Shortcomings Associated With MRP:

MRP is a closed production system with two major inputs:

1. the master production schedule for the end item, and

2. the relationships among the several components, modules, and subassemblies comprising the production process for that end item.

The method is logical and seemingly sensible for scheduling production lot sizes. Though, many of the assumptions made are unrealistic. Now we shall discuss some of these assumptions, the problems that arise as a result of them, and the methodology for dealing with these problems. Main shortcomings associated with MRP are uncertainty, and capacity planning.