The design and management of manufacturing resources planning (MRP) systems is becoming more and more important for manufacturing firms especially in this ever-increasing competitive marketplace. An effective MRP system can give substantial competitive advantages to a company in its markets. However, markets, competitive pressure, and technology all change over time. Improving MRP system performance is required from time to time in order to allow the company to stay competitive in the marketplace. The study of MRP performance has received a lot of attention since the increased usage of computers by MRP practitioners, and the literature on the subject is vast. In this paper, important parameters which affect the effectiveness of MRP systems are reviewed. The limitations of previous research and future research directions will also be discussed. Note : MRP and MRPII are commonly used to represent manufacturing resources planning. However, MRP has received wide acceptance by practitioners in industry, as a result MRP instead of MRPII is used in this paper.
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Yeung et al. (1998) studied this question.