OPSM 4820 E2

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Basically, ______________ evaluates all possible ways of ordering material to meet demand in each week of the requirements schedule, using dynamic programming

Wagner-Whitin (WW) algorithm

One optimizing procedure for determining the minimum-cost ordering plan for a timephased requirements schedule is the ____________.

Wagner-Whitin (WW) algorithm

_________ all the gross requirements for a part to all the planned order releases or other sources of demand that created the requirements.

Pegging relates

Planned replenishment orders for the item at the beginning of each period.

planned order releases

____________ tends to be used when the major uncertainty is the timing rather than the quantity.

Safety lead time

__________ system specifies the exact release and due dates for each requirement, scheduled receipt, and planned order.

A bucketless MRP

___________ uses pegging data to solve material shortage problems.

Bottom-up replanning

_________________ is manifest when the amount of a requirement varies, perhaps randomly, about some mean value.

Demand quantity uncertainty

The resulting total cost expression won't necessarily be valid for requirements planning applications because :

EOQ is based on the assumption of constant uniform demand.

At the heart of the MPC system is a universal representation of the status and plans for any single item (part number), whether raw material, component part, or finished good.

MPC

Facility with time-phased planning and the associated time-phased records is basic to understanding many other aspects of the ________ system.

MPC

CRP takes into account demand for service parts, other demands that may not be accounted for in the __________ .

MPS

A number of quantity-determination (lot-sizing) procedures have been developed for determining order quantities in _____ systems, ranging from ordering as required (lot-forlot), to simple decision rules, and finally to extensive optimizing procedures.

MRP

A true understanding of __________ requires knowledge of certain key differences between a scheduled receipt and a planned order.

MRP

An MRP system serves a central role in material planning and control. It translates the overall plans for production into the detailed individual steps necessary to accomplish those plans. It provides information for developing capacity plans, and it links to the systems that actually get the production accomplished.

MRP

Because _______________ data include timing of both these open and planned orders, the potential for improved accuracy in timing capacity requirements is realized.

MRP

Capacity Requirements Planning utilizes the time-phased material plan information produced by an __________ system.

MRP

Effective use of an _________ system allows development of a forward-looking (planning) approach to managing material flows.

MRP

For companies assembling end items from components produced in batch manufacturing processes, ________ is central to the development of detailed plans for part needs.

MRP

Procedural inadequacies in processing _____________ transactions need to be identified and corrected to ensure material plans are accurate.

MRP

Some firms have mitigated this cost by collecting data as the ______________ explosion process is performed.

MRP

The MRP data make it possible to construct a time-phased requirement record for any part number. The data can also be used as input to the detailed capacity planning models.

MRP

The ____________ system provides a coordinated set of linked product relationships, thereby permitting decentralized decision making on individual part numbers.

MRP

_________________ is defined as significant changes in MRP plans, which occur even with only minor changes in higher-level MRP records or the master production schedule.

MRP system nervousness

MRP enhancements should be done after a basic MPC system is in place.

MRP, MPC

________________ chosen must match the level of detail and actual company circumstances to permit making effective management decisions.

The particular capacity planning technique(s)

There are an increasing number of software systems provided by vendors, usually called _____________ techniques to do finite loading.

advanced production scheduling (APS)

____________ systems use horizontal loading and either front or back scheduling depending on whether the product is desired as soon as possible (front scheduling).

advanced production scheduling (APS)

________________ can reduce MRP system nervousness.

all -control the introduction of parameter changes, -reduce the incidence of unplanned demands -follow the MRP plan selective use of lot-sizing procedures

Because MRP systems normally replan on a daily or weekly basis, timing affects the assumptions commonly made in using MRP lot-sizing procedures. These assumptions are as follows.

all -ordering decisions occur at regular time intervals. -all requirements for future periods must be met and can't be back ordered. -all requirements for each period must be available at the beginning of the period.

Since component requirements are aggregated by time period for planning purposes, in using MRP lot-sizing procedures, it is assumed that

all requirements for each period must be available at the beginning of the period.

_______________ involves an availability check for the necessary component or components.

allocation

Two basic sources of uncertainty affect an MRP system: _________________.

demand and supply uncertainty

____________ represents the cushion between input and output. ___________ decouples input from output, allowing work center operations to be less affected by variations in requirements.

backlog

To specify a quantity of safety stock in much the same manner as with statistical inventory control techniques is:

buffer uncertainty in an MRP system

Insufficient ______________ quickly leads to deteriorating delivery performance, escalating work-in-process inventories, and frustrated manufacturing personnel.

capacity

_____________ is a rough-cut method providing more-direct linkage between individual end products in the MPS and the capacity required for individual work centers.

capacity bill procedure

The better resource and production planning process, the less difficult the _____________ process.

capacity planning

The better the shop-floor system, the less short-term _____________ is required.

capacity planning

_____________ can be simplified in a JIT environment.

capacity planning

_________________, a relatively simple approach to roughcut capacity planning, is typically done on a manual basis.

capacity planning using overall factors (CPOF)

___________ must be developed concurrently with material plans if the material plans are to be realized.

capacity plans

For firms using material requirements planning to prepare detailed material plans, a much more detailed capacity plan is possible with ___________________ technique.

capacity requirements planning (CRP)

____________ in MRP systems are used "to separate the vital few from the trivial many."

expectation codes

_________ is the process of translating product requirements into component part requirements, taking existing inventories and scheduled receipts into account.

