"MRP II as a tool for inventory management : application, implementatio" by Yi-Hsin Chiu

Document Type

Thesis

Date of Award

1-31-1987

Degree Name

Master of Science in Management Engineering - (M.S.)

Department

Industrial and Management Engineering

First Advisor

Suebsak Nanthavanij

Abstract

MRP II has been used universally as a tool for production planning in various manufacturing systems. Its foundation of success is based on an accurate inventory management. Due to the rational pricing of computer hardware and software, the selection of an appropriate off-the-shelf MRP II package has become an important topic. Moreover, implementation of a commercial MRP II package significantly affects its capability of handling an assigned task. The scope of this thesis is to discuss how to successfully implement MRP II through a design and development of a proper inventory data base in order to expand its application. The evaluation procedure and a "net change" system are also suggested in this thesis.

Nevertheless, it has been found that MRP II still has some shortcomings, such as: insufficient information of tooling unrelated to the system, infinite capacity scheduling, inability to perform job scheduling, rigid lot sizing, etc.. Therefore, JIT and OPT techniques, so called MRP II's alternatives, are also discussed according to their advantages and disadvantages and recommended to be used along with, not in substitute to, MRP II to enhance its effectiveness.

This thesis also discusses a future promising tool for production planning, i.e. Expert Systems, which can be developed through AI. The use of this "constraint-directed search" may possibly be the best approach to solve the scheduling problems frequently found in most business firms.

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