Advantages and disadvantages of MPS and MRP

Strengths Both strategies allow a business to avoid overproducing or underproducing Both MPS and MRP can be used by a business to make adjustments to production in response to fluctuations in demand Limitations Both strategies rely on accurate information — if incorrect information is used, it is likely that errors will occur in the materials planning process. While MPS and MRP can both provide a business with flexibility, the use of each strategy may potentially have the opposite effect