In the 1980's the concept of MRP-II (Manufacturing Resources Planning) evolved which was an extension of MRP to shop floor and Distribution management activities. The Manufacturing Resources Planning suffered from a few drawbacks, like it assumed the lead times to be fixed, the capacity to be infinite, the batch sizing concept, etc. Over the years, other tools had evolved to automate the manufacturing management process like Computer Aided Design, Computer Aided Manufacturing, Computer integrated manufacturing, Customer oriented manufacturing management system, etc. The shortcomings of MRPII and the need to integrate these new techniques, led to the development of a total integrated solution called Enterprise-wide Resource Planning (ERP).

    ERP atempts to integrate the suppliers and customers with the manufacturing environment of the organisation.

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