Chapter 3

Integrated Enterprise with ERP

In the early days, the most important systems in manufacturing companies were known as MRP-based systems. After two decades, MRP systems evolved into MRP II, but it was many years before ERP systems were first implemented, and these systems continue to evolve.

In the 1960s, MRP emerged with the rapid evolution of computers. The main emphasis of these systems was to manage inventory, and the use of MRP helped companies control their inventory based on actual demand rather than reorder points. To do this, MRP used a set of techniques that took into account bills of material data, inventory data, and the master production schedule to predict future requirements for materials. A finished product was subdivided ...

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