C720 - Unit 6
During what stage of forecast development would the owner need historical sales information?
Develop and test the model. Past sales data can help the owner project demand for the coming year using a quantitative analysis.
After another year of excellent performance, the aircraft company representatives visit your uncle's growing shop. They invite him to join their "Gold Vendor" program and the offer includes two new contracts for a new kind of conduit they will use in a new jumbo jet. They inform him that the "Gold Vendor" program will require him to document a centralized system for managing all data that originates in his company. He does not have to share the data with them, but must prove that he collects, stores and uses it. Of the three types of systems we have studied, which would you recommend if he wants to become a "Gold Vendor"?
ERP Your uncle's needs have expanded such that he now needs enterprise-level data to support his new contracts and fulfill the "Gold Vendor" program.
In a master production schedule, _______________serve as boundaries between periods in the planning horizon.
time fences Time fences act as boundaries between periods in the planning horizon and represent the limits for planning.
Dependent demand refers to demand for a product that is generated by a firm's production processes.
true Dependent demand is usually demand for an item that is generated by a company's production process.
For an automotive manufacturer, an aggregated plan would state the firm's planned monthly output by product group.
true An aggregated plan is a statement of planned output by product groups on a monthly basis.
According to the Maine Woods Company bill of materials figure above, if the master schedule required 20 tricycles, then MRP would indicate 40 rear axle supports are needed.
true Each tricycle contains one seat subassembly. Each seat subassembly contains 2 rear axle supports. 20 tricycles x 1 seat assembly x 2 rear axle supports = 40 rear axle supports.
Demand from customers is a type of independent demand, while demand from a firm's production processes is a type of dependent demand.
true Independent demand is demand that is not controlled directly by the company, such as demand from customers. Dependent demand is usually demand for an item that is generated by a company's production process.
Regression analysis can be used to predict both cross-sectional data and time-series data.
true Regression analysis can be used to project time-series and cross-sectional data.
For operations managers who are in charge of continuous flow processes, the primary scheduling dilemma involves knowing the best time to switch from making one product to making another product.
true The scheduling problem in a continuous flow process requires determining when to change from making one product to making another. The relevant criterion is usually minimizing cost, although minimizing the time the facility is idle during changeover could also be important.
Moving from an MRP system to MRP II is likely to facilitate a better integration between manufacturing and human resources.
true While there are no guarantees, system integration and data sharing often lead to better integration of business functions.
Moving from an MRP system to MRP II is likely to facilitate a better integration of a company's manufacturing department and its finance department.
true While there are no guarantees, system integration and data sharing often lead to better integration of business functions.
The BOM is exploded each time a company runs (MRP) material requirements planning
true in order to run MRP, a company must explode the bill of materials, that is, run MRP for all of the components and subassemblies which are part of the product shown in the master schedule.
Different operational processes require different scheduling techniques. However, managers use the same two key questions to determine which to deploy. Fill in the blank to complete each question. __________should a given job, order, or product be processed? How many ___________ should be processed at one time?
when and units
Inputs to MRP
1. Master Schedule File 2. Bill of Materials File 3. Inventory File
According to the article, what percentage of iPhone 6 and iPhone 6 Plus models were unavailable for sale two months after the launch and what is the mean absolute deviation (MAD) if the forecast for the 2 months was 1,500,000 and 1,670,000 and the actual sales were 895,000 and 705,000?
42%, 785,000 Two months after the product launch, 42% of the models were still unavailable in stores. MAD =[ (1,500,000-895,000) + 1,670,000 - 705,000)]/2 = 785,000
An apparel company has an inventory of 2,500 units of style X and a demand or usage rate of 500 units per week. What is the run-out time?
5 weeks 2,500 units/500 units per week = 5 weeks
What is the typical length of time considered in long-range operations planning?
5 years
Which formula can be used to calculate a run-out time?
= current inventory/usage rate
A ________, which is based on the aggregate plan, is designed to specify exactly what will be manufactured and when it will be manufactured.
?
By subtracting a forecast for one time period from the actual value for the same time period, a researcher is attempting to measure the___________
?
