Types of Inventory Strategies

1. Materials requirements planning employs computer software applications to manage inventory.

2. The success of a supply chain business often relies on the effectiveness of its inventory strategy.

3. Conventional Manufacturing Strategy

3.1. In a traditional, or conventional system, the assembly line works perpetually.

3.2. When one department or area completes its work, it delivers the output to the next station regardless of that station's current situation.

4. Inputs are classified as they pass through three different stages:

4.1. raw material, work in progress,

4.2. Agenda Item 2

5. While costly to implement, MRP systems help managers plan for capacity needs and allocate production times.

6. This reorder point is specifically timed so the company will receive materials right when the company will need them avoiding shortages or overages of industry.