Most of the SMEs today are facing problems in inventory control, delayed production, delayed in delivery and many such problems, this causes excess or shortage of materials in inventory, departments not getting materials in stipulated time and unhappiness of employees as well as customers
But why are such problems so common in SMEs?
These problems arise as a result of improper planning and management of materials. If proper planning is done, industries will know how much inventory to keep, causes of delay and estimate the correct time of delivery. This will help in preventing production de...
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material requirement planning
Material Requirement Planning
What is Material Requirement Planning (MRP)?
Material Requirement Planning (MRP) is a system used for planning, production & inventory control. It integrates data of production schedules with inventory and BOM to calculate purchasing and shipping schedules for the materials that are required to build the final product. The three basic steps of MRP are:-
Determine Quantity Requirements: Determine what quantity is on hand, in an open purchase order, planned for manufacturing, already committed to existing orders, and forecasted. These requirements are specific to each company and each...
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Evolution of ERP
Steps in the Evolution of ERP
ERP is one of the major part of an industry and using it correctly will help in making the industry more efficient and optimize their supply chain, however ERP didn't came to be suddenly, evolution of ERP occurred in a timely manner and it evolved as time passed and finally came into the form we know.
It started in the form of a inventory control system in 1960. Looking at how beneficial a computer based database is for industries and in response to Toyota manufacturing program Joseph Orlicky developed material requirements planning (MRP) in 1964. The first co...
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