Reference no: EM132308402

The system that is most ideal for my company is the material planning system. This system can handle the micro and macro tools and be implemented in a master schedule. The master schedule can dictate anything in the production pipeline and help managers dictate the resources required to achieve the goal of production. The purchasing function that is layered in the MRP system allows for inventory turnover to be appropriate per each item that is being manufactured. Wang states that, "MRP and the contents of which range from macro-prosectives to micro-prospective and, strategic and tactical levels within an organization" (Wang 824). This implementation of a system on multiple levels allows for vertical integration. The system that is not optimum for my company is the stock keeping units. This is cause due to the nature of material in the medical device industry. In saying this most materials are one off piece and cannot be used in other customers projects. In keeping item stocked on our shelf that cannot be leveraged for other projects and become unused inventory. The cash that was used in purchasing that inventory could be utilized to pay other aspects of my business. The customers that have a standing order with us for a volume of over quarter million are deemed worthy of standing inventory as long as it doesn't exceed fifteen percent of the annual sales. This allows for material made of precious metals to be a standing inventory to keep the production schedule intact and avoid longer than normal lead times. In the medical device industry most materials have a three to twelve week lead time and can be scheduled out for the year and purchase orders can be released at a certain timeline.