Mgmt 339 Final Exam – Csuf Study Material

Aggregate Planning - to give management an idea of what quantity of materials to be procured and when Disaggregation - analytic disassembly which have been aggregated (lumped together) Master Production Schedule (MPS) - a timetable that specifies what is to be made and when Rough-cut Capacity Planning - verifies sufficient capacity available to meet requirements for MPS time fences - points in time that separate phases of a master schedule planning horizon Inputs - the resources—such as labor, money, materials, and energy—that are converted through a process beginning inventory, forecast, customer orders Outputs - projected inventory, MPS, uncommitted inventory Available to Promise (ATP) - planned production not already committed to a customer inventory available for request product uncommitted inventory customer service feature Dependent Demand - demand for items that are subassemblies or component parts to be used in the production of finished goods Material Requirements Planning (MRP) - a planning system that schedules the precise quantity of materials needed to make the product Master Schedule - determines supply quantity required to meet demand. cumulative lead time - The sum of the lead times that sequential phases of a process require, from ordering of parts or raw materials to completion of final assembly. Bill of Materials (BOM) - One of the three primary inputs of MRP; a listing of all of the raw materials, parts, subassemblies, and assemblies needed to produce one unit of a product. Inventory Records - identify the type and number of products on hand for sale lot sizing - the determination of how frequently and in what quantity to order inventory Backflushing - a technique that automatically records the goods issue when the order is confirmed ERP (Enterprise Resource Planning) - Integration of financial, manufacturing, and human resources in a single database. 8 functions of inventory - 1. Anticipate customer demand 2. Smooth seasonal requirements 3. Decouple operations with buffers 4. Protect against stock-outs 5. Cycle stock - lot sizing 6. Hedge against price increases 7. Permit operations - pipeline 8. Quantity discounts Inventory Turnover - cost of goods sold/average inventory Periodic System - Physical count of items in inventory made at periodic intervals Perpetual System - Check accuracy of inventory records. Determine amount of inventory lost due to wasted raw materials, shoplifting, or employee theft two-bin system - two containers of inventory; reorder when the first is empty lead time - The amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller's store, ready for sale. purchase cost - The cost to actually purchase the inventory items. This cost is relevant in determining the order quantity only when the purchase cost is variable holding costs - the costs of holding or "carrying" inventory over time ordering costs - costs of ordering and receiving inventory setup cost - the cost to prepare a machine or process for production and administrative expenses shortage costs - Costs resulting when demand exceeds the supply of inventory; often unrealized profit per unit A-B-C Approach - Classifying inventory according to some measure of importance, and allocating control efforts accordingly