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Running out of raw materials or parts that are crucial to a firm’s production process means increased operating costs.
Kuiper Leda needs to develop a new Inventory Management Plan (IMP) by selecting an Inventory Ordering System for its Microchip Production. Having an effective IMP in place, Kuiper can better control purchase and inventory holding costs and allow Kuiper to maximize safety stock levels to deal with fluctuations in production demands...
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The MRP method is a system that effectively manages material requirements in the manufacturing process.
Some of the benefits for Kuiper in using the MRP include the following:
- Less safety stock and wasted material
- Better knowledge about delivery lead times which results in fewer production delays and less expediting...
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