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Difference between MRP and ERP

Last Updated : 29 Mar, 2022
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1. Material Requirement Planning (MRP) : Developed in 1970s, raw material whenever required by any organization is managed i.e, which materials are required by company gets stored in a database. Also, it tells about the shortage of any material. Material Requirement Planning is widely used approach for production planning and scheduling in industry. It is the approach embedded in many commercially available software applications. Function of MRP is to provide material availability i.e, it is used to produce requirement quantities on time. This process involves monitoring of stocks and demand, leading to automatic creation of procurement proposals for purchasing or production. Main objective of MRP is to determine which material is required, quantity required and by when it is required. It is Factor material inventory and emphasis on physical assets. 

2. Enterprise Resource Planning (ERP) : Enterprise Resource Planning is the foundation system for domestic and global operations, supporting most or all functional areas in their daily operations. is one of the more common categories of business software, especially with large-scale businesses. It is a business strategy and a set of industry-domain-specific applications that build customer and shareholder communities value network system by enabling and optimizing enterprise and inter-enterprise collaborative operational and financial processes. ERP at its core is an effective way of centralizing information and workflow processes through data management. Because ERP keeps all of your workflow data in one place. It uses analytical tools to compare different productions with which further development can occur. Basically, it is the move towards the intangible assets.

Difference between MRP and ERP :

Stands for Material Requirement Planning. Stands for Enterprise Resource Planning.
Developed in 1970s. Developed in 1990s.
MRP is more of a solo software. ERP is integrated.
It can be combined with other software, but it is a more difficult process than with an ERP. It can easily connect to other software systems and modules.
MRP systems are exclusive to manufacturing operations. ERP is standard among many industries and is handled by many departments.
Users are limited. Vast group of users because ERP has its range in various works.
It is not much expensive. It is expensive.

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