Title: An exploratory study of MRP benefit–determinant relationships: ACE analysis model

Authors: Salaheldin Ismail, Khalid Al-sulaiti, Rafid S. Abdulrazak

Addresses: Department of Business Administration, College of Business & Economics, The University of Qatar, P.O. Box 2713, Doha, Qatar. ' Department of Business Administration, College of Business & Economics, The University of Qatar, P.O. Box 2713, Doha, Qatar. ' Al-Daicel Trading and Contracting Company, P.O. Box 8325, Doha, Qatar

Abstract: This paper aims to examine the MRP (MRPI and MRPII) benefit–determinant relationships using the alternating conditional expectation (ACE) technique within Egyptian manufacturing firms. To do that, the research is intended to test, empirically, the key hypothesis that the uncertainty and organisational, implementational, technological and human variables do not correlate with the benefits obtained from MRP implementation in a linear manner. This is done by constructing a series of mathematical models for both MRP benefits measures (tangible and subjective benefits) using the ACE technique as an advanced statistical modelling technique. The data analysed in this paper were collected by a mail questionnaire sent to Egyptian manufacturing firms. The findings indicate that data accuracy has a positive effect on the successful implementation of MRP systems. Also, our findings indicate that, as capacity uncertainty increases, so delivery lead time and the number of expediters increase in order to meet due dates. Moreover, our findings show that a company|s size has a positive impact on operational efficiency. Managerial implications and avenues for further research are recommended.

Keywords: ACE; benefits; human variables; implementation; alternating conditional expectation; Egypt; manufacturing firms; MRP implementation; data accuracy; organisational variables; technological variables; uncertainty; material requirements planning; manufacturing resource planning; MRP II; operational efficiency.

DOI: 10.1504/JIBED.2009.022533

Journal for International Business and Entrepreneurship Development, 2009 Vol.4 No.1/2, pp.119 - 146

Available online: 14 Jan 2009 *

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