RUNNING HEADER: MRP – CASE ANALYSIS
1
MRP – CASE ANALYSIS
Name:
Instructor:
University attached:
DoS:
"Material Requirement Planning (MRP) is an essential tool for managing production
processes and inventory in manufacturing environments. In the case of Space Age, a furniture
company, MRP helps in addressing the scheduling and cost-related challenges. Considering
the issues highlighted in the case, such as the overtime costs, inventory holding costs, and the
challenges with machining part number 3079, explain how the implementation of MRP could
resolve these issues. Discuss the steps involved in MRP, such as establishing gross
requirements, determining net requirements, time-phasing, and releasing planned orders.
How can these steps optimize production and minimize costs in this scenario?"
Word Count Requirement: 800-1000 words

RUNNING HEADER: MRP – CASE ANALYSIS
2
Table of Contents
1. Introduction 3
2. Material Requirement Planning – A Background 3
3. Case / Problem Background 6
4. Solution 7
References 13
MRP – CASE ANALYSIS
1. Introduction
The purpose of this study is to discuss the case involving challenges and issues with
respect to the production process at a Furniture company. The challenges relate to the
scheduling of the production process that shares assembly processes and the cost
redundancies and tradeoffs between overtime salaries and inventory costs.
Operations and supply chain constitutes the critical function in any organization
which ensures the raw materials are sourced, processed and the end product/ services are then
delivered, all in a manner that is effective and efficient in both cost and quality terms.
However, these tasks are complicated and the challenges and issues faced by organizations
vary and depend upon their individual processes and quality standards. One of the most
judicious and effective tools in scheduling and managing production processes is Material
Requirement Planning (Russell & Bernard, 2000).
2. Material Requirement Planning – a Background
Material Requirement Planning (MRP) is a computer based production technique
which assists a company in the comprehensive planning of its production. MRP is concern
with both scheduling of production as well as control of inventory. It can be seen as a control

RUNNING HEADER: MRP – CASE ANALYSIS
3
system for materials which operate with an objective of keeping sufficient levels of inventory
in assuring that the essential materials are accessible when required. Material Requirement
Planning is most applicable in the case of circumstances that involve multiple sets of items
with an intricate bill of materials. Material Requirement Planning may not very relevant in
case of a job shop or else in case of processes that are continuous and which are linked tightly
(Russell & Bernard, 2000).
Some of the critical goals of the Material Requirement Planning systems are to
undertake simultaneously the following,
I. Ensuring availability, of the products, components, and materials for production
processes that are planned and for delivery to customers and other distribution centers.
II. Maintaining the lowest possible levels of inventories
III. Planning activities associated with manufacturing, schedules of delivery, and
activities of purchasing.
Material Requirement Planning is specifically applicable to production environments
wherein the demands of various set of components as well as the sub-assemblies reliever the
demand of materials which face demands from external sources. Demand in a case of end
items is not dependent. However, contrary, the demands for components utilized for
manufacturing the end items reliever the demands arising from end items. (Russell &
Bernard, 2000) stated that the differences between the demands that are dependent and
independent are crucial for categorizing the inventory items as well as the development of
systems for managing the items in each of the demand classifications. Material Requirement
Planning system is established for coping in a better manner with demand items that are
dependent.
Three of the critical inputs for a system of Material Requirement Planning are as
follows (I) schedule of master production, (ii) the records of product structure, and, (ii) the

MRP � Case Analysis: Optimizing Production and Cost Efficiency through Material Requirement Planning:

Study Now!

Document Details

Related Documents

Space Age Furniture Problem

Operations Management: Key Concepts and Core Principles

Value Chain Management and Outsourcing in Operations

Forecasting and Production Planning Module 3

Performance Measures and Quality Management in Operations

Inventory Analysis and Optimizing Staffing

Inventory Management and Aggregate Planning in Operations

Technology Systems and Innovations in Operations Management

Optimization of Profit in Pet Food Production Using Linear Programming

Operations Management and Decision Theory: A Comprehensive Analysis

Company

Explore

Study Tools