Organizations Implement Materials Requirement Planning ( Mrp ) For Effective Management Of Operations

3156 Words Feb 1st, 2015 13 Pages
Organizations implement Materials Requirement Planning (MRP) for effective management of operations. The MRP software is available from vendors like SAP, Oracle Apps etc. It is also known as enterprise resource planning which integrates various departments and business process. The modern organizations are enhancing their productivity by adopting MRP though latest software for example Ford motors had integrated its operations function with its suppliers through Oracle Apps. According to Vonderembse & White (2013) the managers are using computer technology and using latest software to improve productivity in the organizations. The innovations, research & development and competition are major reasons for implementing MRP in operations management. But from the other side the MRP had reduced the importnace of employees in organizations because they are automatically performing major tasks which are earlier performed by manual systems for example a purchase manager used to play a important role but know the ERP systems are performing those tasks. However the productivity of organizations had increased in the present business world with these latest MRP systems. The Materials Requirement Planning (MRP) needs master schedule, bill of materials (BOM), and inventory data to plan for subassemblies and parts (Vonderembse & White, 2013).
In this paper the MRP of Space Age Furniture Company is discussed and recommendations and suggestions are given to the company for effective…
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