ERP system has evolved over the past thirty years. When it comes to the development of ERP, we need to review the MRP system. Generally, MRP processes specifically involve planning the use of materials necessary for manufacturing business products, so MRP is also a common function contained within an ERP [1]. ERP is an updated manufacturing resource system; it grew out of MRP II systems with relational database management, graphical user interface, and client and server architecture.
In the system, the kinds of products and services offered by a company drive operation strategy. Products and services can be classified into make-to-order, make-to-stock. The MTO strategy only manufactures the end product once the customer places the order, while the MTS method forecasts demand to determine how much stock should be produced [2]. For example, Global bike incorporated produces some bikes after it received a sales order from its customers. These finished goods are used to meet customers’ need, they pertain to MTO strategy. On the other side, in the long production run, GBI may also forecast demands on the basis of sales, then produce bikes to put into inventory before customers place orders. It is an example of implement of MTS.
Both MRP and ERP have their advantages and disadvantages. MRP helps to standardize business processes by offering automated methods for many areas of the business. Standardization leads to easily repeated processes and a platform for improving those processes [3]. Poor information and lack of understanding of the impact of average lot sizes and lead times can cause implementation failure and costly reimplementation. The strengths of ERP include: Complete visibility into all the important processes, across various departments of an organization: automatic and coherent workflow from one department/function to another. ERP are more secure and