CPIM - MPR
Abnormal demand - answer demand in any period that is outside the limits established
by management policy:
1. Not in the forecast
2. From a nonregular customer
3. Random, nonrecurring, highly variable
4. Not received through normal channels
actual demand - answer made up of customer orders; consumes the forecast,
depending on rules chosen over a time horizon
adaptive smoothing - answerform of exponential smoothing where the smoothing
constant is automatically adjusted as a function of forecast error measurement
advanced planning and scheduling (APS) - answer techniques that deal with analysis
and planning of logistics and manufacturing during short, intermediate, and long-term
time periods; main components: (1) demand planning, (2) production planning, (3)
production scheduling, (4) distribution planning, and (5) transportation planning
aggregate forecast
aggregate forecast - answerestimate of sales for a grouping of products or product
families; used for sales and production planning
aggregate plan - answerplan that includes budgeted levels of finished goods, inventory,
production backlogs, and changes in the workforce to support the production strategy;
aggregated information is used
allocation - answerclassification of quantities of items that have been assigned to
specific orders but have not yet been released from the stockroom to production;
process used to distribute material in short supply
alpha factor/smoothing constant - answerweighting factor used in exponential
smoothing; applied to the most recent demand, observation, or error (error = actual
demand - forecast); range is 0 to 1
base series - answerstandard succession of values of demand-over-time data used in
forecasting seasonal items; based on relative level of demand during the corresponding
period of previous years (average value = 1, >1 is over average demand, <1 is under
average demand)
benchmarking - answercomparing a company's costs, products, and services to that of
a company thought to have superior performance
,types: (1) competitive (2) financial (3) functional (4) performance (5) process (6) product
(7) strategic
bill of distribution/distribution network structure - answershows the dependencies
between stocking locations at multilevel of distribution network
bill of resources/bill of capacity - answerlisting of the required capacity and key
resources needed to manufacture one unit of a selected item or family; RCCP uses
these bills to calculate the approximate capacity requirements of the MPS
bottom-up replanning - answer(in MRP) process of using pegging data to solve material
availability or other problems performed by the planner; solutions include compressing
lead time, cutting order quantity, substituting material, and changing the MPS
bucketed system - answer(in MRP, DRP or other time=phased system) all time-phased
data are accumulated into time periods, i.e. buckets
bucketless system - answer(in MRP, DRP or other time-phased system) time-phased
data are processed, stored, and displayed using data records rather than defined time
periods
by-product - answermaterial of value produced as a residual of or incidental to the
production process
capable-to-promise (CTP) - answerprocess of committing orders against available
capacity and inventory; used to determine when a new or unscheduled customer order
can be delivered; employees finite scheduling model of the manufacturing system and
includes constraints
capacity planning using overall factors (CPOF) - answerRCCP technique; master
schedule items and quantities are multiplied by the total time required to build each item
to provide total number of hours to produce the schedule; historical work center
percentages are applied to the total hours to provide estimate of hours per work center
required
cash-to-cash cycle time - answerindicator of how efficiently a company manages its
assets to improve cash flow
= inventory days + accounts receivable days - accounts payable days
chase production method - answerproduction planning method that maintains a stable
inventory level while varying production to meet demand
collaborative planning, forecasting, and replenishment (CPFR) - answercollaboration
process where supply chain trading partners jointly plan key supply chain activities;
, includes business planning, sales forecasting, and operations required to replenish raw
materials and finished goods
common parts bill of material - answertype of planning bill that groups common
components for a product/family of products into one bill of material, structured to a
pseudo-parent part number
consuming the forecast/forecast consumption - answerprocess of reducing the forecast
by customer orders or other types of actual demands as they are received
continuous production - answerproduction system where the productive equipment is
organized and sequenced according to the steps involved to produce the product;
routing of jobs is fixed and setups are seldom changed
co-product - answerproduct that is usually manufactured together or sequentially
because of product or process similarities
correlation - answerrelationship between two sets of data where when one changes, the
other is likely to make a corresponding change; can be positive or negative
cumulative ATP - answercalculation based on ATP figure in MPS
with look-ahead ATP and without look-ahead ATP
cumulative ATP with look-ahead - answer= ATP from previous period + MPS of period -
backlog of period - (sum of differences between backlogs and MPSs of all future periods
until period where point production exceeds backlogs)
cumulative ATP without look-ahead - answer= ATP in previous period + MPS - backlog
in period being considered
curve fitting - answerapproach to forecasting based on a straight line, polynomial, or
other curve that describes some historical time series data
customer relationship management (CRM) - answermarketing philosophy based on
putting the customer first; includes account management, catalog and order entry,
payment processing, credits and adjustments, and other functions
customer-supplier partnership - answerlong-term relationship between a buyer and
supplier characterized by teamwork and mutual confidence; supplier considered an
extension of the buyer's organization; ex. buyer provides long-term contracts and uses
fewer suppliers while supplier implements quality assurance processes
decomposition - answermethod of forecasting where time series data are separated into
three components: trend, seasonal, and cyclical; new forecast is made by projecting the
patterns individually determined and then combining them
