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Archive for November 7th, 2008

MRP Does Work … A Real Story

November 07, 2008 By: Ramlee Ibrahim Category: Inventory Management Comments Off

Several years ago, an electronics original equipment manufacturer company hired me to salvage its investment in an MRP system. The company had recently been awarded a large contract on the condition it follow an aggressive timetable for the product launch.

After the annual shutdown, a group of concerned employees was waiting for me in my office. The buyer informed me that MRP failed to generate the requirements for the new product and suggested MRP “may work for some products but just doesn’t work for ours.” One of the planners also explained that MRP had generated requirements for old part numbers but the newly created part numbers were missing from the MRP run.