MGSC07H3 Study Guide - Final Guide: Oven, Balanced Scorecard, Purch Group
Document Summary
Ost management: quality, time, & the theory ot onstraints. Reorder point: the quanfity level ot inventory on hand that triggers a new purchase order. Reorder point = number of units sold / unit of time x purchase order lead time. Jit purchasing: the purchase of materials or goods so they are delivered jus as needed for productlon: good if carrying costs is large; reduces the cost of placing a purchase order: long term purchase. Benefits: lower overhead costs; lower inventory levels; heightened emphasis on improving quality by eliminating the specific causes of rework; shorter manu. Lead times. lt hinges on the speed of information flows from customers ot manufacturers to suppliers lnventory management and materials requirements planning (mrp): push through system that manufactures finished goods for inventory on the basis of demand forecasts. Cash: effective management of the level of cash can boost the bottom line.
