Materials Management Strategies Flashcards

1
Q

Define Forecasting

A

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

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2
Q

Define Materials Requirement Planning (MRP)

A

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

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3
Q

Define Master Production Schedule (MPS)

A

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

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4
Q

Define Just In Time (JIT)

A

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

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5
Q

2 Advantages of Forecasting

A

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

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6
Q

2 Disadvantages of Forecasting

A

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

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7
Q

2 Advantages of MPS

A

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

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8
Q

2 Disadvantages of MPS

A

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

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9
Q

2 Advantages of MRP

A

Can reduce waste, Can reduce storage space

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10
Q

2 Disadvantages of MRP

A

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

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11
Q

2 Advantages of JIT

A

Potential for zero wasted raw materials, Very little storage required

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12
Q

1 Disadvantage of JIT

A

Heavily reliant on the supplier

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