The cash-flows represent financial viability and vulnerability of the company. Demand flow: Reflects the growth in technology which provides the companies to efficiently manage the supply and demand cycle which further improves the production cycle. Therefore, provides an opportunity for the companies to reduce cost and increase revenue by providing effective customer service. The four flows-products and services, information, financials, and demand --are very important for a company like Amazon. Amazon business model success of supply chain management.
Moreover the inventory level of the stock can be easily determined. This software also helps to identify the mode of transportations to be used for delivering goods. The supply chain planning software provides an important function of demand planning. The demand planning function will help ikea to determine which product will satisfy customer demand. This will help ikea to forecast demand accurately and will also help to reduce the buffer inventory.
Their prudent service may advance manufacturers business as a whole or department level. If any organization do not execute inventory properly then their stock of raw material may increased oddly what will make deficit on their current capital or that companies production may hamper lack of necessary raw materials what will make bad affiliation with their business partners. By above statement we can realize that the importance and necessity of inventory control in any organization is
When a company have inventory build-ups, they are generally not selling enough. This is not a good position as a company needs to turn over good inventory quantities to preserve reasonably high-profit margins and to avoid the costs and other difficulties that come with high levels of inventory. • Lost sales If a company’s inventory turnover is too high, it could have negatively affected their sales. Their suppliers could select to limit their range of products they keep to avoid an excess of inventory and to keep inventory moving through the operation. While other suppliers might rapidly sell the stock they have on hand, they may have difficulty keeping shelves full or may not offer a comprehensive enough range to meet customer needs.
There is no forecasting involved. Sale order or customer order will be the trigger point for production. The fundamental aim of this strategy is not to maintain any inventory in the firm. The fatory should have zero inventories at the beginning and end of any order. This Make or order strategy reduces the risk of creating unwanted inventory.
In the early days, in 1960, MRP refers to the planning of production requirements. MRP and ERP systems were first developed as a tool for organization and planning of production companies. This can be done over the next segment functions as a separate manufacturing facility for a range of internal software systems using ERP and began including customers and suppliers. Not so long ago, other industries are also beginning to realize the benefits of ERP systems; state institutions and organizations in the service sector began to take advantage of this technology. In 1970 came the first PC hardware.
12. What is the difference between process and product layout A product layout it is designed to produce a standardized product or a small number of products efficiently and it is also a sequential order of activities. Example of product layout is a cafeteria line while Process layout is a group of similar resources together or the functional grouping of activities typically produce customized product. 13. Explain the different types of production system.
In a push based supply chain model is also called build-to-stock. In a push based supply chain model the production is done on the basis of forecast. Production is done based on guess of customer demand. Goods are pushed from the supplier to the ultimate customer. Since poor quality data distorted the forecast it led to the bullwhip effect.
Data is then exhibited in real time in an easy to understand way, so data can be utilized by anybody from mid to upper level supervisors in choice making. A company 's information system is normally planned particularly supporting an organization 's vital objective. Management Information System (MIS) consolidates data from different systems in an organization (eg.sales systems, financial systems, stock system, logistic systems and so forth), this aides in better understanding of diverse departments, helping administrators in taking proper activities to address the need of the organization and its clients MIS empowers an organization to settle on discriminating choices and ensures competitive advantage company to make critical decisions and ensures competitive advantage. MIS is required for completive advantage,organization 's survival, worldwide economy, change of business endeavors and industrial economics and the most critical reason is the rise of computerized organizations, making information system a fundamental in the world of business today. Information Technology is crucial in every field, for example, education, correspondence, entertainment, research, administrations, manufacturing, records and so
COMPUTER-BASED INFORMATION SYSTEM (CBIS) Muhammad Aziem Bin Muhamad Saberi (2015834756) email@example.com (0193098957) 1.0 INTRODUCTION Nowadays, in the technology Era, the Computer-Based Information System (CBIS)’s very important to the business because the business rapidly moving towards globalization era. The CBIS is important to organized integration of hardware and software technologies. It also important to support the communication and coordination across organizational boundaries and as well in integrating the activities within an organization. A computer-based information system is an information system in which the data is mostly collected, stored, and processed in digital format using computerized processes. The CBIS, it