Sample Business Studies Research Paper on Materials Planning

Materials Planning

Fundamental principles for understanding the concept of material requirements planning

  • MRP plans and controls manufacturing of dependent-demand inventory items
  • Inventory control system
  • Production and inventory control system
  • Enterprise resource planning system
  • There are 3 principal inputs of part-explosions
  • Master schedule
  • BOM
  • Inventory records
  • Two principal outputs
  • Purchase orders
  • Shop orders
  • Both the input and out put systems use MRP
  • Master schedules should consider both marketing and production
  • A realistic plan should be represented
  • Use S & OP and master schedule for planning and controlling the business
  • Accuracy is important in the entire inventory record system
  • Steady planning, significant resource, and patience in execution is advised
  • Shop floor control inhibits the flow of materials through the factory
  • Promotes effective utilization of time while manufacturing is taking place.
  • When properly managed, safety stock can be eliminated.
  • For a MRP to succeed;
  • Implementation planning should be done
  • There should be reliable computer support
  • There should be sufficient management support
  • User knowledge is also key
  • People and systems should be devised to successfully be solved by MRP
  • The benefits include;
  • Reduced inventory
  • Increased customer service
  • Improved efficiency
  • If properly installed, all manufacturing and service firms can benefit
  • Both large and small firms benefit
  • The information integrated can be used for:
  • Marketing
  • Sales
  • Finance/accounting
  • Human resource management
  • ERP systems are very popular
  • ERP systems can be integrated with suppliers and customers
  • ERP systems are expensive and time consuming during implementation
  • Their failures are uncommon