What is Material resource planning? (MRP2)

What is Material resource planning? (MRP2)

• A. A computerised system that incorporates a single database used by many different areas of the organisation. Enables optimal inventory control based on matching of supply and demand
• B. Calculate the quantity of materials required for each type of material and when they will be required
• C. Comparison against the best elsewhere in the organisation
• D. One source of supply

Answer: (A)

Material resource planning (MRPII) is a computerized planning system that extends basic MRP by coordinating production resources across the organization. It uses a single, shared database that supports multiple departments to align material needs with capacity, machinery, labor, and finance, so production plans reflect what can actually be produced. This integration helps maintain optimal inventory levels by ensuring supply and demand are matched and schedules are feasible. That description fits a system that is centralized and cross-functional, enabling tighter inventory control by coordinating different areas of the business. The other options describe narrower ideas—calculating material needs and timing (MRP’s classic function), benchmarking, or relying on a single supplier—which don’t capture the broader, resource‑integrated scope of MRPII.

Material resource planning (MRPII) is a computerized planning system that extends basic MRP by coordinating production resources across the organization. It uses a single, shared database that supports multiple departments to align material needs with capacity, machinery, labor, and finance, so production plans reflect what can actually be produced. This integration helps maintain optimal inventory levels by ensuring supply and demand are matched and schedules are feasible.

That description fits a system that is centralized and cross-functional, enabling tighter inventory control by coordinating different areas of the business. The other options describe narrower ideas—calculating material needs and timing (MRP’s classic function), benchmarking, or relying on a single supplier—which don’t capture the broader, resource‑integrated scope of MRPII.