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What are the benefits and challenges with the implantation of a Material requirement planning (MRP) system?

      

What are the benefits and challenges with the implantation of a Material requirement planning (MRP) system?

  

Answers


Dicktamba
Benefits of Material requirement planning
1.It enhances on time availability of the right materials required for production.
2.Little, if any, excess inventory.
3.Timely delivery of manufactured goods to your customers.
4.Decrease in capital cost due to decreased inventory levels and optimal use of production resources.
5.Collecting business data for analysis and better planning.

Challenges of Material requirement planning
1. MRP is definitely suitable for make-to-stock manufacturers thus disadvantaging the other manufacturers.
2.Although make-to-order and mixed-mode manufactures benefit from MRP, this happens to the extent that their production lots are medium to large and the product does not vary much.
3.With MRP, you have to keep clean records and enter precise data. With the benefit of getting suggestions what, how much and when to buy or manufacture comes the responsibility of keeping stock and production records.
4.When you are an engineer-to-order or a project based manufacture, MRP is valuable if your product is quite complex, a longer production cycle and your CAD/CAM software can generate and export the product specification to the MRP program
aluuz answered the question on August 19, 2019 at 12:09


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