This paper explores the existence of various user environment problems (i.e. problems related to the planning organization, basic planning data, software support, education and knowledge) and explains the impact of user environment problems on the perceived planning performance of different materials planning methods (MRP, re-order point, kanban, run-out time and periodic review methods). It is based on a survey of 153 manufacturing and 53 distributing companies in Sweden. Four distinct clusters of user environments are identified. It is shown how different materials planning methods perform differently in various user environments.Keywords: inventory management, materials requirements planning, organizational issues, productivity
IntroductionMaterials planning methods differ in applicability due to the existing planning environment, i.e. depending on the demand, product and process characteristics (e.g. Krajewski et al., 1987, Berry and Hill, 1992, Jonsson and Mattsson, 2003. The planning performance is not only a result of which method is used and in which planning environment it is applied. The user environment, i.e. the software support available in the ERP system or a similar information system supporting the planning function (hereafter, the term ERP is used also for similar planning information systems), the quality of the planning information, and how actively the planning personnel actually are working with designing and using the respective method, should also have important impact on the planning performance.