Florida Atlantic University Material Requirement Planning Discussion Responses

I’m working on a business question and need guidance to help me study.

Respond with 150 words – John

An MRP system is a production dependent technique also known as Materials Requirement Planning that is necessary for utilizing in organizations that carry a variety of products. MRP benefits organizations such as providing better customer response with orders through enhanced devotion to schedules, quickly responding to market changes, improved utilizing with labor and facilities, and maintaining reduced inventory (Heizer, Render, & Munson, 2017, p. 566). MRP systems are effective when the five following requirements are met: master production schedule (MPS), specifications or bill of material (BOM), inventory availability, purchase orders outstanding, and lead times. An MPS guides what is required by the aggregate plan which can consist of customer demand, financial data, variety of inputs, engineering capabilities, inventory fluctuations, supplier performance, and labor availability. MRP must also ensure scheduling goes in accordance with the aggregate plan, otherwise it won’t be able to disaggregate the plan successfully. For BOM, it lists the required materials, quantities of components, or ingredients to create the product and specifies any unique processing. In other words, BOM defines the creation of the product’s structure (Heizer, Render, & Munson, 2017, pp. 568-570). Inventory availability is essential for organizations to know what components or materials are on hand to ensure production is not interrupted by any shortages. Purchase orders outstanding depend on adequate information shared with production personnel so that orders can be produced and delivered in a timely manner. Lastly, lead times consist of when to begin production and the amount of time required to move, setup, and assemble to obtain the final product (Heizer, Render, & Munson, 2017, p. 570).

Respond with 150 words – Shilani

Material requirements planning (MRP) is a computer-based inventory management system designed to improve productivity for businesses. Companies use material requirements-planning systems to estimate quantities of raw materials and schedule their deliveries. There are five specific requirements to ensure that the MRP system is effective. A master production schedule is important in an MRP system because it specifies what is to be made and when. A bill of material is a list of quantities of components, ingredients, and materials required to make a product. Individual drawings describe not only physical dimensions but also any special processing as well as the raw material from which each part is made. Accurate inventory records is important in an MRP system because if the firm does not exceed 99% record accuracy, then material requirements planning will not work.Knowledge of outstanding orders exists as a by-product of well-managed purchasing and inventory-control departments. When purchase orders are executed, records of those orders and their scheduled delivery dates must be available to production personnel. Only with good purchasing data can managers prepare meaningful production plans and effectively execute an MRP system. The last part of an effective MRP system is lead times, which is aquiring products.