A cost-benefit analysis of MRP implementation : a case of Egyptian manufacturers

Abstract EN

The purpose of this paper is to empirically discern the benefits obtained and the costs spent of Material Requirements Planning (MRP) implementation by Egyptian manufacturing companies.

To do this, the data collected of the survey of 52 MRP companies and 41 Non-MRP companies in the Egyptian industrial sector.

The survey findings demonstrate the benefits from MRP already documented in developed and the newly industrializing countries, were also obtained by Egyptian users.

Moreover Egyptian users also expect to achieve more improvements in their business performance from MRP implementation in the future.

In direct contrast to past literature, the findings found no relationship between MRP installation cost and company size suggesting that it is not only the large firms who are involving in these systems.

Theoretical and practical implications for both MRP managers and users are-provided.

Finally, avenues for future research are recommended.