Mrp systems and functions of mrp systems, Finance Basics

MRP systems and Functions of MRP systems

Where dependent demand exists, for example between finished product and its constituent parts, item forecasting or inventory control techniques based on EOQs are inappropriate for determining requirements. Also, the detailed scheduling of requirements for constituent parts becomes a more complex exercise. Independent demand, therefore, exists where demands are unrelated, such as between finished products and replacement parts and usually originates outside the company. For component parts and raw materials, the demand is very much related to the demand for the finished product. This demand is referred to as dependent demand.

Efforts to couple aggregate and detailed plans have produced the MRP system. Indeed, the need to produce a systematic and integrated approach to planning and control at various planning horizons and levels of detail have necessitated the introduction of such a system.

The value of an MRP system is that its logic has been computerised.

The power of the digital computer when linked to a comprehensive MRP system provides the necessary elements of a management information system.

Posted Date: 3/14/2013 6:02:33 AM | Location : United States







Related Discussions:- Mrp systems and functions of mrp systems, Assignment Help, Ask Question on Mrp systems and functions of mrp systems, Get Answer, Expert's Help, Mrp systems and functions of mrp systems Discussions

Write discussion on Mrp systems and functions of mrp systems
Your posts are moderated
Related Questions
Disadvantages of Floatation of New Shares 1. The cost of getting a quotation is high, mainly when a new issue of shares is completed and the company is small. It means that su

Q1.  A local delivery company has purchased a delivery truck for $15,000.  The truck will be depreciated under MACRS as a five year property.  The trucks market value (salvage valu

system integration and infrastructure development is the

Government Budget Deficit If the Government spends much more than it gets in from tax revenue, it runs a budget deficit. This deficit should be covered or financed either via

Allocation of financial resources to the different department can be done based on the past experience of the expenses and other available relevant information. Looking at the requ

discuss the flow of fund in an open economy

The Balance Sheet of International Trade Ltd. as on 31/3/2008 is as under:-                                  Liabilities Amount Assets

Market Model - Methods of Computing Cost of Capital This model is utilized to establish the percentage cost of ordinary share capital cost of equity (K e ). If an investor is

What is the Execution of order in the Stock Exchange When broker receives the margin money and is clear about the order received by him, he puts details in the 'order book'.

Management of company and Directors They will consequently be interest in as: a) In generating profits efficiency of the company b) The company's capability to generate