Logistics Resource Planning (LRP) Application In SMEs

Recently, small and medium enterprises (SMEs) have grown well in the background of China economy boom. However, in its informatinization, SMEs are short of R&D investment and professionals. There are serious problems in information technology uses and ignorance of the importance of informationization. Shortages in professionals, capital, information acquisition, marketing method, adaptability, management and poor equipment make SMEs incapable in competition. To improve uses of resources and efficiency, SMEs are no longer satisfied with the application of material requirement planning (MRP) and distribution resources planning (DRP). A new synthetical resource planning, integrated with MRP and DRP, involving production and distribution, has come to people's mind when seeing the effects and limits in the application of MRP and DRP.Under this scenario, a research was carried out on logistics resources planning (LRP). The essence of LRP is to integrate MRP and DRP, making it efficient and cost saving in procurement, production and distribution. LRP is necessary to SMEs as quick responses to changing markets are needed when facing new competitions, such as short lead time, quality improvement and reduce of costs. This research is focusing on the application of LRP in SMEs to improve their management and competitiveness. This research has summarized related theories and technologies on LRP and raised arguments on SMEs'application of LRP based on the study of LRP theories.LRP has been come to business, but not academic, attention and been applied. A new measure in SMEs'information management is expected by studying LRP and its application in SMEs.There are three stages in this research. Stage one: The subject confirmation by studying articles. Stage Two: The proposition and conclusion establishment by research on articles, field research and first hand data process. Stage Three: Thesis completion by analysis of data and acquisition of expertise.