Production Planning using ERP - Essay Example

However it is not widespread these days, it is probable to carry out material requirements planning tasks by hand as well (Waldner & Duffin, 1992, p. 47). MRP is a procedure that comprises a number of fundamental business tasks and information across the business encompassing entire levels in the bill of materials, sales forecasts, sales orders, and inventory. With the help of MRP it can be decided accurately what as well as when materials are necessary to manufacture the most timely as well as competitively priced services and products for customers (GreenTree, 2009) and (Qiang, Khong, San, Jianguo, & Choy, 2001).

Beasley (2009) has stated that material requirements planning system is a material planning technique which appeared in 1970s by making use of information technology and computer technology. The major characteristics of material requirements planning are the formation of material necessities by means of exploding the bills of time-phasing and material of requirements by means of posted standard lead times (RockfordConsulting, 2009) and (Beasley, 2009). Material Requirements Planning II is acknowledged as the next generation of material requirements planning and it comprises the characteristics of closed loop system.

Through this system the production planning takes the fundamental and main schedule that force the material plan which is the main input to the business or manufacturing capacity plan. Feedback loops proffers input to the elevated levels like a reiterative procedure (RockfordConsulting, 2009). In material requirements planning II operation, forecasts are linked as well as synchronized for client orders, as well as supplied to the main/master scheduling module. When the master schedule is positioned, the material requirements planning procedure explodes the bills of material, usually on weekends or overnight, also builds up the material requirements.

The requirements or materials feed the capacity planning