Unit 4 Discussion -Material requirements planning (MRP)

Unit 4 - Discussion Board (75 points)

For this Discussion Board, please complete the following:

Material requirements planning (MRP) is a computerized inventory control and production planning system. The primary goal of an MRP system is to make sure that materials are available when a company needs them. It is also used to minimize unnecessary inventory, which can lead to significant cost savings.

Assume that you work for a company that manufactures and sells nuts and bolts. Your products are typically small, but customers often require large orders with a quick turnaround time. There is little room for error on the floor where inventory is handled. Your manager has come to you with information about mix-ups in recent orders and some struggles with meeting deadlines with shipping times.

Review Material Requirements Planning (MRP), and answer the following questions:

• Discuss the elements of a material control system. Explain the information you would need to create a material requirements plan for this company.
• Under which type of production environment do you think an MRP system is most useful? Provide an example.
• What challenges may occur when using projected production levels to produce an MRP? Use examples for support.