Inventory Scheduling Approaches

Inventory Scheduling Approaches - Inventory Scheduling...

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Unformatted text preview: Inventory Scheduling Inventory Scheduling Approaches Approaches 9-2 Inventory Scheduling Approaches Three popular inventory scheduling approaches: JIT (Just in Time) MRP (Materials Requirements into Planning) DRP (Distribution Resource Planning) 9-3 JIT Key characteristics: Zero inventory Zero defects Small, frequent replenishment Product arrives when needed, no tolerance for early or late deliveries. High priority on consistent lead times. Earliest application: Toyota’s Kanban system- signboards on carts and totes carrying parts to the production line indicate the exact quantities and necessary time of replenishment. 9-4 JIT versus EOQ Major differences. JIT… 1. Involves short production runs with frequent changeovers – which may require investment in advanced manufacturing technology. 2. Requires consistent lead times. 3. Relies on high-quality incoming products and on disciplined, synchronized inbound logistics operations. 4. Requires a strong, mutual commitment between buyer and seller. 9-5 EOQ versus JIT Attitudes and Behaviors 9-6 MRP Materials Requirements Planning (MRP) Procedures, decision rules, and data bases used to translate a master production schedule into inventory...
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This note was uploaded on 03/05/2010 for the course LSCM 360 taught by Professor Martins during the Fall '08 term at Iowa State.

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Inventory Scheduling Approaches - Inventory Scheduling...

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