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The three major types of Materials Requirements Planning(MRP) systems are:
Inventory control (order launching)
Production and inventory control (closed-loop
Enterprise resource planning.
Inventory control system. “Order launching is the process by which shop orders are released to the shop or purchase orders are released to vendors. In MRP systems, this process is triggered when a planned order release is in the action bucket, or current time period.
According to Redwood 2019, Order launching is preceded by availability checking and allocation. Order launching creates open orders, that is, it converts planned orders into scheduled receipts in planning documents.
Again, open orders are taken up for production. When the production is completed and the product is received in stockrooms, the order is closed”(Springerlink, 2010).
This system can help alleviate issues that companies sometimes have between their sales and their inventory department. So, the order launching system makes open orders that are only closed when the production has finalized and the inventory is in the warehouse. This system really makes sure that the inventory for the product is correct, which is a weight off of the sales person’s shoulder.
This system absolutely helps with JIT (Just-In-Time) inventory. “Just in time (JIT) is a manufacturing and inventory system that helps to increase efficiency and decrease loss. This supply chain management strategy aims to align raw material deliverers directly with the production schedule and customer orders. This essentially ensures that materials are shipped “just in time” for when the factory is ready to produce the goods, and the goods are produced “just in time” to be shipped out to customers or distribution centers. JIT moves materials to the right location at the right time, just before it’s needed.
This in turn increases efficiency by minimizing the space required to “hold” materials before they’re actually needed. It also decreases waste and loss by receiving the correct amount of goods for the production process. JIT keeps the process running smoothly and streamlined without a lot of extra stuff hanging around”(Redwood, 2019). Order launching keeps track of what is being ordered and when, and JIT does something quite similar. As long as these two systems are able to talk to each other, I think everything will work seamlessly.
Author, The BC Cook Articulation Committee, Sep 2015. Basic Inventory Procedures. In Pressbooks Edition 1.0. Basic Kitchen and Food Service Management.
Springerlink. (2010). Order Launching. Springerlink.
Redwood. (2019). What is JIT and How Does it Work? Redwood Logistics.