Master Planning Implementation – A Guide to Streamlining Operations

Master planning, also known as material resource planning (MRP), is a process that allows companies to plan all materials and manage stocks according to the company’s needs to improve the manufacturing or distribution of their product and services. The main objective of MRP is to ensure that the company has all the required materials to address manufacturing and customer demands.

MRP methodologies came to address a common problem at companies: stock breaks. At first glance, it seems as simple as someone saying, “Let’s raise stock levels to ensure we never run out of stock.” But this solution is too costly as we need tons of inventory, a lot of warehousing space, and a lot of money invested in rarely used inventory.

To be cost-efficient, MRP reduces the stock level by raising the level of service to reduce manufacturing and delivery times, and it gives vital information to the...