operations management exam 3

What is the demand for finished goods considered?

independent

What is the demand for components and raw materials?

dependent

MRP is a methodology that translates BLANK requirements for end items into time-phased requirements for subassemblies, parts, and raw materials?

master schedule

What is true of the master schedule?

It does not have a predetermined or fixed time horizon, and it must be at least as long as the cumulative lead time

What is the visual depiction of the requirements on a bill of materials?

A product structure tree

What is the term for combining all occurrences of a component to the lowest level at which it appears on a bill of materials?

low-level coding

What statements describe dependent demand?

Dependent demand applies to components and materials that are part of a finished product, and once forecasts or production schedules are set, the quantity needed is known exactly.

When inventory records are one of three primary inputs in MRP. These inputs include information on the status of each time period are called what?

Time buckets

What key questions is MRP designed to answer?

What is needed, how much is needed, and when is it needed?

MRP processing takes end item requirements specified by the master schedule and BLANK them into time-phased requirements for assemblies, parts, and raw materials using the bill of materials offset by lead times.

explodes

What is MPS stand for?

Master Production Schedule

What does a Master Production Schedule (MPS) do?

It is the anticipated build schedule stating which end items are to be produced, when, and in what quantities for the next 12 weeks or so

The bill of materials, an input for MRP, lists all assemblies, subassemblies, parts, and raw materials needed to produce

one unit of a finished product

In terms of MRP, what is a planned order?

scheduled receipts are open orders scheduled to arrive at a specific point in the future

Low-level coding restructures the BLANK of materials so that all occurrences of a component occur at the lowest level that component occurs.

bill

What is NOT true of inventory records?

They are automatically updated by the MRP system during planning - the truth is that the inventory records will be updated as changes are made, not as the planning takes place.

In terms of MRP, what are the quantities expected to be received by the beginning of the period in which it is showed?

planned-order receipts

MRP processing takes end item requirements specified by the master schedule and explodes them into time-phased requirements for BLANK, BLANK, and BLANK, sing the bill of materials offset by lead times.

parts, assemblies, and raw materials

What are the advantages of the regenerative method of updating MRP records?

If changes cancel each other out, the system is not changed repeatedly “for nothing”, and the MRP system is relatively stable because it is not constantly being changed

What is the term for the sum of the lead times that are required from start to finish of a product’s production process?

Cumulative lead time

What type of secondary reports are generated by the MRP system?

Exception reports, planning reports, and performance-control reports

In MRP, what type of requirements are the actual amount needed in a time period?

net requirements

What is the term for combining all occurrences of a component to the lowest level at which it appears on a bill of materials?

low-level coding

True or False: When dealing with variable lead times, it is better to use safety stock than safety time to mitigate the impact of a shortage of any component requires for final assembly.

False - On the surface, the use of safety stock seems to be the way to maintain smooth operations, but the problem becomes more complicated when dealing with multiechelon items. When lead times are variable, the concept of safety time instead of safety stock is often used.

In MRP what are the planned amounts to order in each time period called?

planned-order releases

For dependent-demand items with variable demand, what is true about lot sizing?

Lot-for-lot ordering is the most appropriate

What are advantages of the net-change method of updating MRP records?

The system is always up-to-date and the only changes are exploded into the system, everything else stays unchanged

What about lot sizing is true?

Lot-for-lot ordering does not tend to take advantage of economies of fixed order size, fixed-period ordering provides coverage for several periods at one time, and lot-for-lot ordering requires a new setup for each order

What are the primary reports generated by the MRP system?

planned orders, order releases and changed to planned orders