materials management Flashcards
what is materials management
organising and monitoring the delivery, use and storage of materials required for production.
what is forecasting
a tool that predicts customer demand for an upcoming period using past data and market trends.
advantages of forecasting
improves ability to meet customer demand, minimal impact on the environment
disadvantages of forecasting
time consuming to analyse market trends, training and wage costs.
forecasting relation to efficiency
decreases likelihood of ordering and storing excessive stock, reducing wastage.
forecasting relation to effectiveness
increases ability to meet customer demands which can meet objective of increasing customer satisfaction.
master production schedule
a plan that outlines what a business intends to produce, within a set period of time.
advantages of master production schedule
less likely that production will come to a halt, more likely to meet customer demand.
disadvantages of master production schedule
implementing can be expensive, time consuming to map out details.
master production schedule relation efficiency
prevents a business from producing and excessive amount of products, optimises use of resources.
master production schedule relation effectiveness
more likely to produce an amount that meets customer demand, meets objective of increasing sales and customer satisfaction.
materials requirement planning
process that itemises the types and quantities of materials required to meet production targets in the master production schedule.
advantages of materials requirement planning
minimal impact on environment, avoids excess storage
disadvantages of materials requirement planning
time consuming to maintain materials plan, maintaining can incur costs.
materials requirement planning efficiency
reduces avoidable halts in production, enhances productivity because operations systems flow smoothly.
materials requirement planning effectiveness
ensures sufficient materials to meet customer demand. helps meet objective of increasing sales and satisfaction.
just in time
inventory control approach that delivers the correct type and quantity of materials as soon as they are needed for production.
advantages of just in time
reduces storage costs, no high wastage
disadvantages of just in time
less time to check quality of stock, delivery costs may increase/more deliverys
just in time efficiency
holding minimal stock can free up space and be optimised to increase production.
just in time effectiveness
reduction in idle stock can reduces expenses associated with waste, meets objective of increased profits.
