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Explain how material requirements planning (MRP) works in the production department.

Tesy

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6 years ago

Explain how material requirements planning (MRP) works in the production department.

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Business Essentials, Canadian Edition

Edition: 8^th

Authors: Ebert, Griffin, Starke, Dracopoulos

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saltie

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6 years ago

MRP seeks to deliver the right amounts of materials to the right place at the right time. MRP uses a bill of materials as a "recipe" for the finished products. Use of MRP results in fewer early arrivals, less frequent stock shortages, and lower storage costs. MRP is popular among companies whose products require complicated assembly and fabrication activities. MRP II is an advanced version of MRP; it ties all parts of the organization into the company's production activities.

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