Question

Why is instability of the MRP schedule a major issue for organizations? What are the major causes of instability? How can we promote stability of the MRP schedule?

What are the major causes of instability?

How can we promote stability of the MRP schedule?

Answer 1

Why is instability of the MRP schedule a major issue for organizations?

It is very common for MRP to be instable, which creates many problem in organization. The main reason for instability of MRP schedule is much variation in the scheduling cycle. The scheduling cycle forms with the help of planning and managing of the materials as well as controlling the activities of production. And when one cycle varies from another cycle, there forms instablity in MRP. This situation reduces the coordination among the employees as well as the department and makes it very difficult for an organization to plan the manufacturing process which leads to lower the productivity.

What are the major causes of instability?

There are some major causes of instablity which are - external environment, partnership between buyer and suppliers, inefficient operations etc. Due to this instablity, the cost of operations becomes higher and customer service become lower.

How can we promote stability of the MRP schedule?

To promote the stability, it is important to reduce the variation in the MRP schedule. Also, with proper material planning it would be stable. Besides, having a good relationship between suppliers and buyers can improve the problem. When the scheduling cycle would vary less, the stability would become more.

Hope this helps :)