Material Strategies

Question 1

Forecasting

Answer 1

• Materials planning tool

- Assists managers in making informed decisions about materials and quantities

Question 2

Master Production Schedule (MPS)

Answer 2

• Plan that outlines what a business intends to produce in specific quantities within a set period of time
• Breaks down production process and determines output targets that align with predicted customer demand

Question 3

Materials Requirement Planning (MRP)

Answer 3

• Process of itemising the types and quantities of materials required
• Creates detailed plan of the exact materials need to meet production targets

Question 4

Just In Time (JIT)

Answer 4

• Inventory control approach that delivers the correct type and quantity of materials when needed
• By delivering immediately, JIT ensures that business always has minimal stock on hand