Materials Management

Question 1

Forecasting

Answer 1

Is the materials management strategy where the demand for a product is predicted from past trends and materials are ordered accordingly.
This can improve effectiveness through using materials wisely so they’re not taking up excess storage.

Question 2

What are the disadvantages of forecasting?

Answer 2

It’s time consuming to analyse trends, predictions may be misinformed and can lead to understocking of materials.

Question 3

Just-in-time

Answer 3

Just in time is a materials strategy where materials arrive in frequent deliveries just before they are used. This can improve efficiency as materials are not sitting idle, which reduces storage costs. Businesses have more freedom to change the processes and inputs used.

Question 4

What are the disadvantages to Just-in-time?

Answer 4

Just in time increases delievery costs and emissions, vulnerable to supply chain disruptions.

Question 5

Master Production Schedule

Answer 5

Is a schedule which lists what will be produced, when and how they will be made. This helps streamline production and order the right amount of materials accordingly. This also meets customer demand and helps reduce costs.

Question 6

What are the disadvantages of Master production Schedule?

Answer 6

Less flexibility, requires dedicated staff

Question 8

Materials Requirement planning

Answer 8

MRP is a list of all the materials required to fit the production needs. MRP can improve efficiency by ensuring there are always enough inputs on hand and minimising waste. Improves on effectiveness by reducing delays and meeting customer demand.

Question 9

What are the disadvantages of Materials Requirement Planning?

Answer 9

Requires accurate data to work, which can be costly to set up and maintain.