Chapter 12: MRP And ERP 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 computer-based information system 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 sure of the leads times that sequential phases of a process require, from ordering of parts or raw materials to completion of final assembly
Bill of Materials
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
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 occurrences 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
Projected on Hand
Expected amount of inventory that will be on hand at the beginning of each time period
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 continuously
Planned Orders
Schedule indicating the amount and timing of future orders
Order Releases
Authorization for the execution or planned orders
Changes
Revisions of due dates or order quantities, or cancellations of work
Performance-control Reports
Evaluations of system operation, including deviations from plans and cost information
Planning Reports
Data useful for assessing future material requirements
Exception Reports
Data on any major discrepancies encountered
Lot Sizing
Choosing a lot size for ordering or production
Backflushing
Exploding an end item’s BOM to determine the quantities of the components that were used to make the item
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 on a single computer system
Lot-for-Lot Ordering
I.e planned-order release equal to net requirements
Lot-Size Ordering
Specific amounts ordered at a time
