Week 2 –
Assignment: Document an Operational Plan for MRP
Material requirements planning (MRP) is a challenging
process that sometimes puts you between a rock and a hard place. Ordering too
much material costs money in storage and waste. Ordering too little can cause
clients to seek products from alternative sources. Of course, some
circumstances contradict the prior statement. For example, you would order
more products based on cost savings on a volume purchase in some cases, which
would offset the additional costs of storage and waste.
MRP
applies to every industry, whether it’s a small independent bicycle
dealership or a major corporation providing products globally. The two
underlying components of MRP are customers and resources. Connecting and
distributing the resources to the customers while minimizing cost is the real
benefit of an effective MRP program.
For
this assignment, you will compare and contrast two material requirement
plans. In your paper, be sure to address the following:
· Provide a full definition and explanation of MRP and its
practical application.
· Identify one large distributor such as Walmart, Costco,
Sam’s Club, and one small distributor or mom-and-pop shop.
· Explain the strategies utilized by a large distributor and
a small distributor in context to an MRP.
· Identify the variances and the requirements of an MRP.
· Create a flowchart representing the acquisition of goods
and products for both the large and small distributors.
References:
Include a minimum of 6 scholarly references.
