I need assistance with the following two questions. Thanks.
1)Briefly describe each of the following techniques for managing inventory:ABC system, economic order quantity (EOQ) model, just-in-time (JIT) system, and computerized systems for resource control?MRP, MRP II, and ERP.
2)How is commercial paper used to raise short-term funds? Who can issue commercial paper? Who buys commercial paper?
ABC Systems- Classification of parts by value. "A" class parts are the highest value and "C" parts the lowest. Typically "A" class parts contain 80% of the total stock value (e.g. annual demand or use multiplied by cost) but represent only 20% of the quantity. "A" class plus "B" class parts typically amount to 95% of the Stock value. "C" class parts are the remaining parts.
Economic Order Quantity (EOQ) - The theoretical optimum Order Quantity assuming throughput, Set up Time and stock holding cost are known and fixed which they seldom are.
Just in Time (JIT) - The progressive reduction of wasteful activities i.e. anything that adds cost but not value to the end product. Examples of this waste include any production or delivery in excess of requirements, movement of parts and inspection that is not integrated into the process.
Material Requirements Plan (MRP) - The time phased Explosion of the material requirements based on the Bill of Materials, ...
Briefly describe each of the following techniques for managing inventory.