What is Traditional MRP (Material Requirements Planning)?

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What is Traditional MRP (Material Requirements Planning)?

Manufacturers, both small and large, who assess their business model must begin by considering how efficiently they handle some very basic questions. What quantity of raw materials do we need to produce our product at any given time and how accurately do we respond to this need? Are we continually ordering too much material and wasting money, or do we order too little and fail to complete orders on time? How much of our finished product do we need, and when is it needed? Are we getting our final product to customers on time or do we often get out orders late?

Questions like these spurred on the development of systems, first by hand with pen and paper and later with computers, called “material requirements planning” or “MRP.” MRP is a way to organize inventory requirements and production scheduling with the goal of having the most efficient and effective plan for purchasing, scheduling, and producing a product. MRP systems are used throughout the business world, not just in manufacturing, but the “product” can be a service or some other good – the basic principles of the system are the same.

MRP Today

With the advent of better computers, most MRP systems became software based and eventually became one part of a larger system called “enterprise resource planning” (ERP) which integrates all the aspects of a company’s operations into one efficient system. SMe Software is a company that provides this software to manufacturers who want a competitive edge. It is not a start-up company – for over twenty-five years they have produced quality ERP software for businesses that want to maximize their profits. The software produced by SMe Software has withstood the test of time and has been a major factor in the success of many companies. If you are part of a business that wants one of the most easy-to-use yet all-encompassing manufacturing management systems on the market today, then click SMARTer Manager – it might revolutionize your whole manufacturing enterprise.