U3 3E materials strategies

Question 1

define forecasting

Answer 1

forecasting is a material planning tool that predicts customer demand for a future period using on past data / market trends.

involves
- predicting what materials will be required / what quantities

• prediction too low = run out of product leading to customer dissatisfaction
• prediction too high = order too much stock leading to expiration / taking up space

Question 2

define master production schedule (MPS)

Answer 2

-a plan outlining what business intends to produce in specific quantities in set time period

• breaks down whole production process in stages / determining
• what is exactly required
• needs to be produced and when

Question 3

define materials requirement planning (MRP)

Answer 3

MRP is a process that records types and quantities of materials required to meet production target set out in master production schedule.

include
- stock or materials on hand
- stock or materials to be ordered

e.g shelving stock control

Question 4

define just in time

Answer 4

• is an inventory control system
• that delivers the correct type and quantity of materials as needed for production
• requires complex tracking of supplies using computer monitoring system
• requires good relationship between business and suppliers