Chapter 12: MRP And ERP

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 (MRP)

Answer 2

A computer-based information system 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 sure of the leads 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

One of the three primary inputs of MRP; a listing of all if 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 occurrences 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

Projected on Hand

Answer 11

Expected amount of inventory that will be on hand at the beginning of each time period

Question 12

Net Requirements

Answer 12

The actual amount needed in each time period

Question 13

Planned-order Receipts

Answer 13

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

Question 14

Planned-order Releases

Answer 14

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

Question 15

Pegging

Answer 15

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

Question 16

Regenerative System

Answer 16

Approach that updates MRP records periodically

Question 17

Net-change System

Answer 17

Approach that updates MRP records continuously

Question 18

Planned Orders

Answer 18

Schedule indicating the amount and timing of future orders

Question 19

Order Releases

Answer 19

Authorization for the execution or planned orders

Question 20

Changes

Answer 20

Revisions of due dates or order quantities, or cancellations of work

Question 21

Performance-control Reports

Answer 21

Evaluations of system operation, including deviations from plans and cost information

Question 22

Planning Reports

Answer 22

Data useful for assessing future material requirements

Question 23

Exception Reports

Answer 23

Data on any major discrepancies encountered

Question 24

Lot Sizing

Answer 24

Choosing a lot size for ordering or production

Question 25

Backflushing

Answer 25

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

Question 26

Distribution Resource Planning (DRP)

Answer 26

A method used for planning orders in a supply chain

Question 27

Enterprise Resource Planning (ERP)

Answer 27

Integration of financial, manufacturing, and human resources on a single computer system

Question 28

Lot-for-Lot Ordering

Answer 28

I.e planned-order release equal to net requirements

Question 29

Lot-Size Ordering

Answer 29

Specific amounts ordered at a time