Operations Management paper



Operations Management paper

MRP system

MRP (Material Requirement Planning) is a computer based system for inventory management designed to help production managers in setting up and placing orders for products of dependent demand. Items of dependent demand are elements of finished goods such as component parts, raw materials and subassemblies for which the quantity of inventory required is based on the level of production of the finished product. For instance, in a process of manufacturing bicycles, dependent demand items of inventory may incorporate tires, aluminum, bike chains and seats (Grubbström, 1996).

Benefits and Requirements of MRP

Benefits

A number of potential benefits are ...