Jump to ContentJump to Main Navigation
Show Summary Details
More options …

The European Journal of Applied Economics

2 Issues per year

Open Access
See all formats and pricing
More options …

Project Scheduling Method with Time Using Mrp System – A Case Study: Construction Project in Libya / Metoda Planiranja Projekata U U Funkciji Vremena Korišćenjem Mrp Sistema – Studija Slučaja Građevinskog Projekta U Libiji

Abdallah Ali Imetieg
  • Corresponding author
  • Singidunum University, Department for Postgraduate Studies, Ph.D Candidate 32 Danijelova Street, Belgrade, Serbia
  • Email
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
/ Miroslav Lutovac
Published Online: 2015-05-09 | DOI: https://doi.org/10.5937/ejae12-7815


Materials Requirements and Planning (MRP) is a system of production planning and inventory control, which is used to manage manufacturing processes. Most MRP systems are software-based and are used to ensure that the materials are available for production, that the products are available for delivery to customers, that the lowest possible material and product level is maintained in store, as well as to plan delivery schedules and purchasing activities. Upon completion of scheduling, begins the process of follow-up, which includes the achievement of the project goals in terms of quantity, quality and costs in accordance with deadlines. MRP system was applied to project of 5000 housing units in Solug area, which is close to Benghazi city, Libya, with the aim to provide necessary cash flow to pay dues on time without delay to all involved project sub-contractors and material suppliers, to ensure the smooth flow of operations, as well as to diminish costs by reduction of temporary storages and rented areas. There is a correlation between time and cost of each activity. If the required time is shorter than the scheduled time of the certain activity, it would demand more resources, which further leads to the increase in direct costs of the given activity. Therefore, the output of MRP is important since commands are issued through planning in order to launch the suggested orders with the required quantities and within the limited time period.


Sistemi za planiranje materijalnih potreba preduzeća (MRP) su sistemi koji omogućavaju efektivno planiranje proizvodnje i kontrolu zaliha, a koji se koriste u upravljanju proizvodnim procesima. Većina ovakvih sistema bazira se na softverskim rešenjima. Njihova funkcija jeste da obezbede raspoloživost materijalnih resursa za proizvodnju, dostupnost gotovih proizvoda klijentima, kao i minimalno zadržavanje zaliha u magacinima i radnjama, a sve to za potrebe planiranja rasporeda isporuke i aktivnosti nabavke. Nakon izrade rasporeda slede aktivnosti koje bi trebalo da ispune očekivane projektne ciljeve u smislu količine, kvaliteta i troškova u skladu sa vremenskim rokovima. MRP sistem primenjen je na projektu od 5000 stambenih jedinica u Solug oblasti u blizini grada Bengazi u Libiji, sa ciljem pružanja neophodnog novčanog toka kako bi se isplatili svi podizvođači na projektu bez odlaganja i osiguralo nesmetano poslovanje i izbegli nepotrebni troškovi smanjenjem broja privremenih skladišta i iznajmljenih prostora. Postoji korelacija između vremena i troškova za svaku aktivnost. Naime, ako je potrebno vreme za određenu aktivnost kraće od planiranog, to će zahtevati veću količinu resursa, što dovodi do povećanja direktnih troškova date aktivnosti. Učinak MRP sistema je od velikog značaja zato što se naredbe izdaju kroz planiranje kako bi se pokrenule očekivane nabavke prema zahtevanim količinama u ograničenom vremenu.

Keywords: Materials Requirements and Planning (MRP); cost; quality; scheduling process; project management; Libya

Ključne reči: Sistemi za planiranje materijalnih potreba preduzeća (MRP); troškovi; kvalitet; raspored; upravljanje projektom; Libija


  • Fernandes, F.C.F., & Filho, M.G. (2011). Production control systems: Literature review, classification, and insights regarding practical application. African Journal of Business Management. 5(14), 5573-5582.Google Scholar

  • Gomes da Silva, G., & Maia, C.A. (2014). On just-in-time control of timed event graphs with input constraints: a semimodule approach. Discrete Event Dynamic Systems. DOI: 10.1007/s10626-014-0200-z CrossrefGoogle Scholar

  • Jodlbauer, H., & Reitner, S. (2012). Material and capacity requirements planning with dynamic lead times. International Journal of Production Research. 50(16), 4477-4492. DOI:10.1080/00207543.2011.603707CrossrefGoogle Scholar

  • Jonsson, P., & Mattsson, S.A. (2009). Manufacturing, planning and control. New York: McGraw-Hill Higher Education.Google Scholar

  • Kassim, N. (2004). Application of MRP1 System in the Libyan Public Company for Manufacturing Investments. Journal of Economic Research Benghazi. 15(1), 456.Google Scholar

