Operations Management: Sustainability and Supply Chain Management, Twelfth Edition

MRP Management

Now let’s look at the dynamics and limitations of MRP.

MRP Dynamics

The inputs to MRP (the master schedule, BOM, lead times, purchasing, and inventory) frequently change. Conveniently, a central strength of MRP systems is timely and accurate replanning. However, many firms find they do not want to respond to minor scheduling or quantity changes even if they are aware of them. These frequent changes generate what is called system nervousness and can create havoc in purchasing and production departments if implemented. Consequently, OM personnel reduce such nervousness by evaluating the need and impact of changes prior to disseminating requests to other departments. Two tools are particularly helpful when trying to reduce MRP system ...