Essay Database

What is MRP? Since before the Industrial Revolution there had been a need for a better inventory control system. In times before, people would use a system of either ordering their materials beforehand or by ordering their materials as needed. The problem with this was either there would be too much inventory or too little inventory to meet the demand needed. Large quantities of inventory can be very costly for purposes of warehousing and deterioration …

…themselves internally and externally. Internally, the organization would try and utilize the MRP-2 model across the organizations various departments. This meant that the finance department would be linked to the purchasing department. Who was in turn linked to the Human Resources Department. This process would go on and on until every department was completely linked to each other on every level. By doing this, it would eliminate all extra paperwork that accompanies a simple transaction.