MATERIALS REQUIREMENT PLANNING AND ENTERPRISE RESOURCE PLANNING

Manufacturing is one of those industries that depend on the proper balance between demand and supply. As such implementation of both MRP and ERP concepts are very vital to the success of any business. This paper will, therefore, explain into details how MRP implementation and adoption of ERP together can help in achieving operational success. Material Requirement Planning (MRP) Since MRP focuses on resources and customer concerns of the business, it is used to analyze the activities of the company as regards to customer demands as well as managing all the company resources by its logic and data processing. MRP concepts are used various production environments including cases where demand items are dependent and discrete, in complex products, and also where products are only assembled to order (Popaitoon and Siengthai, 2014, p.

, 2014, p. Previous studies that have been carried out the report indicates that the benefits of ERP are numerous. Some of its benefits include quicker response to customers, improved flow of processes, high rate of information visibility, and better cost structure. For companies to enhance its productivity and meet the increasing tempestuous and varied market expectations, businesses have made a mass investment in ERP projects. For instance, many Chinese companies are moving it the same direction. However, these systems still have a connection to large-scale organizations (Kasemsap, 2015, p. With the advent of globalization, successful implementation of ERP systems has great importance in the growth, survival, and competitiveness of various SMEs. As a result, they will increase their ability to manage production as well as technologies.