OM Book Final

Question 1

The Planning Process

Question 2

Long-range plans

Answer 2

Develop policies and strategies related to location, capacity, products and processes, supply chain, research, and capital investment.

Question 3

Intermediate Planning

Answer 3

Develops plans that match production to demand.

Question 4

Short-Run Planning

Answer 4

intermediate plans into weekly, daily, and hourly schedules

Question 5

Sales and operation planning (S&OP)

Answer 5

Balances demand
Aligns the Organization’s Competing Demand
Linking Strategic planning with operation overall planning horizons

Question 6

Aggregate planning

Answer 6

An approach to determine the quantity and timing of production for the intermediate future

Question 7

How far into the future is Aggregate Planning?

Answer 7

3 to 18 months ahead

Question 8

4 things needed for Aggregate planning

Answer 8

1. Logical unit for measuring sales and output
2. A forecast of demand for a reasonable intermediate planning period
3. A method for determining the relevant costs
4. A model that combines forecast and costs

Question 9

Disaggregation

Answer 9

The process of breaking an aggregate plan into greater detail

Question 10

Master Production Schedule

Answer 10

A timetable that specifies what is to be made and when.

Question 11

What are the basic aggregate planning capacity (production) options are:

Answer 11

Changing inventory levels
Varying workforce size by hiring or layoffs
Varying production rates through overtime or idle time
Subcontracting
Using part-time workers

Question 12

The basic aggregate planning demand options are:

Answer 12

Influencing demand
Back ordering during high-demand periods
Counterseasonal product and service mixing

Question 13

Chase Strategy

Answer 13

A planning strategy that sets production equal to forecast demand

Question 14

Level Scheduling

Answer 14

Maintaining a constant output rate, production rate, or workforce level over the planning horizon.

Question 15

When does Level Schedule work?

Answer 15

When demand is reasonably stable.

Question 16

Mixed strategy

Answer 16

A planning strategy that uses two or more controllable variables to set a feasible production plan.

Question 17

Graphical techniques

Answer 17

trial-and-error approaches that do not guarantee an
optimal production plan, but they require only limited computations.

Question 18

Transportation Method of Linear Programming

Answer 18

A way of solving for the optimal solution to an aggregate planning problem

Question 19

What does the Transportation Problem require?

Answer 19

Supply equals demand

Question 20

Revenue (or yield ) management

Answer 20

Capacity decisions that determine the allocation of resources to maximize revenue

Question 21

Material requirements planning (MRP)

Answer 21

A dependent demand technique that uses a bill-of-material, inventory, expected receipts, and a master production schedule to determine material requirements

Question 22

What does the Dependent Inventory Model Require

Answer 22

Master Productoin Scheule
Specification or Bill of Materials
Inventory Availability
Purchase order Outstanding
Leadtimes

Question 23

Master production schedule (MPS)

Answer 23

A timetable that specifies what is to be made and when.

Question 24

Bill of material (BOM)

Answer 24

A listing of the components, their description, and the
quantity of each required to make one unit of a product.

Question 25

Parents

Answer 25

Items above any level in a BOM

Question 26

Children

Answer 26

Items below any level

Question 27

What is the top level in a BOM

Answer 27

0 Level

Question 28

Modular bills

Answer 28

Bills of material are organized by major subassemblies or by product options.

Question 29

Planning bills (or kits)

Answer 29

Material groupings created in order to assign an artificial parent to a bill of material; also called “pseudo” bills.

Question 30

Phantom bills of material

Answer 30

Bills of material for components, usually subassemblies, exist only temporarily; they are never inventoried.

Question 31

Low-level coding

Answer 31

A number that identifies items at the lowest level at which they occur.