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Explain the process of the procurement of raw material and components.
Managing the procurement of raw material and components into the production process of an organisation can be a major and complex process. Many organisations operate within just in time (0JIT) environments, attempting to minimise material inventory and handling, this typically requires effective communication and good systems to allow uninterrupted flow of production. The relationship between purchasing and other departments is a very important one; it ensures inventory arrives at the right place, right time, right quality, right quantity and the right price.
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A food processor uses approximately 29,730 glass jars a month for its fruit juice product. Because of storage limitations, a lot size of 4,000 jars has been used. Monthly holding c
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