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Material Resource Planning Systems

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The CEO of the organization has commissioned a task force to investigate and determine whether a material resource planning (MRP) system should be considered for the organization.

What is the MRP system, and what are its capabilities?
How is the system useful to an organization? What are the pros and cons of this system?

Sample Web sites are as follows:
Sample MRP 1 http://www.oracle.com/index.html--- Oracle Engineered Systems
Extreme, optimized performance for all aspects of your business.
Sample MRP 2 http://www.compaire.com/--- A great name like compaire.com can pay for itself many times over.
Sample MRP 3 http://www.jfire.net/---- JFire is an Enterprise Resource Planning and Customer Relationship Management system.
Sample MRP 4 http://www.ecisolutions.com/-- Software Solutions. the leader in industry specific business software
Group Portion: After each group member has conducted individual research on an MRP system, the group will review each individual's research and address the following:
Explain the pros and cons of each system as it relates to plant management,
Identify, as a group, the best MRP, Explain why this MRP is the best choice for effective plant management
Charts and/or tables should be included to show the pros and cons of each system.

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Solution Preview

Since there is no indication of the industry or business I can only outline the basics, which I have done here. If you have any further questions, please ask.

Ecisolutions offers a manufacturing ERP system that is integrated and expandable, with customized modules to fit the business needs. Offering an integrated system streamlines the processes of the manufacturer and means less problems than using different software packages for different jobs or departments. The ECi software works for manufacturers and can be modified for different types of manufacturing or different size organizations.

The software program makes scheduling production more efficient, while making the best use of resources when creating schedules. It helps to ...

Solution Summary

This solution provides a description of material resource planning systems, its capabilities, and the pros and cons of the system.

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Organizations are often plagued with the deterrent of unpredictability within the supply/demand chain. An organization's positioning in the marketplace will determine the level of comprehensive planning and level of inventory control management that is required for maintaining daily operations. For example, organizations within the electronics industry must be aware of the constant need to upgrade products and services to meet overwhelming consumer demands, yet remain knowledgeable of the organizations current inventory structure, i.e., product shelf life- cycle, as well as product replenishment cycles. Many organizations utilize JIT (Just-In-Time) as a means of eliminating excessive waste of unsold products and outdated materials. Another example is in the publishing industry, in which case authors and publishers opt to function as a P.O.D. (Print-on-Demand) provider. P.O.D. is a metOrganizations are often plagued with the deterrent of unpredictability within the supply/demand chain.

Organizations are often plagued with the deterrent of unpredictability within the supply/demand chain. An organization's positioning in the marketplace will determine the level of comprehensive planning and level of inventory control management that is required for maintaining daily operations. For example, organizations within the electronics industry must be aware of the constant need to upgrade products and services to meet overwhelming consumer demands, yet remain knowledgeable of the organizations current inventory structure, i.e., product shelf life- cycle, as well as product replenishment cycles. Many organizations utilize JIT (Just-In-Time) as a means of eliminating excessive waste of unsold products and outdated materials. Another example is in the publishing industry, in which case authors and publishers opt to function as a P.O.D. (Print-on-Demand) provider. P.O.D. is a metOrganizations are often plagued with the deterrent of unpredictability within the supply/demand chain.

An organization's positioning in the marketplace will determine the level of comprehensive planning and level of inventory control management that is required for maintaining daily operations. For example, organizations within the electronics industry must be aware of the constant need to upgrade products and services to meet overwhelming consumer demands, yet remain knowledgeable of the organizations current inventory structure, i.e., product shelf life- cycle, as well as product replenishment cycles. Many organizations utilize JIT (Just-In-Time) as a means of eliminating excessive waste of unsold products and outdated materials. Another example is in the publishing industry, in which case authors and publishers opt to function as a P.O.D. (Print-on-Demand) provider. P.O.D. is a method in which organizations reduce inventory while simultaneously meeting or exceeding consumer demand for publication resources. For instance, a writer will prepare a document for publication, and determine the method in which he/she would want to publish that document.

The author may have a couple of options that may include; working with a traditional publishing house, or self-publishing. If the author decides to self-publish, for example, his/her product will be available based on consumer demand instead of having excess products sitting on store shelves taking up space. P.O.D. eliminates unnecessary inventory and gives consumers the option of purchasing the author of choice found within the organizations online storefront. In most cases, P.O.D. contributed to the closures of several bookstores unable to compete in an e-commerce dominant marketplace. Most organizations lose profitability when unused inventory remains on the shelves; in essence, unused inventory is more of a liability to an organization considering the fact that an organization is obligated gets rid of unused inventory. Many organizations liquidate as a result of poor planning, mismanagement of control processes, or misappropriation of funds, or exceeding debt. Another example of organizations that exercise an alternative method of controlling inventory is AVON.

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