MATERIAL REQUIREMENTS PLANNING SYSTEM:
The purpose of this system is to provide the information and control for the company to plan and manage effectively the production and execution of the sales forecast and master schedule.
The information derived from this system not only indicates the material requirements and order processing necessary to meet a company's plan, but also assists management in planning and monitoring cash flow.
Specific management objectives are:
- To minimize the amount of inventory on-hand and on-order to support the master production schedule;
- To plan purchases and production with the correct timing and priority;
- To determine the cost impact of executing the master production schedule.
|