RESOURCE PLANNING MRP II The development of a MRP model applicable in SM Enterprise manufacturing companies.
| The development of a MRP model applicable in SM Enterprise manufacturing companies. |
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The development of a MRP model applicable in SM Enterprise manufacturing companies. MRPII 57
The development of a materials requirements planning model applicable in Small & Medium Enterprise manufacturing companies in Zimbabwe
Chirinda Ngoni (Eng.)
Abstract
Inventory costs for small Companies in Zimbabwe are high due to improper inventory planning & control measures put in place. Small businesses struggle to profiteer in their day-to-day operations because they do not realize the extent of such costs. The development of a materials requirement planning model applicable to small & medium Enterprise (SME) manufacturing companies in Zimbabwe is a project aimed at bringing a solution to this operational challenge. The case of Lane Engineering Company is considered to reflect other similar small businesses. A computerized MRP Excel-based model was developed during the research and was recommended for SMEs in Zimbabwe as a portable inventory planning & control tool. Benefits were realized from minimum payback period, higher internal rate of return, well above 25% of inventory cost reduction plus automated manipulation and with simple userinterface. SMEs will realize additional salvage value by running such an MRP system.
Key words: Economic Order Quantity, Inventory Control, Inventory costs, Materials Requirements Planning
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