QUESTION $3$

$($a$)$ Muzimai Chalwe, a financial controller of Busy Bee Enterprises, has commented as follows:

"Buying new materials in large quantities from a large number of suppliers is old fashioned. She emphasized that world class manufacturing requires JIT purchasing and production".

Required:

Discuss the Five $(5)$ main elements of a JIT production system in sufficient detail.

$(15$ marks$)$

$($b$)$ The EOQ model assumes the demand for each item of materials occurs independently of other activities. However, in complex manufacturing environments the demand for material purchasing is not independent. It is dependent on the volume of the planned output of components and sub$-$components which include the raw materials that must be purchased.

Required:

Explain briefly the materials requirements planning $($MRP$)$ systems. $(5$ marks$)$