SCM310 Unit 4 Discussion - Material requirements planning

SCM310

Unit 4 - Discussion Board (75 points)

Primary Response: Within the Discussion Board area, write 300–500 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.

For this Discussion Board, please complete the following:

Material requirements planning (MRP) is a computerized inventory control and production planning system. The primary goal of an MRP system is to make sure that materials are available when a company needs them. It is also used to minimize unnecessary inventory, which can lead to significant cost savings.

Assume that you work for a company that manufactures and sells nuts and bolts. Your products are typically small, but customers often require large orders with a quick turnaround time. There is little room for error on the floor where inventory is handled. Your manager has come to you with information about mix-ups in recent orders and some struggles with meeting deadlines with shipping times.

Review Material Requirements Planning (MRP), and answer the following questions:

• Discuss the elements of a material control system. Explain the information you would need to create a material requirements plan for this company.
• Under which type of production environment do you think an MRP system is most useful? Provide an example.
• What challenges may occur when using projected production levels to produce an MRP? Use examples for support.