Material Requirement Planning System Assignment Case Study

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Material Requirement Planning System’s Inputs and Outputs

Material requirements planning is the system for turning master schedule requirements for end items into time-phased requirements for subassemblies, components, and raw materials. Inputs and outputs are affecting the MRP and its efficiency. The inputs required to build a system are a master schedule formed by orders and forecasts, design changes plan process with a bill of materials, and inventory records containing receipts and withdrawals (Stevenson, 2014). When MRP is set up and used, several outcomes appear, and they can be divided into primary and secondary reports and an inventory transaction. Primary outputs are changes, order releases, and planned-order schedules, and the secondary ones are the exception, planning, and performance-control reports (Stevenson, 2014). The proper translation of master requirements can help successfully manage the order and appliance of assemblies and raw materials.

Differences between Regenerative and Net-Change MRP Systems

MPR can be updated via the two most useful systems: regenerative and net-change approaches. The main difference between these practices is that the regenerative system edits MRP’s data periodically, while the net-change one does it continuously (Stevenson, 2014). The regenerative method is based on picking an interval and complying with the changes in all aspects to discover what MPR’s updates to make (Stevenson, 2014). The net-change approach modifies a system after every requirement of change on a continuous basis (Stevenson, 2014). The regenerative system is the most suitable for managing stable MRPs, while the net-change method can deal with the inconsistent ones.

Benefits and Limitations of MRP as a Push-System

MRP is a push system that helps determine the costs, quantities, and availability requirements in a time-based manner so that the results can be forecasted and then achieved. This operation method’s benefits are low demand for in-process updates, the ability to manage material and capacity requirements, the allocation of production time, and the potential to determine the inventory usage (Stevenson, 2014). MRP implementation’s main limitation is the necessity to have a computer with the software capable of handling calculations and maintaining records. Moreover, the system can only be applied if accurate and approved master schedules, bills, and inventory records are properly collected (Stevenson, 2014). Any inexact piece of data can lead the companies to significant order, production, and delivery issues.

Reference

Stevenson, W. (2014). Operations Management. (12th ed.). McGraw-Hill Higher Education.

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