Planning Production and Inventory by Using Material Requirements Planning System

Abstract

Competition pressures are forcing manufacturing companies to continuously seek new ways to manage their production capabilities more effectively in order to meet the demands of the market. In addition, to fulfillment of consumer needs and faster delivery times require efficient manufacturing controls and planning to ensure that productivity is maintained, stocks are minimized and resources are optimized. Part of management's drive in an organization is to ensure future sustainability. This involves the introduction and ongoing investment into advanced computerized information systems that can assist management across core production functions. This includes inventory control, order management, production scheduling and financial management and the cross-linking thereof. One such system that supports these activities is MRP. This research aims at illustrating how production is planned with the material requirements planning MRP as this system includes benefits and multiple objectives. Also, it is an attempt to apply this system on wafrapharma laboratories industrial firm. The context of this company was studied before and after the implementation of MRP. The guidelines for successful system implementation are the level of MRP usage in the company, the problems encountered, and the resulting benefits. Some of the findings indicate that the MRP system reduces inventories, improves deliveries, and achieves better planning and control. This study concluded that the MRP system allows the firm to plan at a strategic level by identifying the manufacturing and sales plans of products.