explosion

_______________ in some ways is better seen as a shop scheduling process, and therefore part of production activity control (PAC), but it is also a capacity planning procedure.

finite loading

One output of _____________ is a simulation of how each machine center is to operate on a minute-by-minute basis for whatever time horizon is planned.

finite scheduling

The anticipated future usage of or demand for the item during each period.

gross requirements

A different approach used in finite scheduling is _____________ .

horizontal loading

___________ provides a method for monitoring the actual consumption of capacity during the execution of detailed material planning.

input/output analysis

One key capacity management issue concerns the match between planning and execution. This implies monitoring on a timely basis to see whether a workable capacity plan has been created and whether some form of corrective action is needed. The best-known approach to this issue is ___________ , where the work flowing through a work center is monitored.

input/output control

The remaining planned order releases for the top handle assembly exactly meet the net requirements in the remaining periods, offset for the lead time. The ordering policy used for these items is called _____________ .

lot-for-lot sizing

___________ is the process of releasing orders to the shop or to vendors (purchase orders). This process is prompted by MRP when a planned order release is in the current time period,

order launching

Fixed EOQ lot sizes result in a mismatch between __________ and requirements values.

order quantities

Since the system is operated on a periodic basis, in using MRP lot-sizing procedures, it is assumed that

ordering decisions occur at regular time intervals

Despite the fact that ______________ utilizes all available information, it won't always yield the minimum-cost ordering plan. Although this procedure can produce low-cost plans, it may miss the minimum cost, since it doesn't evaluate all possibilities for ordering material to satisfy demand in each week of the requirements schedule.

part period balancing (PPB)

______________ procedure uses all the information provided by the requirements schedule. In determining an order's lot size, this procedure tries to equate the total costs of placing orders and carrying inventory.

part period balancing (PPB)

Although the POQ procedure improves inventory cost performance by allowing lot sizes to vary, like the EOQ procedure it too ignores much of the information in the requirements schedule.

periodic order quantity (POQ)

After availability checking and allocation, _____________ are typically created and sent to the stockroom. The ______________ calls for a specified amount of some part number to be removed from some inventory location, on some shop order, to be delivered to a particular department or location.

picking tickets

The persons most directly involved with the MRP system outputs are __________ .

planners

______________ is created by having additional time, labor, machine capacity, and so on over what's specifically needed to produce the planned amount of product.

production slack

The current and projected inventory status for the item at the end of each period.

projected available balance

Two types of uncertainty affect an MRP system, which are: _______________ .

quantity uncertainty and timing uncertainty

A logical response to the pressure for more frequent processing is to reduce the required amount of calculation by processing only the records affected by the changes. An alternative to ____________ is the net change approach. With net change, only those items that are affected by the new or changed information are reprocessed.

regeneration

Processing all of the records in one computer run is called ____________ . This signifies that all part number records are completely reconstructed each time the records are processed.

regeneration

The process of preparing a CRP projection is similar to that used for ___________.

resource planning

_____________ is directly linked to the sales and operations planning module.

resource planning

In developing ______________, production lead time data are taken into account to provide time-phased projections of the capacity requirements for individual production facilities.

resource profiles

____________ approaches can be useful in JIT operations to estimate the impact of changes in requirements called for by revisions to the master production schedule.

rough-cut

A particular master schedule's _____________ requirements can be estimated by several techniques: capacity planning using overall factors (CPOF), capacity bills, or resource profiles.

rough-cut capacity

The master production schedule is the primary information source for _____________.

rough-cut capacity planning

There are three different methods for _____________: CPOF, capacity bills, and resource profiles.

rough-cut capacity planning

Plans order releases earlier than indicated by the requirements plan and schedules their receipt earlier than the required due date is:

safety lead time

_____________ should be used when uncertainty is of the timing category.

safety lead times

__________ tends to be used in MRP systems where uncertainty about quantities is the problem (e.g., where some small amount of scrap, spare part demand, or other unplanned usage is a frequent occurrence).

safety stock

___________ is a buffer of stock above and beyond that needed to satisfy the gross requirements.

safety stock

_____________ should be used when the uncertainty is of the quantity category.

safety stock

Simulation experiments reveal a preference for using _________________, depending on the category of uncertainty to be buffered.

safety stock and safety lead time

__________ can produce an increase in inventory levels to provide a buffer against uncertainty.

safety stock and safety lead time

___________________ can illustrate the fundamental problem with all MRP buffering techniques.

safety stock and safety lead time

Existing replenishment orders for the item due in at the beginning of each period.

scheduled receipts

Detailed schedules consist of two parts: _______________________ .

scheduled receipts (open orders) and planned orders

In addition to the horizontal-vertical distinction, there is also the issue of front _________ versus back ____________ .

scheduling

A concept closely tied to buffering is use of _______________ in calculating the lot size to start into production to reach some desired lot size going into the stockroom.

scrap allowances

____________ demand must be included in the MRP record if the material requirements are not to be understated. The ____________ demand is typically based on a forecast and is added directly into the gross requirements for the part.

service part

Because of its ______, people often use the economic order quantity (EOQ) formula as a decision rule for placing orders in a requirements planning system.

simplicity

One way to reduce the high inventory carrying cost associated with fixed lot sizes is to use the EOQ formula to compute an economic _____________ .

time between orders (TBO)

The approach we have just described, where a work center is scheduled, job by job, is called ____________.

vertical loading

Effective use of exception messages allows focusing attention on the "___________" not on the "_________".

vital few, trivial many


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