Chapter 12

Master Scheduling

a detailed planning process that tracks production output and matches this output to actual customer orders

Projected ending inventory is

a field in the master schedule record that indicates estimated inventory level at the end of each time period

Material requirements planning (MRP)

a planning process that translates the master production schedule into planned orders for the actual parts and components needed to produce the master schedule items

According to the top-down model of manufacturing planning and control systems, production activity control

ensures that in-house manufacturing takes place according to plan; it also helps manufacturing managers identify potential problems and take corrective actions

According to the top-down model of manufacturing planning and control systems, vendor order management

ensures that materials ordered from supply chain partners are received when needed; it also helps purchasing managers identify potential problems and take corrective actions

The term __________ refers to the amount of time the master schedule record or MRP record extends into the future.

planning horizon

Master Production Schedule (MPS)

the amount of product that will be finished and available for sale at the beginning of each week

Planning lead time is

the time from when a component is ordered until it arrives and is ready to use

Distribution requirements planning (DRP) is

a time-phased planning approach similar to MRP that uses planned orders at the point of demand (customer, warehouse, etc.) to determine forecasted demand at the source level (often a plant).

The term __________ refers to a field in the master schedule record that indicates the number of units that are available for sale each week, given those that have already been promised to customers.

available to promise (ATP)

Booked orders, in the context of master scheduling, are

confirmed demand for products

According to the top-down model of manufacturing planning and control systems, master scheduling

determines when specific products will be made, when specific customer orders will be filled, and what products/capacities are still available to meet new demands

According to the top-down model of manufacturing planning and control systems, sales and operations planning

establishes overall production, workforce, and inventory levels

Forecasted demand

in the context of master scheduling, is a company's best estimate of the demand in any period.

Dependent demand inventory

inventory items whose demand levels are tied directly to the production of another item.

Planning and control

is a set of tactical and execution-level business activities that includes master scheduling, material requirements planning, and some form of production activity control and vendor order management

MRP nervousness

is a term used to refer to the observation that any change, even a small one, in the requirements for items at the top of the bill of material can have drastic effects on items further down the bill of material.

Exploding the BOM

is the process of working backward from the master production schedule for a level 0 item to determine the quantity and timing of orders for the various subassemblies and components.

rough-cut capacity planning

uses the master production schedule to monitor key resource requirements