In: Operations Management
write a short report (about 2 pages) about the integration of MRP and JIT adopted by your selected company which should be a real company
Answer:
Let us take into consideration Toyota Company of Japan.
In Toyota Company of Japan, a new production planning and scheduling framework is developed to resolve the multi-stage, production-inventory system problem by effectively integrating Material Requirements Planning (MRP) and Just-in-Time (JIT) production. The main objective of this integration is to find out the detailed shop-floor schedules that specify the quantity of an operation to be processed, the time at which they are required to be processed, and the machine by which they are required to be processed, so as to minimize the overall production cost. The integrated system resolves the major problems associated individually in MRP and JIT. Primarily, the proposed integrated system incorporates both the scheduling and capacity planning aspects, simultaneously. Secondly, the integrated system eliminates the need to specify planned lead time. Moreover, the integrated system, unlike MRP, provides detailed shop-floor schedules. And finally, the integrated system does not have to operate in the level schedule case as that in JIT, and hence, it can handle a very general production environment.