The chase demand scheduling strategy is implemented by ________.
?
The first stage of the planning process requires developing a(n) __________
?
Which planning approach involves evaluating past experiences to gain insights about the future?
?
Which of the following provides details about a product's components and structure?
A bill of materials lists all the components of a product and the quantities needed to make the product. It also shows the relationships among those components, which indicates product structure or how the items fit together.
What is run-out time?
A calculation of how long it will take for the company to run out of a product at current usage rates It is a calculation of how long it will take for a company to run out of a product at a current usage rate.
Which statement relates best to using a chase strategy when scheduling services?
A chase strategy works by adjusting production rates to match demand by varying the workforce and using overtime. Demand is chased by adjusting production rates to match demand. Varying the workforce and/or using overtime are two tactics that can be used to support this scheduling approach.
What characteristics are common to scheduling production for continuous processes and assembly lines?
A limited number of products, few possible routings, and small work-in-process inventories
Which type of company might utilize a peak demand approach when scheduling production?
A transportation company A transportation company provides a service that can only be provided at the time of demand. They might use a peak demand approach when scheduling.
Which of the following involves combining individual end-items into groups for planning purposes?
Aggregate planning Aggregate planning is the combining of individual end items into groups or families of parts for planning purposes.
________ involves combining individual end items into groups or families of parts for planning purposes.
Aggregate planning Aggregate planning is the combining of individual end items into groups or families of parts for planning purposes.
Many constraints affect the forecast that companies make for the upcoming season. Constraints are evaluated during which of the five stages of forecast development.
Apply the model Constraints are evaluated during the model application stage.
Which statement represents a dilemma when scheduling for continuous processes?
Determining when to change from making one product to making another. The scheduling problem in a continuous flow process requires determining when to change from making one product to making another.
With the assembly-line process, which of the following reduces waste and improves balance?
Assigning equal amounts of work to each workstation It is critical to assign the same amount of work to each workstation. If the line is unbalanced, then one worker will be rushed and unable to complete the work while the others will have idle time, thereby generating waste.
Historically, what type of manufacturing process has been used in the pharmaceutical industry?
Batch The pharmaceutical industry has relied on batch processing through the years.
Which production process would probably be used in the production of multiple ice cream flavors?
Batch process
If the manager asks each insurance agent to estimate their sales for the month and one salesperson predicts 200% increase in sales over the last month, which qualitative method should the manager use?
Buildup Under the buildup method, employees estimate their sales, and if an employee's estimate is not in line, it can be adjusted.
Qualitative methods
Buildup method Survey method Test markets Panel of experts (Delphi technique)
Which statement below represents an advantage of using the peak demand method of scheduling?
Capacity is available to accommodate customers when demand is high. This represents one of the advantages of using the peak demand approach.
Which production process would probably be used in the production of bulk paper?
Continuous process The process of making paper involves shifting tasks from one workstation to another as trouble spots appear. This is a characteristic associated with a continuous production process.
Maine Woods Company has run MRP to determine how purchase orders and shop orders need to be changed to accommodate shipping the order to its customer a week early. This change means that several departments will need to begin work immediately on subassemblies for this order. What is the next action Operations needs to take?
Deliver a daily dispatch list to all departments based on the new priorities.
__________refers to demand that is generated by a firm's production processes.
Dependent demand is usually demand for an item that is generated by a company's production process.
In the forecasting process, what is the first step a manager must take?
Determining forecasting objectives.
What challenge is associated with scheduling a batch process?
Determining the number of units to produce in one batch and the sequence of batches
In the master production schedule, which of the following is not part of the customer orders booked row?
Estimated returns Estimated returns are not actual numbers and would not be included in the customer orders booked row.
For an operations manager to improve the accuracy of a forecast, the manager must ________.
Evaluation is the ongoing exercise of comparing the forecast with the actual results. This control process is necessary to attain accurate forecasts.
A fast-food restaurant that schedules more workers on historically busy days of the week and fewer workers on typically slow days is using the peak demand scheduling approach.
