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ADVANTAGES AND DISADVANTAGES OF MATERIAL REQUIREMENTS PLANNING (MRP) AND ENTERPRISE RESOURCE PLANNING (ERP)

1.Material requirements planning (MRP):Advantages i. ii. iii. iv.

Assists in keeping inventory levels at a minimal. Materials planning help you save money if you have a low inventory level. Material tracking becomes more easier, ensuring that every lot orders have an economical order amount. Material planning balances capacity utilisation and assigns the right amount of time to items based on demand forecasts.

Disadvantages i.

ii.

iii. iv.

Material planning is completely reliant on information provided by other system departments. If the input data is inaccurate, the result for material planning will be incorrect as well. Material planning necessitates the upkeep of a comprehensive database containing all relevant information such as inventory records, production schedules, and so on, without which the output would be wrong. End users must be properly trained in order to get the most out of the material planning system. A material resource planning system necessitates a significant time and financial investment.

2.Enterprise resource planning (ERP):Advantages i. ii. iii. iv.

Workflows should be modernized. Better financial planning. Data security and accessibility have already been improved. Improved communication.

Disadvantages i. ii. iii. iv.

Slow software implementation. Starting out is expensive and continue. Slow data migration. Too complex....