Abnormal demand - answer demand in any period that is outside the limits established
by management policy:
1. Not in the forecast
2. From a nonregular customer
3. Random, nonrecurring, highly variable
4. Not received through normal channels
actual demand - answer made up of customer orders; consumes the forecast,
depending on rules chosen over a time horizon
adaptive smoothing - answerform of exponential smoothing where the smoothing
constant is automatically adjusted as a function of forecast error measurement
advanced planning and scheduling (APS) - answer techniques that deal with analysis
and planning of logistics and manufacturing during short, intermediate, and long-term
time periods; main components: (1) demand planning, (2) production planning, (3)
production scheduling, (4) distribution planning, and (5) transportation planning
aggregate forecast
aggregate forecast - answerestimate of sales for a grouping of products or product
families; used for sales and production planning
aggregate plan - answerplan that includes budgeted levels of finished goods, inventory,
production backlogs, and changes in the workforce to support the production strategy;
aggregated information is used
allocation - answerclassification of quantities of items that have been assigned to
specific orders but have not yet been released from the stockroom to production;
process used to distribute material in short supply
alpha factor/smoothing constant - answerweighting factor used in exponential
smoothing; applied to the most recent demand, observation, or error (error = actual
demand - forecast); range is 0 to 1
base series - answerstandard succession of values of demand-over-time data used in
forecasting seasonal items; based on relative level of demand during the corresponding
period of previous years (average value = 1, >1 is over average demand, <1 is under
average demand)
benchmarking - answercomparing a company's costs, products, and services to that of
a company thought to have superior performance
,types: (1) competitive (2) financial (3) functional (4) performance (5) process (6) product
(7) strategic
bill of distribution/distribution network structure - answershows the dependencies
between stocking locations at multilevel of distribution network
bill of resources/bill of capacity - answerlisting of the required capacity and key
resources needed to manufacture one unit of a selected item or family; RCCP uses
these bills to calculate the approximate capacity requirements of the MPS
bottom-up replanning - answer(in MRP) process of using pegging data to solve material
availability or other problems performed by the planner; solutions include compressing
lead time, cutting order quantity, substituting material, and changing the MPS
bucketed system - answer(in MRP, DRP or other time=phased system) all time-phased
data are accumulated into time periods, i.e. buckets
bucketless system - answer(in MRP, DRP or other time-phased system) time-phased
data are processed, stored, and displayed using data records rather than defined time
periods
by-product - answermaterial of value produced as a residual of or incidental to the
production process
capable-to-promise (CTP) - answerprocess of committing orders against available
capacity and inventory; used to determine when a new or unscheduled customer order
can be delivered; employees finite scheduling model of the manufacturing system and
includes constraints
capacity planning using overall factors (CPOF) - answerRCCP technique; master
schedule items and quantities are multiplied by the total time required to build each item
to provide total number of hours to produce the schedule; historical work center
percentages are applied to the total hours to provide estimate of hours per work center
required
cash-to-cash cycle time - answerindicator of how efficiently a company manages its
assets to improve cash flow
= inventory days + accounts receivable days - accounts payable days
chase production method - answerproduction planning method that maintains a stable
inventory level while varying production to meet demand
collaborative planning, forecasting, and replenishment (CPFR) - answercollaboration
process where supply chain trading partners jointly plan key supply chain activities;
, includes business planning, sales forecasting, and operations required to replenish raw
materials and finished goods
common parts bill of material - answertype of planning bill that groups common
components for a product/family of products into one bill of material, structured to a
pseudo-parent part number
consuming the forecast/forecast consumption - answerprocess of reducing the forecast
by customer orders or other types of actual demands as they are received
continuous production - answerproduction system where the productive equipment is
organized and sequenced according to the steps involved to produce the product;
routing of jobs is fixed and setups are seldom changed
co-product - answerproduct that is usually manufactured together or sequentially
because of product or process similarities
correlation - answerrelationship between two sets of data where when one changes, the
other is likely to make a corresponding change; can be positive or negative
cumulative ATP - answercalculation based on ATP figure in MPS
with look-ahead ATP and without look-ahead ATP
cumulative ATP with look-ahead - answer= ATP from previous period + MPS of period -
backlog of period - (sum of differences between backlogs and MPSs of all future periods
until period where point production exceeds backlogs)
cumulative ATP without look-ahead - answer= ATP in previous period + MPS - backlog
in period being considered
curve fitting - answerapproach to forecasting based on a straight line, polynomial, or
other curve that describes some historical time series data
customer relationship management (CRM) - answermarketing philosophy based on
putting the customer first; includes account management, catalog and order entry,
payment processing, credits and adjustments, and other functions
customer-supplier partnership - answerlong-term relationship between a buyer and
supplier characterized by teamwork and mutual confidence; supplier considered an
extension of the buyer's organization; ex. buyer provides long-term contracts and uses
fewer suppliers while supplier implements quality assurance processes
decomposition - answermethod of forecasting where time series data are separated into
three components: trend, seasonal, and cyclical; new forecast is made by projecting the
patterns individually determined and then combining them
