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Types of control (Inventory control (It normally refers to four basic…
Types of control
Inventory control
It normally refers to four basic kinds of inventory (raw materials, work in progress, components and finished products).
Refers to the reserves of resources held in readiness to produce products and services, as well as the end product that are kept in stock to satisfy consumers’ and customers’ needs.
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To keep uncertainties regarding delivery and availability to a minimum so that the manufacturing process is not interrupted.
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Areas of control
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Most organisations define areas of control in terms of four basic types of resources they use ie, human, financial, physical and information resources.
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The materials-requirements planning (MRP),system where an estimate is made of the demand of raw materials and the components necessary to create a finished product.
Economic-ordering quantity (EOQ) is based on replenishing inventory levels by ordering the most economic quantity
The just-in-time (JIT) is based on the premise that actual orders for finished products are converted into orders for raw materials and components which arrive just in time for the manufacturing process.