Dp 5 - Strategies (Materials)

Question 1

Forecasting

Answer 1

a materials planning tool that predicts customer demand for an upcoming period using past data and market trends

Question 2

Forecasting: Efficiency

Answer 2

forecasting decreases likelihood of ordering and storing excessive amounts of materials -> which optimises the use of resources by reducing waste

Question 3

Forecasting: Effectiveness

Answer 3

Improves ability to meet customer demand -> which can contribute to increased customer satisfaction, sales and market share

Question 4

Forecasting: +

Answer 4

+ Informed decisions about quantity of materials required can improve ability meet customer demand
+ Reduce the cost of storage as it prevents the need for a large space to store materials

Question 5

Forecasting: -

Answer 5

• Business is too reliant on forecasting may be unable to meet unexpected increases in customer demand
• May need to hire forecasting specialists -> increases training and wage costs

Question 6

Master Production Schedule

Answer 6

a plan that outlines what a business intends to produce, in specific quantities, within a set period of time

Question 7

MPS: Efficiency

Answer 7

prevents from producing an excessive number of products, which optimises the use of resources by reducing wages

Question 8

MPS: Effectiveness

Answer 8

more likely to produce the correct quantity of products to meet customer demand, improving customer satisfaction, sales and market share

Question 9

MPS: +

Answer 9

+ Improve a business’s reputation -> reduced impact on environment
+ Provide employees with a clear schedule of operations that includes the timeline and quality of production targets

Question 10

MPS: -

Answer 10

• Can be time consuming to map out details of production
• Implementing and maintaining this plan can be expensive

Question 11

Materials Required Planning

Answer 11

a process that itemises the types and quantities of materials required to meet production targets set out in the MPS

Question 12

MPR: Efficiency

Answer 12

Having the exact materials required reduces avoidable halts in production which enhances productivity by allowing operations to flow smoothly

Question 13

MPR: Effectiveness

Answer 13

ensures there are sufficient materials to meet customer demand -> helps meet objective of increasing customer satisfaction and sales

Question 14

MPR: +

Answer 14

+ By determining exact materials required -> decreasing waste generated in production -> improve reputation
+ Accurate ordering of quantities of materials required avoids excess storage therefore reduces associated expenses

Question 15

MPR: -

Answer 15

• Can be time-consuming to constantly update the materials plan
• Implementing and maintaining the materials plan can incur additional administrative and training costs

Question 16

Just in Time

Answer 16

an inventory control approach that delivers the correct type and quantity of materials as soon as they are needed for production

Question 17

JIT: Efficiency

Answer 17

holding minimal stock can free up areas in the workplace that can be utilised to increase production

Question 18

JIT: Effectiveness

Answer 18

costs saved from reducing storage space can be used in other areas of the business, such as sales and marketing, which can meet objectives of increasing sales

Question 19

JIT: +

Answer 19

+ No raw material wastage
+ No idle machines

Question 20

JIT: -

Answer 20

• Reliant on suppliers to deliver on time
• Delivery costs may increase if more frequent deliveries are needed