The current workforce of the company and activities

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The current workforce of the company and activities required for production can be controlled internal to adjust to demand (Jacobs & Chase, 2013, p. 491). Level schedulingLevel scheduling also known as Heijunka, in Japanese. Is a form of lean manufacturing that is essential in a pull system. Its aim is to produce items at a constant rate so that they flow through the production process with minimum lead time and no waiting. With any process, there are fluctuations, but level scheduling seeks to level the fluctuations and the system is constantly monitored as part of a continues improvement policy (Kaizen World, n.d.). Benefits and challenges of inventoryThere are both benefits and challenges of inventory holding excess inventory or minimal inventory. One advantage of excess inventory can be an increase in responsiveness to market demand. It also reduces production and transportation costs because of an increase in the economies of scale. The disadvantage is that there is an increase in inventory holding costs and if the items don’t sell as anticipated mat need to be marked down which lowers profits. Lower levels of inventory improve inventory turnarounds but may result in lost sales if demand was higher than forecasted and customers were unable to find products they are ready to purchase. Some companies create a safety inventory, but that can hide kinks within the supply chain that would be exposed in a leaner chain. There can be a number of reasons for these disturbances but they must be addressed (Chopra & Meindl, 2016, pp. 49-50).
MRP structureThe material requirements planning (MPR) ties the production functions together from a material planning and control view. It allows an easily understandable approach to the problem of determining the number of parts, components, and materials needed to produce each end item. The MPR system is comprised of a masterproduction schedule that states the number of items to be produced during specific time periods. A bill-of-materials file is used to identify the specific materials used to make each item and the correct quantities of each. The inventory records file contains data such as the number of units on hand and on order (Jacobs & Chase, 2013, pp. 557,560). Impact of inventory on company resourcesInventory can provide a safety net that can absorb inaccurate forecasts or other faults within the supply chain. This excess inventory does come at a price. This excess inventory requires space and storage and so increases warehouse cost. It also requires inventory control and handling that requires more man-hours causing an increase in these areas. All these increased costs must be accounted for with this safety net (Chopra& Meindl, 2016, p. 250).ReferencesChopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation (6th ed.). Pearson Education, Inc.Jacobs, F., & Chase, R. B. (2013). Operations and Supply Chain Management (14th ed.). New York, New York: McGraw-Hill/Irwin.

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