Material Resource Planning

In: Business and Management

Submitted By guidtwo
Words 441
Pages 2
MRP II is manufacturing resource planning. MRP II provides planning for many areas of manufacturing companies which includes purchasing, inventory, material planning, shop floor scheduling, capacity planning, and accounting. MRP II allows for standardization and streamlines automation of business processes which leads to improvements in cost control and revenue.
The MRP system assists the manufacturing company by suggesting purchase orders to be placed and exactly when to place them so that the materials required for the specific task arrive on time. The MRP system also recommends a start date for each work task required to perform the job. By knowing the materials needed parts and the start dates of the work tasks means that it is possible to pinpoint material shortages before they occur so that they can be avoided rather than finding out when it’s too late.
MRP systems assists companies particularly manufacturing companies in various ways, the most important contribution that the MRP inventory system gives are in:
• On-time material ordering which reduces expediting and material shortages.
• Combining of material orders to suppliers which reduces order placement.
• Real time planning of work which reduces rescheduling and increase productivity.
• Makes company information more integrated and gives it the accessibility which improves task specific progress.
Advantages: MRP II helps to standardize business processes by providing the business with automated methods for many different areas of the business. This eventually leads to an overall standardization which will lead to repeated processes and create a platform for improving those processes. A company that implements MRP II for the very first time is going to experience problems initially controlling the increase in selling transactions, as well as the manufacturing and purchasing that is associated…...

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