Implementation of Materials Requirements Planning Case Study

Implementation of Materials Requirements Planning - Case Study Example There was a delay in ordering and forecasting due to jumbling of trucks. Vice president recommended that for the software to work, it needed at least 25 Premio employees and managers to adjust their jobs. The minor problem was only lack of adequate parking space for the customers or visitors due to the parking of delivering trucks. Gmunder insisted that the system would overhaul production, procurement, and shipping as well as imposing the required discipline, which Cinque, the company’s CEO wavered. Gmunder estimated the system would raise the annual money flow by $500000 and an annual savings of $150000 through the reduction of wasted material. Cinque still questioned about the system claiming that the numbers were worth pursuing, but with no sales yet. Cinque elaborated that the system affects every operation of Premio Foods Company. Employees started complaining about because some of them would be laid-off from a job (Barrett, 2010). The system was also doubted by one of the veterans and also a director of technical services, suggesting that the company would end up getting solid sales forecasts. The veteran viewed it as a big corporate BS. He also feared to undergo from the shortage of raw materials especially during the holiday. Mark Renna, who is the director of logistics and aged eight years, warned Cinque about an eruption of a similar case of installation of MRP system. He elaborated that customers were not getting their orders, and most of the trucks left the firm half full, which might happen to the company. It seems MRP system is based on the assumption of the deterministic region. Leads and demand times are the most assumed determinists. In a manufacturing environment, however, the assumptions are invariably violated. There exists a conflict between reality and assumptions in the execution of MRP system.