The very first MRP systems of inventory management developed in the 1940s and 1950s. They made use of mainframe computers to blow up information from a costs of products for a certain end product into a production and buying prepare for parts. Eventually, MRP was expanded to consist of details feedback loops so that production workers could change and update the inputs into the system as needed. The next generation of MRP, known as manufacturing resources preparing or MRP II, also integrated marketing, finance, accounting, engineering, and personnels elements into the planning procedure. An associated principle that expands on MRP is enterprise resources planning (ERP), which makes use of computer innovation to connect the numerous practical areas across a whole business enterprise.

MRP works backward from a production prepare for finished products to develop requirements for elements and raw materials.MRP starts with a schedule for finished items that is transformed into a schedule of requirements for the subassemblies, part, and raw materials had to produce the finished items in the defined time frame, Therefore, MRP is developed to respond to 3 concerns: what is needed? just how much is required? and when is it needed?

MRP breaks down inventory requirements into planning periods so that production can be finished in a prompt manner while inventory level and related bring expenses are kept to a minimum. Carried out and utilized properly, it can assist production managers prepare for capacity needs and designate production time.