A STUDY ON MATERIAL REQUIREMENT PLANNING AND BUDGETING
Ms.M. Sowmiya¹ , Dr.K.Suresh kumar.S²
1. II MBA student, panimalar engineering college, Chennai.
2. Associate Professor, Department of MBA, Panimalar Engineering college, Chennai.
ABSTRACT
Material Requirement Planning (MRP) is a critical component in the manufacturing and production sector, aiming to ensure that materials are available for production, products are available for delivery to customers, and inventory levels are managed optimally. This study explores the integration of MRP systems with budgeting processes to enhance financial planning and control within an organization. The research focuses on the alignment of production schedules with financial forecasts, the impact of accurate MRP on cost management, and the role of technology in streamlining these processes. Through a detailed analysis of case studies and industry practices, the study highlights the benefits of synchronizing MRP and budgeting, such as improved resource allocation, reduced waste, and enhanced financial performance. The findings suggest that companies leveraging integrated MRP and budgeting systems can achieve better operational efficiency and financial stability.
Keyword: Financial planning, MRP planning, Budgeting, Inevtory management, Financial performance
