Chapter 13

Question 1

Material Requirements Planning (MRP)

Answer 1

activity that determines the ordering of dependent-demand items (components of assembled products).

Question 2

MRP II

Answer 2

second generation MRP, adds broader scope by linking sales and operations planning, MPS, MRP, CRP, and detailed scheduling

Question 3

Capacity Requirements Planning (CRP)

Answer 3

uses the MRP shop order releases and operations times and routings to determine the capacity requirements from each work centre.

Question 4

Dependent Demand

Answer 4

D that depends on the production schedule for the finished goods

Question 5

What are the 3 MRP Inputs

Answer 5

• Master Production Schedule
• BOM
• Inventory Records

Question 6

Low-Level Coding

Answer 6

restructuring the BOM so that multiple occurrences of the same component all coincide with lowest level at which said component occurs.

Question 7

MRP Processing

Answer 7

“explodes” end item requirements specified by the master schedule into time-phased requirements for assemblies, parts, and raw materials using the BOM offset by lead times. Figure 13-8

Question 7

Gross Requirement

Answer 7

Total expected demand for an item or raw material in a time period (w/o regard to amount on hand).

Question 7

Scheduled Receipt

Answer 7

open order scheduled to arrive from a vendor or shop floor in the beginning of a period.

Question 7

Projected on-hand

Answer 7

amount of inventory that us expected to be on hand at beginning of time period. scheduled receipt + any ending inventory expected from last period.

Question 8

Net requirement

Answer 8

actual amount needed in a time period

Question 9

Planned-order receipt

Answer 9

quantity planned to be received in the beginning of a period

Question 10

Planned-order release

Answer 10

Quantity planned to be released in the beginning of a period (planned-order receipt offset by lead time).

Question 11

Pegging

Answer 11

MRP processing in reverse - identifying immediate parent items that have generated a given set of requirements for an item such as D

Question 12

2 systems used to update MRP records

Answer 12

• Regenerative
• Net-change

Question 13

Regenerative System

Answer 13

compiles all changes that occur within the time interval and periodically updates the system.

Question 14

Net-Change System

Answer 14

production plan is modified to reflect changes as they occur

if some defective purchased parts had to be returned to a vendor, manager can enter this info into the system right when it becomes known.

only changes are exploded through the system, the entire plan is not regenerated.

Question 15

Regenerative vs Net-Change

Answer 15

Regenerative is better for stable situations. It is disadvantageous, especially in situations where changes are frequent, because there is a time lag between receiving info and updating the system.

Question 16

MRP System Nervousness

Answer 16

a small change in requirement of an item at the top of the product structure tree can have large effects on items down the tree.

Question 17

Back-flushing

Answer 17

exploding an end item’s BOM periodically to determine the quantities of the components that must have been used to make the quantity of the item

Question 18

Primary Reports

Answer 18

1. Planned-order schedules
2. Order releases
3. Changes to scheduled receipts

Question 19

Secondary Reports

Answer 19

1. Performance-control reports
2. Planning reports
3. Exceptions reports

Question 20

Planning Bill

Answer 20

when end products only have minor differences (such as colour), they can be combined into an artificial product to simplify planning process

Question 21

Modular Bill

Answer 21

used to reduce the # of BOMs when a product consists many modules, each with a few options.

Question 22

Phantom Bill

Answer 22

for items that are usually not kept in inventory.

E.g., suppose that pedals of a specific bike are assembled outside the bike assembly line. A phantom bill is created for the components needed to assemble a pedal.

Question 23

Distribution Resource Planning (DRP)

Answer 23

planning method that determines time-phased replenishment schedules between a manufacturer’s facility and distribution centres (DCs), or between a DC and retail stores.

Question 24

Capacity Requirements Planning (CRP)

Answer 24

process of determining detailed capacity requirements of MRP

calculation on page 511

Question 25

Manufacturing Resource Planning (MRP II)

Answer 25

MRP expanded into broader system for planning and scheduling.
sales and operations planning - MPS - MRP - CRP

Question 26

Load Reports

Answer 26

Department or work centre reports that compare known and expected future capacity requirements with capacity availability.