Material Requirement Planning

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Material Requirement Planning

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Introduction

• Material Requirement Planning or MRP is
  inventory control and computer-based system of
  production planning. Material requirement
  planning is concerned with the control of
  inventory as well as scheduling of production
  (Fleischmann et al., 2015). MRP controls the
  level of inventory and ensures that there is
  enough level of required materials is available
  when needed. MRP is a very important system which
  is applicable in conditions of numerous items
  with complex bills of materials (Fleischmann et
  al., 2015).

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Objectives

• To ensure the availability of products,
  materials, and components for the purpose of
  planned production as well as for client delivery
• To attempt to keep the lowest possible inventory
  level
• To plan purchasing activities, schedule the
  delivery, and activities related to manufacturing
  
• Material requirement planning is
  particularly suitable to manufacturing settings
  where the demand of many of the subassemblies as
  well as components depends on the demand of
  objects which face demand from outside. The
  demand is independent of the ends items or
  finished products. On the other hand, the demand
  of the components which are used in the
  production of end items or final product is
  dependent on the demand of the final products
  (Fleischmann et al., 2015). .

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Types of MRP system

• There are three types of MRP systems
• Inventory Control System
• Inventory Control and Production System
• Enterprise Resource Planning System

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Key Points

• Material Requirement Planning is especially
  used to manage the level of inventory for the
  demand of the dependent items or components
  (Guillaume et al., 2017). The following are the
  key points
• A Material Requirement Planning is an
  information system which helps in managing the
  inventory level of dependent items or components
  (Guillaume et al., 2017). The MRP system helps in
  keeping enough level of required materials to
  support the manufacturing of the products. It is
  used to control and plan to manufacture of
  inventory items of dependent

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References

• Fleischmann, B., Meyr, H., Wagner, M.
  (2015). Advanced planning. In Supply chain
  management and advanced planning (pp. 71-95).
  Springer Berlin Heidelberg.
• Guillaume, R., Thierry, C., Zielinski, P.
  (2017). The robust material requirement is
  planning with a cumulative demand for
  uncertainty. International Journal of Production
  Research, 55(22), 6824-6845.