False Chase demand scheduling, not peak demand, involves adjusting production rates to match demand by varying the workforce or using overtime.
An appliance manufacturer, Freddie's Fridges, has a time fence of 10 weeks. The Marketing Manager has just told Freddie that he expects a 20% increase in demand in 12 weeks. This increase should be captured in the current master schedule.
False The time fence is 10 weeks. Events outside the time fence are not captured in the master schedule.
The peak demand approach and chase strategy are the only scheduling methods that can be used to deal with the uneven demand of services.
False Other methods such as scheduling appointments or reservations for service, increasing consumer self-service, creating adjustable capacity, sharing capacity, and cross-training employees can also be used to cope with uneven demand.
In a master production schedule, time buckets serve as boundaries between periods in the planning horizon. As a result, items that fall outside of the time bucket are not included in the plan.
False Time fences, not time buckets, act as boundaries between periods in the planning horizon and represent the limits for planning. Items falling outside the time fence are not included in the plan.
________ is an attempt to predict the future by studying past experiences for the purpose of gaining insights.
Forecasting Forecasting is an attempt to predict the future. Forecasts are usually the result of examining past experiences to gain insights into the future for the purpose of making plans.
Mean squared error (MSE) is calculated by subtracting a forecast for one time period from the actual value for the same time period
Forecasting error can be calculated by subtracting the forecast for one time period from the actual value for the same time period. However, mean squared error (MSE) is the average of all squared errors.
Which of the following is a key question for successful scheduling in a batch process?
How many units should be produced at one time? It is critical for a manufacturer to know how many units of each batch are needed for optimal scheduling.
Which of the following best explains why a master schedule will typically cover a shorter time frame than an aggregate plan?
Information about customer demand for the specific mix of products will be more accurate in the shorter term. The master schedule determines the exact product mix that will be produced by a company. Most companies use a shorter planning period for the master schedule because the knowledge of what product mix is demanded by the customer is more accurate in the near future, and less accurate further out in time.
Which statement relates best to the scheduling of services when a peak demand approach is utilized?
It allows for demand to be met at all times under normal conditions. When the peak demand approach is utilized, sufficient capacity will be available at any time to meet the peak expected demand.
Which statement represents an advantage of using the chase strategy in scheduling services?
It enables an organization to meet anticipated demand. A chase strategy enables an organization to meet anticipated demand.
What is one disadvantage of using a chase demand strategy?
It requires a flexible workforce.
Which statement represents a disadvantage of using the chase strategy method of scheduling services?
It requires an extremely flexible workforce. Varying the workforce and/or utilizing over time are two tactics used and both require a flexible workforce.
The Merck executive mentioned several advantages of the continuous manufacturing process. Which of the following IS NOT an advantage of continuous manufacturing? Hint, displayed below
Lower costs Continuous manufacturing may or may not cost less than batch manufacturing.
Your uncle runs a one-person job shop. He has just been awarded a contract by an aircraft manufacturer to build a very specialized seal for its new plane. The vendor does not demand access to any data from your uncle, just the finished product. He does not currently use a resource planning tool. Because of the volume of the contract, he asks you to recommend a system. Of the three we have studied, which would you recommend?
MRP Your uncle only needs to track the production of one simple item. MRP will provide him with planning power without disrupting his overall system.
After one year, your uncle has produced seals of high enough quality to qualify for the aircraft manufacturer's "zero defects vendor" program. In order to participate, he must supply the company with detailed data about his suppliers, ordering processes, shop layout, inventory and shipping procedures. He recognizes the need for a system to track and integrate all of his data. Of the three we have studied, which would you recommend?
MRP II MRP II gives your uncle the power to integrate systems such as finance, HR and shipping, which matches the customer's data requirements.
Which of the following differentiates MRP II from MRP?
MRP is primarily concerned with materials, while MRP II encompasses the entire manufacturing process. MRP II expanded on MRP by enabling companies to add modules that integrated data beyond the materials planning stage.
Maine Woods treats the first two weeks of the master schedule for tricycles as a frozen period. Which of the following occurs during a frozen period?
