Requirements Planning System For Replenishment Planning

1308 WordsJun 18, 20166 Pages
A common system for replenishment planning used in major companies, including Electrolux, is a material requirement planning (MRP) system. Making wrong replenishment decisions leads to expensive inventories (Danilovic & Vasilievic, 2014). Because of the uncertainty in demand and supply, a need for optimizing inventory control procedures exists. The goal of the manufacturer is to devise production and supply procedures that minimize the average holding cost and stock-out cost. A supply chain management challenge is to control the capital cost of raw material by keeping stock levels down while simultaneously providing a high level of customer service. However, these often conflicting objectives require a customizable material…show more content…
Eliminating the inefficiencies created by the lack of defined procedures for returning excess inventory from the assembly lines to the raw materials warehouse is the objective of Electrolux. Establishing a written procedure and implementing it through consistent employee training will eliminate waste and reduce costs, while improving operations at the Memphis factory. For manned manufacturing systems, work process design pertains to crafting efficient manufacturing processes (Ham & Park, 2014). Efficient workflow is important to the performance of a system, as the absence can create bottlenecks and cause performance to decline. Potential exists for bottlenecks and performance decline on the Electrolux assembly lines as excess material clutters the area, making it difficult for employees to perform the tasks assigned, within the designated time allotted. However, an analysis of workstation functions can assist in determining the appropriate time to relieve excess materials from the assembly line and who should perform this function. The assembly line workstation should include a material disposition process at the end of each day, or during the changeover time to the next model variant. Kaizen is the Japanese term meaning continuous improvement, derived from two concepts: Kai, meaning change, and Zen, meaning to improve (Sanchez & Blanco, 2014). Masaaki Imai is the founder of kaizen and considered the father of continuous
Open Document