a free kit, it does not offer free software (the site can be a little misleading).
Let’s conclude with a brief summary of ERP MRP software. MRP started out as a simple tool to help with reorder points. It then developed to encompass the whole manufacturing process. Then it further developed into business wide software that would assist with nearly all functions of the business.
If you would like any more information or have any questions on the subject, please leave us a comment below and we will try and provide you with the answers as soon as possible.
