ABSTRACT
Material requirement planning (MRP) systems which have been efficiently implemented have immense potential for improving productivity. An example from the machinery industry, the Philadelphia Mixers Corp. reported that on-time delivery has improved from 25 per cent to more than 95 per cent, the backlog of orders has been eliminated, delivery lead times have been reduced by up to 10 weeks, and inventory accuracy has climbed to 98 per cent (Goddard, 1993). Honeywell Inc., an electronics company, notified that lead times have been cut by 25 per cent to 50 per cent and manufacturing flow times reduced by up to 45 per cent (Skyes, 1992).
