We talked about the old manufacturing paradigms where productions was completely based on inventory levels. For each part there was a defined [[Reorder Point (ROP)]] that defined the level at which parts would need to be reordered:

<<image /static/files/MBI/Module%2017/reorderpoint.PNG width:400>>

The bosses in the warehouses ran the show. The worked for a long time because of the following premises:

* There was less variation in choice for products
* Therefore demand was constant and predictable
* Inventory was considered an 'asset' as it was believed all produced materials would be sold eventually

After the market changed from a sellers to a buyers market, inventory based manufacturing did not work out anymore, a next step was [[Material Requirements Planning (MRP)]]. After that the successor was [[Manufacturing Resource Planning (MRP2)]]

<<tiddler [[M17-S6 - Audio - Materials & Inventories]]>>
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mbi_public
created
Sun, 18 Sep 2011 13:14:41 GMT
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dirkjan
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Sun, 18 Sep 2011 13:14:41 GMT
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dirkjan
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M17
Session
creator
dirkjan