chapter 14 Flashcards
: a dependent demand technique that uses a bill-of-material, inventory, expected receipts, and a master production schedule to determine material requirements
Materials Requirements Planning (MRP)
One of primary inputs in MRP; states what is to be made (usually finished goods) and when
Master Production Schedule (MPS) (or, Master Schedule):
development of a long-term output and resource plan in aggregate units of measure
Aggregate planning:
the process of translating aggregate plans into short-term operations plans that provide the basis for weekly and daily schedules and details resource requirements
Disaggregation:
The _________ is the basis for development of the Master Production Schedule
Aggregate Plan
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
Bill of Materials (BOM)
Visual depiction of the requirements in a bill of materials, where all components are listed by levels
Product structure tree:
One of the primary inputs in MRP
inventory records
takes the end item requirements specified by the master schedule and “explodes” them into time-phased requirements for assemblies, parts and raw materials
MRP processing
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
MRP explosion
is the process of determining the appropriate amount and timing of ordering to reduce costs
Lot sizing
An ordering schedule that covers the gross requirements for each week
Lot-for-lot (LFL):
uses a fixed order size for every order or production run
Fixed order quantity (FOQ):
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
Periodic order quantity (POQ):
The determination of the________ (netting) is the core of MRP processing
net requirements
total expected demand
Gross requirements:
Open orders scheduled to arrive
Scheduled receipts:
Expected inventory on hand at the beginning of each time period
Projected on hand:
Actual amount needed in each time period
Net requirements:
Quantity expected to received at the beginning of the period
Planned-order receipts:
Planned amount to order in each time period; planned-order receipts offset by lead time
Planned-order releases:
approach that updates MRP records periodically
Best suited to fairly stable systems
Requires data accuracy of 85% to 90%
Regenerative system:
: approach that updates MPR records continuously
Best suited to systems that have frequent changes
Requires data accuracy of 95%
Net-change system
schedule indicating the amount and timing of future orders
Planned orders:
authorization for the execution of planned orders
Order releases:
: evaluation of system operation, including deviations from plans and cost information
Performance-control reports
data useful for assessing future material requirements
Planning reports:
date on any major discrepancies encountered
Exception reports:
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
Capacity Requirements Planning (CRP):
department or work center reports that compare known and expected future capacity requirements with projected capacity availability
Load reports:
integration of financial, manufacturing, and human resources on a single computer system
Enterprise Resource Planning (ERP):
