A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Advanced Technologies

Thesis (M.Eng.) - Asian Institute of Technology, 1997

The case to be considered in this study relates to a manufacturing firm M/s S.P.S. Cooperate Ltd. which faces the problems of increasing inventory levels, large capital investment in inventory, large space allocation, due date missing or increase in the number of stock outs, obsolescence of various items in the stock rooms, difficulty in record keeping, etc. because of using conventional production management techniques. This study mainly aims to solve some of the existing problems faced by the company, by applying Material Requirements Planning (MRP) as the basic methodology and assessing its scope for the implementation of Manufacturing Resource Planning (MRP II) system. This research has been performed in four steps. First of all a multi-criteria approach was followed to select the most suitable MRP II software for the company under consideration, available in the local Thai market. This was a most critical step and was achieved by using Analytic Hierarchy Process (AHP). Secondly to implement the system with the selected MRP II software all the required data was collected and input parameters were prepared. In third step all this prepared data was inputted in the selected MRPII software and its results recorded, analyzed and compared with the existing system. Finally the scope for the implementation of complete MRP II system, in the company under consideration, was assessed by keeping in view the various factors that may affect its implementation.