� � �Material Requirements Planning � PAGE �2�
Material Requirements Planning (MRP) System - Riordan Manufacturing
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University of Phoenix
BSA/375
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Abstract
At the request of the Chief Operations Officer and the Vice President Operations, Riordan Manufacturing, an evaluation was requested for the development of a Material Requirements Planning (MRP) system. The system is to track and manage raw materials as well as finished product inventory throughout Riordan Manufacturing. Overall, the objective of implementing an MRP is to reduce on hand raw materials and finished goods inventory costs. The intent of this paper is to provide summary information to upper management by demonstrating the business requirements definition for the development or acquisition of an MRP system to support this objective.�
Material Requirements Planning (MRP) System - Riordan Manufacturing
Introduction and Feasibility Study
At the request of the Chief Operations Officer and the Vice President Operations, an evaluation was requested for the development of a Material Requirements Planning (MRP) system.
The system is to track and manage raw materials as well as finished product inventory throughout Riordan Manufacturing.
The objective of implementing an MRP is to reduce on-hand raw materials and finished goods inventory costs. Since neither of these items are considered liquid assets, having an over supply of either on-hand can be considered a potential financial loss. An example of a loss condition would be a change in demand for a specific product. Implementing a MRP will allow for regressive analysis (Bandwidth Analysis) of supply and demand in sufficient detail to allow for a modest amount of raw materials and finished products to be kept on-hand or ordered monthly to satisfy customer demands without an increased lead time. (Stewart-Frazier Tools, Inc., 1996). One major advantage of Bandwidth Analysis will be the continual operation of all lines...