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Enterprise Resource Planning > Materials Planning Process > Flashcards

Materials Planning Process Flashcards

1
Q

Cost of not doing the best available option?

A

Opportunity Cost

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2
Q

Material Planning is a ____ process that can represent a ____ _____ for a company

A

complex; strategic opportunity

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3
Q

______ materials are required?
______ many are required?
______ are they required?
______ are they needed?

A

What, How, When, Where

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4
Q

Demand for materials is dervied from other processes. Sales forecast is also called?

A

Make to Stock

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5
Q

Demand for materials is dervied from other processes. Actual sales is also called

A

Make to order

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6
Q

Procurement Proposals can be which two forms?

A

Purchase Requisitions and Planned Orders

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7
Q

What is the use of purchase requisitions?

A

for external procurement or to buy

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8
Q

What is the use of planned orders?

A

For internal procurement or to make

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9
Q

What is the basic Material Planning Process?

A
  1. Sales Operations Planning makes the operations plan
  2. Demand Management determines the requirements
  3. Materials Requirements Planning makes the procurement proposals
  4. Materials are procured and produced
  5. Materials are placed in the inventory
  6. Finished goods undergo fulfilment process
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10
Q

What are the organization data used in Materials Planning Process?

A
  1. Client
  2. Company Code (CC)
  3. Plant
  4. Storage Location
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11
Q

What are the views discussed for other processes in the Material Master?

A
  1. Basic Data
  2. Purchasing Related
  3. Sales Related
  4. Accounting Related
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12
Q

What are the views highly relevant to material planning?

A

MRP Views - Plant Specific
Work Scheduling - Plant Specific

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13
Q

In the Material Master: The Procurement Type can be?

A
  1. in house
  2. Externally
  3. Both
  4. None
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14
Q

In the material master, the MRP type can be what?

A
  1. Consumption-based Planning
  2. Materials Requirements Planning (MRP)
  3. Master Production Scheduling (MPS)
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15
Q

What is Consumption-Based Planning derived on

A

Historical Consumption Data

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16
Q

Consumption Based Planning gathers its requirement using which planning procedure?

A

Reorder Point Planning
Forecast Based Planning
Time-Phased Planning

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17
Q

Consumption Based Planning makes use of ____ ____ Materials

A

Low-Value

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18
Q

Independent demand is based on?

A

Customer/ External Demand
Finished Goods or Trading Goods

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19
Q

The Independent Demand is calculated based on

A

Actual sales order and Forecasted or Planned Sales

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20
Q

Actual Sales Order =

A

Customer Independent Requirement (CIR)

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21
Q

Calculated/ Forecasted Demand =

A

Planned Independent Requirement (PIR)

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22
Q

Dependent Demand is dependent on the demand for ___ ____. It includes ____ ____ and ____ _____

A

Another Material. Semifinished Goods and Raw Materials

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23
Q

Consumption strategies that include both PIRs and CIRs, what happens to them?

A

CIR consume the PIR

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24
Q

Consumption can be planned as?

A

Forward, Backward, or Half/Half

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25
Q

What is the trigger for Sales and Operations Planning?

A
  • when the organization wishes to revise its production plan or
  • unexpected events
26
Q

Can the Sales and Operation Planning make several version of the production plan? Why?

A

Yes. To make one for each assumption for economic conditions.

27
Q

SOP can either?

A

Standard or flexible

28
Q

What are the tasks in the Sales and Operation Planning?

A
  1. Create a Sales Plan
  2. Specify Inventory Requirement
  3. Creating Production Plans
  4. Evaluate the feasibility of the operation plans
29
Q

The production plan is based on

A
  1. Synchronous to sales
  2. Target Stock Level
  3. Target Day’s Supply
  4. Stock level = 0
30
Q

The translation from the plans of SOP to the finished product in the product heirarchy is called?

A

Disaggregation

31
Q

Disaggregation is triggered by?

A

a new production plan is created

32
Q

what data from the production plan are used to calculate the material requirements in the product group?

A

Organizational Data and Master Data

33
Q

T or F: Disaggregation cannot be completed for the entire product group heirarchy or for one or more levels of the heirarchy

A

False. Disaggregation CAN be done for the entire product heirarchy

34
Q

Which of the production plan or the sales plan can be disaggregated?

A

Either the production plan or the sales plan

35
Q

What does the demand management use to calculate revised PIRs for the materials

A
  1. PIRs from the Sales and Operation Planning after disaggregation
  2. Customer Orders (CIRs) from the fulfillment process
  3. Data from planning strategies in the Material Master
36
Q

The primary task from demand management is?

A

Create revised PIRs for the materials

37
Q

Who decides which procedure a company uses to calculate the requirements in the Demand Management?

A

Strategy Group

38
Q

T or F: The Demand Management is carried out manually by the ERP department

A

False. Automatically carried out by the ERP System

39
Q

At which level does the SOP and Demand Management operate?

A

SOP: Product group level
Demand Managment: Material level

40
Q

What are the tasks in the Materials Requirements Planning?

A

Create Procurement Proposals, Calculate the net requirements for the materials

41
Q

What do you call the activities that affect material availability in different processes? What is its purpose?

A

ERP Elements are used by the MRP to generate the procurement proposals and calculating the net requirements

42
Q

The MPS handles ________ items.

A

high-impact

43
Q

What are the materials usually planned by the MPS

A

Finished Goods

44
Q

What does the MPS do after planning the master schedule items?

A

creates dependent requirements for the first-level components in the BOM of the MPS items

45
Q

Determine which materials must be planned?

A

Check Planning file

46
Q

What generates an entry in the Planning File

A

Any change to an MRP-relevant material

47
Q

What is planned first in the check planning phase?

A

Finished goods

48
Q

What is the task in the net calculation requirements

A

Determine whether there is a need to procure material

49
Q

What is the formula if the MRP type is Consumption Based Planning

A

Available Stock = Plant Stock + Receipts

50
Q

What is the formula if the MRP type is MRP or MPS

A

Available Stock = Plant Stock + Receipts - Safety Stock - Issues

51
Q

What does a negative available stock mean?

A

Procurement Proposals are generated

52
Q

Procedure used to determine the quantity to be included in the procurement proposals

A

Lot Size

53
Q

What is the data needed to calculate lot size in the material master?

A

Lot size key

54
Q

What are the two types of scheduling

A

Backward and forward

55
Q

What does an ERP system usually use for scheduling ?

A

Backward first then Forward

56
Q

In what type of scheduling can the MRP controller manually adjust the schedule?

A

Backward Scheduling

57
Q

What are the three options of external procurement?

A
  1. Purchase Requisition
  2. Conversion of planned orders to PR
  3. Create Schedule lines
58
Q

How does MRP generate dependent requirements?

A

By exploding the BOM

59
Q

Process is terminated after this initial Step

A

Single-level MRP

60
Q

Calculations are performed for all levels

A

Multilevel MRP

61
Q

T or F: Reporting Options for MAterials Planning Requirements are extensive

A

False. Not Extensive

62
Q

What are the three tools for reporting the planning situation?

A

Stock/ Requirements List
MRP List
Planning result report

Enterprise Resource Planning (3 decks)

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