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Assembly FG: An Educational Case on MRP II Integrated within ERP

Author

Listed:
  • Sherwood Lane Lambert
  • Richard Calvasina
  • Sarah Bee
  • David Woodworth

Abstract

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. L’étude de cas proposée par les auteurs vise à enseigner aux étudiants comment les entreprises de fabrication sur commande utilisent la planification des ressources de production (manufacturing resource planning — MRP II) enchâssée dans le progiciel de gestion intégré (enterprise resource planning — ERP) pour planifier leurs commandes de matières premières et leurs ordres de fabrication relativement aux produits en cours et aux produits finis. Les étudiants simulent l'enchâssement de la MRP II dans l’ERP à l'aide de Microsoft Excel pour apprendre comment fonctionne la décomposition de la nomenclature de la MRP II permettant la planification de la taille des lots et la logistique d'ordonnancement de la MRP II faisant appel aux délais d'exécution pour déterminer les dates de début des commandes planifiées. Les étudiants doivent expliquer pourquoi la MRP II offre un maximum de commodité et d'efficacité lorsqu'elle est enchâssée dans l’ERP et comment elle permet de réduire les excédents de stock et de prévenir les ruptures de stock tout en aidant les entreprises à livrer diligemment aux clients des produits de qualité. Les étudiants sont également appelés à expliquer en quoi les inexactitudes des nomenclatures, des inventaires et des délais d'exécution peuvent nuire à la précision des réapprovisionnements planifiées à l'aide de la MRP II et à repérer les contrôles propres à réduire les risques liés à ces inexactitudes.

Suggested Citation

  • Sherwood Lane Lambert & Richard Calvasina & Sarah Bee & David Woodworth, 2017. "Assembly FG: An Educational Case on MRP II Integrated within ERP," Accounting Perspectives, John Wiley & Sons, vol. 16(1), pages 43-62, March.
  • Handle: RePEc:wly:accper:v:16:y:2017:i:1:p:43-62
    DOI: 10.1111/1911-3838.12136
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