11 material requirements planning and enterprise resources planning:

MRP

A system that helps determine what, when, and how much to produce or purchase.

Dependent Demand

Demand that arises from production plans of other items, such as components and subassemblies.

Independent Demand

Demand that comes directly from consumer orders, e.g., finished goods.

Inventory

Stock of any item or resource used in an organization.

Raw Materials

The unprocessed items used to create products.

Semi-finished Goods (WIP)

Items that are partially completed in the production process.

Finished Goods

Products that are completed and ready for sale.

Bill of Materials (BOM)

A hierarchical structure showing parent-child relationships and usage quantities.

MPS

Master Production Schedule, which is a plan for end items based on demand forecasts and customer orders.

Lot for Lot (l4l)

A lot sizing method where order quantities match exactly with demand.

Fixed Order Quantity (FOQ)

A lot sizing method that orders in fixed multiples.

Period Order Quantity (POQ)

A lot sizing method that orders for demand over a fixed number of periods.

Projected Available Balance (PaB)

Calculated as on-hand inventory minus safety stock.

Gross Requirements (GR)

The total demand for an item before considering available inventory.

Planned Receipts (PR)

Quantity needed to satisfy gross requirements.

Planned Order Releases (POR)

Planned receipts offset by lead time.

A-Class Items

The top 20% of items that have the highest dollar volume.

B-Class Items

The next 30% of items by dollar volume.

C-Class Items

The remaining 50% of items with the lowest dollar volume.

MRPII

An expanded version of MRP that includes capacity requirements planning and additional functions.

ERP

An enterprise-wide system that integrates all business functions.

Supply Chain Management (SCM)

A total system approach to managing material, service, and information flows across the supply chain.

Continuous Review System (Q System)

A system that continuously monitors inventory levels to determine when to reorder.

Bullwhip Effect

An increase in order variability as one moves up the supply chain.

Reorder Point (R)

The inventory level at which an order should be placed to replenish stock.