APPLICATION OF THE EXTENDED MRP THEORY TO A BABY FOOD COMPANY

Abstract

Actual markets require companies to think about new ways to improve their business or to get additional advantages from their existing competences. Such improvements should not be limited to optimisation of individual activity cells but should be the result of broader analyses. Companies should consider their whole supply chains and make deep observation of dependencies between individual activity cells. Material requirements planning (MRP) Theory has proved to be a successful tool for describing and evaluating multistage, multilevel production systems with the use of Net Present Value (NPV) calculation. Recently, this theory has been extended in a way that it also deals with other vital parts of global supply chains, such as distribution, consumption and the reverse logistics. We call this approach the Extended MRP Theory (EMRP Theory). This paper shows how EMRP Theory can be used in analysing business processes for a Spanish company dedicated to baby food production.

Keywords

• MRP Theory
• EMRP Theory
• supply chain
• NPV
• practical application
• baby food company