Material Requirements Planning: A Study.
MASSACHUSETTS INST OF TECH CAMBRIDGE OPERATIONS RESEARCH CENTER
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Inventory management techniques have gained in importance in the past few years because of the cash crunch being faced by most companies. Material Requirements Planning MRP is gaining rapidly in popularity, specially after the APICS American Production and Inventory Control Society MRP Crusade. The technique is being presented as if it were the cure for all ills. The purpose of this report is to identify a number of issues that are relevant to MRP and, wherever possible, to propose an approach. Another purpose is to study how firms tackle these issues and to present real-life implementation characteristics. With this in mind, seven firms were interviewed personally. The study concludes that the issues are largely unresolved in industry and whatever benefits are accruing are mostly due only to better timing information generated by the explosion process rather than any other formal procedures. It follows that further benefits are achievable if the issues are tackled in a scientific manner.
- Administration and Management