How To Improve MRP Systems To Reduce Cost And Deliver Satisfaction To Customer: A Case Study

Abstract

This paper is report of an application integrated in an MRP system and implemented to reduce inventory and its costs. The current system problems were the time needed to develop order packages, abiding by the business rules for order packages, and the animosity the current methods was creating between the supply chain and manufacturing. A package tool was created to help solve these problems. The package tool allows users to select criteria and view exception reports. Implementing this tool resulted in a dramatic increase in meeting customer requested shipping dates and decreased the amount of time spent developing order packages. Use of the tool also resulted in greater compliance with the business rules. Payback occurred in 3.69 months. This experience proves that creative thinking can result in BRP that pays.