Objectives of MRP:

MRP has become a valuable planning tool for most of the manufacturing units around the world. After implementing MRP, common advantages are increased inventory turns, more delivery promises meeting, fewer orders that need to be splitted because of material shortages, fewer expediters required, and shorter lead times in delivering the products. The objectives of MRP are to:

1. improve customer service

2. reduce inventory investment

3. improve plant operating efficiency

To Improve Customer Service

Developing customer service means to supply more products than just required when customer orders are received. To have satisfied customers also means meeting delivery promises and shortening delivery times. Not only does MRP provide the necessary management information to make delivery promises that may be kept, but also the promises are locked into the MRP control system that guides production. Therefore, promised delivery dates become the goal to be met by the organization, and the probability of meeting promised delivery dates is improved.