Exam 1 - Key Terms 1

Question 1

Advance ship notice (ASN)

Answer 1

An electronic data interchange (EDI) notification of shipment of product

Question 2

Advanced planning and scheduling (APS)

Answer 2

Techniques that deal with analysis and planning of logistics and manufacturing during short, intermediate, and long-term time periods

Question 3

Andon

Answer 3

A sign board with signal lights used to make workers and management aware of a quality, quantity, or process problem

Question 4

Anticipation inventories

Answer 4

Additional inventory above basic pipeline stock to cover projected trends of increasing sales, planned sales promotion programs, seasonal fluctuations, plant shutdowns, and vacations

Question 5

Available inventory

Answer 5

The on-hand inventory balance minus allocations, reservations, backorders, and (usually) quantities held for quality problems. Often called beginning available balance

Question 6

Available-to-promise

Answer 6

Read sheet for this.

Question 7

Average inventory

Answer 7

One-half the average lot size plus the safety stock, when demand and lot sizes are expected to be relatively uniform over time.

Question 8

Back scheduling

Answer 8

A technique for calculating operation start dates and due dates characterized by starting with the due date and working backward to determine due dates for each operation

Question 9

Backorder

Answer 9

An unfillled customer order or commitment

Question 10

Balance sheet

Answer 10

A financial statement showing the resources owned, the debts owed, and the owner’s share of a company at a given point in time

Question 11

Bar code

Answer 11

A series of alternating bars and spaces printed or stamped on parts, containers, labels, or other media, representing encoded information that can be read by electronic readers

Question 12

Batch

Answer 12

A quantity scheduled to be produced in production

Question 13

Big data

Answer 13

Collecting, storing, and processing massive amounts of data for the purpose of converting it into useful information

Question 14

Bill of material (BOM)

Answer 14

A listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly, showing the quantity of each required to make an assembly

Question 15

Break-even point

Answer 15

The level of production or the volume of sales at which operations are neither profitable nor unprofitable

Question 16

Buffer management

Answer 16

In the theory of constraints, a process in which all expediting in a shop is driven by what is scheduled to be in the buffers (constraint, shipping, assembly)

Question 17

Bullwhip effect

Answer 17

An extreme change in the supply position upstream in a supply chain generated by a small change in demand downstream in the supply chain

Question 18

Capable-to-promise (CTP)

Answer 18

The process of committing orders against available capacity as well as inventory

Question 19

Capacity available

Answer 19

The capability of a system or resource to produce a quantity of output in a particular time period

Question 20

Capacity management

Answer 20

The function of establishing, measuring, monitoring, and adjusting limits or levels of capacity in order to execute all manufacturing schedules

Question 21

Capacity planning

Answer 21

The process of determining the amount of capacity required to produce in the future

Question 22

Carrying cost

Answer 22

The cost of holding inventory, usually defined as a percentage of the dollar value of inventory per unit of time (generally one year)

Question 23

Cash flow

Answer 23

The net flow of dollars into or out of the proposed project. The algebraic sum, in any time period, of all cash receipts, expenses, and investments

Question 24

Cause-and-effect diagram

Answer 24

A tool for analyzing process dispersion. Also referred to as a the Ishikawa diagram

Question 25

Centralized inventory control

Answer 25

Inventory decision making for all stockkeeping units exercised from one office or department for an entire company

Question 26

Chase production method

Answer 26

A production planning method that maintains a stable inventory level while varying production to meet demand

Question 27

Closed-loop MRP

Answer 27

A system built around material requirements planning that includes the additional planning processes of production planning, master production scheduling, and capacity requirements planning

Question 28

Configure-to-order (CTO)

Answer 28

A production environment where a good or service is determined at order entry by customers who select from a pre-defined list of features, options, and attributes.

Question 29

CTO key components

Answer 29

Bulk, semi-finished, intermediate, subassembly, fabricated, purchased, packing

Question 30

Synonymous to Configure-to-order (CTO)

Answer 30

Assemble-to-order (ATO). Also see: make-to-order (MTO), make-to-stock (MTS)