is the current manufacturing capacity of the company in line with planned production and future forecasted demand (level of idle capacity or lack of sufficient capacity)?
• Does the company use ERP systems (or other software) to assist in the planning of its production strategies (including MRP)? Is the company able to accurately predict the demand for its dependent materials (work in progress and raw materials)?
• How effectively is the company managing its investment in inventory (turnover ratio)? How effectively does the company track/monitor the movement of its inventory through the supply chain? Does the company apply EOQ methods to optimize the investment in raw material inventory?
