What are the methods of inventory management? And briefly describe each method

I. Push Method-MRP (Material Requirement Plan):

Under this system, production planning is organized based on the forecast of demand and availability of materials. Once the plan is formed, each process pushes the parts to the next production program. However, the push system has certain shortcomings; it has to have to anticipate customer demand and estimate delivery times. Wrong guesses (forecasts and estimates) can lead to large inventories, and the longer the delivery time, the greater the chance of error.

Second, pull management method:

The so-called pull management method, production is organized according to the actual needs of customers. Each process only produces what is needed for the next process, reducing inventory to as low as possible.

Just-in-time production (JIT, JUST-IN-TIME) is a typical pull system.

In general terms, JIT is a management philosophy that reduces waste of production resources by making the right product at the right place, at the right time, rather than a fixed pattern. And to achieve this goal, it is necessary to have an advanced production management system that focuses on improving quality, reducing costs, reducing lead times and making quick responses.

The goal of JIT is to completely eliminate ineffective labor and waste. To achieve the following goals:

1, the lowest amount of scrap (zero defects)

JIT requires the elimination of various causes of irrationality, in the processing of each process is required to achieve the best level.

2, the lowest amount of inventory (zero inventory)

JIT that the inventory is the production system design is not reasonable, the production process is not coordinated, the production operation is not good proof.

3, the shortest preparation time (zero switching)

The length of preparation time is linked to batch size selection, if the preparation time tends to zero, the preparation cost also tends to zero, it is possible to use very small batches.

4, the shortest production lead time (zero standstill)

Short production lead time and small batch size combination of systems, strain capacity, good flexibility.

5, reduce parts handling, low handling (zero handling)

Parts fed into the handling is a non-value-added operation, if you can make the parts and assemblies to deliver a reduced amount of handling to reduce the number of times, you can save the assembly time, reduce the assembly of the problems that may arise.

6, low machine damage (zero failure)

The use of full equipment management to minimize equipment damage, to maintain a high rate of equipment availability.

7, accident reduction (zero accident)

Including personnel accidents, equipment accidents, safety accidents.