SCM 301 FINAL PART 1

Question 1

What is Master Scheduling?

Answer 1

determines when products made, when orders filled, and what products are still available (trucks, suvs)

tracks production output and matches this output to actual customer orders, short-term (in weeks or months)

Question 2

What is Material Requirements Planning (MRP)?

Answer 2

translates the master production schedule into planned orders and calculates the timing and quantity for those orders (parts of suv)

Question 3

What is Production Activity Control (PAC)?

Answer 3

assures in house manufacturing takes place according to plan; also helps manufacturing managers identify potential problems (INSOURCING)

Question 4

What is Vendor Order Management?

Answer 4

assures that materials ordered from supply chain partners are received when needed, helps purchasing managers identify potential problems and take corrective actions (OUTSOURCING)

Question 5

What else is important about Master Scheduling?

Answer 5

primary interface point for actual customer orders (controls timing and quantity of production)

Question 6

What does the Master Schedule Record track?

Answer 6

Forecast Demand
Booked Orders
Projected Inventory Levels
Production Quantities
Available to Promise (ATP)
Master Production Schedule (MPS)
Planning Horizon

Question 7

What is Available to Promise (ATP)?

Answer 7

number of units that are available for sale to meet customer needs each week, given those that have already been promised to customers

how many additional units can be sold

only calculated in weeks with positive MPS quantity

Question 8

What is Time/Planning Horizon?

Answer 8

amount of time that the master schedule record or MRP record extends

longer production/supplier lead times require longer planning horizons

Question 9

What is the Formula for Projected Ending Inventory for the Master Schedule Record?

Answer 9

previous periods EI + MPS quantity – the max of forecasted demand and booked orders

Question 10

What is the Formula for the first week of ATP?

Answer 10

Previous periods EI + MPS quantity – sum of all booked orders until next MPS quantity due

Question 11

What is the Formula for all weeks besides the first of ATP?

Answer 11

MPS Quantity – sum of all booked orders until next mps quantity due

Question 12

What are the inputs of Material Requirements Planning (MRP)?

Answer 12

Master Production Schedule, Bill of Materials File, and Inventory Records File

Question 13

What type of demand is Material Requirements Planning (MRP) designed to manage?

Answer 13

dependent demand

Question 14

What is Independent Demand?

Answer 14

inventory items whose demand levels are beyond a company’s complete control (end item / finished goods)

determined by customer demand

Question 15

What is Dependent Demand?

Answer 15

inventory items whose demand levels are tired directly to a company’s planned production of another item

if you know independent demand, then you know exact dependent demand items

Question 16

What are the advantages of Material Requirements Planning (MRP)? (3)

Answer 16

knows exact timing/quantity of items

trace lower level items

tells a firm what needs to be made and when

Question 17

What are the disadvantages of Material Requirements Planning (MRP)? (5)

Answer 17

capacity issues

fixed lead times

Uncertainty in shipments and quantity levels

One change in an item has large effects on supply chain

Must be organized because whole supply chain relies on accuracy

Question 18

How do you deal with a variable lead time?

Answer 18

lengthen the planning lead times or hold additional inventory as safety stock

Question 19

What is the Bill of Materials (BOM)?

Answer 19

listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly

Question 20

What is the Product Structure Tree?

Answer 20

shows how the components in the BOM are put together to make the level 0 item

Question 21

What does it mean to explode the BOM?

Answer 21

process of working backwards for a level 0 item to determine the quantity and timing of orders

Question 22

What is the Material Requirements Planning (MRP) Record?

Answer 22

Comprised of:
gross requirements
scheduled receipts
projected ending inventory
net requirements
planned receipts
planned orders

Question 23

What are Net Requirements?

Answer 23

how much more managers have to order, after using up the previous period’s ending inventory, scheduled receipts, and planned receipts

Question 24

What are scheduled receipts?

Answer 24

units that are already on order

Question 25

What are planned order receipts?

Answer 25

amount that is planned to be ordered to be received at the beginning of the period

Question 26

What is the Formula for Net Requirements?

Answer 26

maximum of either 0 OR gross requirements – previous ending inventory – scheduled receipts

Question 27

What is the Formula for Projected Ending Inventory for the Material Requirements Planning (MRP) Record?

Answer 27

Ending inventory from previous period + scheduled receipts + planned receipts - gross requirements