Closed Loop MRP

AAA

DEFINITION of 'Closed Loop MRP'

A system used for production planning and inventory control, with an information feedback feature that enables plans to be checked and adjusted. Closed Loop MRPs synchronize the purchasing or materials procurement plans with the master production schedule. The system feeds back information about completed manufacture and materials on hand into the MRP system, so that these plans can be adjusted according to capacity and other requirements. The system is called a closed loop MRP because of its feedback feature, which is also referred to as closing the loop."

INVESTOPEDIA EXPLAINS 'Closed Loop MRP'

Closed loop MRP systems are considered to be second-generation systems, and have since being supplanted by manufacturing resource planning (MRP II) and enterprise resource planning (ERP) systems. While MRP systems were primarily concerned with materials used in the manufacturing process, MRP II and ERP systems integrated additional aspects including finance and human resources.

RELATED TERMS
  1. Economies Of Scale

    The cost advantage that arises with increased output of a product. ...
  2. Two-Bin Inventory Control

    An inventory control system used to monitor the quantity of an ...
  3. Materials Requirement Planning ...

    One of the first software based integrated information systems ...
  4. Manufacturing Resource Planning ...

    An integrated information system used by businesses. Manufacturing ...
  5. Enterprise Resource Planning - ...

    A process by which a company (often a manufacturer) manages and ...
  6. Economic Order Quantity - EOQ

    An inventory-related equation that determines the optimum order ...
Related Articles
  1. Fundamental Analysis

    Vital Link: Manufacturing And Economic Recovery

    Manufacturing output is one of the clearest signs that an economy is recovering from a recession.
  2. Investing

    Who's The Better Financial New Source: The Motley Fool or Seeking Alpha

    This is a comparison of two of the most popular investment research sites: The Motley Fool and Seeking Alpha.
  3. Typically, SPEs are subsidiaries of a larger corporation.
    Investing

    How Special Purpose Entities Help Fight Risk

    A special purpose entity, sometimes called a special purpose vehicle, is a legal entity created for one very limited, particular task. Typically, SPEs are subsidiaries of a larger corporation.
  4. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
    Professionals

    What is a SWOT Analysis?

    SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. SWOT analysis is a management tool used to identify strategies for success. It may be used to guide individual thinking, group ...
  5. Personal Finance

    Supply Chain Management Jobs Are Booming

    There has been huge growth in supply chain management, both in the number of positions open and the range of responsibilities assigned to those positions.
  6. Investing Basics

    Using Appreciative Inquiry To Solve Management Problems

    In its purest form, appreciative inquiry is a powerful tool for shifting the focus of an organization to something much greater than its bottom line - although the eventual outcome will often ...
  7. Federally registering your brand name or logo offers the broadest protection against potential trademark infringement.
    Investing

    How to Register Your Trademark

    Federally registering your brand name or logo offers the broadest protection against potential trademark infringement.
  8. steps of how to file a patent and a brief summary of each step
    Investing

    Filing A Patent

    Want to patent your invention or design? Here's a complete step-by-step guide to the process.
  9. The decision to pursue a patent, trademark or copyright depends on the type of intellectual property you’re trying to shield.
    Investing

    Patents, Trademarks and Copyrights: The Basics

    The decision to pursue a patent, trademark or copyright depends on the type of intellectual property you’re trying to shield.
  10. when is it a good idea to patent an idea? At what stage of the development of the idea should you patent it? Does it matter if it matters what type of idea you have?
    Investing

    Protecting Your Idea: Should You Patent It?

    At what stage of development should you patent an idea – and which ideas can you patent? Here's how to decide and what to do next.

You May Also Like

Hot Definitions
  1. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  3. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  4. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  5. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  6. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
Trading Center