SCM 301 FINAL PART 1 Flashcards
What is Master Scheduling?
determines when products made, when orders filled, and what products are still available (trucks, suvs)
tracks production output and matches this output to actual customer orders, short-term (in weeks or months)
What is Material Requirements Planning (MRP)?
translates the master production schedule into planned orders and calculates the timing and quantity for those orders (parts of suv)
What is Production Activity Control (PAC)?
assures in house manufacturing takes place according to plan; also helps manufacturing managers identify potential problems (INSOURCING)
What is Vendor Order Management?
assures that materials ordered from supply chain partners are received when needed, helps purchasing managers identify potential problems and take corrective actions (OUTSOURCING)
What else is important about Master Scheduling?
primary interface point for actual customer orders (controls timing and quantity of production)
What does the Master Schedule Record track?
Forecast Demand
Booked Orders
Projected Inventory Levels
Production Quantities
Available to Promise (ATP)
Master Production Schedule (MPS)
Planning Horizon
What is Available to Promise (ATP)?
number of units that are available for sale to meet customer needs each week, given those that have already been promised to customers
how many additional units can be sold
only calculated in weeks with positive MPS quantity
What is Time/Planning Horizon?
amount of time that the master schedule record or MRP record extends
longer production/supplier lead times require longer planning horizons
What is the Formula for Projected Ending Inventory for the Master Schedule Record?
previous periods EI + MPS quantity – the max of forecasted demand and booked orders
What is the Formula for the first week of ATP?
Previous periods EI + MPS quantity – sum of all booked orders until next MPS quantity due
What is the Formula for all weeks besides the first of ATP?
MPS Quantity – sum of all booked orders until next mps quantity due
What are the inputs of Material Requirements Planning (MRP)?
Master Production Schedule, Bill of Materials File, and Inventory Records File
What type of demand is Material Requirements Planning (MRP) designed to manage?
dependent demand
What is Independent Demand?
inventory items whose demand levels are beyond a company’s complete control (end item / finished goods)
determined by customer demand
What is Dependent Demand?
inventory items whose demand levels are tired directly to a company’s planned production of another item
if you know independent demand, then you know exact dependent demand items
What are the advantages of Material Requirements Planning (MRP)? (3)
knows exact timing/quantity of items
trace lower level items
tells a firm what needs to be made and when
What are the disadvantages of Material Requirements Planning (MRP)? (5)
capacity issues
fixed lead times
Uncertainty in shipments and quantity levels
One change in an item has large effects on supply chain
Must be organized because whole supply chain relies on accuracy
How do you deal with a variable lead time?
lengthen the planning lead times or hold additional inventory as safety stock
What is the Bill of Materials (BOM)?
listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly
What is the Product Structure Tree?
shows how the components in the BOM are put together to make the level 0 item
What does it mean to explode the BOM?
process of working backwards for a level 0 item to determine the quantity and timing of orders
What is the Material Requirements Planning (MRP) Record?
Comprised of:
gross requirements
scheduled receipts
projected ending inventory
net requirements
planned receipts
planned orders
What are Net Requirements?
how much more managers have to order, after using up the previous period’s ending inventory, scheduled receipts, and planned receipts
What are scheduled receipts?
units that are already on order
What are planned order receipts?
amount that is planned to be ordered to be received at the beginning of the period
What is the Formula for Net Requirements?
maximum of either 0 OR gross requirements – previous ending inventory – scheduled receipts
What is the Formula for Projected Ending Inventory for the Material Requirements Planning (MRP) Record?
Ending inventory from previous period + scheduled receipts + planned receipts - gross requirements
