Optimizing Operations- Materials

Question 1

Process

Answer 1

Designing and developing products
Master production schedule- what to produce, quantity, time frame
Materials requirement planning- computer system that outlines exact quantity of inputs
Locating supply, negotiating with supplier to achieve best price and quality, establishing a relationship
Materials arrive in the correct quantity at the right time
Inventory management- storage of raw materials, component parts, unfinished and finished goods. Maintaining a balance between a level of inventory that allows operations to keep running and the cost of storage
Production occurs (transformation)
Logistics- getting the final product to the customer
Customer receives final product

Question 2

JIT

Answer 2

Ordering of inputs essential for transformations as the need arises.
>Inventory is replaced as used and this decreases the need for storage space
>Lead time is reduced (time taken from the initial to the completion of product)
>Minimizes waste