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Materials Requirements Planning

Materials Requirements Planning (MRP) is a production planning system that helps manufacturers plan production schedules to avoid excessive inventory levels while ensuring materials and finished goods are available for customers. MRP simultaneously aims to have materials for production, products for delivery, and maintain low inventory levels. Enterprise Resource Planning (ERP) integrates core business processes often in real-time through software and technology, requiring changes to staff work processes. ERP reduces inventory and increases delivery efficiency but requires updated data and inhibits communication between suppliers and customers without customization.

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36 views1 page

Materials Requirements Planning

Materials Requirements Planning (MRP) is a production planning system that helps manufacturers plan production schedules to avoid excessive inventory levels while ensuring materials and finished goods are available for customers. MRP simultaneously aims to have materials for production, products for delivery, and maintain low inventory levels. Enterprise Resource Planning (ERP) integrates core business processes often in real-time through software and technology, requiring changes to staff work processes. ERP reduces inventory and increases delivery efficiency but requires updated data and inhibits communication between suppliers and customers without customization.

Uploaded by

Sarah Harun
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Materials Requirements Planning

- Production planning, scheduling, and inventory control system used to manage


manufacturing processes.
- An MRP systems is intended to simultaneously meet three objectives:
 Ensure materials are available for production and products level are available
for delivery to customers.
 Maintain the lowest possible material and products level in store.
 Plan manufacturing activities, delivery schedules and purchasing activities.
- MRP setup helps companies to achieve three main points. First, It helps
manufacturers to plan and schedule their production operation such a way that it will
not require any excessive inventory. It also helps to determine how much finished
goods and by what date will be available for shipping to the customer.

Enterprise Resource Planning


- The integrated management of core business processes, often in real-time and
mediated by software and technology.
- ERP’s scope usually implies significant changes to staff work processes and
practice. Implementation time depends on business size, number of modules,
customization, the scope of process changes, and the readiness of the customer to
take ownership for the project.
- ERP reduces inventory storage and increases delivery efficiency and requires up-to-
date data. Inhibits seamless communication between suppliers and customers who
use the same ERP system uncustomized. Can create order reliance on
customization, undermining the principles of ERP as a standardizing software
platform

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