Materials strategies

Question 1

forecasting

Answer 1

is a materials planning tool that predicts customer demand for an upcoming period using past data and market trends
efficiency:
- decreases the liklehood of ordering and storing excessive amount of materials, reduces wastage
Effectiveness:
- employees improves a businesses ability to meet customer demand
Adv:
- reducing the amount of wastage
- product employees with a clear schedule
- positive work -life balance
Dis:
- not a flexible program
- time consuming
- expensive

Question 2

Material requirement planning

Answer 2

is the process that itemises the types and qualities of the materials required to meet production sets out in the master production schedule
efficiency:
- avoidable halls in production allowing operations to floe smoothly
effectiveness:
- sufficient materials to meet customer demand
Adv:
- improve reputation
- less likely to halt
- reduces associated expenses
Dis:
- time consuming
training costs

Question 3

Just in time

Answer 3

is an inventory control approach that delivers the correct type and quantity of materials as soon as they are needed for production
Efficiency;
- holding minimal stock can free up areas in the work pace that can be utilised to increase production
Effectiveness:
- costs saved from reducing storage space can be used n other areas
Adv:
-improve rep
- doesn’t waste resources
Dis:
- damage business rep
- results in errors of production
- production may be brought to a halt
- suppliers may be reduced
- delivery costs may increase