  • Khatib, S.M. (2008). _ e impact of the potential application of the planning system resource requirements to control inventories. MBA, Faculty of Management and Economics, University of Baghdad - Iraq, p. 37Google Scholar

  • Kim, K. (2014). Material Resource Planning (MRP): Will You Need MRP without the Customer? Open Journal of Social Sciences. 2(4), 1-5. DOI: 10.4236/jss.2014.24027CrossrefGoogle Scholar

  • Landry, S., & Beaulieu M. (2013). Th e Challenges of Hospital Supply Chain Management, from Central Stores to Nursing Units, In B. T. Denton (Ed.) Handbook of healthcare operations management: Methods and applications. New York, NY: Springer. 184, 465-482.Google Scholar

  • Mula, J., Poler, R., Garcia-Sabater, J.P., & Lario, F.C. (2006). Models for production planning under uncertainty: A review. International Journal of Production Economics. 103 (1), 271-285. DOI:10.1016/j.ijpe.2005.09.001CrossrefGoogle Scholar

  • Obeidi, A.I.H.A. (2007). Adoption of the MRP system in organizational performance improvement using a balanced scorecard technology. BSC-Master technology operations - Management Technical College- Baghdad - Technical Education. p.173Google Scholar

  • O›Grady, P.J. (2012). Putting the Just-In-Time Philosophy into Practice: A Strategy for Production Managers. New York. Springer Science & Business Media.Google Scholar

  • Panizzolo, R., & Garengo, P. (2013). Using Th eory of Constraints to Control Manufacturing Systems: A Conceptual Model. Industrial Engineering and Management. 3(3), 1-9. DOI: 10.4172/2169-0316.1000111CrossrefGoogle Scholar

  • Parsaei, H.R., Sullivan, W.G., & Hanley, T.R. (2013). Economic and Financial Justi_ cation of Advanced Manufacturing Technologies. Amsterdam: Elsevier.Google Scholar

  • Powell, D., Alfnes, E., Strandhagen, J.O., & Dreyer, H., (2012). Th e concurrent application of lean production and ERP: Towards an ERP-based lean implementation process, Computers in Industry. 64(3), 324-335.Google Scholar

  • Ptak, C., & Smith, C. (2011). Orlicky›s Material Requirements Planning. New York: McGraw-Hill.Google Scholar

  • Ram, B., Naghshineh-Pour, M.R., & Yu, X. (2006). Material requirements planning with flexible bills-of-material. International Journal of Production Research. 44 (2), 399-415. DOI: 10.1080/00207540500251505CrossrefGoogle Scholar

  • Rom, W.O., Tukel, O.I., & Muscatello, J.R. (2002). MRP in a job shop environment using a resource constrained project scheduling model. Omega 30(4), 276. DOI: 10.1016/ S0305-0483(02)00033-6CrossrefGoogle Scholar

  • Sarkar, B., Gupta, H., Chaudhuri, K., Goyal, S.K. (2014). An integrated inventory model with variable lead time, defective units and delay in payments. Applied Mathematics and Computation, 237, 650-658. DOI:10.1016/j. amc.2014.03.061CrossrefWeb of ScienceGoogle Scholar

  • Segerstedt, A. (1998). Cover-Time Planning: A Less Complex Alternative to MRP. Advanced Models and Methods for Production Planning. Berlin: Springer. DOI: 10.1007/978-3-662-03742-3_3CrossrefGoogle Scholar

  • Wincel, J.P., & Kull, T.J. (2013). People, Process, and Culture: Lean Manufacturing in the Real World. London: CRC Press.Google Scholar

  • Zaher, H., & Zaki, T.T. (2014). Optimal Control Th eory to Solve Production Inventory System in Supply Chain Management. Journal of Mathematics Research. 6(4), 109-117. DOI: 10.5539/jmr.v6n4p109CrossrefGoogle Scholar

  • Zoraghia, N., Najafib, A.A., & Niaki, S.T.A. (2014). Resource Constrained Project Scheduling with Material Ordering: Two Hybridized Meta-Heuristic Approaches. International Journal of Engineering. Google Scholar

About the article

Received: 2015-02-10

Accepted: 2015-04-15

Published Online: 2015-05-09

Published in Print: 2015-04-01

Citation Information: The European Journal of Applied Economics, Volume 12, Issue 1, Pages 58–66, ISSN (Online) 2406-2588, DOI: https://doi.org/10.5937/ejae12-7815.

Export Citation

© by Abdallah Ali Imetieg. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License. BY-NC-ND 3.0

Comments (0)

Please log in or register to comment.
Log in