mod 10 Flashcards
functions of a master schedule (4)
forecasting, planning, coordinating, control
indications of the master production schedule
production quantities, timing, delivery dates
purpose of available to promise (ATP)
order commitment: ensures that current customers can be met with existing inventory
customer satisfaction: provides delivery dates to customers
how does master production schedule relate to material requirement planning
relation to MRP system: serves as primary input for the input system MRP used MPS to break down overall production plans
typical inputs to MRP system
- master of Poduction schedule
- bill of materials (BOM)
- inventory status records
- Lead times
typical outputs for MRP system
- order schedules
- planned order releases
- inventory replenishments
purposes of an MRP system
- inventory control
- production planning
- order management
independent vs dependent demand
independent demand: for finished goods influenced by market conditions
dependent demand: for components derived from production schedule of finished goods
gross v net requirements
gross requirements: total demand for an item before considering what’s on hand
net requirement: actual demand after accounting for current inventory schedules receipts
inventory and production strategies (lot for lot)
a production and ordering policy where the exact quantity required for production is ordered or produced w/o excess
inventory and production strategies ( variations in part period balancing)
balancing production and order quantities to minimize costs over a given period
ex. setup costs, holding costs
Characteristics of an ERP System:
integrated systems: various business practices into a single system
real time operations: real time data
common database: ensures data consistency and accuracy
Advantages of ERP systems
- improved efficiency and productivity
- better decision-making through intergrated data
- enhanced customer service
disadvantages of ERP systems
- high implementation costs and Maintenace costs
- complexity and disruption during implementation
- requires significant change management efforts