Management approval is needed for production changes. During the frozen period, production changes cannot be made without management approval.
What statement relates to continuous processes, assembly lines, and batch processes?
Many batch operations use continuous flow or assembly line processing.
Which of the following is based on the aggregate plan and is designed to specify exactly what will be produced and when it will be produced?
Master production schedule The master schedule—or master production schedule (MPS)—is based on the "aggregated" plan. The master production schedule "disaggregates the aggregate plan" because it is a specific statement of exactly what will be produced and a specific date for production.
Which of the following are input data needed for MRP?
Master production schedule Inventory records Bill of materials
Which of the following is used to manage inventory for dependent demand items?
Material requirements planning To manage inventory for dependent demand items, companies often use material requirements planning (MRP).
MRP II is considered an improvement on MRP because:
More data, if managed properly, tends to drive better decisions. MRP II offers the ability to integrate and manage more data. If handled properly, better data results in better decisions.
Continuous flow processes are used in which of the following industries?
Oil refinery Oil refinery operations require a continuous flow to correctly produce output
Which of the following best explains why assembly line balancing is not an exact science?
People assigned to the tasks have different abilities. All workers operate at different accuracy levels and speeds.
A company produces three products X, Y, and Z. Product X has a run-out time of two weeks, Product Y has a time of four weeks, and Product Z three weeks, respectively. Which product should be produced next?
Product X The inventory of Product X will run out in two weeks and sooner than both Product Y and Z. It should be produced next.
When computing available to promise amounts in the MPS table, one row is never used. What data are not used in the available to promise calculation on an MPS?
Projected on-hand inventory The projected on-hand inventory is not included in the available to promise calculation because that amount could be used in preceding weeks if more orders are booked.
Scheduling in manufacturing is complex because different production processes will also incur different problems, and certain criteria will, therefore, be more important. Which criteria or factors should be evaluated regardless of process types?
Providing goods when the customer wants them and minimizing flow time, WIP, machine idle time, employee idle time, and costs. Six factors should be considered.
Which of the following is an MRP output that authorizes a vendor to supply parts?
Purchase order A purchase order is an authorization for a vendor to supply parts or materials.
Which of the following best describes the process of revising the master schedule to reflect the current planning horizon?
Rolling forward through time The master schedule must be updated as time periods pass.
Maine Woods Company prides itself on carrying very little inventory of finished goods, and making products when they are due. One of Maine Woods Company's biggest customers contacted the Sales department to ask for its next order, which is due in three weeks, to be shipped a week early. This customer is rolling out a large promotional campaign for wooden toys to boost sales of children's toys. Once the Operations department agreed to try to finish production early, the master schedule was updated to move the customer order to an earlier time bucket. What is the next action Operations needs to take?
Run MRP again to determine changes to shop orders and purchase orders. Once the master schedule is updated, the next step is to run MRP again, in order to determine what shop orders and purchase orders need to be managed to support this change.
Which of the following is not input data needed for MRP?
Shop order A shop order is type of planned order release that authorizes production to make certain component parts or subassemblies.
When forecasting, Coffman Enterprises uses only the most recent time period to project the next time period. With this method, each time period has the same weight. Which forecasting method is the firm using?
Simple moving average The simple moving average approach to forecasting involves using only the most recent time period to project the next time period. In a simple moving average, each time period has the same weight.
Time series methods
Simple moving average Weighted moving average Exponential smoothing Regression and correlation analysis (simple and multiple regression)
________ elicit information from specific groups, such as consumers, and are usually conducted via a questionnaire or a phone interview.
Surveys A survey is a systematic effort to elicit information from specific groups and is usually conducted via a written questionnaire, a phone interview, or the Internet. The target of the survey could be consumers, purchasing agents, economists, or others.
If they used qualitative approaches, how did analysts find out about what happened to the competition from Android companies?
Surveys from key industry personnel showed that iPhone demand was so high it crushed the competition.
Executives of Yummy Yogurt want to forecast sales behavior in San Antonio, a city that executives believe would be profitable for the company. For one month, Yummy Yogurt sells its products from a temporary kiosk in a local mall to determine product demand. Which qualitative forecasting approach is Yummy Yogurt using?
