Optimizing Coal Mine Inventory Costs With Material Requirements Planning (149bf5bd-8416-4e90-8021-218c116f0af4)

In small coal mining operations, little is done in controlling supply and material inventories and optimizing total inventory costs. Material Requirements Planning (MRP) is an efficient material control system which time-phases net material requirements based upon production plans, bills of material data, and inventory status records. Inventory levels and total inventory costs are optimized using a lot sizing technique in placing time-phased purchase orders. The MRP system has been applied in large manufacturing firms utilizing mainframe computers, but it can be adapted to micro-computers for inventory control. This paper presents an application designed to assist the coal mine manager in optimizing inventory costs.