material requirements planning

Question 1

Material requirements planning (MRP)

Answer 1

the logic for determining the number of parts, components, and materials needed to produce a product

MRP is a logical, easily understandable approach to the problem of determining the number of parts, components and materials needed to produce each end item. MRP also provides the schedule specifying when each of htese items should be ordered and produced

MRP is based on dependent demand. Dependent demand is caused by the demand for a higher level item

Question 2

Master production scheduling

Answer 2

generallly, the master production schedule deals with end items and is a major input to the MRP process. IF the end item is quite large or quite expensive, however, the master schedule may schedule major subaseemblies or components instead

Question 3

To ensure good master scheduling, the master scheduler (the human being) must:

Answer 3

include all demands from product sales, warehouse replenishment, spares and interplant requirements

never lose sight of the aggregate plan

Be involved with customer order promising

Be visible to all levels of management

Objectively trade off manufacturing, marketing and engineering conflicts

Question 4

Master production schedule (MPS)

Answer 4

a time phased plan specifying how many and when the firm plans to build each item

Question 5

Time fences

Answer 5

periods of having some specified level of opportunity for the customer to make changes

E.g. are frozen (no change), slushy, liquid (change allowed)

Question 6

Available to promise

Answer 6

a feature of MRP systems that identifies the difference between the number of units currently included in the master schedule and the actual (firm) customer orders

Question 7

kBill of materials

Answer 7

the complete product description, listing the materials, parts and ocmponents, and also the sequence in which the product is created

Question 8

Modular bill of materials

Answer 8

the term for a buildable item that can be produced and stocked as subassembly. It is also a standard item with no options within the module

Question 9

Super bill

Answer 9

of materials includes items with fractional options

Question 10

Low level coding

Answer 10

placing all identical items at the same level

Question 11

Inventory records

Answer 11

The MRP program accesses the status segment of the record according to specific time periods. Theres records are accesssed as needed during program run

Question 12

Net change system

Answer 12

an MRP system that calculates the impact of a change in the MRP data

Question 13

Four lot sizing techniques

Answer 13

Lot for lot

Economic order quantity

least total cost

least unit cost

Question 14

Lot sizes

Answer 14

the part quanitties issued in the planned order receipt and planned order release sections of an MRP schedule

Question 15

Lot for lot (most common technique)

Answer 15

Sets planned order to exactly match the net requirements

Produces exactly what is needed each week with no inventory carried over into future periods

Minimizes carrying costs

Does not take into account setup costs or capacity limitations

Question 16

Economic order quantity

Answer 16

An EOQ model eiher fairly constant demand must exist or safety stock must be kept to provide for demand variabliilty

Qopt = sqr(2ds/h)

Question 17

least unit cost method

Answer 17

is a dynamic lot sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) cost for various lot sizes and then selects the lot in which thesea re most near equal

Question 18

Least unit cost

Answer 18

the least unit cost method is a dynamic lot sizing technique that adds ordering and inventory carrying cost for each trial lot size and divides the number of units in each lot size, picking the lot size with the lowest unit cost

Question 19

Choosing the best lot size

Answer 19

the advantage of the least unit cost method is that it is a more complete analysis and wuld take into account ordering or setup costs that might change as the order siize increases. If the ordering or setup costs remain constant, the lowest total cost method is more attractive because it is simpler and easier to cmopute yet it would be just as accurate under that restriction