Production and Inventory, Material Requirements Planning

Production and Inventory, Material Requirements Planning Free Online Research Papers Since before the Industrial Revolution there had been a need for a better inventory control system. In times before, people would use a system of either ordering their materials beforehand or by ordering their materials as needed. The problem with this was either there would be too much inventory or too little inventory to meet the demand needed. Large quantities of inventory can be very costly for purposes of warehousing and deterioration of the material (e.g. food spoilage, animal infestation, etc). Secondly, the cost of waiting for inventory as in a pull system can be costly as well. The loss of customers for the wait of the final product can be very detrimental to the business as well as the supplier of raw material. Thirdly there is the matter of taxes. The cost of keeping inventory over the next fiscal year is considered an asset and therefore taxable. Furthermore, there was no way of linking the various structures within the organization. But as the internet grows in popularity every day, so too does electronic commerce. Electronic commerce, simply put, is the exchange of money for goods and services via electronic means. In other words, electronic commerce is usually when you purchase something off of the internet. Electronic commerce is often referred to as e-commerce, or e-business. Before controlled inventory and e-commerce, in order to purchase something, the purchaser would have to negotiate with the supplier. Then the purchaser would have to go to the accounting department (assuming that the authority was given to the purchaser to buy the material) to procure the money for the transaction. Then the accountant would send an order to the receiving warehouse. The receiving warehouse would make sure there was room, and then go to the mail department. The process goes on and on and therefore would create a huge amount of paperwork to accompany each transaction within an organization. So until the 1950s and 1960s, the technology did not exist to be able to eliminate such problems with inventory like this. So in the 1970s a new system was introduced called MRP. Material requirements planning (MRP) is a computerized inventory control and production planning system. This model integrates production, purchasing, and inventory management of interrelated products. The MRP model was based upon three distinct principles: the dependence of demand, the netting of inventory and the expected receipt of open orders such as on-hand inventory, and time phasing (i.e. lead times). These three items are very important to the proper use of an MRP system. They are the foundations for the implementation of the MRP system. For example, the dependence upon demand is very important in the MRP model. Demand is varied in any type of business, but with a surplus of available inventory to meet the demand it would eliminate the loss of customers. Also, the use of an MRP model helps to determine w would link the various departments so that interaction between the organizations departments would become necessary. Externally, (SCM, or supply chain management) the company would have to begin to see their suppliers, distributors, and retailers as partners instead of separate entities. By doing this, an organization would not only be able to access inventory easier, but they would be able to track their shipments easier. With the use of this model, companies can begin to eliminate unneeded time and money that would not be considered value-added processes. The major problems with these two models are that it takes a lot of organization internally and externally. For example, if a supplier is not willing to share their trade secrets or is unwilling to go through the process of incorporating an ERP system into their productions, then the system may not work effectively. Another problem with this model is that it would require extensive training of managers and employees in every functional area. The third principle is what helps to try and decrease lead times. Lead time, the time it takes to finished good to reach a customer from the raw material supplier to the retailer, emphasizes the practice of keeping a relatively short wait for a customers goods. The MRP model also uses three inputs to implement the entire strategy. The first input is the master production schedule (MPS). The MPS thus becomes the stepping-stone for which the entire MRP model is based. The next input is the Bill of Materials (BOM). The BOM is a means of simplifying the requisitioning process where a large number of frequently needed line items are involved. The third input is the file that contains information on inventories, open orders, and lead times so that the quantity and timing of orders can be calculated. The third input is very important because it puts the entire process on a time constraint. Thus limiting the amount of time used in the production of the final product, this is an important aspect for any company. Thus in the 1980s the need for a new inventory control system were in order. MRP-2 (Material Resource Planning) was first introduced in the 1980s and variations of it are still used today. MRP-2 included expansion into incorporation as such things as demand, supply, accounting, cash-flow analysis, forecasting, production planning, capacity planning, purchasing, and other areas of the inventory control system. All of these things proved invaluable to the MRP-2 system because it compensated for many areas that the first MRP model neglected. Furthermore, the idea of feedback was introduced to the MRP-2 to help forecast the demand of consumers. Research Papers on Production and Inventory, Material Requirements PlanningRiordan Manufacturing Production PlanThe Project Managment Office SystemDefinition of Export QuotasBionic Assembly System: A New Concept of SelfIncorporating Risk and Uncertainty Factor in CapitalAnalysis of Ebay Expanding into AsiaOpen Architechture a white paperPETSTEL analysis of IndiaQuebec and CanadaGenetic Engineering

Narrative Essay Example

Narrative Essay Example What Is a Narrative Essay? A narrative essay is a type of essay written about a personal experience. If you are looking for narrative essay examples here is a great one below. Narrative Essay Example about Barack Obama Barack Obama, the 44th president of the United States of America, is far from a perfect president. But all politicians are immensely flawed individuals – or why else would they try to run for public office? That is another story altogether. Obama is often seen as the first black president of America, though in reality, he is the first biracial president, born to a white American mother and a black African father. It is unfortunate that the color of his skin is even an issue worth talking about. But to be completely honest here, this problem can easily be interpreted that a great deal of the backlash he, and his administration, receives from the white-majority Republican party derives from their own deeply rooted racism: they don’t want a black man in office. But they’d never say that. People, mostly white, ignorant, elitist Republicans, like to pretend Obama is the Anti-Christ, trying to ruin the United States and take over the world. At the root of this is fear and racism: Growing up, when they thought of what the President of the United States looked like, that person probably, most likely, looked like 2012 Republican Presidential Candidate Mitt Romney: a gray-haired white man who walked, talked and thought like a wealthy, powerful white person. Even if Obama haters never ever tell the truth of why they hate him, they know deep down it is because he is not white. Aside from race, President Obama seems like a relatively good person who means well for his country and countrymen. Yes, he is a millionaire, but he is a low-end millionaire, his money accumulated and earned from a modest president’s salary of $400,000, as well as sales and royalties from his book sales. But unlike multi-billionaires like Russia’s Vladimir Putin, Obama cannot be seen as a power-hungry politician. Conservatives always seem to overlook the fact that he can truly identify with the common man – unlike most republicans who just want to exploit the common man. In the future, once Obama’s presidency has come to a close, he will probably write another book – he has written three – this time about his eight years in office. Readers can imagine he will speak on the agendas of the Right, and how he only wanted to improve the lives of everyday Americans, to improve the country and the world. His book will expose a lot of the conspiracy theories implanted by the Republicans to cast him in a very negative light, claims that are absolutely absurd. It may one day be one of the most enlightening pieces of literature ever written by any president in United States history. To conclude much can be said about Barack Obama the man – both good and bad. He came from humble beginnings and has become (arguably) one of the most powerful men in the world. But mostly the conservatives, who try to make him out to be an enemy of the state, a communist and social, have rarely treated him like a decent human being. They want to believe – or at least have the public believe – he is an evil traitor, a ruthless Putin-like leader, and not America’s great leader. Nonetheless, he has taken all the adversity quite gracefully, in turn demonstrating why he was elected in the first place. He is a man of class, education, intelligence, diplomacy, ideas, wisdom, and character, and he deserves to be given a chance by the Right. He will still go down in history as a truly great president, a great modern-day world leader. The American people, as a whole, did vote for him – and still, so many people will find any and all faults in him so as to dis parage him and his administration. It’s a sad reality that has been tearing this country apart for much too long.