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Case Study: Material requirements planning (MRP) is a computerized inventory control and production planning system. The primary goal of an MRP system is to make sure that materials are available when a company needs them. It is also used to minimize unnecessary inventory, which can lead to significant cost savings.
Assume that you work for a company that manufactures and sells nuts and bolts. Your products are typically small, but customers often require large orders with a quick turnaround time. There is little room for error on the floor where inventory is handled. Your manager has come to you with information about mix-ups in recent orders and some struggles with meeting deadlines with shipping times.
Question: Review Material Requirements Planning (MRP), and answer the following questions:
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