Today we continue our talk on Material Requirements Planning. Still today we have discussed already Material Requirements Planning in briefly and also discussed the Outputs of Material Requirements Planning. We are discussing on Problems with Material Requirements Planning system.
Production may be in progress for some part, whose design gets changed, with customer orders in the system for both the old design, and the new one, concurrently. The overall ERP system needs to have a system of coding parts such that the MRP will correctly calculate needs and tracking for both versions. Parts must be booked into and out of stores more regularly than the MRP calculations take place. Generally, MRP II refers to a system with integrated financials. An MRP II system can include finite / infinite capacity planning. But, to be considered a true MRP II system must also include financials.
In the MRP II (or MRP2) concept, fluctuations in forecast data are taken into account by including simulation of the master production schedule, thus creating a long-term control. A more general feature of MRP2 is its extension to purchasing, to marketing and to finance (integration of all the function of the company), ERP has been the next step.
Tags: ERP, ERP Systems, Finance, Material Requirements Planning, MRP, MRP Calculations, Production schedule
