Final Exam Flashcards
ABC analysis divides inventory into three classes based on
annual dollar volume
The EOQ model is best suited for items whose demand is ______
independent
additions to the reorder point that allow for variability in the rate of demand, the length of lead time, or both.
safety stock
provides a measure of inventory accuracy
cycle counting
The two most basic inventory questions answered by the typical inventory model are
timing and quantity of orders
the primary purpose of the basic economic order quantity model is
to minimize the sum of setup cost and holding cost
time between placement and receipt of an order
lead time
3 Demand options for aggregate planning
1) influencing demand
2) back ordering during high-demand periods
3) Counterseasonal product and service mixing
5 Capacity options for aggregate planning
1) Changing inventory levels
2) Varying workforce size by hiring and layoffs
3) Varying production rate through overtime and idle time
4) Subcontracting
5) Using part-time workers
The _______ model is a formal planning model built around a manager’s experience and performance.
management coefficients
A pure chase strategy allows _____ inventories when compared to pure level scheduling.
lower
type of scheduling that inventory goes up or down to buffer the difference between demand and production.
level scheduling
in level scheduling, what is kept uniform from month to month?
production/workforce levels
strategy using inventory to meet demand requirement
pure level strategy
which plan does not work if hiring and layoffs are possible
transportation method
capacity allocation to different classes of customers in order to maximize profits
yield management
strategy sets production equal to forecasted demand
chase
strategy maintains a constant output rate, or work force level, over the planning horizon.
level
Effective use of dependent demand inventory models require (5) things
1) Master Production Schedule (MPS)
2) Bill of Material (BOM)
3) Accurate Inventory Records
4) Open Orders
5) Lead Times
MRP is generally practiced on items with _____ demand
dependent
describe subassemblies that exist only temporarily
Phantom Bills
____ material requirements do not take into account the amount of inventory on hand
gross
_____ technique is particularly appropriate when demand is not very smooth and set up cost is small compared to holding cost.
lot-for-lot lot-sizing
A master production schedule specifies
what product is to be made, and when
In continuous (make-to-stock) operations, the master production schedule is usually expressed in terms of
end items
In job shop (make-to-order) operations, the master production schedule is usually expressed in
customer orders
_____ bills represent subassemblies that actually exist and are inventoried,
modular
_____ bills represent subassemblies that exist only temporarily and are not inventoried.
phantom
____ scheduling starts as soon as the requirements are known
forward
____ scheduling begins with the due date and schedules the final operation first
backward
Scheduling Criteria (4 objectives)
1) Minimize completion time
2) Maximize utilization of facilities
3) Minimize work-in-process (WIP) inventory
4) Minimize customer waiting time
file that contains important information regarding an item’s flow through the shop
routing file
file that is NOT part of the planning files of a production planning and control system
progress file
file that tracks word order progress
control file
file that has the production database containing information about each of the components that a firm produces or purchases
item master file
Aid used to monitor jobs in process
a Gantt schedule chart
what critical ratio value implies that a job is already late
less than 1
____ system is generally found in most JIT environments
pull
characterized by continuous and forced problem solving via a focus on throughput and reduced inventory
Just-in-time (JIT)
characterized by a focus on continuous improvement, respect for people, and standard work practices
Toyota Production System (TPS)
characterized by the elimination of waste through a focus on exactly what the customer wants
Lean operations
time required to move orders through the production process, from receipt to delivery
throughput
time from raw materials receipt to finished product exit
manufacturing cycle time
