Assalamualaikum and a very Good Morning to our lecturer Dr Habibah and my fellow

classmates.

We will be presenting Seminar 1, for the topic MATERIAL REQUIREMENT PLANNING

(MRP).

So, first let me introduce my group member.

For the purpose of this presentation, our focus is mainly on:

Before we go further let me briefly explain the history of development Material

Requirements Planning (MRP)

• Inventory was manually recorded until computer-engineered systems developed in the

commercial world.
• Users finally realized how ineffective hand-kept inventory was, which contributed to a
market demand for the most productive approach.
• The first processor computer based MRP inventory management systems developed
in the 1940s and 1950s, extrapolating data from a bill of materials for a specific finished
product into a production and purchasing plan.
• Information feedback systems were added to MRP systems so that production
managers may modify and update the system input as required.
• Since 1975, the MRP system has been regularly developed to improve corporate
efficiency.
• The MRP inventory system's adoption and ongoing innovation had a long-term impact
that can still be seen today.

Next, The Definition of Material Requirements Planning (MRP)

• Material requirements planning (MRP) is a computer-based inventory management

system, it is developed with the goal of increasing corporate productivity.
• Systems for planning material requirements are used by businesses to plan deliveries
and forecast raw material quantities.
• Furthermore, MRP is a method for determining the materials and components needed
to manufacture a product.
 • It consists of three major steps which are inventorying current resources and
components, determining which additional ones are needed, and organizing for their
manufacturing or acquisition.

Next slide, The Objective of Material Requirements Planning (MRP)

Firstly, it is very important to ensure that raw materials are readily available for
production and products are readily available for delivery to consumers.

• When the manufacturing business knows how much goods to manufacture based on
actual demand, they will know exactly how much to keep on hand.
• As a result, MRP enhances manufacturing operations' efficiency, flexibility, and
profitability.

Secondly, MRP can helps to sustain the lowest raw materials and finished products
levels in store.

• MRP empowers inventory managers to reduce the number of component and raw
materials in hand.
• This helped the industrial operation to better monitor inventory levels while also
lowering costs.
• It can increase team productivity, enhance product quality, and reduce material and
labour expenses.

Thirdly, MRP also helps to organize manufacturing, delivery schedules, and purchasing
activities.

• It will assist businesses in responding more quickly to rising product demand, reducing
production delay and inventory stockouts which can result in lost consumers.
• Additionally, by reducing the time needed to handle the order from customers, the
production and packing stages will proceed more smoothly and reliably.