MRP can decrease a company's inventory while improving its customer service level by statistically calculating the amount of material that is needed in order to produce all of the companie's products in adequate number, so that they will be on hand to satisfy customer demands for the goods or products without there being any inadequacy or increase in service time. Secondly, this type of planning can ...
Inventory Management: JIT, MRP, ERP, and Lean Operations
You have just received a phone call from a senior partner at one of the "Big Four" management consultancies. She wants to meet with you to discuss the most recent developments in Inventory Management, including JIT, MRP, ERP, and Lean operations. You suspect that her true motive is to sell a SOA (Supply Chain Opportunity Assessment) to your division and to follow that up with a new software package implementation. Nevertheless, you agree to meet with her anyway.
In preparation for that meeting, you ask your staff to participate in a brainstorming meeting.
Your assignment is to create a posting with what you believe to be the most important discussion points for the meeting.
Your initial posting should cover at least the following topics:
1. How could JIT principals be incorporated in your supply chain and manufacturing operations?
2. How can you assess a MRP/ERP package's usefulness in supporting your efforts to monitor, control, and improve your inventory management efforts? What should you realistically expect of a MRP/ERP after it is first implemented?
3. What strategic or tactical opportunities can your organization pursue? If you have more than one item, be sure to prioritize your list.