Question

Explain how an MRP system is useful in capacity requirements planning

Explain how an MRP system is useful in capacity requirements planning

Homework Answers

Answer #1

Capacity requirements It is a planning process in which a company or a firm can analyze and figures out how much it needs to produce, and determines if it is capable achieving the target set. In order to balance demand and supply firms should always do this exercise.

MRP –Material requirement planning

MRP helps in dividing or breaking down inventory requirements into planning periods which ultimately results in the production completed in set time while other parameters such as inventory levels and carrying cost are set to a minimum.

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