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Manufacturing organizations, whatever their products, face the same daily practical problem - that customers want products to be available in a shorter time than it takes to make them. This means that some level of planning is required."
Customers Orders
Demand Forecasts
Maintain reasonable
safety stock levels, minimize inventories Identify problems and disruptions Based on actual orders and demand forecasts Coordinate materials ordering across points Suitable for various production systems
Difficult in making changes Not usually sensitive to short-term fluctuations in demand Increasing in ordering and transportation costs
Increases customer service and satisfaction Improves utilization of facilities and labour; Enhances better inventory planning and scheduling; Enables faster response to market changes and shifts, Reduces inventory levels without reducing customer
service
(Hsieh& Kleiner, 1992)
Collins Industries, Inc. was founded in 1971 In the U.S., Collins is the largest manufacturer of ambulances. The second largest manufacturer of terminal trucks. Leading manufacturer of small school buses, and sweepers used in the road construction industry
MRP can help company in performing their needed task properly which are:
The plan must be executed as designed. Effective material, consignment inventory and a constant
review of purchase method reduce inventory investment.
Better response to customer order. Faster response to market changes. Improve utilization of facilities and labor
higher productivity and return on investment.
Difficulty of setting the lead time. The time for production depends heavily on the time ordering the materials
Hsieh, PJ & Kleiner, BH 1992, New Developments in Inventory and Materials Management, Logistics Information Management, vol. 5, issue 2, pp. 32 35, Emerald database, <http://www.emeraldinsight.com.ezproxy.lib.rmit.edu.au/Insight/viewPDF.jsp? contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0880050205.pdf> Coyle, J.J, Langley Jr, C.J, Gibson, B.J, Novack, R.A & Bardi, E.J 2009, Supply Chain Management: A Logistics Perspective, 8th edn, South-Western Cengage Learning, USA, pp. 368 373. Download-free-pdf.com, viewed 22 July 2010, < http://www.download-free-pdf.com/index_new.php? search=Hubbell+Lighting+Case+Study+about+MRP> W. Sayre, L 2002, Collins Reports Fourth Quarter and Fiscal Year Results & Improved Sales Backlog , THE FREE LIBRARY BY FARLEX, viewed 22 July 2010, < http://www.thefreelibrary.com/Collins+Reports+Fourth+Quarter+and+Fiscal+Year+Results+ %26+Improved...-a0132304451> Collins Industries. Inc, 2009, homepage, Collins Industries, USA, viewed 22 July 2010, <http://www.collinsind.com/index.html>. Ho Xuan Mao Reports, 2010, interview and observation, 17 July 2010.
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