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Conditions necessary in a control cycle
There are four necessary conditions that must be satisfied before any system can be said to be controlled. Such are as follows:
(1) Objective of the process being controlled must exist
(2) The output of the procedure should be measurable in terms of the dimensions defined by the objective.
(3) A predictive model of the process being controlled is required so that causes for the non-attainment of objective can be identified and proposed corrective action analyzed.
(4) There should be potential of taking action therefore deviation of attainment from objective can be reduced.
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Criticism of Material Requirement Planning
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Problem: Fancy Foods Ltd uses a standard costing system to control its material and labour costs. The standard costs for January 2007 were as follows. Standard Costs Materi
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