APICS Module 1 - Material Requirements Planning (D) - Terms

Open Order (Released Order)

1) A released manufacturing order or purchase order. 2) An unfilled customer order.

Multilevel Bill of Materials

A display of all the components directly or indirectly used in a parent, together with the quantity required of each component (i.e., the planning factor). If a component is a subassembly, blend, intermediate, etc., all its components and all their components also will be exhibited, down to purchased parts and raw materials

Single-level bill of material

A display of components that are directly used in a parent item. It shows only the relationships one level down.

Summarized Bill of Material

A form of multilevel bill of material that lists all the parts and their quantities required in a given product structure. Unlike the indented bill of material, it does not list the levels of manufacture and lists a component only once for the total quantity used.

Indented Bill of Material

A form of multilevel bill of material. It exhibits the highest-level parents closest to the left margin, and all the components going into these parents are shown indented toward the right. All subsequent levels of components are indented farther to the right. If a component is used in more than one parent within a given product structure, it will appear more than once, under every subassembly in which it is used.

Planning Bill of Material

An artificial grouping of items or events in bill-of-material format used to facilitate master scheduling and material planning. It may include the historical average of demand expressed as a percentage of total demand for all options within a feature or for a specific end item within a product family and is used as the quantity per in the planning bill of material.

Parent Item

Item produced from one or more components

Where-used list

Listing of every parent item that calls for a given component and the respective qty required from BOM file

scheduled receipts

Open order that has an assigned due date

requirements explosion

Process of calculating demand for components of a parent item by multiplying the parent item requirements by the component usage qty specified in the BOM

Bill of Material/Explosion

The process of determining component identities, quantities per assembly, and other parent-component relationship data for a parent item. Explosion may be single level, indented, or summarized.

gross requirements

The total of independent and dependent demand for a component before the netting of on-hand inventory and scheduled receipts.

Bill of Materials (BOM)

a listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly showing the quantity of each required to make an assembly

planned order receipts

quantity expected to be received by the beginning of the period in which it is shown

Lead Time Offset

Technique used in MRP where a planned order receipt in one time period will require the release of that order in an earlier time period based on lead time for item

Pegging

The ability to relate the demand for an item shown on an MRP record back to the parent causing the demand shows only those parent items for which there is an existing requirement

Firmed Planned Order

A planned order that can be frozen in quantity and time so that the MRP computer logic cannot automatically change when conditions change. Established by the Planner or Supply Chain Manager to prevent system nervousness. This can aid planners working with MRP systems to respond to material and capacity problems by firming up selected planned orders.

planned order release

A row on an MRP table that is derived from planned order receipts by taking the planned receipt quantity and offsetting to the left by the appropriate lead time.

Material Requirements Planning (MRP)

A set of techniques that uses bill of material data, inventory data, and the master production schedule to calculate requirements for materials.

Planned Order

A suggested order quantity, release date, and due date created by the planning system's logic when it encounters net requirements in processing MRP. In some cases, it can also be created by a master scheduling module. Planned orders are created by the computer, exist only within the computer, and may be changed or deleted by the computer during subsequent processing if conditions change. Planned orders at one level will be exploded into gross requirements for components at the next level. Planned orders, along with released orders, serve as input to capacity requirements planning to show the total capacity requirements by work center in future time periods.

net requirements

gross requirements less scheduled receipts and projected on hand