Materials requirement planning can achieve this.
Materials requirement planning is a system that allows for raw materials to be purchased as they are needed. Meredith (1987, p. 456) explains that this is achieved by considering the demand forecast, the master production schedule, and the inventory information. Based on this information, a computerized materials requirement planning is able to quickly and accurately determine the best way to meet raw materials needs. Utilizing a materials requirement planning would provide Hickory Chest Company with many advantages. Firstly, it would be an efficient way to manage the ordering process. Since the system is computerized, it limits the need for human decision-making. This means that purchasing could become largely automated, which would provide for a saving in both time, resources, and money. The system would also ensure that Hickory Chest Company is always able to meets its demand and manufacture efficiently....
This would reduce the need to store raw materials, as well as prevent a lack of raw materials from limiting production. In addition, a materials requirement planning system can manage changes. If there is a change in the demand forecast or the master production schedule, the materials requirement planning system can take these changes into account and quickly make adjustments. This would allow Hickory Chest Company a greater degree of flexibility.
Overall, material requirements planning would allow Hickory Chest Company to manufacture more efficiently, while the inventory and purchasing processes would be managed effectively. This would reduce some of the problems that currently occur, as well as making the processes easy to manage.
References
Meredith, J.R. (1987). The Management of Operations. New York: John Wiley & Sons.
Schermerhorn, J.R. (1989). Management for Productivity. New York: John Wiley & Sons.
