Will MRP work for you ?

Company A - basic assembly operation,

all parts and sub assemblies are
purchased externally and assembled.
Here the finished goods are kept in a
distribution system.
Master schedule explodes the
requirements and offset lead times for
purchased parts and subassemblies.

 Here the main focus is on planning

the production while controlling the
distribution system inventories.
It concentrates on avoiding stockouts
at distribution centres , smoothness
of production rates, maintenance of
supply of purchased components to
avoid shutdowns.

 Company B general machine shop.

Products are made to order and
customer specification.
Focus is to meet the promised due
dates, coordinate the design,
manufacturing, and engineering
functions with production and
schedule the flow of material and
work from one machine centre to
another.

 Important control variables over here

are percentage of deliveries made on
time, level of in process inventories
,length of time between customer
orders and delivery time and max.
utilisation of machines and
manpower.
MRP can help offset lead times for
materials requirement and help
control the acquisition of materials.

 Company C is a fabrication and

assembly operation.
MRP must serve as link between
fabrication and assembly as well as
between assembly and distribution