What is manufacturing planning and control system (MPC)?
Systems that provide decision support at the different levels of decision making and include all aspects of manufacturing
What is demand management?
Data collection on all sources of demand and responsible for booking customer orders
What is capacity planning?
Planning human resources and machine capacities
What is aggregate production planning?
Forecasts from demand management will be consolidated and corporate into a Sales and Operations Plan (S&OP)
What is the master production schedule?
Disaggregating the aggregate production plan and creating a statement of the output from the factory. It specifies the products that will be completed, the time of completion and the quantities to be completed.
What is material requirement planning?
Basic tool for performing the detailed planning of component parts and their assemblies into finished items
What are the parameters the aggregate planner’s main objective is to identify?
Production rate Machine capacity level Workforce Inventory on hand Backlog
What is a chase strategy?
A strategy that attempts to achieve output rates for each period that match the demand forecasts for that period
What is a level strategy?
A strategy that produces the same amount every period
What is make-to-stock
A choice of the MPS unit that carries finished goods for most -if not all- of its end-items
What is assemble-to-order?
Typified by limitless number of end-item configurations, usually carries basic components and subassemblies. MPS is created for subassemblies
What is make-to-order?
Usually job-shop type process organization. Construct MPS generally in terms of raw materials and components
What is engineer-to-order?
MPS unit is typically defined as the particular end-item or set of items composing a customer order.
What is rough-cut capacity planning (RCCP)?
Check globally or roughly the feasibility of the MPS
What are dependent demand items?
Demand for one item is related to the demand of another item
What is the bill of materials (BOM)?
Engineering document that specifies the ingredients or subordinate components required physically to make each end-item
What are low-level code numbers?
Numbers that indicate where in the product structure a particular part or subassembly is with respect to the end item, e.g. end-item is level 0
What is the MRP time-phased record?
Universal representation of the status and plans for any single part, whether raw material, component part, or finished good
What is time bucket?
The period length of an MRP time-phased record. Often 1 week
What is the planning horizon?
Number of periods in the record
What are gross requirements?
Anticipated future usage of (or demand for) the item
What are scheduled receipts?
The status of all open orders. It shows the quantities ordered and when we expect these orders to be available / completed
What is projected available inventory?
The projected available inventory level after replenishment orders have been received and gross requirements have been satisfied
What is the net requirement?
The quantity that we need in order to satisfy the gross requirement of that period if the available inventory and scheduled receipts are not sufficient to satisfy the totality of the gross requirements?
What are planned receipts?
Quantities and the arrival dates of the production or replenishment orders that we plan in order to satisfy the net requirements
What are planned order receipts?
Dates that we have to place the planned orders taking into account the replenishment lead-time of the item
What is the lead-time offsetting principle?
Determining order releases for an item taking into account how long it takes to produce the item
What is a lot-for-lot policy (L4L)?
Order each period exactly the net requiremeents
What is a fixed order quantity (FOQ) policy?
Order Q units (or a multiple of Q) each time, where Q is the (economic) order quantity. Q=sqrt((2*A*D)/h), where A=order cost h= holding cost D=average of net requirement
What is fixed-period ordering (FPO) policy?
An order that is scheduled every T periods, where T is the order interval. T=sqrt((2*A)/(h*D)), where A=order cost h=holding cost D=average of net requirement
What is part based balancing (PPB) heuristic?
For a given k period, we choose l with the value vh(k,l) that is closest to A and we schedule an order at the beginning of period k which covers the requirements of periods up to l. where vh(k,l) is holding cost of period k up to l.
What is the silver-meal heuristic?
The silver-meal heuristic schedules an order at the beginning of period k covering the requirements of period k up to l, where l Is the last value for which the average cost per period is decreasing, that is v(k,l+1)>v(k,l)
What is the Wagner-Whitin algorithm?
Algorithm that produces optimal results for simple models based on dynamic programming