Integrated Information System of Material Resource Planning and Supply Chain Procurement
Keywords:
Material Resource Planning (MRP), Supply Chain, Bill of Material (BoM), Algorithm, Information SystemAbstract
This paper presents the design and implementation of an integrated information system of Material Resource Planning (MRP) and Supply Chain Procurement (SCP). It considers the process business in a local automotive component manufacturer. Due to the mass customization and complex supply chain, which must be considered in the MRP explosion calculation and the SCP distribution of sales orders, human errors are inevitable. Such errors lead to supply chain procurement problems with the subject company. Based on the Pareto of the problems, there were three major issues (wrong entry of sales orders, wrong entry of purchase orders, wrong calculation of order distribution). These significant issues contributed to 50.0% of the problems on average. The objective of this study was to solve the issues in the subject company through the design and implementation integrated information system with an open-source software platform, which utilizes generic Bill-of-Materials (BoM) and supply chain distribution algorithms. This approach ensures a valid calculation of efficient supply chain processes. The combined approach in the subjected business process yielded satisfactory results with reduced significant issues to 12.5% for the stated problems. Hence, the design objective was achieved.
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