Development of Distributed MRP System for Production Planning and Operation in Korean OEM/ODM Cosmetics Manufacturing Company

국내 OEM/ODM 화장품 제조기업의 생산계획 및 효율화를 위한 분산형 MRP시스템 개발

  • Jang, Dongmin (Department of Industrial and Management Engineering, Hanbat National University) ;
  • Shin, Moonsoo (Department of Industrial and Management Engineering, Hanbat National University)
  • 장동민 (한밭대학교 산업경영공학과) ;
  • 신문수 (한밭대학교 산업경영공학과)
  • Received : 2020.11.02
  • Accepted : 2020.12.18
  • Published : 2020.12.31


Up to date cosmetic OEM/ODM (original equipment manufacturing/original development manufacturing) industry receives attention as a future growth engine due to steady growth. However, because of limited research and development capability, many companies have employed commercial management platforms specialized for large-sized companies; thus, overall system effectiveness and efficiency is low. Especially, MRP (material requirement planning) system introduced originally in 1970s is employed to calculate the requirement of the parts. However, dynamic nature of production lead time usually results in incorrect requirements. In addition, its algorithm does not consider the capability of the production resources. Also, because the commercial MRP system calculates all subcomponent for fixed period, the more goods have subcomponent, the slower calculation is. Therefore, conventional MRP system cannot respond complicated situation in time. In this study, we will suggest a new method that can respond to complicated situations resulting from short lead time and urgent production order in Korean cosmetic market. In particular, a distributed MRP system is proposed, that consists of multi-functional and operational modules, based on the characteristic of the BOM (bill of material). The distributed MRP system divides components (i.e. products and parts) into several fields and decrease the problem size; thus, we can respond to dynamically changed data any time. Through this solution, we can order components quickly, adjust schedules and planned quantity, and manage stocks reasonably. In addition, a prototype of the distributed MRP system is presented in this paper, in which ERP (enterprise resource planning) sever data is associated with an excel spreadsheet via MSsql. System user interface is implemented by a VBA (visual basic for applications) tool. According to a case study, response rate for delivery and planning achievement rate were enhanced about 20%, and inventory turnover was also decreased. Consequently, the proposed system improves overall profit.



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