ERP (Enterprise Resource Planning) is the evolution of Manufacturing Requirements Planning (MRP) II. From business perspective,
ERP has expanded from coordination of manufacturing processes to the integration of enterprise-wide backend processes.
From technological aspect, ERP has evolved from legacy implementation to more flexible tiered client-server architecture.
The following table summarizes the evolution of ERP from 1960s to 1990s.
||Inventory Management & Control
Inventory Management and control is the combination of information technology and business processes of maintaining
the appropriate level of stock in a warehouse. The activities of inventory management include identifying
inventory requirements, setting targets, providing replenishment techniques and options,
monitoring item usages, reconciling the inventory balances, and reporting inventory status.
||Material Requirement Planning (MRP)
Materials Requirement Planning (MRP) utilizes software applications for scheduling production processes.
MRP generates schedules for the operations and raw material purchases based on the production requirements
of finished goods, the structure of the production system, the current inventories levels and the lot sizing
procedure for each operation.
||Manufacturing Requirements Planning (MRP II)
Manufacturing Requirements Planning or MRP utilizes software applications for coordinating manufacturing processes,
from product planning, parts purchasing, inventory control to product distribution.
||Enterprise Resource Planning (ERP)
Enterprise Resource Planning or ERP uses multi-module application software for improving the performance of the internal
business processes. ERP systems often integrates business activities across functional departments, from product
planning, parts purchasing, inventory control, product distribution, fulfillment, to order tracking. ERP software systems
may include application modules for supporting marketing, finance, accounting and human resources.
ERP Definition - What is ERP
ERP Systems - ERP Software, Business Processes, Users and Hardware
ERP Modules - Production Planning, Purchaing, Inventory Control, Sales, Marketing and HR