Manufacturing resource planning II (MRPII)

Definition

Manufacturing Resource Planning II (MRPII) is an integrated method of operational and financial planning for manufacturing companies, aiming to ensure that all resources such as materials, labor, and machinery are available for production according to schedule. It combines various functions of the business like sales, operations, and finance to create a cohesive plan that aligns with company goals.

Related terms

Material Requirements Planning (MRP): A system used to calculate the materials and components needed to manufacture a product.

Enterprise Resource Planning (ERP): An integrated management software that allows an organization to manage the business and automate back-office functions related to technology, services, and human resources.

Just: In-Time (JIT) Inventory - An inventory management strategy that aligns raw-material orders from suppliers directly with production schedules to reduce inventory costs