MRPat Wheeled Coach
WheeledCoach is the world largest producer of ambulances, and hence ithandles a lot of inventories depending on the market requirements andcustomer requests. Due to the vast nature of the inventories that thecompany controls, there is a need to have an accurate inventoryrecord and control to reduce the cost of production while meeting theclient`s needs. This paper shall demonstrate the need for keeping anaccurate inventory, plans of doing that, and the implementation stepsin reducing the inventory.
Theimportance of keeping accurate inventory at Wheeled Coach
Principally,keeping an accurate inventory record helps in planning since it ispossible to determine whether the company can take the clients recordafter prompt analysis (DeHoratius,& Raman, 2008).Also, accurate inventories helps in customer service as customers canget real-time answers that are related to stocks(Muller, 2011)..Also, accurate inventory records help in controlling expenses whilealso creating time for staffs to do other things like searching fornew clients (DeHoratius,& Raman, 2008)
Planin reducing Inventory and Implementation
Atwheeled coach, the company needs to adopt a computerized system(Master Production Schedule) that will produce real-time reports tohelp in determining the inventory level to be held. In the newsystem, it will be possible to double check the Bills on Materials(BOM) to ensure that proper and accurate inventory records are kept.The master production schedule shall be adopted that will encompassan analysis of BOM, the lead time, the inventory data, and purchasingdata (Proud,2012). TheBOM shall be used in determining the quantities needed for productionwhile the lead time shall provide information about the time requiredfor production or assembly to get a product. Inventory data shall bein the MRP to keep a real-time record of the available inventory fordecision making and the purchase order data shall provide about thepurchases that are in the pipeline. The four essential elements shallguide the company in making decisions and rapid adoption to changesof clients to reduce the inventory level significantly (Proud,2012).
DeHoratius,N., & Raman, A. (2008). Inventory record inaccuracy: an empiricalanalysis. ManagementScience, 54(4),627-641.
Muller,M. (2011). Essentialsof inventory management.NY. Amacom Div American Mgmt Assn
Proud,J. F. (2012). Masterscheduling: a practical guide to competitive manufacturing (Vol.16). New York. John Wiley & Sons