Materials Management

Question 1

Materials management

Answer 1

the strategy that managers use, storage and delivery of materials to ensure the right amount of inputs is available when required

Question 2

Forecasting

Answer 2

Relies on data from the past and present and analysis to determine future events

Question 3

Advantages of forecasting

Answer 3

1. Allows business to estimate what types of outputs are likely to be sold at what times
2. Maximise sales
3. Less likely to end with excess stock

Question 4

Disadvantages of forecasting

Answer 4

1.Data may not be accurate
2. Historical do not take into account recent changes

Question 5

Master Production Schedule

Answer 5

A plan that details what is to be produced and when, delivery dates and delivery for future

Question 6

Materials Requirement Planning

Answer 6

Involves developing an itemlised list of all materials involved in production to meet the specified orders

Question 7

Effectiveness for both MPS/MRP (Disadvantages)

Answer 7

1. Sales are maximised, no danger in production by lack of labour, materialsd and capital
2. Flexibility ( change what is produced if consumer demand changes)

Question 8

Efficiency of MPS/MRP (Advantages )

Answer 8

1.Lower production costs, avoiding periods of no productions ( not having to pay workers to do nothing)
2. No excess inventory or finished products spoilt or damaged

Question 9

Disadcantages of MPS/MRP

Answer 9

1. Inaccurate information, schedule or planning may contain errors
   2.Expensive software, increaseing costs
2. If MPS is too advanced, business may not be able to adjust to changes

Question 10

Just in Time

Answer 10

A materilas management strategy that ensures that the right amount of material will arrive only as they are neeeded in the operations process

Question 11

Advantages of JIT

Answer 11

Reduced costs
-less storage space required
-Less money tied up in inventory
Reduces wastages and defects
- less spoilages of inventory
-fewer defects