Fundamentals of material requirements planning

Outlines the concept of material requirements planning (MRP), showing how the tool offers management the capability to identify the products that were actually going to be produced. Explains how the system formalized and integrated various production and strategic requirements while quantifying usable output in an efficient manner. Considers the development of MRP II and how this encompasses several identifiable variables including reduced inventory, improved customer service, improved direct labour productivity and reduced purchased costs. Provides some practical examples of application.