Ch. 12

Question 1

dependent demand

Answer 1

demand for items that are subassemblies or component parts to be used in the production of finished goods

Question 2

Material Requirements Planning

Answer 2

MRP a methodology that translates master schedule requirements for end items into time-phased requirements for subassemblies, components and raw materials

Question 3

Master schedule

Answer 3

one of three primary inputs in MRP; states which end items are to be produced, when these are needed and in what quantities.

Question 4

cumulative lead time

Answer 4

the sum of the lead times that sequential phases of a process require, from ordering of parts or raw materials to completion of final assembly

Question 5

Bill of Materials

Answer 5

BOM One of the three primary inputs of MRP; a listing of all of the raw materials, parts, subassemblies, and assemblies needed to produce one unit of a product

Question 6

Product structure tree

Answer 6

a visual depiction of the requirements in a bill of materials where all components are listed by levels

Question 7

low level coding

Answer 7

restructuring the bill of materials so that multiple occurances of a component all coincide with the lowest level at which the component occurs

Question 8

inventory records

Answer 8

one of the three primary inputs in MRP; includes information on the status of each item by time period

Question 9

gross requirements

Answer 9

total expected demand for an item or raw material in a time period

Question 10

scheduled receipts

Answer 10

open orders scheduled to arrive from vendors or elsewhere in the pipeline.

Question 11

net requirements

Answer 11

the actual amount needed in each time period.

Question 12

planned-order receipts

Answer 12

quantity expected to be received by the beginning of the period in which it is shown

Question 13

planned-order releases

Answer 13

planned amount to order in each time period; planned order receipts offset by lead time

Question 14

pegging

Answer 14

the process of identifying the parent items that have generated a given set of material requirements for an item

Question 15

regenerative system

Answer 15

approach that updates MRP records periodically

Question 16

Net change system

Answer 16

approach that updates MRP records continuosly

Question 17

planned orders

Answer 17

schedule indicating the amount and timing of future orders. Primary report

Question 18

order releases

Answer 18

authorization for the execution of planned orders. Primary report

Question 19

changes

Answer 19

revisions of due dates or order quantities, or cancellation of orders. Primary report

Question 20

Performance control reports

Answer 20

evaluation of system operation, including deviations from plans and cost information. Secondary report.

Question 21

planning reports

Answer 21

data useful for assessing future material requirements. Secondary report.

Question 22

exception reports

Answer 22

data on any major discrepancies encountered. Secondary report

Question 23

backflushing

Answer 23

exploding an end items’s BOM to determine the quantities of the components that were used to make the item

Question 24

manufacturing resource planning (MRP II)

Answer 24

expanded approach to production resource planning , involving other areas of a firm in the planning process and enabling capacity requirements planning

Question 25

load reports

Answer 25

department or work center reports that compare known and expected future capacity availability

Question 26

distribution resource planning

Answer 26

DRP. a method used for planning orders in a supply chain

Question 27

Enterprise resource planning

Answer 27

ERP. integration of financial, manufacturing, and human resources in a single database