How does inventory management influence/ or is influenced by MRP/ERP decisions?

In the past, many organizational departments were responsible for maintaining their own information systems without considering other business units like marketing, purchasing, accounting, and so on. Depending on their specific requirements, the various unit-level systems had varied ways of collecting and storing data. Managers in their departments were able to improve and make better judgments with the aid of the business unit systems. (Mahesh Guptaa, 2006). While the various systems could help at the unit level, but sustaining effective inventory management necessitated the implementation of appropriate ERP/MRP, which would encourage consolidated information of the entire organization. According to (Wei, Idrus, & Abdullah, 2017), raw material shortages or excesses brought on by poor inventory management have a direct effect on the organization’s success. Additionally, the article further explained that using both the ERP/MRP system results in increased efficiency AND enables manufacturing organizations do away with manual inventory management. My argument is that inventory management is influenced by MRP/ERP decisions as these tools provide a vast of benefits which improve the handling of inventory in an organization. According to an article written by (Kuse, 2023), ERP system enables tasks around inventory to be automated and consolidated with other functions such as scheduling, production and planning, demand forecasting and so forth. The system furthermore benefits the organization by providing real time inventory visibility, automated processes, delivering on time streamlined supply chain and accurate demand forecasting. Additionally, according to (Shari Shang, 2000),ERP system offers operational benefits for inventory management which include reduced labor costs due to the automation of redundant, archaic processes, the creation of new, efficient work methods, and lower expenses for human resources and warehouse space. To further support my argument, any organization’s primary objective is to maximize growth and please its customers, and putting in place an ERP/MRP will assist them accomplish that objective. According to Layth Abuhilal (2006), choosing the right inventory methodology is crucial to achieving the organization’s objective. Additionally, operations management has changed over the years and can now be challenging because of the size of the customer base, which is more international than your local community, and the consolidation of processes and services to meet specific needs while taking into account all kinds of methods, whether mass production or make-to-order. Therefore, putting in place an ERP system is a major part of the company’s strategy since it enables other departments to make sure they are making the most use of their capital, personnel, and equipment while also keeping in mind of meeting the demands of their end-user.