Title: Integrated material requirements/cost planning

Authors: Don Pope, David Perkins

Addresses: College of Business Administration, Abilene Christian University, Box 29309, Abilene, Tx 79699-9309, USA. ' College of Business Administration, Abilene Christian University, Box 29245, Abilene, Tx 79699-9245, USA

Abstract: This article presents an extension of the traditional material requirements planning format to include standard cost accounting flows. This integrated methodology, known as material requirements/cost planning (MRCP), provides a valuable pedagogical foundation for teaching business process integration between physical production activities and cost accounting. MRCP helps operations management students| analyse the effects of operations policy (lead times, lot sizes, etc.) on the financial performance of an enterprise. In enterprise resource planning (ERP) courses, MRCP provides clarity to transactions performed by complex ERP software.

Keywords: business process integration; cost accounting; ERP; enterprise resource planning; information systems education; MRP; material requirements planning; operations management education; lead times; lot sizes; financial performance.

DOI: 10.1504/IJIOME.2008.023442

International Journal of Information and Operations Management Education, 2008 Vol.2 No.4, pp.407 - 433

Published online: 23 Feb 2009 *

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