What could happen without an MRP & Production Control Software solution? – 5th July 2017
It is imperative that companies control the types and quantities of material they purchase, plan which products are to be produced and in what quantities to ensure that they are able to meet current and future customer demand, all at the lowest possible cost for both you and your customer.
Making a bad decision in any of these areas will make the company lose money.
- If a company purchases insufficient quantities of an item used in manufacturing (or the wrong item) it may be unable to meet contract obligations to supply products on time.
- If a company purchases excessive quantities of an item, money is wasted – the excess quantity ties up cash while it remains as stock that might never be used at all.
- Beginning production of an order at the wrong time can cause customer deadlines to be missed.
This is where an MRP tool can deal with these problems. It provides answers to several questions:
- What items are required?
- How many are required?
- When are they required?
MRP can be applied both to items that are purchased from outside suppliers and to sub-assemblies, produced internally, that are components of more complex items.