Unit 4 Discussion – Material requirements planning (MRP)
Unit 4 – Discussion Board (75 points)
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For this Discussion Board, please complete the following:
Material requirements planning (MRP) is a computerized inventory control and production planning system. The primary goal of an MRP system is to make sure that materials are available when a company needs them. It is also used to minimize unnecessary inventory, which can lead to significant cost savings.
Assume that you work for a company that manufactures and sells nuts and bolts. Your products are typically small, but customers often require large orders with a quick turnaround time. There is little room for error on the floor where inventory is handled. Your manager has come to you with information about mix-ups in recent orders and some struggles with meeting deadlines with shipping times.
Review Material Requirements Planning (MRP), and answer the following questions:
- Discuss the elements of a material control system. Explain the information you would need to create a material requirements plan for this company.
- Under which type of production environment do you think an MRP system is most useful? Provide an example.
- What challenges may occur when using projected production levels to produce an MRP? Use examples for support.
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