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Theoretical model suggests improvements in inventory management and customer service through MRP implementation.
A theoretical model for MRP implementation is presented. Much has been written about MRP and its introduction into an organisation, but the low overall success rate of implementation shows the poor level of understanding and control of the implementation process itself. The basic MRP system, its derivatives and the need for a model are discussed. The results of successful implementation such as reduced inventory and improved customer service level are discussed. This model could also be applied to other organisation‐wide systems, such as Just‐in‐Time manufacturing, if modified.
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Callerman et al. (1986) studied this question.
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