Q-3. What is a materials requirements planning system? How can an mrp system help an organization?
Answers
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Materials requirements planning (MRP) system is a software-based solution that works backwards from customer orders to determine when materials will be needed for production and then initiates their purchase to have delivery coincide with upcoming manufacturing runs and scheduled product delivery dates.
The basic functions of an MRP system include: inventory control, bill of material processing, and elementary scheduling. MRP helps organizations to maintain low inventory levels. It is used to plan manufacturing, purchasing and delivering activities.
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Answer:
The basic functions of an MRP system include: inventory control, bill of material processing, and elementary scheduling. MRP helps organizations to maintain low inventory levels. It is used to plan manufacturing, purchasing and delivering activities.