Production & Operations Management Final Exam Flashcards: Chapter 11

Materials requirement planning
A computerized information system designed specifically to help manufacturers manage dependent demand inventory and schedule replenishment order
MRP explosion
A process that converts the requirements of various final products into a material requirements plan that specifies the replenishment schedules of all the subassemblies, components, and raw materials needed to produce final products
Any product that is manufactured from one or more components
An item that goes through one or more operations to be transformed into or become part of one or more parts
Master production schedule
A part of the material requirements plan that details how many end items will be produced within specified periods of time
Bill of materials
A record of all the components of an item, the parent-component relationships, and the usage quantities derived from engineering and process materials
Usage quantity
The number of units of a component that are needed to make one unit of its immediate parent
End item
The final product sold to a customer
Intermediate item
An item that has at least one parent and at least one component
An intermediate item that is assembled from more than one component
Part commonality
The degree to which a component has more than one immediate parent
Inventory record
A record that shows an item’s lot size policy, lead time, and various time phased data
Gross requirements
The total demand derived from all parent production plans
Projected on hand inventory
An estimate of the amount of inventory available each week after gross requirements have been satisfied
Planned receipts
Orders that are not yet released to the shop or the supplier
Planned order release
An indication of when an order for a specified quantity of an item is to be issued
Fixed order quantity
A rule that maintains the same order quantity each time an order is issued
Periodic order quantity
A rule that allows a different order quantity for each order issued but issues the order for predetermined time intervals
Lot for lot rule
A rule under which the lot size ordered covers the gross requirements of a single week
Capacity requirements planning
A technique used for projecting time-phased capacity requirements for workstations; its purpose is to match the material requirements plan with the capacity of key processes
ERP systems
Large, integrated information systems that support many enterprise processes and data storage needs
Bill of resources
A 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