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SELECTION OF AN EFFECTIVE MATERIAL REQUIREMENTS PLANNING SYSTEM CONFIGURATION: DERIVING A PRESCRIPTIVE MODEL
Abstract
The development of Material Requirements Planning (MRP) systems has progressed in relation to the increased importance of inventory management and control. This research presented a stage-of-development view which challenges the conventional view that one MRP system level is appropriate for all. The general hypothesis was that MRP system development should be tailored to the specific needs of the individual firm. A primary research task was to develop a prescriptive model that illustrates the proper level of MRP system development for a given type of user. The major objective was to develop a pragmatic model for both practicing materials managers and research oriented academics. Detailed operational definitions for various classes of MRP systems were developed. Prescriptive model construction was accomplished utilizing 4 focused, in-depth case studies. The 4 participating firms, reflecting a variety of production technologies and years of MRP system experience, were selected from the 15 identified MRP-user firms in the Lincoln/Omaha, Nebraska area. Interviewed managers were asked to place their firms and industies in a scheme of major characteristics; also managers completed a causal variable relationship form which tied major characteristics to MRP sub-systems. The prescriptive MRP system model was then developed by a synthesis of data gathered in the case studies. Findings indicate that the MRP system model represents a closer fit with actual conditions occurring in industry today: the model assists the user to more accurately place his firm in a usable taxonomy which will aid in attaining production control objectives. The stage-of-development perspective allows model users to look at the major sub-systems in a new light. First, it was concluded that global MRP system classifications as offered in the literature seem to be of little practical value. Second, the belief that all systems need to be "Class A" in order to be successful is unfounded. Third, there is significant value in placing the seven major sub-systems in a classification scheme. Lastly, for the MRP system user there can be a set of sub-system classifications which when assembled result in maximum cost effectiveness.
Subject Area
Business community
Recommended Citation
GILBERT, JAMES P, "SELECTION OF AN EFFECTIVE MATERIAL REQUIREMENTS PLANNING SYSTEM CONFIGURATION: DERIVING A PRESCRIPTIVE MODEL" (1984). ETD collection for University of Nebraska-Lincoln. AAI8423785.
https://digitalcommons.unl.edu/dissertations/AAI8423785