Primarily due to rapid development of technology in the past thirty years, the market structure throughout the world has changed considerably. Local markets have become accessible to foreign manufacturers, who are able to perform well in their newly established territories in part due to their superior application of technology. In this light, most companies, including small and medium size, have embedded globalization in their expansion strategies, consistently seeking for new markets abroad. Consequently, local manufacturing companies are facing global competition, forcing them to adopt new concepts with respect to people, process and technologies. This document describes these approaches to production planning in detail as well outlines a software solution. The software solution (Production/3) combines both pull and push techniques and enables small to medium size organizations to fully automate their production system while retaining their investment in their legacy enterprise resource planning (ERP) systems.
distribution resource planning ppt
replenishment, manufacturing, inventory and distribution systems. MRP II and JIT are vastly different in their approach to inventory management, customer service and information requirements. More specifically as discussed in previous sections, MRP II is a push-type system that uses demand forecasts to generate production plans, while JIT is a pull-type system that ideally depends on customer demand to trigger production. Generally speaking, MRP II leads to higher inventory costs, but higher levels of