The most significant developments in information technology in the Logistics industry concern the use of material resource planning systems (MRP). The original computerised MRP system was implemented in 1964 by Black & Decker. This is now referred to as MRP 1 and its key functionalities include:
- Master production scheduling
- Bill of materials management
- Inventory tracking
Figure 1 provides an overview of a basic MRP system:
Figure 1: The MRP System
In the 1980’s, MRP systems were developed further to MRP2 and included additional functionalities such as:
- Demand forecasting
- General accounting
- Machine capacity scheduling
- Quality assurance