MaterialRequirements Planning (MRP)
Question8: Influence of globalization on MRP
Globalizationhas made the world more connected. Hence, Material RequirementsPlanning (MRP) has become more popular and adopted in mostbusinesses. The economy globalization and extended liberalization ofthe markets have resulted to increased large enterprises that requireMRP for proper management (Gunasekaran, 2009). In my opiniontherefore, the competition and the pressure in the market have pushedmany companies such that they seek planning methods such as MRP sothat they can outstand and shine above others. They look forward tooutshining the competitors and hence would adopt the method to ensurethat there is minimum cost and maximum profit. Since moresophisticated computerized systems are available, the planning iseasy to adopt and they get more accurate to the advantage of theuser. According to me, there is reduced manual works of feeding thedata since the data can be retrieved from the system hencedetermining the results and the accuracy of the plan.
Atthe same time, globalization has also gone hand in hand withincreased innovation and creativity. In addition, there is diversityin the economic field where new raw materials are required as well aspredicting the market. Therefore, Material Requirement planning hasbecome a necessary tool to enable the upcoming enterprises to knowthe materials required at a particular time to prevent confusion andinefficiency. Such challenges occur in an environment of adopting newproducts. Therefore, it is notable to say that globalization hasincreased the adoption of Material Requirement planning (MRP) for thepurpose of establishment of enterprises as well as enabling them tobreak through the market.
Question9: MRP in the Future
Infuture, there will be more competition and market pressure. Hence,MPR will become a necessary tool in the business world and even thesmall companies will need to adopt the system so that they cancompete with the established companies (Khosrow-Pour, 2015). Ibelieve the system will also have more sophisticated machines thatmay be automated to help enterprises plan their economic life.
However,due to the high rate of innovation and creativity, there will bepressure to improve the system of MRP such that it can do long termprojections to determine the market demand. In my opinion, therewill be a need to put more focus on the end results and hence theproponents of the planning method ought to modify the system toensure that their system will remain relevant. I also believe it is achallenge considering that some people will come up with better plansto outdo MRP through a focus on the income.
Modificationof the Material Requirement Planning strategy will not only make theplan relevant but also will help it endure the test of time. Changeis inevitable in the contemporary world. It has spread evenly to allareas and the economic sector is not left behind. Therefore, allsystems will get adjustment in future in order to remain relevant anduseful before they are outdated and withdrawn. In future the marketwill be flooded with many strategies meant to enhance more profit ata minimum cost. These plans will also be long-term and efficient. Ibelieve that Material Requirement planning will be one of thestrategies that will remain relevant and efficient over timeespecially in the proponents of the strategy will modify it to suitthe evolving world.
Gunasekaran,A. (2009). GlobalImplications of Modern Enterprise Information Systems: Technologiesand Applications.Hershey, PA: Information Science Reference.
Khosrow-Pour,M. (2015). Encyclopediaof Information Science and Technology.Hershey, PA : Information Science Reference