Test market In a test market, the forecaster arranges for the placement of a new or redesigned product in a city believed to be representative of the organization's overall market.
Finished good level
The Red Cup is a high-volume, standardized product. The only variation is the size of the cup (for example, 12 ounce or 16 ounce). With only a few versions of its finished good, Red Cup would use the finished good in the master schedule. Java Monster Loca Moca is a standardized product produced in high volumes. The master schedule will typically be at the finished good level in that case.
Recall from the previous module that Apple is likely to use the iPod product line as the basis of an aggregate plan. When Apple disaggregates its iPod aggregate plan, which of the following will be an output from the disaggregation?
The master production schedule for 5th generation iPod Touch in Space Gray and Silver Disaggregation of an aggregate plan (which is at the product level) results in a master production schedule for each individual end item or product model.
What relevant criteria contribute to challenges in scheduling continuous production processes?
The minimization of costs and idle time The relevant criterion is usually minimizing cost, although minimizing the time the facility is idle often more important.
Which characteristic is considered important for scheduling to balance an assembly line?
The ratio of work to workstations Along with assigning the same amount of work to each station, it is important to have the right number of workstations to determine the cycle time.
The ________ method uses only the most recent time period to project the next time period, and each time period has the same weight.
The simple moving average approach to forecasting involves using only the most recent time period to project the next time period. In a simple moving average, each time period has the same weight.
An appliance manufacturer, Freddie's Fridges, makes the Model X Compact Refrigerator, which is most often installed in motor homes and RVs. One of Freddie's suppliers has just notified the company that the lead time will increase from three weeks to five weeks. This supplier was already the longest lead time in the production process. What will be the effect on the time fence?
The time fence will increase by two weeks. The time fence typically corresponds to the cumulative lead time to make a product. If the lead time increased by two weeks on the longest lead time part, the time fence will also increase.
Which statement below represents a disadvantage of using the peak demand method of scheduling services?
The underutilization of capacity a large percentage of time This represents one of the possible disadvantages of using the peak demand method. Striking a balance between capacity and demand is key.
Component/Subassembly level (built as a subassemblies)
These laptops are built-to-order for retailers such as Wal-Mart and Amazon, and for online shoppers. Because there are so many possible combinations of subassemblies (hard drives, mother boards, DVD players, speakers, graphic cards, etc) to make the finished good, Dell would use subassemblies in the master schedule. Blue Nile allows online shoppers to custom-build an engagement ring. A custom-built product will have multiple potential finished goods versions. In that case, master schedules are often built around components (such as gold or diamonds) or subassemblies (such as sized rings).
Which component of a master production schedule acts as a boundary between periods in the planning horizon?
Time fence Time fences act as boundaries between periods in the planning horizon and represent the limits for planning.
A manufacturer that uses the assembly line process strives to attain ________, which requires assigning the same amount of work to each workstation and having the appropriate number and type of workstations.
balance Successful assembly line balancing depends on having the optimal number of appropriate workstations so that idle time is zero or close to zero. The right number of workstations is also important in attaining balance because it helps determine the cycle time.
Why is the Maine Woods Company's master schedule twelve weeks long?
Twelve weeks is at least as long as the longest cumulative lead time for one of the finished goods in the table. The master schedule is at least as long as the cumulative lead time for the finished good in the schedule.
Buildup method
Under the buildup method, employees estimate their sales, and if an employee's estimate is not in line, it can be adjusted.
Sequencing is another characteristic associated with balancing an assembly line. It involves determining the order for making different products. When is sequencing most important in scheduling to balance an assembly line?
When the product differences vary significantly Sequencing is most important when product differences are significant.
When scheduling a batch process, run-out time answers which of the following questions?
Which product should be produced next?
master schedule
a detailed extension of the medium-range operations plan, or aggregate plan.
