This document discusses recent trends in inventory control, including just-in-time (JIT) systems, material requirements planning (MRP I), manufacturing resource planning (MRP II), and enterprise resource planning (ERP) systems. JIT aims to reduce inventory costs by receiving goods only as needed. MRP I focuses on manufacturing materials while MRP II adds production planning and tracking. ERP integrates all business departments, making workflow tracking easier across an organization. The trends aim to maximize inventory use and minimize costs through accurate forecasting and coordination of production and resources.

1. RECENT TRENDS
IN
INVENTORY CONTROL

2. INVENTORY CONTROL
 Inventory is the raw materials, work-in-process
products and finished goods that are considered to be
the portion of a business's assets that are ready or will
be ready for sale.
 Inventory control is the processes employed to
maximize a company's use of inventory.

3. RECENT TRENDS.
 JIT System
 MRP I
 MRP II
 ERP

5. JIT SYSTEM ( JUST IN TIME).
 Companies employ to increase efficiency and decrease
waste by receiving goods only as they are needed in
the production process, thereby reducing inventory
cost.
 This method requires producers to forecast demand
accurately.

6.  The company started this method in the 1970s, and
it took more than 15 years to perfect.

9. MRP I (MATERIAL REQUIREMENTS PLANNING)
 Material requirements planning (MRP) and
manufacturing resource planning (MRPII) are
predecessors of enterprise resource planning (ERP), a
business information integration system.
 MRP is concerned primarily with manufacturing
materials

10. ADVANTAGES & DISADVANTAGES
DISADVANTAGES
 MRP only give accurate o/p if accurate i/p is provided to
it.
 MRP is costly, time consuming & difficult to implement.
ADVANTAGES
 Helps to minimize inventory level.
 Track material requirement.
 Identifies shortage in inventory items.
 On time delivery.

12. MRP II (MANUFACTURING RESOURCE PLANNING)
 MRPII stands for manufacturing resource planning and
builds on MRP by adding shop floor production
planning and tracking tools.
 MRPII is concerned with the coordination of the entire
manufacturing production, including materials, finance,
and human relations.

13. ADVANTAGES & DISADVANTAGES
 ADVANTAGES
 Better control of inventories.
 Better quality and also control quality.
 Improve design control.
 Accurate inventory control.
 Reduced working capital for inventories.
 DISADVANATGES
 Staff must be fully trained for achieving benefit from
MRP II.
 Once implemented MRPII it will require accurate
information.

14. ERP

15. ERP (ENTERPRISE RESOURCE PLANNING)
 A third-generation system called ERP, or enterprise
resource planning, which integrates all departments of the
business, not just manufacturing and purchasing.
 ERP Systems make it easier to track the workflow across
various departments.

16. ADVANTAGES & DISADVANTAGES
Advantages:
 Optimization of business processes.
 Accurate and timely access to reliable information.
 Elimination of unnecessary operations and data.
 Reduction of time and costs of litigation
 Disadvantages:
 The installation of the ERP system is costly.
 ERP consultants are very expensive take
approximately 60% of the budget.
 The systems can be difficult to use.