Day: March 2, 2022

The basic functions of an MRP system include: inventory control, bill of material processing, and elementary scheduling. MRP helps organizations to maintain low inventory levels. It is used to plan manufacturing, purchasing and delivering activities. “Manufacturing organizations, whatever their products, Read More …

Material Requirement planning (MRP) is a technique used to determine the quantity and timing requirements of ―depended demand‖ materials used in the manufacturing operation. The materials can be purchased externally or produced in-house. The important characteristic is that their use Read More …

Apart from the general commitment to JIT, two things essential to the implantation of JIT are that: first, all parts must arrive where they are needed, when they are needed and in the exact quantity needed. Secondly, all parts arriving Read More …

Some of the main problems with JIT are Its inability to deal with unforeseen circumstances Reliance on perfect quality of materials from suppliers Reduced flexibility to meet specific or changing customer demands Difficulty of reducing set up times and associated Read More …

The potential benefits of JIT to an organization and its purchasing function in particular, have been summarized as follows: Shorter lead-times Shorter time needed to make a product Higher equipment capacity and utilization Simplified planning and scheduling Less paperwork Less Read More …

JIT is a philosophy of manufacturing based on planned elimination of all waste and continuous improvement of productivity. It encompasses the successful execution of all manufacturing activities required to produce a final product from design engineering to delivery and including Read More …

1. FIXED ORDER QUANTITY With fixed order quantities, inventory is replenished with a predetermined quantity of every stock every time the inventory falls to a specific order level. The reorder level is the quantity to be used during the lead Read More …

A major distinction in the way inventory planning and control is managed is whether demand for items in inventory is independent or dependent. Dependent demand items are typically subassemblies or component parts that will be used in the production of Read More …

Strategic Procurement Planning is the transformation of an organization‘s mission, goals, and objectives into measurable activities to be used to plan, budget, and manage the procurement function within the organization. The ultimate goal is to bring about positive change in Read More …

Once a requisition or project plan is received determining an actual requirement, the procurement officer is then responsible for developing the individual procurement plan. The scope of the individual procurement plan will depend on the complexity of the requirement. While Read More …