Inventory Management Assignment Example | Topics and Well Written Essays - 500 words

Inventory Management - Assignment ExampleThe materials requirement planning of the company is already implement yet the results showed that it is not effective. The main cause of such ineffectiveness is the inaccurate information that is entered into the MRP. It is important for Andrea to consolidate and coordinate with other departments of the company in line of battle to control not only what item is purchased and in what quantity but also the timing of its arrival and its intended production consumption.Furthermore, Andrea should consider planning a Just-In-Time (JIT) inventory system for the company. JIT is a means of meeting customer demands with minimum delay. It is referred as the production of goods, assemblies, and subassemblies to meet exactly the customers demand in terms of time, character and quantity. JIT goes further than an MRP. It controls not only the right item, in the right quantity, at the right time, but it also brings the SKU to the right place. Under JIT, a n item appears exactly when it is involve - not before, not after. (Muller, 2003)The volatile demand may cause inaccurate forecasts, which is one of the main sources of backlogs and markdowns in a market-driven manufacturing environment.