Ops ch 9

Lot-for-lot

-Sets planned orders to exactly match the net requirements -Produces exactly what is needed each week with none carried over into future periods -Minimizes carrying cost -Does not take into account setup costs or capacity limitations.

explosion process

1. the requirements for the end items are retrieved from the master schedule, "gross requirements 2. Current on hand balance and schedule of orders are used to calculate net requirements 3. Net requirements data is used to calculate when orders should be received to meet these requirements 4. The schedule is set by offsetting the planned order receipts by required lead time

Planning bills

Also called "pseudo" or super bills, used to group subassemblies to reduce the number of items planned and scheduled

An item that can be produced and stocked as a subassembly often uses a bill-of-materials for planning.

EOQ= √(2DS/H)

Which of the following is not a lot sizing technique used in MRP systems?

Fixed time costs

Which of the following is/are a part of an MRP record?

Planned, gross, net

The first step in the MRP explosion process is?

Retrieve the gross requirements for end items from the master schedule.

Which of the following is NOT a part of the material requirements planning system?

Supplier delivery schedule

bill-of-materials

The complete product description, listing the materials, parts, and components, and also the sequence in which the product is created.

True or False: The master scheduler typically focuses on end items rather than raw materials.

True

Enterprise Resource Planning (ERP)

a computer system that integrates application programs in accounting, sales, manufacturing, and the other functions in a firm

availability to promise

a feature of the MRP system that identifies the difference between the number of units currently included in the master schedule and the actual customer orders

Where can MRP be used

assemble to order, engineer to order, make-to-stock

Materials Management

covers all tasks of supply chain management

Master Production Schedule (MPS)

deals with end items (finished goods items sold to customers)

time buckets

dividing plans into specific time periods

Level 0 items during the explosion process are typically referred to as ____items, or gross requirements.

end

In which of the following industry types would MRP provide high benefits?

engineer to order, assemble to stock, assemble to order

Production Planning

figuring out how much needs to be produced and the materials needed

What does a MPS need to do?

include all demands from product sales, never lose sight of the aggregate plan, be involved with customer order processing, be involved in all layers of management, objectively manage conflicts between manufacturing, marketing and engineering, identify and communicate all problems

A material requirements planning system interfaces with the master production schedule, bill-of-materials file and

inventory records file

modular bill of materials

list that shows all the parts, but is broken down into sections instead of one big list

The master production schedule typically deals with end items but can be broken down to _____ if the item is large or expensive

major subassemblies

An item that can be produced and stocked as a subassembly often uses a ____ bill-of-materials for planning.

modular

Quality Management

plans and implements procedures for inspection and quality assurance

Sales and Distribution

products and services are sold to customers

aggregate plan

provides the general range of operation, the master scheduler must specify exactly what is to be producedW

Materials Requirements Planning (MRP)

the logic for determining the number of parts, components, and materials needed to produce a product, based on dependent demand

When is the best time for Lot for lot to be used?

when set up cost is significant