Class 11 Flashcards
Define: Material requirements planning (MRP)
the process used to determine the ordering and scheduling of dependent-demand components
Define: Bill of Material (BOM)
a hierarchically-arranged listing of all the raw materials, parts, and subassemblies needed to produce one unit of a product
Define: Pegging
the process of identifying the parent items that have generated a given set of requirements for an item
DEscribe 2 reasons why safety stock is sometimes needed in MRP planning
1) Due to the determinate nature of dependent demand
2) due to waste/scrappage or excessive variability in lead time
Describe MRP II
an expanded system for production planning involving sales and operations planning, MPS, MRP, and detailed scheduling and control
Describe ERP
An integrated system for managing company operations based on the integration of sales/marketing, finance, accounting, manufacturing, materials management, and human resource management on a single computer sytem
Compare independent demand and dependent demand
-independent demand - demand for finished goods
dependent demand - demand for subassemblies, parts, or raw materials required for the assembly for finished goods
Compare Gross and net requirements in MRP planning
- gross requirements - the demand for an item during a time period
- net requirements - the actual amount needed in a time period
Compare assembly diagram, product structure tree, and indented BOM
assembly diagram and product structure tree use visuals to explain assembly
Indented BOM shows assembly with words (tabular)
Compare components and parents in a BOM
items at each level are components of the next level up
items at each level are parents of the next level down
Compare Safety stock and safety time
safety stock - not usually an issue in MRP because of the determinate nature of dependent demand. Can sometimes be required because of waste/scrappage or excessive variability in lead time
Safety time - where leadtimes are variable, consider use of safety time rather than safety stock
List 4 inputs to a MRP planning process
1) master production schedule
2) bill of materials
3) knowledge of inventory levels and open orders
4) knowledge of production and purchasing lead times
List 4 outputs from a MRP planning process
1) planned orders
2) order releases
3) order changes
4) performance
List 4 alternative approaches to MRP lot sizing
1) EOQ
2) lot for lot ordering
3) fixed period ordering
4) part period ordering
Equation for EPP
setup/unit holding cost per period
