Nt1330 Unit 9 Final Paper

Words: 960

Pages: 4

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Question One
This memo explains the reasons why the estimate of the time that will be consumed to get an MRP system running is relatively long. This memo also explains the possible ways in which this organization can operate if the records of materials and inventory records were not currently accurate.
Material Requirements Planning (MRP) is a method used in organizing an inventory and making plans for materials required in a project. Through market research and analysis, it is of great importance to spend adequate time on an MRP strategy. Inaccurate inventory records put an organization at risk because it can result in financial losses, loss of customers, and many other losses.
You asked that I explain why the time that would be spent to set up an MRP is so …show more content…
This is the cost that is associated with supplied goods and services. Buying a single item from a single supplier reduces the bargaining power of an organization. As a result, having eight different suppliers will mean that a company would have a low bargaining power in all the eight suppliers hence the material cost is relatively higher. However, if the company had a single supplier delivering all the products, it will have a bigger bargaining power, and the organization will have the chance to obtain these items at a relatively lower price. As a result, there would be a reduction in material cost. A cost factor that is expected to increase is the overhead cost. This is the cost that is not associated with either labor or material cost but costs that are indirect. The segment of the overhead cost that would increase will be transportation cost. Due to a huge load of items that would be supplied by the single supplier, it is expected that this supplier would be required to spend more regarding transportation cost which is transferred to the organization. Damages cost is also expected to increase when huge loads are delivered by a single

Nt1330 Unit 9 Final Paper

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Nt1330 Unit 9 Final Paper

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Nt1330 Unit 9 Final Paper

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Nt1330 Unit 9 Final Paper

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Nt1330 Unit 9 Final Paper

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