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Material requirements Planning (MRP) is a manufacturing management system that helps manufacturers deal with production planning, planning and inventory control. MRP is also used interchangeably to refer to manufacturing resource planning, which is actually MRP II. Today, manufacturers in various industries have been using MRP systems for nearly 30 years.

The computerization and data technology of the digital age have promoted MRP to a vital production tool, bringing many benefits to manufacturers. These are the eight advantages of MRP system.

Inventory control

Inventory management is very important to achieve production efficiency. The MRP system uses the data in the production plan to determine the exact inventory level and cost needed to meet the demand. The MRP system can maintain the optimal inventory level of parts and materials, thereby reducing inventory carrying costs. In this process, this can reduce and optimize inventory costs during production.

Purchase plan

Simplifying the production process also depends to a large extent on knowing what products are available, what products are purchased and when they are purchased. Procurement planning requires an intelligent system to track production steps and identify any required purchases, while checking with production plans and expected material deliveries. The purchasing manager configures MRP to automatically contact the supplier when a purchase is needed.

planned production

MRP system can detect the bottleneck caused by shortage or material reduction in the production line. When this happens, the system can change the production route or suggest that it be changed to the production route of other products that can provide materials. MRP can also focus on a particular stage of production at the expense of insufficient raw materials and parts at another stage. Even if there are material availability limitations, MRP can help manufacturers plan their production lines.

Work arrangement

The work plan manages the production time of the activity, forecasts the expected output and compliance with the production plan. MRP uses available inventory to draw a large picture of the production process. Managers can use this information to control hourly operations, equipment and human tasks, and even accurately predict labor time and operating costs.

Resource management

Raw materials are the lifeblood of any manufacturing process. Access to control and readiness information on raw material availability and expected production can also give manufacturers an understanding of other resources involved in the process. Efficiency is the key. The information in the MRP system tells the manufacturer when to need what equipment, when to need additional labor, and whether to lease or purchase operating assets.

Data management and documentation

Manufacturing involves the generation, analysis and representation of large amounts of data. The MRP system assists the manufacturer in processing this information. MRP processes and records purchase data, inventory data, delivery and cash flow data as receipts, invoices, lists, reports and other easily organized presentations.

Economic procurement

The system takes into account the quantity and cost of materials required-including transportation, storage and handling costs-to propose the most economical and feasible way to buy to meet the demand. MRP system can optimize procurement economically and efficiently and save unnecessary procurement costs for manufacturers.

Save time

The MRP system is fully automated and requires little human intervention. This can save a lot of labor time originally used for inventory, purchasing and production management. The accuracy of these systems far exceeds that of any error-prone manual method. It also manages and stores production data, eliminating the need for the entire department.

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