9-10 Flashcards
Dependent demand
For an item that is generated by a company’s production process
Material requirements planning MRP
To manage inventory for a dependent demand items companies often use MRP
Independent demand
Involves finished goods
Dependent demand is based on what
A companies production process
Forecasting, qualitative methods
Build up
Survey
Test markets
Panel of experts
Time series method
Build up
Goes to the bottom line employees to the top of the business
Timeseries method
Simple moving average
Weighted, moving average
Exponential smoothing
Regression and correlation analysis
Delphi technique
Uses a panel of experts, and surveys to figure out the likelihood, and outcome of future events
Simple moving average
Predict most recent time period. To project the next time period
However, any oddities will reflect in the production
Mean absolute deviation, MAD
To estimate forcasting error
Aggregate planning
Combining of individual and items into groups/families a parts for planning purposes
Long-range planning
Five years
Medium range
6 to 18 months
When developing a master production schedule, a company must ensure that what
The schedule is realistic in terms of resources and material requirements
MPS
Based on aggregared plan
Disaggregates the aggregated plan because it’s a specific statement of what will need to be produced and a specific date for production
MPS takes into account what?
Projected demand an actual orders that have already been received to figure out what inventory is still unsold when customers place new orders
Priority control
Making the plan happen
Daily dispatch list
Gives order of priority for jobs to be completed at a department/work station
Peak demand
Sufficient capacity available at any time to meet peak demand
Chase demand
Adjust production rate to match demand (increase work schedules, let people go home for the day etc)
The planning horizon for an aggregate plan in a JIT environment is…
Somewhat shorter
What type of batch sizes are planned in a JIT environment?
Small ones
True or false capacity planning is not necessary in a JIT environment
False
What type of timeframe is used in the planning horizon of a master schedule when JIT is used?
2 to 3 months
How do you shorter the times of fact, master scheduling when JIT is used?
As a result, when compared to MRP environment, the master schedule is frozen for less time in a JIT environment
Why is order release Planning eliminated when scheduling in a JIT environment?
In a pull system, parts and materials will only be produced in response to a downward signal
The master schedule in a JIT environment is only used when items with long lead times need to be ordered
True
The master schedule is used only when items with long lead times need to be ordered and serves as an intermediate step to final assembly scheduling
What characteristic of a JIT environment impact the final assembly schedule?
The elimination of unnecessary inventory in WIP and finish goods impacts the final assembly schedule
