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Basic Definitions
Comparison
Main Advantage of MRP over JIT: MRP takes forecasts for end product
demand into account. In an environment in which substantial variation of sales
are anticipated (and can be forecasted accurately), MRP has a substantial
advantage.
Comparisons (cont.)
Advantages
Disadvantages
JIT PULL
Limited and known Final Inventory
Comparisons (cont.)
Advantages
Disadvantages
MRP PUSH
Allows Managers to manage that
is, plan and control things
Focusing on JIT
systems
flow processing
time
day
Takt time = -------------------------------------------Customer demand rate per
day
River/Inventory Analogy
Illustrating the Advantages of Just-in-Time
Eliminate Waste
Sources of Waste
Overproduction
Waiting
Unnecessary transportation
Inventory
Inefficient work methods
Inefficient processing
Unnecessary motions
Product defects
Kaizen Philosophy
Continuous improvement
Waste is the enemy
Improvement should be done gradually and
continuously
Everyone should be involved
Built on a cheap strategy
Can be applied anywhere
R/3
Oracle
PeopleSoft (have been merged by Oracle)
Microsoft
SMIS
There
Each
It
WMS
Applications of Information
System
Information
Vendor-Managed Inventory:
IT
3.E-Commerce:
e-commerce uses the internet to facilitate business
transactions. It is a modern way of organising purchasing,
delivering and warehousing materials through websites.
4. Decision Support System: supplies management
information system makes available quality information to
management for better managerial decisions. A welldesigned supplies management information system can
obtain and analyse logistics related data as well as
organise and present it to support the user in making
important decisions.
What is DRP?
DRP
What is DRP?
Managing