MRP
3. MATERIALS REQUIREMENT PLANNING (MRP)
Kruger & Ramphal (2009: 232) defines Material requirements planning (MRP) as “a computer-based information system used to schedule and order dependent-demand inventories.” Independent demand is demand for final products whereas dependent demand is demand for items that are subassemblies or component parts to be used in production of finished goods. In simpler terms, MRP is a production planning process that begins with the demand for finished products, and then plans the production step by step, of subassemblies and parts.
In the course of the early 1960’s, MRP was in its development stages and the system was known as MRP I (Kruger & Ramphal, 2009). MRP I enabled businesses to carry out rudimentary calculations concerning the volume of materials necessary for production and the time frame in which these resources were required (Kruger & Ramphal, 2009).
There were two basic inputs needed for the MRP I system:
1. An order book containing the verified orders for a given period of time
2. Sales forecasts of the business (Gallego, 2014 )
The system then confirmed which materials were required to deliver these orders as well as ensure that the materials were ordered in time. During the 1980’s and 1990’s, the model of MRP was expanded and improved to warrant the amalgamation of all functions of the business, it was at this stage that the MRP I system was retitled to MRP II (Kruger & Ramphal, 2009).
MRP II is a wholly assimilated system, which is interactive, offering two-way communication between the system and its users, and can operate in real time, meaning that when any alterations are made to documents - say order sizes or delivery dates- on the system, these modifications are replicated immediately (Kruger & Ramphal, 2009). Contemporary businesses utilise MRP systems when they aim to decrease inventory stocks, expand capacity, and hence grow profits (Heizer & Render, 2011).
MRP strives to:
Guarantee the accessibility of
Kruger & Ramphal (2009: 232) defines Material requirements planning (MRP) as “a computer-based information system used to schedule and order dependent-demand inventories.” Independent demand is demand for final products whereas dependent demand is demand for items that are subassemblies or component parts to be used in production of finished goods. In simpler terms, MRP is a production planning process that begins with the demand for finished products, and then plans the production step by step, of subassemblies and parts.
In the course of the early 1960’s, MRP was in its development stages and the system was known as MRP I (Kruger & Ramphal, 2009). MRP I enabled businesses to carry out rudimentary calculations concerning the volume of materials necessary for production and the time frame in which these resources were required (Kruger & Ramphal, 2009).
There were two basic inputs needed for the MRP I system:
1. An order book containing the verified orders for a given period of time
2. Sales forecasts of the business (Gallego, 2014 )
The system then confirmed which materials were required to deliver these orders as well as ensure that the materials were ordered in time. During the 1980’s and 1990’s, the model of MRP was expanded and improved to warrant the amalgamation of all functions of the business, it was at this stage that the MRP I system was retitled to MRP II (Kruger & Ramphal, 2009).
MRP II is a wholly assimilated system, which is interactive, offering two-way communication between the system and its users, and can operate in real time, meaning that when any alterations are made to documents - say order sizes or delivery dates- on the system, these modifications are replicated immediately (Kruger & Ramphal, 2009). Contemporary businesses utilise MRP systems when they aim to decrease inventory stocks, expand capacity, and hence grow profits (Heizer & Render, 2011).
MRP strives to:
Guarantee the accessibility of