Changing MRP’s costing procedures to suit JIT

Many repetitive manufacturing industries have begun to implement JIT techniques into their operations. Since most of these use MRP, any JIT project must be fitted into their MRP planning and control system. The benefits that JIT produces are well documented; however, when JIT is imbedded in an MRP system, only those JIT benefits which MRP recognizes will be reported. This article distinguishes which JIT benefits MRP does and does not recognize and looks at how adjusting MRP’s costing procedure forces the recognition of more JIT benefits.