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When MRP comes into play, material and schedule requirements would be generated.
Step 6- Capacity requirements planning; at this stage, the capacity requirement planning determine whether the firm has enough capacity (e.g. worker, space, money) to meet the schedules. Again, if schedules could not be met, some adjustment in the master production schedule would be required else requirements would be scheduled...
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worker, space, money) to meet the schedules. Again, if schedules could not be met, some adjustment in the master production schedule would be required else requirements would be scheduled.
Advantages of MRP II
The advantages of MRP II includes:
- Improved consistency in one-time customer delivery
- Reduction in purchasing cost due to fewer expedited shipments
- Fewer shortage and stockouts
- Increase customer service level
- Inventory reduction of one-fourth to one-third (cost reduced)
- Higher inventory turnover
- Improve responsiveness to demand changes
- Allowing more planning flexibility
- Minimization of workforce overtime
Problems in Implementation of MRP II
Implementation an MRP II system is a monumental effort...
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