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Orlicky's 1975 book Material Requirements Planning has the subtitle The New Way of Life in Production and Inventory Management. [2] By 1975, MRP was implemented in 700 companies. This number had grown to about 8,000 by 1981. In 1983, Oliver Wight developed MRP into manufacturing resource planning (MRP II). [3]
Build to stock, or make to stock, often abbreviated as BTS or MTS, is a build-ahead production approach in which production plans may be based upon sales forecasts and/or historical demand. [1] BTS is usually associated with the industrial revolution mass production techniques, where in anticipation of demand vast quantities of goods are ...
Different from other motives for inventory management, such as fixed costs (e.g. cyclic inventory in the economic order quantity model), uncertainties in demand and supply (safety stock), and fluctuations in prices (speculative stock), strategic inventories emerge as a distinctive category. [1]
In managing manufacturing or service operations, several types of decisions are made including operations strategy, product design, process design, quality management, capacity, facilities planning, production planning and inventory control. Each of these requires an ability to analyze the current situation and find better solutions to improve ...
The second aim is the vertical alignment amid strategic plan and the operational plan of a company. [2] A properly implemented S&OP process routinely reviews customer demand and supply resources and "re-plans" quantitatively across an agreed 'rolling' horizon. The re-planning process focuses on changes from the previously agreed sales and ...
Inventory optimization refers to the techniques used by businesses to improve their oversight, control and management of inventory size and location across their extended supply network. [1] It has been observed within operations research that "every company has the challenge of matching its supply volume to customer demand.
Collaborative planning, forecasting, and replenishment (CPFR) is an approach to the supply chain process which focuses on joint practices.This is done through cooperative management of inventory through joint visibility and replenishment of products throughout the supply chain.
Due to software limitations, but especially the intense work required by the "master production schedulers", schedules do not include every aspect of production, but only key elements that have proven their control effectivity, such as forecast demand, production costs, inventory costs, lead time, working hours, capacity, inventory levels ...