Each company has an overall goal and a strategy for achieving that goal, but within the company there are groups whose focus may seem to be in contradiction to the Materials Requirements Planning process. The marketing group wants to make sure there is enough inventory on hand to supply all customer request, the accounting group is charged with keeping cost down, which includes keeping inventory levels low. In the middle is the inventory control group. If the accounting group is quiet, the marketing group is demanding you increase inventory, if the marketing group is quiet the accounting group wants to know why you have so much inventory. A good Material Requirements Planning system will help the inventory group balance both requirements, provide product for customer requirements and keep inventory levels low.
The goal of the MRP or Material Requirements Planning document is to supply information that will enable the company to have enough inventory on hand to fulfill demand, (and no more) available only when needed, (and no sooner) at a quality level that meets specification, (but does not have to exceed it) and at the lowest price. A good MRP or Material Requirements Planning program can provide the basic needs of keeping inventory levels low and fulfilling customer expectatons for on time delivery.
