5. What is M.R.P.?
A computer-based production planning and
inventory control system.
It is a material control system that attempts to
keep adequate inventory levels.
It is to assure that required materials are available
when needed.
6. MRP is the part of ERP that
deals specifically with the
control and management of
manufacturing inventories and
the products produced by those
inventories.
8. FORECASTING
• One of the primary functions of MRP.
• This requires manufacturing activities, such as
1. Inventory levels.
2. Production schedule.
3. Customer demand.
• Then forecasts the level at which inventory should be
purchased and manufactured.
9. REDUCING WASTE
• Reducing the amount of unused materials or products
• The system combines data from current production
levels and customer demand.
• To determine the optimum level of materials and
finished products.
10. FLOOR CONTROL AND SCHEDULING
• The same data used by MRP to forecast materials and
reduce waste.
• Can also be used to manage and maintain shop floor
control and manufacturing scheduling.
• If adjustments need to be made the MRP system can
automatically make those changes
18. "Manufacturing organizations, whatever their
products, face the same daily practical problem -
that customers want products to be available in a
shorter time than it takes to make them. This
means that some level of planning is required."
19. • Reduced per unit cost of production.
• Low inventory levels.
• Better response to market demand.
• Better customer service.
• Improvement in capacity allocation and planning
20. • High costs and technical complexities.
• Installation of necessary equipment(computer).
• Planning and implementing.
• Data entry and file maintenance.
