Difference between revisions of "42Q-MES0161 Material Allocation"
| Line 10: | Line 10: | ||
| | ||
| − | = <span class="mw-headline" id="What_Is_Material_Allocation"><span class="mw-headline" id="What_Is_Material_Allocation">What Is Material Allocation ?</span></span> = | + | = <span class="mw-headline" id="What_Is_Material_Allocation_.3F"><span class="mw-headline" id="What_Is_Material_Allocation"><span class="mw-headline" id="What_Is_Material_Allocation">What Is Material Allocation ?</span></span></span> = |
'''Material Allocation''' is a functionality that provides users with the ability to create lots, allocate materials, and track the material by the location assigned to an MFG Line in specific locations. | '''Material Allocation''' is a functionality that provides users with the ability to create lots, allocate materials, and track the material by the location assigned to an MFG Line in specific locations. | ||
| Line 16: | Line 16: | ||
| | ||
| − | + | Material allocation plays an important role in the initial stage of production planning. Without a good allocation of available material to order, companies might face a large amount of tardiness penalty associated with late completion which also affects customer satisfaction. | |
| + | |||
| + | | ||
| + | |||
| + | = Benefits of Material Allocation: = | ||
| + | |||
| + | * | ||
| + | Improve material allocation efficiency: Maximize the utilization of materials in order to meet the company’s objective in the material allocation | ||
| + | |||
| + | |||
| + | * | ||
| + | '''Reduce material storage cost: Minimize the costs of storage with material arrival date estimation for just-in time strategy''' | ||
| + | |||
| + | |||
| + | * | ||
| + | '''Clear picture on inventory status: Decrease the load on bottleneck production units by utilizing available material''' | ||
Revision as of 20:54, 11 February 2021
Material Allocation
Factories are complex, busy places with a lot of systems, machinery, and processes in place. Technology plays a key part in the manufacturing world. We see the benefits of it clearly through lot traceability — you can streamline your supply chain and have confidence in all of the steps along the way.
The inventory management system allocates a specific quantity of materials, as determined by purchasing workers, to meet customer demand. Allocating material to a sales order does not remove the quantity from inventory. The allocation creates a projection of the amount of material the company will need to meet the current demand or sales orders.
What Is Material Allocation ?
Material Allocation is a functionality that provides users with the ability to create lots, allocate materials, and track the material by the location assigned to an MFG Line in specific locations.
Material allocation plays an important role in the initial stage of production planning. Without a good allocation of available material to order, companies might face a large amount of tardiness penalty associated with late completion which also affects customer satisfaction.
Benefits of Material Allocation:
Improve material allocation efficiency: Maximize the utilization of materials in order to meet the company’s objective in the material allocation
Reduce material storage cost: Minimize the costs of storage with material arrival date estimation for just-in time strategy
Clear picture on inventory status: Decrease the load on bottleneck production units by utilizing available material
