Dirkjan: Created page with "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)|Reorder Poi..."

2020-08-25T08:12:42Z

Created page with "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)|Reorder Poi..."

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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)|Reorder Point (ROP)]] that defined the level at which parts would need to be reordered:

<html><img src = "/static/files/MBI/Module%2017/reorderpoint.PNG" width="400"/></html>

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)|Material Requirements Planning (MRP)]]. After that the successor was [[Manufacturing Resource Planning (MRP2)|Manufacturing Resource Planning (MRP2)]]

{{:M17-S6 - Audio - Materials & Inventories}}
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[[Category:M17]]

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M17-S6 - Materials & Inventories - Revision history

Dirkjan: Created page with "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)|Reorder Poi..."