The Little Red Wagon: A Story About Assembly Requirements Planning

When a marketable product proliferates into numerous final configurations, it becomes increasingly difficult to maintain a complete and accurate Bill of Material for each unique version. If all versions are not accurately recorded, subordinate component inventories become increasingly inaccurate, leading to component shortages and overages.

Does your company have these issues? Read how The Little Red Wagon Company got a handle on their entire supply chain by ALL departments using the same vocabulary.

Assembly Requirements Planning (ARP) is designed to handle ‘Top Heavy’ Bill of Material Files. ARP was developed when a new product was introduced that had over a million possible final sales models. The existing Material Requirements Planning (MRP) system could not effectively handle such complexity.

Assembly Requirements Planning (ARP) was created to “complement” the established MRP system. Just how ARP accomplishes this task is presented herein.