The business has not been forecasting correctly previously given the lack of knowledge and understanding from Mr Dube. As the SCM specialist, you are now considering the implementation of an MRP system, thus you need to consider the following:

Q.2.1 Analyse the importance of customer orders and demand forecasts as elements in a Material Requirements Planning (MRP) system in the context of Mr Dubes business.

Note: you are required to provide a paraphrased understanding of the concept before you provide at least 2 application points.

Q.2.2 Taking operational planning a step further, you want to introduce a master production schedule (MPS). However, Dr Dube is worried about the additional costs and administration associated with it. Argue whether the MPS for Mr Dubes business is necessary or not.

Note: you are required to provide a paraphrased understanding of the concept before you provide at least 2 application points. Your application points can either be for or against the use of a MPS.

Q.2.3 You decide that the just-in-time (JIT) system of inventory replenishment should be adopted to further enhance operations. Analyse the concept of JIT in relations to Mr Dubes business.

Note: you are required to provide a paraphrased understanding of the concept before you provide at least 2 application points. Your application points can either be for or against the use of JIT.