What is Materials Resource Planning (MRP II)

In the past, resource planning was a task that called for manual information input by project managers. For most manufacturing operations, these resources were classified as employees, equipment, facilities, and materials. As technology has advanced, materials resource planning (MRP) has become a much more simple and strategic process in proper resource management. These advancements in technology have enabled project managers to manage resources through visual and automatic production scheduling. Resource planning is vital to manufacturing operations that want to take their production to the next level and create a much more efficient production and resource flow. Without manufacturing resource planning, facilities are unable to effectively assign resource tasks, jobs, or projects to labor. If you are considering implementing an MRP system into your operation, here are a few of the functions and benefits of the software.

Materials Resource Planning Software (MRP II) Functions

• Master Production Scheduling (MPS) - By creating a master production schedule, production is able to follow the best route. It allows the system to be able to accurately predict how much product is needed to be produced. This plan can effectively combat bottlenecks, poor productivity, and other areas of inefficiency, ultimately leading to increased production and revenue.
• Purchasing Management - This area of the system can be the purchasing of any raw materials that are needed for production. Through this systematic capability, the software is able to effectively purchase materials without manual input, allowing for a steady flow of materials throughout production.
• Materials Requirements Planning (MRP) - A production planning, scheduling, and inventory control component that manages the manufacturing process. This capability is completely software based and functions without human intervention. The system makes sure and carries out three objectives - ensure material and product availability, material and product control, and develop a plan for manufacturing, scheduling, and purchasing.
• Capacity Planning - Through utilization of accurate data for demand, the software is able to develop a plan for capacity. This plan accounts for a varying demand and the maximum amount of product that can be produced and utilizes the most advantageous route for capacity. This saves facilities from high holding cost and prolonged lead times.

Materials Resource Planning Software (MRP II) Benefits

Through utilization of MRP, there are benefits that will enhance your production facility:

• Inventory Control
• Enhanced Scheduling
• Improved Supplier Relationships
• Enhanced Control of Production

Manufacturing resource planning software is extremely advantageous to manufacturing operations, but it is not fully capable of running a facility all on its own. Advanced planning and scheduling software (APS) allows your operation to be able to take a more strategic approach.

Advanced Planning & Scheduling (APS) with Materials Resource Planning (MRP II) 

Advanced planning and scheduling software (APS) can effectively be integrated with ERP and MRP software. It offers as an extension to the software and adequately accounts for areas that these software lack. Some of the benefits of advanced planning and scheduling software (APS) include:

• Improved Delivery Time
• Boost in Profit
• Six Month ROI
• Inventory Reduction

Quickly optimize production within your facility and separate yourself from competitors by integrating an advanced planning and scheduling system (APS). 

Video: Integrating MRP II, ERP, and APS into Daily Operations

Manufacturing Resource Planning (MRP II) is defined by APICS as a method for the effective planning of all resources of a manufacturing company, extending closed-loop MRP to include operational and financial planning plus “what-if” simulation capabilities. In modern plants, MRP II is typically implemented on top of ERP and strengthened with Advanced Planning & Scheduling (APS), which provides finite-capacity scheduling and scenario-based planning.

In this video, you’ll see how integrating MRP II, ERP, and PlanetTogether APS helps operations teams:

• Turn material plans, MPS, and capacity requirements from MRP/MRP II into realistic, finite-capacity production schedules
• Coordinate sales, operations, and finance by linking operational planning in units with financial planning in monetary terms
• Use MRP II’s inherent “what-if” simulation capabilities together with APS scenarios to test demand changes, capacity shifts, and new product introductions before committing to the shop floor
• Improve delivery performance and throughput by maximizing output on bottleneck resources rather than simply pushing material through the system
• Reduce inventory and lead times by synchronizing material plans, resource plans, and finite schedules in a single integrated environment

This video is ideal for production planners, schedulers, and operations leaders who already use MRP/MRP II or ERP and want to understand how APS and integrated operations complete the picture.

 

Build a Strong MRP Foundation for MRP II and APS

Manufacturing Resource Planning (MRP II) extends basic MRP by planning all manufacturing resources—not just materials—and by adding capacity planning, financial planning, and “what-if” simulation to support better decisions. When you then connect MRP II and ERP to Advanced Planning & Scheduling (APS), you gain the ability to create finite-capacity schedules, maximize bottleneck throughput, and synchronize supply with real demand.

Before you can fully leverage MRP II and APS, you need a solid understanding of Material Requirements Planning (MRP).

Download our Material Requirements Planning (MRP) Infographic to see how effective MRP helps you:

• Calculate what materials are needed and when, so production is never starved or overstocked
• Reduce costs through stable material flow, lower inventory, and fewer expediting events
• Provide a clean, structured data foundation—BOMs, lead times, and inventory—for MRP II, ERP, and APS to build on
• Support capacity planning by ensuring material availability is aligned with realistic resource plans
• Prepare your team to get more value from MRP II and APS, rather than fighting basic data and material issues

Share it with your planning, operations, and finance teams as a concise visual guide to how MRP → MRP II → APS form a progression toward fully integrated, data-driven manufacturing planning.

Share it with your planning, scheduling, and operations teams as a concise visual guide to where analytics-driven capacity planning and APS deliver measurable business impact.