chapter 14

Question 1

: a dependent demand technique that uses a bill-of-material, inventory, expected receipts, and a master production schedule to determine material requirements

Answer 1

Materials Requirements Planning (MRP)

Question 2

One of primary inputs in MRP; states what is to be made (usually finished goods) and when

Answer 2

Master Production Schedule (MPS) (or, Master Schedule):

Question 3

development of a long-term output and resource plan in aggregate units of measure

Answer 3

Aggregate planning:

Question 4

the process of translating aggregate plans into short-term operations plans that provide the basis for weekly and daily schedules and details resource requirements

Answer 4

Disaggregation:

Question 5

The _________ is the basis for development of the Master Production Schedule

Answer 5

Aggregate Plan

Question 6

One of the primary inputs of MRP; a listing of all of the components, their description and the quantity of each to make one unit of a product

Answer 6

Bill of Materials (BOM)

Question 7

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

Answer 7

Product structure tree:

Question 8

One of the primary inputs in MRP

Answer 8

inventory records

Question 9

takes the end item requirements specified by the master schedule and “explodes” them into time-phased requirements for assemblies, parts and raw materials

Answer 9

MRP processing

Question 10

is the process of using the logic of dependent demand to calculate the quantity and _timing______ of orders for all subassemblies and components that go into and support the production of finished goods

Answer 10

MRP explosion

Question 11

is the process of determining the appropriate amount and timing of ordering to reduce costs

Answer 11

Lot sizing

Question 12

An ordering schedule that covers the gross requirements for each week

Answer 12

Lot-for-lot (LFL):

Question 13

uses a fixed order size for every order or production run

Answer 13

Fixed order quantity (FOQ):

Question 14

orders a quantity equal to the gross requirement quantity in one or more predetermined time periods minus the projected on-hand quantity of the previous time period

Answer 14

Periodic order quantity (POQ):

Question 15

The determination of the________ (netting) is the core of MRP processing

Answer 15

net requirements

Question 16

total expected demand

Answer 16

Gross requirements:

Question 17

Open orders scheduled to arrive

Answer 17

Scheduled receipts:

Question 18

Expected inventory on hand at the beginning of each time period

Answer 18

Projected on hand:

Question 19

Actual amount needed in each time period

Answer 19

Net requirements:

Question 20

Quantity expected to received at the beginning of the period

Answer 20

Planned-order receipts:

Question 21

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

Answer 21

Planned-order releases:

Question 22

approach that updates MRP records periodically

Best suited to fairly stable systems

Requires data accuracy of 85% to 90%

Answer 22

Regenerative system:

Question 23

: approach that updates MPR records continuously

Best suited to systems that have frequent changes

Requires data accuracy of 95%

Answer 23

Net-change system

Question 24

schedule indicating the amount and timing of future orders

Answer 24

Planned orders:

Question 25

authorization for the execution of planned orders

Answer 25

Order releases:

Question 26

: evaluation of system operation, including deviations from plans and cost information

Answer 26

Performance-control reports

Question 27

data useful for assessing future material requirements

Answer 27

Planning reports:

Question 28

date on any major discrepancies encountered

Answer 28

Exception reports:

Question 29

is the process of determining the amount of labor and machine resources required to accomplish the tasks of production on a more detailed level, taking into account all component parts and end items in the materials plan

Answer 29

Capacity Requirements Planning (CRP):

Question 30

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

Answer 30

Load reports:

Question 31

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

Answer 31

Enterprise Resource Planning (ERP):