Which production process would probably be used in the production of automobiles?
assembly line
On an assembly line, assigning the same amount of work to each workstation and having the appropriate number and type of workstations is necessary to achieve ________.
balance Successful assembly line balancing depends on having the optimal number of appropriate workstations so that idle time is zero or close to zero. The right number of workstations is also important in attaining balance because it helps to determine the cycle time.
The qualitative forecasting method of starting at the bottom of an organization and making an overall estimate by adding together estimates from each element is known as the ________.
buildup method The buildup method requires starting at the bottom of an organization and making an overall estimate by adding together estimates from each element. For example, a brokerage firm could use this approach to forecast revenues from stock market transactions.
The main scheduling problem that must be addressed when a manufacturer uses a continuous flow process relates to ________.
changing the type of product being manufactured The scheduling problem in a continuous flow process requires determining when to change from making one product to making another. The relevant criterion is usually minimizing cost, although minimizing the time the facility is idle during changeover could also be important.
King Burgers schedules more workers on busy weekends and fewer workers on slower week days. King Burgers bases its schedule on ________.
chase demand Chase demand scheduling involves adjusting production rates to match demand by varying the workforce or using overtime. Fast food is one industry that is able to schedule its employees in this way.
Which of the following is a qualitative technique that can assist companies in their forecasting? _____________The control process for accurate forecasting involves________________________
consumer surveys constant evaluation
In a manufacturing environment that uses a(n) ________, the main scheduling dilemma stems from knowing the best time to switch from making one product to making another product.
continuous flow process The scheduling problem in a continuous flow process requires determining when to change from making one product to making another.
There are many reasons for a company to develop forecasts. Through forecasting, companies will gain some ____________ in the future
control
Which of the following tasks would be done in the "Determining the Objectives" stage?
decide when the forecast is due A key component of forecasting is to establish dates when the forecast is due.
Manufacturing companies must recognize which items are worked on in their process before other items. Raw material availability for these stages of production may vary. Inventory management is more critical for the _________
dependent demand items
_________________is the first stage of the forecasting process.
determining objectives
What was the reason given for Apple's stock price tumble and what type of demand was the issue if there was a raw material availability problem?
disappointing iPhone 6 sales, dependent Sales of iPhone 6 were 1.5 million units shy of industry forecasts for the second quarter of 2015 due to a dependent demand issue.
Production lead time
encompasses how long it takes to get everything in the BOM and then build the final product
When operations managers use forecasting models, they should consider the forecast to be factual and complete.
false A forecast should not be taken as fact. A forecast is one scenario that managers must ground in reality. A forecast is not a complete answer, but rather one more piece of information.
Demand from customers is considered dependent demand, while demand generated by a firm's production process is considered independent demand.
false Independent demand is demand that is not controlled directly by the company, such as demand from customers. Dependent demand is usually demand for an item that is generated by a company's production process.
If a service firm develops a schedule according to chase demand, the firm will have enough capacity available at all times to meet maximum expected demand.
false Peak demand, not chase demand, means that sufficient capacity will be available at any time to meet the peak expected demand.
The typical planning horizon for master production schedules is one year because that is the same time frame of effective aggregate plans.
false While the aggregate plan is often developed for one year into the future, the master schedule does not need to extend that far, especially because it becomes more difficult to manage as time increases. As a general rule, companies use six months or less for their master schedule.
MRP II is an extension of MRP that become necessary when computer hardware speed exceeded MRP's ability to keep up.
false MRP II expanded a manufacturers' ability to add data from nonmanufacturing processes.
The bill of materials identifies the quantity of materials needed to support the master schedule.
false the material requirements plan (MRP) identifies how much of each material is needed to support the master schedule. The bill of materials identifies how much of each material is needed for a single item of the finished good.
To use an MRP II system, an organization needs all of the data required by MRP, plus data from sources such as ____________________________________________
finance, human resources, shipping
The build quantities in the master schedule become a data input to the material requirements plan. The material requirements plan determines how many components or subassemblies are needed to make the build quantities . For companies which build custom products, the master schedule may be at the subassembly level. In that case, the material requirements plan will determine _____.
how many components are needed to make the build quantities. If the master schedule is at the subassembly level, then the material requirements plan will determine how many components are needed to build the subassemblies.
