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Assembly FG : An Educational Case on MRP II Integrated within ERP
Author(s) -
Lambert Sherwood Lane,
Calvasina Richard,
Bee Sarah,
Woodworth David
Publication year - 2017
Publication title -
accounting perspectives
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.238
H-Index - 17
eISSN - 1911-3838
pISSN - 1911-382X
DOI - 10.1111/1911-3838.12136
Subject(s) - material requirements planning , manufacturing resource planning , enterprise resource planning , economic shortage , inventory management , operations management , business , schedule , scheduling (production processes) , inventory control , operations research , computer science , manufacturing engineering , process management , marketing , engineering , production (economics) , economics , operating system , linguistics , philosophy , government (linguistics) , macroeconomics
This case teaches students how discrete (job order) manufacturing companies use Manufacturing Resource Planning ( MRP II ) within Enterprise Resource Planning ( ERP ) systems to plan purchase orders for direct materials and shop orders for work‐in‐process and finished goods. Students simulate MRP II integrated within ERP , using Microsoft Excel to learn MRP II 's bill‐of‐materials ( BOM ) Explosion that plans order quantities and MRP II 's scheduling logic that uses lead‐times to determine start dates for planned orders. Students explain why MRP II is most practical and effective when executed within ERP and how MRP II can reduce excess inventories, prevent inventory shortages, and help companies deliver quality products to customers on schedule. Also, students explain why BOM , inventory, and lead‐time inaccuracies can adversely affect the accuracy of MRP II ‐planned replenishments and identify controls that reduce the risks of these inaccuracies.