Both Pareto and EOQ have limitations combining them delivers a powerful management tool for MRP and beyond

It has been understood for a long time that parameter maintenance is one of the key factors in the successful operation of MRP systems. The author׳s research in to effective management of MRP has shown that 50% of ERP systems MRP modules do not provide parameter setting tools for optimizing the cycle stock settings, mostly offering Fixed Order Quantity and Fixed Period which require the User (Planner) to determine and manage the settings. It also identified that where the tools, like EOQ, were provided that the User does not use them preferring to use their judgment instead.