Ch 11- Resource Planning

Question 1

resource planning

Answer 1

a process that takes sales and operations plans, processes info in the way of time standards, routings, and other info on how services or products are produced, and then plans the input requirements

Question 2

Material requirements planning (MRP)

Answer 2

a computerized information system developed specifically to help manufacturers manage dependent demand inventory and schedule replenishment orders

Question 3

MRP explosion

Answer 3

process that converts the requirements of various final products into a material requirements plan that specifics the replenishment schedules of all the subassemblies, components, and raw materials needed to produce final products

Question 4

dependent demand

Answer 4

the demand for an item that occurs because the quantity required varies with the production plans for other items held in the firm’s inventory

Question 5

parent

Answer 5

any product that is manufactured from one or more components

Question 6

component

Answer 6

any time that goes through one or more operations to be transformed into or become part of one or more parents

Question 7

master production schedule (MPS)

Answer 7

details how many end items will e produced within specified periods of time

Question 8

bill of materials

Answer 8

record of all the components of an item, the parent-component relationships, and the usage quantities derived from engineering and process designs

Question 9

usage quantity

Answer 9

number of units of a component that are needed to make one unit of its immediate parent
ex. 2 back legs and 2 front legs go into 1 chair

Question 10

end item

Answer 10

the final product sold to the customer; a parent but not a component

Question 11

intermediate item

Answer 11

has at least one parent and at least one component

Question 12

subassembly

Answer 12

intermediate item that is ASSEMBLED (as opposed to being transformed by other means) from more than one component
ex. seat subassembly (of a chair)

Question 13

purchased item

Answer 13

has no components in the buyer’s inventory because it comes from a supplier, but has one or more parents

Question 14

part commonality (standardization of parts/modularity)

Answer 14

degree to which a component has more than one immediate parent

• so the same item may appear in several laces in the BOM for a product
• or it may appear in the BOM for several dif products

Question 15

inventory record

Answer 15

shows an item’s lot-size policy, lead time, and various time-phased data.
- purpose is to keep track of inventory levels and component replenishment needs

Question 16

MRP Explosion Inputs

Answer 16

1. Master Production Schedule
2. Bill of Materials
3. Inventory Record

Question 17

gross requirements

Answer 17

total demand derived from all parent production plans

Question 18

Time-phased info contained in the inventory record (5)

Answer 18

1. gross requirements
2. scheduled receipts
3. projected on-hand inventory
4. planned receipts
5. planned order releases

Question 19

scheduled receipts

Answer 19

orders that have been placed but not yet completed

Question 20

projected on-hand inventory

Answer 20

estimate of the amount of inventory available each week after gross requirements have been satisfied

Question 21

planned receipts

Answer 21

orders that are not yet released to the shop or the supplier

Question 22

planned order release

Answer 22

indication of when an order for a specified quantity of an item is to be issued

Question 23

fixed order quantity

Answer 23

rule that maintains the same order quantity each time an order is issued

Question 24

periodic order quantity

Answer 24

a rue that allows a different order quantity for each order issued but issues the order for predetermined time intervals

Question 25

lot-for-lot rule

Answer 25

a rule under which the slot size ordered covers the gross requirements of a single week - ensures that the planned order is just large enough to prevent a shortage in the single week it covers

Question 26

capacity requirements planning (CRP)

Answer 26

technique used for projecting time-phased capacity requirements for work stations - purpose is to match the materials requirements plan with the capacity of key processes

Question 27

manufacturing resource planning (MRP II)

Answer 27

system that ties the basic MRP system to the company's financial system and to other core and supporting processes

Question 28

enterprise resource planning (ERP) systems

Answer 28

large, integrated info systems that support many enterprise processes and data storage needs

Question 29

bill of resources (BOR)

Answer 29

record of a SERVICE FIRM'S parent-component relationships and all of the materials, equipment time, staff, and other resources associated with them, including usage quantities - bill of resources in a service company is analogous to th bill of materials in a manufacturing company