History
Prior to MRP, and before computers dominated industry, reorder-point/reorder-quantity (ROP/ROQ) type methods like EOQ (Economic Order Quantity) had been used in manufacturing and inventory management. In 1964, Joseph Orlicky as a response to the TOYOTA Manufacturing Program, developed Material Requirements Planning (MRP). First company to use MRP was Black & Decker in 1964, with Dick Alban as project leader. In 1983 Oliver Wight developed MRP into manufacturing resource planning (MRP II). Orlicky's book is entitled The New Way of Life in Production and Inventory Management (1975). By 1975, MRP was implemented in 150 companies. This number had grown to about 8,000 by 1981. In the 1980s, Joe Orlicky's MRP evolved into Oliver Wight's manufacturing resource planning (MRP II) which brings master scheduling, rough-cut capacity planning, capacity requirements planning, S&OP in 1983 and other concepts to classical MRP. By 1989, about one third of the software industry was MRP II software sold to American industry ($1.2 billion worth of software).
Read more about this topic: Material Requirements Planning
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