The inputs for MRP system are Stock on hand, Master Production Schedule, Bill of Materials.

Capacity and resource planning is included in the MRP logic.

Decreasing the number of plants and warehouses

To maximize the use of the firm's resources and to provide the required level of customer service.

Lead time is the time between placing the order to receiving materials.

The inputs for MRP system are Stock on hand, Master Production Schedule, Bill of Materials.

Capacity and resource planning is included in the MRP logic.

Decreasing the number of plants and warehouses

To maximize the use of the firm's resources and to provide the required level of customer service.

Lead time is the time between placing the order to receiving materials.

The process of Procurement starts with gathering requirements, then creating a purchase requisition and then creating a formal document that has to be sent to vendor referred as purchase order. Post which goods will be supplied by vendor and goods receipt is done along with invoice verification. Then vendor is paid for supplied goods and services.

We define batch as a collection of similar items from stock that have the same characteristics. For instance all food items produced on a particular day belong to one batch. Such that the batches are searched using the standard facility (match code, key F4) based on the batch names or other properties that distinguish them from others.

Yes, by using forecasts inventory levels can be set to meet the demands while keeping levels as low as possible.

Firstly, a good forecast model must have reasonable costs. such that the accuracy of its forecasts will allow good decision making. Also the model must have enough data available for its use and a relevant time span. The model finally will have a low interference level.

Given a Consignment, the material is available at store premises, however it still belongs to the vendor/Owner of the material. But when we utilize the material from consignment stocks, then you have to pay to the vendor.

Some of the points of difference are - 1. While a scheduling agreement is for consignment, subcontracting and stock transfer, a contract is for Standard items and can be limited to a certain quantity or value. 2. A contract can be created centrally with different pricing conditions for every plant on the other hand a scheduling agreement needs to be created at that particular plant location. 3. In a contract, only time-dependant conditions can be created whereas in a scheduling agreement, you can have time-dependant or time-independent conditions subject to the customizations in the document type.