Review Material Requirements Planning (MRP). Discuss the elements of a material control system.
Assume that you work for a company that manufactures and sells nuts and bolts. Your products are typically small, but customers often require large orders with a quick turnaround time. There is little room for error on the floor where inventory is handled. Your manager has come to you with information about mix-ups in recent orders and some struggles with meeting deadlines with shipping times. Explain the information you would need to create a material requirements plan for this company. Under which type of production environment do you think an MRP system is most useful?