MPR- Exam 2 Flashcards
Abnormal Demand
A large unexpected demand above the forecast, the result of a special deal with selected customers or unknown circumstances driving greater requirements. The possibility of abnormal demand must be considered in forecasting models.
Actual Demand
Sales orders, customer orders, or other forms of committed requirements that replace or net against the forecast demand inside the demand time fence. For example, in period 0 below, the forecast appears as follows
Period 1 2 3 4 5 6 7 8 9 10
Forecast 9 7 8 9 9 8 7 5 7 9
With actual demand of eight the following modifications would be made
Period 1 2 3 4 5 6 7 8 9 10
Orders 8
Forecast 7 8 9 9 8 7 5 7 9
Adaptive Smoothing
A type of exponential smoothing developed by Robert G Grown, in which the smoothing constant is adjusted as a trigonometric function of measuring the forecast error.
Aggregate Forecast
The Projected sales of product types, families, or some other product hierarchy that is usually time-phased and can be expressed as units to be manufactured or dollars (or both). The aggregate forecast is useful for planning capacity and resources (materials and employees) as well as for sales planning and analysis.
Aggregate Plan
A plan that supports the production strategy for product families, which includes all aspects. including, budgeted levels of finished goods, production backlog, and projected changes in the workforce.
Allocation
A process that reserves, for manufacturing orders, part that have not been released to the shop floor from the warehouse. An allocation creates a picking list that goes to the warehouse. The allocated part might not be sent from the warehouse until later, so an allocation ensures that the part will not be used to fill another order. It is an unprocessed stockroom requisition. Allocation is also a process that is used to distribute material where the quantities are not sufficient to cover all requirements.
Alpha Factor
Synonym: Smoothing constant
A weighting factor used in exponential smoothing. The value of the smoothing constant is between 0 and 1.00 and is determined by trial and error as a smoothing constant is applied to the most recent data. When there is no variability in sales from year to year, the smoothing constant is 0. When there is a wide variety in sales, the smoothing constant is 1.00
Assemble-to-Order
Subassemblies that are produced to a forecast but not completed until a customer order is received.
Description
* Fewer products than build-to-order
* Build to a forecasted option
*Assemble option to customer specification
* Use of planning bills
*Medium profit margin per item
Impact on Inventory
* Little, if any, finished goods
*inventory based on option forecast
* Raw material held, especially for long lead-time items.
Available to Promise
Beginning on-hand inventory minus customer orders that are due or past due. It is synonymous with uncommitted inventory
Backlog
Unshipped sales orders, customer orders, or other committed demand, which may or may not be past due. Backlog can be expressed in dollars, orders, or units
Backorder
Unshipped sales orders, customer orders, or other committed demand, which is either an immediate demand or past due, because there is not enough inventory to fill the orders. Costs of backorders can be hard(expedite fees, freight charges, overtime premium, and so on. Or soft (loss of customers or sales loss of goodwill and so on
Base Series
A method of determining the impact of seasonal demand, which uses a standard succession of values of demand data over a period of time. It is based on the relative level of demand, compared to past periods. The average for the base series is 1.0 so any value larger than one indicates that the demand was greater than the average, conversely, any value less than 1.0 indicates that the demand was less than the average.
Bias
A regular and consistent variation from the average always in one direction (consistently high or low ) Since a bias is a pattern of forecast error, a forecasting model should have very little bias
Bottom-Up-Replanning
Allows the user to understand and address MRP related problems such as shortages, expedites, and so on. The where-used logic and the pegging capabilities allow this bottom-up (implosion) process to take place.
Bill of Resources
A Bill of Resources states how much labor and machine time is required to produce the typical unit of a product. When the capacity required to produce the typical unit is multiplied by the units required by the MPS, the total capacity for the period results
Bucket vs. Bucketless
Bucket System- A time period usually a week.
Bucketless system An MRP DRP or other time phased system in which all time phased data are processed, stored, and usually displayed using dated records rather than defined time periods (buckets)
Business Plan
A statement of long-range strategy supported by a projection of resources, a business plan describes what the business looks like today and predicts what it will look like in the future. It sets the direction for the company, and creates a framework in which the organization can respond to changes required in order to stay competitive.
Capacity Management
There are two parts to capacity management:
1) The planning of the capacity required to meet projected demands.
2) The controlling of the capacity to monitor, adjust to, and achieve the plan.
Capacity management includes long-term, medium term and short term capacity. The figure below illustrates how these periods are related in resource planning, rough-cut capacity planning, capacity requirements planning and input/output control.
What is capacity management (part 2)
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Chase Method
The Objective of this planning method is to maintain a level inventory while varying manufacturing rates to meet demand. Companies might combine chase and level production schedule methods over their planning horizon
Closed-Loop Material Requirements Planning (MRP)
An MRP system that contains feedback loops from all functions within the business such as sales and operations planning master production scheduling and capacity requirement planning. The feedback ensures that the system is always current and data used for making important decisions is available.
Common Parts Bill
Synonym: Common Parts Bill of Material
A Bill of Material created for planning purposes that gathers common parts under one pseudo parent part number to simplify MRP and (BOM) maintenance. In a factory that produces mountain bikes for example, a common parts (BOM) might contain the handle bar assembly seat and foot-peddles under a part number MTNBIKE-KIT
Contraint
A limitation (Physical, policy, or procedure ) that inhibits a process or somehow restricts it so that goals are never reached. An example of a physical constraint would be a CNC machine that runs one part every fifteen minutes when ten parts an hour are required. A procedural constraint would be that the routing for that same part directs the operations to the CNC rather than another faster work center. An example of a policy constraint might be a safety policy limiting an operator to one machine rather than being able to run enough machines at the work center to achieve the required rate
Consuming the forecast
Synonym: Forecast Consumption
Reducing or netting the forecast by actual demands as they are processed