Individual Project
MRP, ERP & Supply Chain Management
Course Title: Operations Management
Course Code: MBA505
Section: 02
Submission To
Wazir A F Ahmad
ULAB School of Business
Submission By
Name
ID
Shaikh Khadija
:
183 051028
Submission Date: 20 April 2020
A. MRP and ERP
Material Requirements Planning (MRP) is a method of computer technology by which
inventory management system designed to support production managers in arrangement and
placing orders for items of dependent demand. Dependent demand items are aspects of
completed goods such as raw materials, component parts, and subassemblies for which the
amount of inventory needed depends on the level of production of the final product. For
example, in a plant that manufactured bicycles, dependent demand inventory items might include
aluminium, tires, seats, and bike chains.
By Material Resources Planning (MRP), dependent demand inventories are computed and
managed, which considers not only the quantities of each of the component parts needed, but
also the lead times needed to produce and receive the items.
