Materials Management

Question 1

What is Materials Management

Answer 1

Materials Management is the strategy involved with managing the use, storage and delivery of resources, to ensure the right amount of inputs is available when required in the operations management. They can do this by bulk buying there materials to ensure there is always more but this in turn may have an effect on the quality of the product or available storage depending on the materials used in production.

Question 2

Master Production Scheduling

Answer 2

The Master Production Scheduling or MPS describes what is to be produced and when. It describes specific dates, times and contacts for delivery in the future.

Question 3

Master Requirements Planning

Answer 3

The materials requirements planning or MRP involves developing an itemised list of all the resources that will be needed or involved in the production in order to meet specific order requirements. MRP must consider lead time requirements meaning whether items need be ordered weeks or months in advance, the exact number of inputs needed, the amount of stock or inventory on hand and purchasing procedures for example whether the organisation wishes to take advantage of bulk buying discounts.

Question 4

Inventory control

Answer 4

Ensures that costs are minimised and that operations system has access to the right amounts of inputs when required. A common approach used by many organisations in Australia is the just in time (JIT) system of inventory control.

Question 5

Just in time (JIT)

Answer 5

This approach makes sure that the right amount of materials arrive just as they are needed for production. Using this approach can reduce storage costs and reduce the risk of any waste occurring in storage this can thus increase competitiveness.

Weakness- However, supplier deliveries must be reliable, and materials must be received at the appropriate time.

Question 6

The supply chain

Answer 6

A supply chain is the range of suppliers from which the organisation purchases materials and resources from. Supply chain is a materials management approach that ensures quality inputs from suppliers. Organisations work with suppliers to make sure that materials are delivered efficiently and in the right quantities.