Ch. 12 Flashcards
dependent demand
demand for items that are subassemblies or component parts to be used in the production of finished goods
Material Requirements Planning
MRP a methodology that translates master schedule requirements for end items into time-phased requirements for subassemblies, components and raw materials
Master schedule
one of three primary inputs in MRP; states which end items are to be produced, when these are needed and in what quantities.
cumulative lead time
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
Bill of Materials
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
Product structure tree
a visual depiction of the requirements in a bill of materials where all components are listed by levels
low level coding
restructuring the bill of materials so that multiple occurances of a component all coincide with the lowest level at which the component occurs
inventory records
one of the three primary inputs in MRP; includes information on the status of each item by time period
gross requirements
total expected demand for an item or raw material in a time period
scheduled receipts
open orders scheduled to arrive from vendors or elsewhere in the pipeline.
net requirements
the actual amount needed in each time period.
planned-order receipts
quantity expected to be received by the beginning of the period in which it is shown
planned-order releases
planned amount to order in each time period; planned order receipts offset by lead time
pegging
the process of identifying the parent items that have generated a given set of material requirements for an item
regenerative system
approach that updates MRP records periodically
Net change system
approach that updates MRP records continuosly
planned orders
schedule indicating the amount and timing of future orders. Primary report
order releases
authorization for the execution of planned orders. Primary report
changes
revisions of due dates or order quantities, or cancellation of orders. Primary report
Performance control reports
evaluation of system operation, including deviations from plans and cost information. Secondary report.
planning reports
data useful for assessing future material requirements. Secondary report.
exception reports
data on any major discrepancies encountered. Secondary report
backflushing
exploding an end items’s BOM to determine the quantities of the components that were used to make the item
manufacturing resource planning (MRP II)
expanded approach to production resource planning , involving other areas of a firm in the planning process and enabling capacity requirements planning
load reports
department or work center reports that compare known and expected future capacity availability
distribution resource planning
DRP. a method used for planning orders in a supply chain
Enterprise resource planning
ERP. integration of financial, manufacturing, and human resources in a single database
