What is Material Requirements Planning (MRP) System

Enterprise-wide automation has already transformed the relations among suppliers, purchasers, producers, and customers. Conventional ERP helps only to automate individual departments. It could neither integrate its back-office benefits into the front-office, nor could it establish consistent control of all business processes. Competitive pressures and globalization stresses the need for more effective, total enterprise solutions. The world class competition, modern business environment, and the availability of the Internet are the premises which stress the need for ERP. The salient features of ERP II are presented in addition to describing some of the disruptive technologies which will help reengineer ERP systems rapidly. The results of an international survey pertaining to the embedding of intelligence in the modern day ERP shows an evolutionary trend. The order placement over the Internet by a sales clerk from a remote location forms a part of this chapter to benefit the readers in understanding the functioning of an ERP system.