Material Requirements Planning (MRP) within the Defense Industry: The Linkage to Multiyear Procurement (MYP)
Abstract
Material Requirements Planning (MRP) is the consensus for a material management system in a dependent demand environment. Critics speculate that Government practices, specifically annual funding and annual contracting, preclude the use of MRP and other strategic management techniques and contribute significantly to weapon system acquisition costs. Revised multiyear procurement (MYP) policies were implemented in fiscal year 1982 to incentivize defense contractor utilization of MRP and other strategic management techniques. The objectives of this research project were to determine the status of MRP utilization within the defense industry and to ascertain the influence that the revised MYP policies exerted on the decision to acquire or enhance an MRP system. A survey of 25 defense contractors was used to accomplish the research objectives. Data analysis revealed no significant differences between defense industry and overall U.S. industry's utilization of MRP.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1983
- Accession Number
- ADA134973
Entities
People
- Douglas W. Edgar
Organizations
- Air Force Institute of Technology