is software that helps companies estimate the required quantities of raw materials, maintain inventory levels, and ensure manufacturing has all the items needed to make products to satisfy demand. MRP is one of the early inventory management systems and has been widely adopted by manufacturers.Compared to the world when MRP was introduced, when it was accepted to take several days for an MRP run, doing it quickly is critical.
Efficient communication and collaboration between the different functions of the business that impact MRP include warehouse management, procurement, production control and sales. These must be done effectively and can only happen if these functions are integrated into an ERP system.MRP can activate the replenishment of materials and parts when needed, thereby reducing excess inventory and improving cash flow.
Inventory information used to be reviewed and updated periodically. However, Industry 4.0 is shifting the periodic inventory review to a continuous inventory review, making the information available to MRP always up-to-date. Therefore, the need to keep inventory as a buffer against supplier uncertainties can be reduced.
MRP can use information from complex, multi-level Bills of Materials to improve decision-making for production and material requirements.
Technology Technology Latest News, Technology Technology Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: TechCentral - 🏆 8. / 71 Read more »