Define and discuss Materials Requirements Planning
An MRP system consists of a set of logically related procedures, decision rules, and records designed to translate a master production schedule into time-phased net inventory requirements and the planned coverage of such requirements for each component item needed to implement this schedule. An MRP system recalculates net requirements and coverage as a result of changes in the master production schedule, demand, inventory status, or product composition.
MRP systems meet their objectives by computing net requirements for each inventory item, time-phasing them, and determining their proper coverage.
The goals of an MRP system are to (1) ensure the availability of materials, components, and products for planned production and for customer delivery; (2) maintain the lowest possible inventory levels that support service objectives; and (3) plan manufacturing activities, delivery schedules, and purchasing activities. In doing so, an MRP system considers current and planned quantities of parts and products in inventory as well as the timing needed for these parts and products.
MRP begins by determining how much end products (independent-demand items) customers desire and when they are needed. Then MRP disaggregates the timing and need for components based on the end-product demand.
In practice, MRP is exceptionally suitable for planning and controlling the ordering and receipt of large numbers of parts and products that might interact during assembly or manufacture. Organizations such as Dell and Boeing use the MRP approach to assemble computers and aircraft, respectively. With the exception of very simple problems, computer technology is virtually a prerequisite to using MRP-based applications.
You might also like to view...
ROI, residual income, and economic value added all represent performance measures that can be utilized to determine investment center performance
Indicate whether the statement is true or false
Sales messages are most effective if they follow the AIDA strategy. What are the four parts of the AIDA strategy?
A) Audience, investigate, develop, analysis B) Aggressive, ?indirect, direct, assertive C) Analyze, interpret, define, adapt D) ?Attention, interest, desire, action
Organizational authority has all of the following characteristics except:
A. It is used vertically. B. It is invested in a person's position. C. It is accepted by subordinates. D. It is used horizontally.
Small businesses are enabled to compete on the global stage by all of the following EXCEPT this:
a. Increased trade barriers b. Ease of access c. Ample suppliers d. Available communications