The Directors and Management of the Limited Company

The disadvantages of the Material Requirements Planning system has been its coherency with the data, therefore the flaws present in the inventory data, the bill of material, or master production schedule will be transparent in the output, to avoid such failure and malpractice the vendors adapted to Material Requirements Planning demand minimum ninety-six per cent data integrity. The Material Requirements Planning system requires the user to identify the period it will take for the establishment of the factory, from the ordered component parts. The Material Requirements Planning system further assume the period of the establishment as lead time, which will share similar quantitative significance for every item, irrespective of the quantity produced, and other simultaneous operations conducted within the factory (Thomas, 2002). In comparison, the Enterprise Resource Planning system has been able to organize the inventory, and successful in the identification of the requirements of the individual factory. The system further ensures that the medium of communication exist between the units of the factory so that the redistribution of the components is achievable, which correspondingly ‘serve the overall enterprise’ (Thomas, 2002). The Material Requirements Planning system requires that the corresponding system are intact, effective and efficient, the system is expected to result in failure if it handles the variety reduction and engineering in a manner through which the availability of the product can be ensured. The push system is considered to be the system which is based on factors of demands i.e. Customer Orders within the present and future scope.