Material Management

Question 1

What is material management?

Answer 1

managing the use, storage and delivery of materials to make sure the right amount of resources are always readily available

Question 2

What are the 4 strategies of material management?

Answer 2

Forecasting
Materials planning (including Master production Schedule and Materials requirement planning)
Inventory control
Just in Time

Question 3

What is ‘inventory’ ?

Answer 3

The amount of stock/materials kept in storage

Question 4

What does Forecasting do to help manage materials?

Answer 4

collects data to refer to (analysis of trends, past events, to determine future)

amount of materials ordered is influenced by prediction of how much is estimated they’ll need

business will maintain perfect amount of materials to avoid under and over producing (A/D)

Forecasts are short term, is a process that starts before production begins

Question 5

What does Materials Planning do to help manage materials? (MP, MPS, MRP)

Answer 5

a production plan is created on software to outline the process of production

a master production schedule is a plan describing the amount of products to produce, how they’re made, and when they’re made (like delivery dates, need to make sure they’re capable of completing production to that standard)

Materials requirement planning is made after time and resource constraints are figured out, produces list of items/materials needed for production. materials sourced from suppliers

Question 6

What does Inventory Control do to help manage materials?

Answer 6

method of minimising costs when maintaining materials in storage

costs are reduced by making sure no stock is left unused for long amounts of time, and ensuring inputs are always ready to be used

barcoding and computerised stock are used to keep track of materials nowadays

Question 7

What does Just in Time do to help manage materials?

Answer 7

approach makes sure right amount if materials arrive at the exact time they’re needed

minimises storage of materials and finished products being idle

reduces costs and waste, increases competitiveness

Question 8

strengths and limitations of Forecasting

Answer 8

Strengths-
maintains appropriate amount of materials
prevents under and overproducing
stock cant be stole, spoiled or damaged

Limits-
data doesn’t guarantee past events will happen in future
forecasting isn’t 100% accurate

Question 9

strengths and limitations of Materials Planning

Answer 9

Strengths-
prevents under and over producing
MPS predicts future needs of business
MPS MRP can be used to adjust production
allows new products to be introduced 
improves efficiency 

Limits-
relies on accurate info
costly to operate
can inhibit flexibility bc its difficult to adapt
once motions are in place its hard to change them

Question 10

strengths and limitations of Just in Time

Answer 10

Strengths-
reduces storage costs
less costs around stock
reduces storage waste
ensures smooth production flow 

Limits-
need reliable supplier deliveries
materials must arrive at appropriate time
transportation is costly