MRP II
While MRP I primarily address the inbound flow of inventory (materials management), MRP II adds other interfaces such as finance, marketing, and integrated logistics. Like MRP I, MRP II is a push inventory model which pushes product through manufacturing and distribution processes in order to meet forecast demand. However, it adds further dimensions to the basic model. MRP II not only considers the inbound flow of material, but also how much material can actually be handle within the plant. Furthermore, it actually handles production scheduling, labour needs, inventory budgets, and personnel needs. But the most important feature is the addition of the finance interface. This module provides the capability of transforming the operating production plans into financial terms, consequently the data can be used for financial planning and control purposes of a more general management nature. Another significant addition is the simulation module. This simulation capability enables management to perform a more comprehensive alternative planing work in developing the marketing and business plans. Operating variable could be regulated to examine the systemwide response to the proposed operating change.
All MRP II data must be accurate to ensure system integrity, but the inventory data are the most difficult to maintain because they change frequency. The MRP II inventory data must be compared periodically with the actual physical inventory to maintain accuracy. Periodic counting involves more than just counting parts. Forges must maintain proper housekeeping so that parts are properly located, accessible and identified. When implementing MRP II for the first time, getting inventory under control can be a formidable task. APICS THE PERFORMANCE ADVANTAGE, September 1997, Volume &, Number 9. Step 5- Material requirements planning (MRP); MRP is the heart of the entire process (MRP II). When MRP comes into play, material and schedule requirements would be generated. entire set of activities involved in the planning and control of production operations. It consists of a variety of functions of modules and includes production planing, resource requirement planning, master production scheduling, materials requirements planning (MRP I), shop floor control, and purchasing. - Improve responsiveness to demand changes
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Approximate Word count = 1586
Approximate Pages = 6 (250 words per page double spaced)
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