Materials Management Strategies

Question 1

Define Forecasting

Answer 1

The prediction of how many materials will be required by looking at past data from previous periods

Question 2

Define Materials Requirement Planning (MRP)

Answer 2

A computer based inventory system that itemises the materials needed to produce specific orders or forecasts

Question 3

Define Master Production Schedule (MPS)

Answer 3

A document that details what is to be produced, the quantities it will be produced in and when it will be produced

Question 4

Define Just In Time (JIT)

Answer 4

A strategy that relies on materials being delivered just as they are required in the production process

Question 5

2 Advantages of Forecasting

Answer 5

Can identify and anticipate seasonal changes, Can help to prevent over ordering

Question 6

2 Disadvantages of Forecasting

Answer 6

Not always accurate or reliable, Can be a time consuming process to analyse the date and make predictions

Question 7

2 Advantages of MPS

Answer 7

Can help to determine accurate ordering quantities and timings, Good for a standardised production line

Question 8

2 Disadvantages of MPS

Answer 8

Can be time consuming and expensive to set up as there must be a manual of instructions, Difficult to account for every situation

Question 9

2 Advantages of MRP

Answer 9

Can reduce waste, Can reduce storage space

Question 10

2 Disadvantages of MRP

Answer 10

Can be expensive to set up a dedicated system, Can have unpredictable shipping delays which affect material quantity

Question 11

2 Advantages of JIT

Answer 11

Potential for zero wasted raw materials, Very little storage required

Question 12

1 Disadvantage of JIT

Answer 12

Heavily reliant on the supplier