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Journal article
Assembly FG: An educational case on MRP II integrated within ERP
Accounting Perspectives, Vol.16, pp.43-62
16
2017
Web of Science ID: WOS:000405740000003
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.
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Details
- Title
- Assembly FG: An educational case on MRP II integrated within ERP
- Publication Details
- Accounting Perspectives, Vol.16, pp.43-62
- Resource Type
- Journal article
- Publisher
- Canadian Academic Accounting Association; Toronto, ON
- Series
- 16
- Copyright
- © CAAA/ACPC
- Identifiers
- WOS:000405740000003; 99380090890006600
- Academic Unit
- Accounting and Finance; Lewis Bear Jr. College of Business
- Language
- English