Integrating MRP and kanban in materials management and developing hybrid system structure

Firms have to reduce their prices and production costs in consequence, to diminish the duration of delivery and production, to elevate their quality, to serve new products consistent with customers? expectations and to ensure continuous improvement relative to previous in order to meet the competition requirements of the market where buying behaviours and preferences of customers are changing constantly. The objectives of MRP and Kanban systems employed by firms in material management are the the same. In both systems the main objective is to supply required materials of production in required location and required time. The main difference between two systems emanates from the fact that MRP relies on pushing principle and Kanban relies on pulling principle. Both systems have diverse benefits. In this dissertation, it has been studied to find an answer to the issue how the two systems can be employed successfully and how they can be integrated in consequence by employing the benefits of the two systems. MRP system utilizes from powerful instruments for future planning. On the other hand, Kanban system utilizes straightforward and visual instruments in production control and application activities. In the hybrid models, the competitive advantages such as diminishing the duration of production and delivery, cutbacks in inventory accordingly reductions in production costs, amendments in production process etc. can be obtained by integrating the robust sides of the two systems. With the hybrid model constituted, a flexible production system responding quickly to varying demand can be constructed.