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Supply Chain > Exam 3 > Flashcards

Exam 3 Flashcards

1
Q

What is Material Requirement Planning?

A

a logical, easily understood approach to the problem of managing the parts, components and materials needed to produce end items

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2
Q

what are the two question in MRP

A

1.) how much of each part is needed
2.) when to order the part

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3
Q

What drives the MRP system

A

Dependent Demand

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4
Q

What are the data sources needed for an MRP program

A

1.) Master production schedule
2.) Bill of material file
3.) Inventory records file

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5
Q

What is Master Production Schedule

A

Aggregate plan shows overall quantities to produce

shows quantities of each type, with information about the production time frame

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6
Q

What is the Bill of Material

A

“need 3 of product B to make 1 of product A”

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7
Q

What is the Inventory Status Record

A

tells you information describing the item and information about part availability

“thing we did in class with figuring out gross requirement”

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8
Q

What is the gross requirment (MRP)

A

total required for an item

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9
Q

What is the projected available balance (MRP)

A

inventory of an item expected at the end of a period

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10
Q

what is scheduled receipts (MRP)

A

orders that have already been released and scheduled to arrive in this time period

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11
Q

what are net requirements (MRP)

A

amount needed when the previous period’s projected available balance plus scheduled receipts is not sufficient to cover the gross requirements

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12
Q

what are planned order receipts (MRP)

A

quantity that is planned to be released and will arrive in this time period

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13
Q

What to do if Safety Stock is needed

A

reduce the projected available balance for the first period ONLY by the safety stock amount

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14
Q

Term: Available to Promise

A
  • Identifies the difference between the number of units currently
    included in the master schedule and the actual customer orders
  • Stock currently held in inventory may be assigned to a customer order
    (allocated) or may be available for future customer orders (available to
    promise)
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15
Q

What is the MRP Process

A
  1. start with level 0 items (independent demand)
  2. calculate the net requirement and if it is below 1 plan order receipts
  3. calculate the projected available balance and move it to next week
  4. continue to level 1 item (dependent demand)
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16
Q

what should you do if Net requirement is less than 1

A

plan order receipts

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17
Q

Lot sizes

A

the part quantities issued in the planned order receipts and planned order releases section of MRP

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18
Q

Lot for Lot

A

produces exactly what is needed

-minimizes carrying costs

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19
Q

Economic Order Quantity (EOQ)

A

calculate reorder quantity based on EOQ

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20
Q

what are the EOQ cautions

A

not designed for a system for discrete time periods

do not always cover the entire number of periods

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21
Q

What is Least Total Cost

A

pick product that has holding cost and setup costs closest to eachother

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22
Q

sustainability

A

the ability to meet current resource needs without compromising the ability of the future generations to meet their needs

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23
Q

shareholders

A

individuals or companies that legally own one or more shares of stock in the company

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24
Q

stakeholders

A

individuals or organizations who are directly or indirectly influenced by the actions of the firm

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25
what is the triple bottom line
the firm focuses on three areas economic prosperity environmental stewardship social responsibility
26
what is economic prosperity
shareholders must be compensated via a competitive return
27
what is environmental stewardship
the company should protect the environment as much as possible
28
what is social repsonsibility
business practices should be fair to labor, the community and the region where the firm conducts buisness
29
what are the 7 risk mitigation strategies
1.) increase capacity 2.) get redundant suplliers 3.) increase responsiveness 4.) increase inventory 5.) increase flexibility 6.) pool or aggregate demand 7.) increase source capability
30
what does increase capacity mean
build centralized capacity for unpredictable demand
31
what does get redundant supplier mean
more redundant supply for high volume products centralize redundancy for low volume products
32
what does increase responsiveness mean
favor responsiveness over cost for short life
33
what does increase inventory mean
centralize inventory of less predictable, higher value products
34
what does increase flexibility mean
favor flexibility for unpredictable low volume products. centralize flexibility
35
what does pool or aggregate demand mean
increase aggregation as unpredictability grows
36
what does increase source capability mean
prefer capability over cost for high - value high - risk products centralize high capability
37
what are purposes of inventory
1.) customer service 2.) Account for variability 3.) Allow flexibility in production scheduling 4.) Maintain independence of operations 5.) Take advantage of economic order sizes 5.) take advantage of quantity discounts
38
What are the four inventory control systems
Fixed order Quantity 1.) Basic EOQ model 2.) Price - Break Model Fixed Time Period 3.) P- Model 4.) Single-Period Model
39
What is the optimal order quantity
when holding cost is equal to ordering cost
40
in the Fixed order quantity what is the equation for when to order
R = dL + SS
41
in fixed order quantity what is the equation for how much to order
Q opt = EOQ equation
42
In an EOQ inventory model how do you know how many units to order whn it drops to a certain point
order (EOQ) when inventory drops to (R)
43
What is the price break model
model for when price varies with order size
44
what is the two-step process for price break inventory
1.) Sort prices from lowest to highest and calculate EOQ 2.) if feasible it is good calculate the total price for feasible and compare to cheapest
45
What is fixed period P model
inventory levels are checked at regular intervals
46
how does fixed time period work with reordering
order (R-I) units every blank week
47
What is single period model
balancing overstocking and under stocking products
48
What is Pareto principal
a few items have significant importance
49
what is ABC inventory classification
scheme that divides inventory items into three groupingsw
50
What are the 3 groupings of ABC inventory classification
1.) High dollar volume (A) 2.) Moderate Dollar volume (B) 3.) Low dollar volume (C)
51
what is dollar volume
measure of importance to the company
52
what is inventory accuracy
how closely the inventory records agree with the physical count
53
what is cycle counting
inventory is counted on a frequent basis
54
What is TQM
management system for a customer focused organization and involves all employees
55
what are the key concepts of TQM
1.) quality is defined by customer 2.) top tier management is responsible for the process 3.) Analysis and data drive improvements 4.) continuous and organization-wide product
56
What are costs of Quality
appraisal costs - testing and inspection prevention cost - prevent defects internal failure costs - defects within system external failure costs - costs for defects that reach customer
57
what is six sigma quality
set of methods companies to reduce defects reduce variation that lead to product defects a statistical term to describe the quality goal of no more than 3.4 million defects
58
what is DMAIC
1. define the goals 2. measure the existing process 3.) analyze the process 4.) improve the process 5.) control the new process
59
if your process capability index is 1.0 or more then
then 99.7 of the parts will be within specification 3 or fewer per 1000
60
What is the traditional view of variation
costs are only incurred outside of ranges
61
what is Taguichi's view of variation
any deviation from the target increases cost

Supply Chain (3 decks)

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