Inventory Management Scheduling

Dorsey Brunson

MGMT411-1101B

Inventory Management Scheduling

4/16/2011

In preparation for the meeting with one of the senior partners our team has brainstormed some of the recent developments that our division has implemented in inventory management, and we are going to highlight these in the following breakdown.

For JIT we have recognized that our finished goods inventories are maintained to accommodate unanticipated fluctuations in demand. Nevertheless, while we have these inventories act as buffers against unforeseen events, the indirect cost related to these inventories have been addressed with the JIT concept. These indirect costs include the encouragement of inefficient and sloppy work, an increase in defects, and an increase in the amount of time required to complete a product.

We will use JIT to purchase only enough materials each day to meet that day’s needs. This will allow are inventory flow to change by having no goods still in process at the end of the day, and all goods completed during the day would have been shipped immediately to customers. Because of JIT, there is more stringent, and collaborative communications, controls, and reconciliation between internal and external partners to have materials delivered, processed, and shipped to customers just in time of received purchase orders.

MRP and ERP(computer based) packages will be used to generate reports so that we can analyze the data to estimate the time needed to assemble each product. The effective use of these packages will produce planning documents, the sales plan is fed into the production plan and the production plan is used to prepare the material requirement plan. The material requirement plan is in turn used to plan production capacity, purchasing and finally shop floor operations.

The data that we will monitor through MRP/ERP is:

• sales estimate for each product.

• bill of materials for each product.

• assembly time for each product.

• complete on-hand...