5.5 Production planning Flashcards
What is the supply chain?
the sequence of activities from the production of a good or service to it being delivered to the end customer.
What is supply chain management
the art of managing and controlling these logistics, which must be efficient and cost effective for a business to be profitable
What are the key functions of supply chain management?
stock control
quality control
supplier networks
transportation
What are the reasons for supply chain management?
prevent mistakes
ensure that there is an appropriate supply of stocks
tool for achieving lean production
What are the potential problems of supply chain management?
increased globalisation increase potential for time lags and culture conflicts
greater interdependence means that a single problem can cause major disruptions
What is the difference between just-in-time and just-in-case production?
Just-in-time (JIT) is a stock control system based on stocks being delivered as and when they are needed in the production process. This means that a buffer stock (the predetermined minimum level of stock) is not required.
Just-in-case (JIC) is the traditional stock control system that maintains large amounts of stock in case there are supply or demand fluctuations. A buffer stock (or reserve stock) of raw materials, semi-finished goods and finished goods is used just in case there are any issues, such as late delivery of stocks from a supplier or a sudden increase in demand for output.
