Chapter 14 Vocab - Supply Chain
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Independent Demand
demand that is created by customers
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Dependent Demand
demand that depends upon decisions made by internal operations managers
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Materials Requirements Planning
a planning system used to ensure the right quantities of materials are available when needed
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Master Production Schedule
the quantities of each finished product to be completed each period
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Time Bucket
the individual time period for planning
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Cumulative Lead Time
the longest lead time (orderet materials, make item) path in the BOM
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Planning Horizon
the entire time period covered by the MPS
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Available to Promise
the part of planned production that is not committed to a customer
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Rough Cut Capacity Planning
an estimation of the availability of the critical resources needed to support the MPS
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Bill of Materials (BOM)
a detailed description of an "end item" and list of all of its raw materials, parts, and subassemblies
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Inventory Status File
a file that contains detailed inventory and procurement records
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Scheduled Receipts
the quantity that has been ordered but not yet received
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lot-for-lot (L4L)
order exactly the amount that is needed in each period
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fixed order quantity (FOQ)
an order for the exact amount needed
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Period Order Quantity (POQ)
an order for an amount that covers a fixed period of time
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Gross Requirements
the total amount of an end item that is required
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Requirements Explosion
the determination of how many additional units are needed
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Net Requirements
the minimum amount needed in the period
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Planned Order Receipt
the amount that is planned to arrive at the beginning of a period
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Planned Order Release
the amount of an item that is planned to be ordered in a period
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Primary Reports
Schedules of planned order releases that trigger purchase and production of items at the right time
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Secondary Reports
Provide cost, inventory, schedule attainment information that are metrics for how well the operation is performing
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Exception Report
generated when the actual performance differs from the MRP plan
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Nervousness
inconsistencies in the plan caused by changes to the MPS
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Distribution Requirements Planning (DRP)
determination of replenishment and positioning of finished goods in the distribution network
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Capacity Requirements Planning (CRP)
an estimate of the capacity needed at work centers
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Load
the amount of work given to a work machine, work center, or facility during a specific period of time
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Load Profile
a comparison of production needs to actual capacity
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Infinite Loading
the assumption that there is an infinite amount of capacity available
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Enterprise Resource Planning (ERP)
software that consolidates all of the business planning systems and data throughout an organization
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Advanced Planning and Scheduling (APS)
integrate materials and capacity planning into 1 system
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