Essay: Development of a more effective IMP-Kuiper Leda Company
The system used in production planning and inventory control in order to manage manufacturing processes requires restructuring. For instance the currently used MRP (Material Requirements Planning) that helps to meet three objectives of maintaining the lowest possible level of inventory, ensuring materials and products are available for production and delivery to customers and planning manufacturing activities, purchasing activities and delivery schedules. The MRP used is not bad but to some extend not effective and call for adoption of a more effective IMP (Inventory Management Plan) to upgrade on its efficiency.
An effective IMP (Inventory Management Plan) shall allow Kuiper Leda Company to better control purchase and inventory holding costs, to maximize the safety stock levels to deal with any fluctuations in production demands and lastly to reduce inventory and operating costs, minimize inventory investments and focus on providing high quality customer service. In support for an effective Inventory Management Plan in SCM systems, (Jacobs, Aquilano and Chase, 2005) they say that an effective IMP as an inventory system to a company, effectively utilize human capital function and equipment, provides information to efficiently manage the flow of materials, coordinate internal activities and communicate with customers. In this way an effective IMP as a tool of inventory management fulfills its vital role of provide the information to managers who make more accurate and timely decisions to manage their operations, rather than being looked upon to manage operations.