Relationship with suppliers

Question 1

Relationship with suppliers

Answer 1

competitive (also known as contractual) and
collaborative (also known as relation

Question 2

Material requirement planning

Answer 2

a computerised system for planning the requirements for raw
materials, work-in-progress and finished items.

Question 3

MRP is designed to answer three questions:

Answer 3

• what , how much and when is needed

Question 4

functions of mrp include ?

Answer 4

Identifying firm orders and forecasting future orders with confidence.
* Using orders to determine quantities of material required.
* Determining the timing of the material requirement.
* Calculating purchase orders based on stock levels.
* Automatically placing purchase orders.
* Scheduling materials for future production.

Question 5

Benefits of MRP

Answer 5

efits of MRP
* Improved forecasting.
* Improved ability to meet orders leading to increased customer
satisfaction.
* Reduced stock holding.
* The MRP schedule can be amended quickly if demand estimates
change since the system is computerised.
* System can warn of purchasing or production problems due to
bottlenecks or delays in the supply chain.
* A close relationship tends to be built with suppliers

Question 6

Manufacturing resource planning (MRPII) – goes several steps beyond
MRP and includes

Answer 6

production planning
– machine capacity scheduling
– demand forecasting and analysis
– quality tracking tools
– employee attendance and
– productivity tracking

Question 7

Enterprise resource planning (ERP) –

Answer 7

the next evolution of an MRP
system. It integrates information from many aspects of operations (for
example, manufacturing, inventory management, invoicing and
management accounting) and support functions (such as human resource
management and marketing) into one single system.

Question 8

Benefits of ERP to the organisation include:

Answer 8

Identification and planning of the use of resources across the
organisation to ensure customers’ needs are fulfilled
* The free flow of information across all functions and improved
communication between departments
* Aids management decision making due to decision support
features
* Can be extended to incorporate supply chain management (SCM)
and customer relationship management (CRM) software, thus
helping to manage connections outside the organisation.