Briefly discuss the requirements for effective MRP.
Expert Answer
Material requirement planning refers to the technique to calculate the requirements for materials and is used for multilevel planning. It has fixed lead times and the work is loaded into buckets of infinite size.
MRP system focus on meeting three objectives. They are: –
to make sure material is available for production.
to make sure products are available for delivery.
focus on maintaining the lowest possible inventory
The requirements of effective MRP include: –
Computer and software program essential for computing and maintaining records.
Master schedule, bill of requirement and inventory records.
Data should be filed with fairness.