Using reorder levels in MRP systems

Abstract A study was conducted to explore the possibility of using reorder levels to control certain items in a Material Requirements Planning ( mrp ) System. The result was the formulation of a reorder policy that could function within an mrp framework. To test the effectiveness of the policy, a simulation model capable of simulating the movement of stock in a typical manufacturing industry was developed. The results showed that it would be possible to control the inexpensive items in the system using reorder levels. This paper describes the study and examines the implications of the results obtained.