2.6 Forecasting as an essential Input
This is a vital input in planning the business activities material management included the use of forecasting reduces uncertainty about the future.
Predicting materials requirement in a subject is central to the material management function within production, operation control. However not only it is necessary to forecast requirement but also to estimate how long it will take to acquire or convent the materials. These two pieces of information are necessary inputs into, any materials management system.
The material requirement will dictate the planned level of raw materials, work in progress and finished goods. These help by prospective customer demand and satisfying demand from stock Wager and Monk (2007).
2.7 Material requirement Planning
Rogger (2004) say the work of materials requirement planning is when the information for the material needs of the organization is taken from the master production schedule (MPS).
Material requirement planning is a computerized time phased requirement planning system which aims to bold zero stocks of an item unless it is required for current production.
The MPS is derived from either order books or sales forecasts. The master production schedule details the required outputs of the production system by periods usually weekly or monthly. The material requirements planning system converts the output needs la so a time phased report of material requirement is also called a bill of materials.
The bill of materials is a structured directly which list all the materials or parts required to manufacture a finished production or sub assembly. The materials requirement planning system calculates the total quantity of each item that need to be ordered their lead times that need to be ordered their times and issues purchasing with the information to allow to them to plan.
Rogger furthers illustrate stages of materials requirement planning as follows:
Sales forest ïƒ master production schedule materials requirement ïƒ planning bill of materials stock record five ïƒ purchase request
2.8 Stores function
Morrison in his own contribution said that the function of a store is a vital past of any industrial concern in any public and private utility undertakings and must be designer to suit the particular needs of the-organization. It serves the operating function-in-> which all kinds of material needed for production, distribution, packaging, maintenance etc. are stored received and issued. The stores function is therefore basically concerned with holding stocks, however the range value and complexity of items held by any particular stores will depend on the size and complexity of operators involved. Different types of organization have different types of items held m stock for example a production operation will have raw materials component pasts, work in progress and packing and associated materials. A distribution operation will have finished stock components parts and parts complete & An engineering and maintenance operation will have spare parts, tools, equipment, clearing and servicing materials because of this wide variation in the kind of items can be found in any stores, store keepers need to have a wide working knowledge of a great numbers of material types and operations stressed that the service of stores can be analyzed as follows.
1. Economy: service being the principal objective of store function, it is obviously desirable of the store to provide the said service economically what should be considered here is to maintain the value of store in stock hr order to encourage the use of working capital and to reduce the cost of storage.
2. Inspection: This is referred to as ‘examination of incoming consignment for quality†this is a separate inspection department which undertakes this work. If not materials but goods are normally inspected by the stores officials.
3. Store Accounting: It is the process of recording stock movement and balance in value.
4. Stock Taking: It is the process of physical verification of the qualities and condition of goods. It is the dray of stores to ensure that goods and services required for operation are issued and when required.
