MANAGEMENT,PURCHASINGAND SUPPLY
Definition of the following concepts
Production
Production in economical terms is the provision of the desired products or output. The act of production includes various factors of production apart from labor. A productive effort is the effort directed towards the provision of the required services or products. Such an act of performance is what is known as production.
Capacity Plan
Capacity planning is the action of determining the right capacity of production which is needed by a farm in order to meet the demand of products of its consumers. Capacity is the workload which an organization is able to complete within a given duration of time.
Demand Management
Demand management is the science or art of controlling the demand of economy in order to prevent recession. This can be achieved through setting up of policies both environmental and natural resources management policies in order to control the demand of consumers for harmful goods or the environmentally sensitive resources such as energy and water. In application to a manufacturing company demand management refers to demand activities of planning, forecasting, and fulfilling the required orders of products.
Production level
Production levels are commonly referred to as level of production which refers to the different strategies which products go through right from being at the raw material state to the end product which is consumable. In industries, the level of production deal with the assembling of parts by specialized workers in order to attain production efficiency.
Mixed strategies
A mixed strategy is a combination of a number of strategies of various pure strategies. A strategy is a probability distribution and the possible moves which one can undertake in response to a given phenomenon. Mixed strategies enable the user to keep on going on the desired outcomes for his own benefit.
Integrate the Concepts of Production
Supply Chain Management (SCM)
Supply chain management is a network management of various interrelated businesses which are involved in service and production provision in packages required by the consumers (Harrlandm, 1996). Supply Chain Management (SCM) deals with the general storage and movement of raw materials, finished goods, and the inventory of work-in process from the point of origin all the way to the finished product. SCM also mean planning, designing, execution, monitoring, and controlling of the activities in the supply chain with the goal of building a highly competitive infrastructure, creating a net value, and synchronizing the supply in the measurement of performance and demand generally.
Procurement Management
The process of procurement, management helps the users to purchase services and goods from suppliers through the needed steps and procedures. It involves issuing of orders of purchases, approving and receiving deliveries, managing the suppliers within the agreed contract and endorsing payments to the suppliers.
Procurement Planning
Procurement Planning is a process utilized by institutions and companies for planning for an activity of purchase various goods at a given period of time. This activity is carried out in the process of budgeting as the first step of the process of procurement planning. The second step involves the review of budgets in all the departments of the organizations which is carried out by the accountant. They are responsible in directing the departments to adjust the required commodities in order to reduce the costs which the organization has to incur.
Distribution resources Planning
Distribution resources planning is a business administration method used for planning orders in the chain of supply. This method enables the user to put across specific parameters of control and to come up with well calculated time duration to set the inventory requirements. This method requires information enables the organization to meet the anticipated rise of demand, on hand inventory at the beginning of a given period and the requirement of safety stocks.
Point of Purchase Just in Time Purchases
Purchasing at the right time in order to meet the needs of consumers at the right time and in the right quality is known as the Point of Purchase Just in Time Purchases.
Electronic information Flow
Electronic information flow involves the inter change of electronic data within an organization or an institution. Firms can use this technology to transfer vital documents which have been scanned, business data and order forms of transactions from are computer system to another without the need of human intervention. Electronic data interchange information which have been replaced include cheque and bills of lading as more and more emails are being used which are strictly formatted messages met to represent documents which are not instruments of money.
Reference
Harland, C.M. (1996) Supply Chain Management, Purchasing and Supply Management, Logistics, Vertical Integration, Materials Management and Supply Chain Dynamics. In: Slack, N (ed.) Blackwell Encyclopedic Dictionary of Operations Management. UK: Blackwell.
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