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7 Factors to Consider in Material Resource Planning (MRP)

  1. Supplier Lead Time - You can’t promise an end result if you don’t have what you need to create it. Therefore, supplier lead times need to be an essential part of how you plan production.
  2. On-Hand Inventory - If you don’t have to purchase more, you save money and optimize on the materials you already have in inventory. You also can keep promises to your customers while maintaining high customer satisfaction levels if you always know what you have on hand.
  3. Current Forecasting - Having insight into what you have already forecasted can alert you to changes that need to be made so that demand and inventory line up today and in the future.
  4. Open PO, SO, or WO - You don’t have real insight into your inventory or revenue until you factor in the open purchase orders, sales orders, and work orders in process. A true look into all these components can give you an accurate feel for the ROI you’re actually accruing.
  5. Work and Machine Center Capacity – Make sure your staff and equipment are in working order before you commit to more sales. You won’t over promise again if you have this on your radar at all times.
  6. BOM and Sub Assembly Dependencies - Similar to your work and machine capacity, if you have complicated BOMs that require more attention, make sure to factor this into the insight you have access to so that even this is kept on track at all times.
  7. Order History and Season- Having insight into what you’ve completed in relation to the seasonal trends or down times you can expect will help you optimize cash flow and keep your manufacturing operations running profitably.

To get a better idea of how system-based guidance can help you make better and faster decisions every day, read the ‘case in point’ on page 3 in ArcherPoint’s new eBook, “It's 8 am, do you know where your inventory is?”

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