Module 11-12 Flashcards
Scheduling
Last step in the process that begins with strategic planning and proceeds through increasing detailed stages
To begin scheduling
Master schedule calls production of two different products during a particular time
Capacity requirements planning CRP
Has been used to determine that insufficient capacity will exist in week 20 on the first work center for both parts
Data collection
When data from order entry is combined with process data the following info about jobs, activities employees, equipment and facilities are available to prepare a schedule
Order entry
Drives the scheduling process
Make to order
Customer orders
Make to stock
Produces for inventory, easier job of scheduling because of control over which products will be made
Orders released for production
Planning process involves a continual movement from strategic plans for the distant future toward more detailed plans for less distant future
6 criteria may be used when evaluating schedules
Provides goods/services when customer wants it
Flow time including processing/waiting
Level of work in progress inventories
Amount of time equipment is idle
Amount that employee are idle
Overall costs
Impossible to satisfy all criteria management must choose trade-offs
True
When choosing criteria organizations must consider
Corporate objectives
Competitive strategy
Capabilities
Assembly line process
Products are discreet individual items such as auto cars
Workstations are integral part of fine-tuning the balance of a line through scheduling
Sequencing
An assembly line is determining the order for making different products
Another characteristic associated with balancing an assembly line
Hedge
Investment position intended to offset potential losses or gains that may be incurred by a companion investment
Types of inventory
Raw materials
WIP
Finished goods
Replacement parts
Supplies
Transportation
Perpetual inventory system
Continuously monitors inventory levels
Inventory transactions are recorded as they occur
Companies use barcodes for real materials and work in progress inventories to computerized inventory records
Periodic inventory system
Design to place an order only when on hand inventory info is available and The supplier is willing to deliver when order window is open.
ABC analysis
Determine which inventory items should receive the highest level of control
ABC classification
Focusing efforts were the payoff is highest
Ordering cost
Cost of replenishing inventory
Changing over equipment from producing one item to another, can represent ordering cost
True
Holding cost
Money to hold inventory
Economic order quantity model
Basic approach to determine order quantity
Call to minimize the total annual cost of ordering and holding inventory by varying the order quantity
Only variable costs
 EOQ occurs at the point where the total annual variable costs for holding inventory and ordering inventory coincide
True
