Module 4 - Section B - Using & Maintaining the Master Schedule

Question 1

Available Inventory

Answer 1

-on-hand inventory balance minus allocations, reservations, backorders and usually quantities held for quality problems; often called beginning available balance

Question 2

On-Hand Balance

Answer 2

-quantity shown in inventory records as being physically in stock

Question 3

Discrete Available-to-Promise

Answer 3

-calculation based on ATP figure in master schedule

-for 1st period, ATP is sum of beginning inventory plus MPS quantity minus backlog for all periods until item is master scheduled again

-for all other periods, if a quantity has been scheduled for that time period, then the ATP is this quantity minus al customer commitments for this and other periods until another quantity is scheduled in MPS

-for those periods where quantity scheduled is zero, ATP is zero (even if deliveries have been promised)

-promised customer commitments are accumulated and shown in period where item was most recently scheduled

Question 4

Hedge

Answer 4

-in master scheduling, a scheduled quantity to protect against uncertainty in demand or supply

-hedge is similar to safety stock except a hedge has dimension of timing as well as amount

Question 5

Volume Hedge

Answer 5

-volume hedge or market hedge is carried at master schedule or production plan level

-master scheduler plans excess quantities over and above demand quantities in given periods beyond some time fence such that, if hedge is not needed, it can be rolled forward before major resources must be committed to product hedge and put it in inventory

Question 6

Product Mix Hedge

Answer 6

-approach where several interrelated optional items are overplanned

-sometimes, using a planning bill, sum of % mix can exceed 100 % by a defined amount thus triggering additional hedge planning