MRP II was an improved version of MRP that provided manufacturers with the ability to ________ .
integrate data from non-manufacturing departments
Medium-range planning might include
inventory levels to maintain
The time bucket
is shown in the master production schedule. The time bucket is the length of time within the MPS used to show periodic production requirements.
The mean squared error (MSE)
is the average of all the squared errors. The differences are squared and added together, and then that total is divided by the number of observations.
Answer the following questions as you consider how forecasting can help analyze the problems an organization experiences today. As a forecaster for a television studio's new season of programming, which constraint would most likely affect a show? _________________
lack of corporate sponsorship
A company has determined that the cumulative lead time to produce one of its products is five months. "Five months" will be the minimum _____________
master schedule planning horizon The master schedule's planning horizon is at least as long as the cumulative lead time for the product. If the lead time for this product is five months, then the master schedule will be at least five months, to ensure the company has the right mix of parts and other resources needed to build this product to meet customer demand.
(MRP)
material requirements planning
The ________________ error formula is a way to estimate the forecasting error more accurately.
mean squared the mean squared error formula averages the squared errors over time.
The differences between the actual value of a variable and the forecasted value are squared, added together, and divided by the number of observations. The result is called the ________.
mean squared error
When planning takes place for a time period of 6 to 18 months, it is best described as ________ operations planning.
medium-range Medium-range operations planning develops ways to utilize resources to meet customer demand. The time horizon for medium-range planning is generally from 6 to 18 months in the future.
A ___________ helps analyze operating problems by identifying key variables and relationships to improve understanding.
model A model is an important way to think about problems. It is an abstraction from a real problem of the key variables and relationships in order to simplify the problem and improve understanding.
MRP II differs from MRP primarily in that it enables ______________________.
more data from more sources MRP II enabled manufacturers to incorporate data from nonmanufacturing sources such as human resources, finance, and engineering.
When companies switched from MRP to MRP II, it enabled them to integrate data from
non manufacturing departments MRP II enabled companies to add modules to their MRP systems that exchanged data with internal departments and processe
Data that are needed for scheduling begin with _________________.
orders from the customer
When companies switched from MRP to MRP II, the switch enabled them to integrate data from
other operating departments
___________ is a services scheduling method often used by utility companies that involves having enough capacity available at all times to meet the maximum expected demand.
peak demand Peak demand means that sufficient capacity will be available at any time to meet the peak expected demand. The advantage of this approach is that it allows for demand to be met at all times under normal conditions.
A service firm that has sufficient capacity available at all time to meet maximum expected demand is using the _____________ demand approach to scheduling.
peak time
Forecasts are an essential part of ___________In order to deal with forecasting error, companies can _____________
planning, contingencies plans
Forecasting is best defined as an effort to ________.
predict and plan for the future Forecasting is an attempt to predict the future. Forecasts are usually the result of examining past experiences to gain insights into the future for the purpose of making plans.
Dependent demand is based on a company's ___________________whereas independent demand involves ______________
production process, finished goods
the _______________phase involves human judgement.
revising and evaluating
With batch processing, when operations managers know the ____________, they can determine which product should be produced next.
run out time
________, which is based on current usage rates, helps determine which product to manufacture next.
run out time Run-out time is a calculation of how long it will take for the company to run out of each product at current usage rates and indicates which product should be produced next.
available-to-promise
shows how much of what a company produces in any time period has not yet been sold before the next scheduled build.
Which of the following models might prove disastrous for Apple because it only uses the most recent period to predict future sales?
simple moving average The simple moving average formula uses the last period of data to predict the future.
When Apple develops their aggregate plan for new products such as the iPhone 6, a more detailed aspect of an aggregate plan might include _______________.
size, energy efficiency, and layout
Many research firms exist to measure viewer preference for television shows. If you were called and asked questions about a current TV show, which step in the forecast development model do you think is being addressed? Hint, displayed below _________________
test the model
The planning horizon
the length of time displayed in the plan or schedule. The MPS has a shorter planning horizon than the aggregate plan
