OPRE 3310 FINAL STUDY GUIDE
Aggregate planning - Answers :Intermediate-range capacity planning, usually covering 2
to 12 months.
Sales and operations planning - Answers :Intermediate-range decisions to balance
supply and demand, integrating financial and operations planning.
Level capacity strategy - Answers :Maintaining a steady rate of regular-time output while
meet- ing variations in demand by a combination of options.
Chase demand strategy - Answers :Matching capacity to demand; the planned output
for a period is set at the expected demand for that period.
Simulation models - Answers :Computerized models that can be tested under different
scenarios to identify acceptable solutions to problems.
Yield management - Answers :The application of pricing strategies to allocate capacity
among various categories of demand.
Master production schedule (MPS) - Answers :This schedule indicates the quantity and
timing of planned completed production.
Rough-cut capacity planning (RCCP) - Answers :Approximate balancing of capacity and
demand to test the feasibility of a master schedule.
Time fences - Answers :Points in time that separate phases of a master schedule
planning horizon.
Available-to-promise (ATP) inventory - Answers :Uncommitted inventory.
Dependent demand - Answers :Demand for items that are subassemblies or component
parts to be used in the production of finished goods.
Material requirements planning (MRP) - Answers :A methodology that translates master
schedule requirements for end items into time-phased requirements for subassemblies,
components, and raw materials.
Master schedule - Answers :One of three primary inputs in MRP; states which end items
are to be pro- duced, when these are needed, and in what quantities.
Cumulative lead time - Answers :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) - Answers :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.
Product structure tree - Answers :A visual depiction of the requirements in a bill of
materials, where all components are listed by levels.
Low-level coding - Answers :Restructuring the bill of materials so that multiple
occurrences of a component all coincide with the lowest level at which the component
occurs.
Inventory records - Answers :One of the three primary inputs in MRP; includes
information on the status of each item by time period.
Gross requirements - Answers :Total expected demand for an item or raw material in a
time period.
Scheduled receipts - Answers :Open orders scheduled to arrive from vendors or
elsewhere in the pipeline.
Projected on hand - Answers :Expected amount of inventory that will be on hand at the
beginning of each time period.
Net requirements - Answers :The actual amount needed in each time period.
Planned-order
receipts - Answers :Quantity expected to be received by the beginning of the period in
which it is shown.
Planned-order releases - Answers :Planned amount
to order in each time period; planned-order receipts offset by lead time.
Pegging - Answers :The process of identi- fying the parent items that have generated a
given set of material requirements for an item.
Regenerative system - Answers :Approach that updates MRP records periodically.
Net-change system - Answers :Approach that updates MRP records continuously.
Planned orders - Answers :Schedule indicating the amount and timing of future orders.
Order releases - Answers :Authorization for the execution of planned orders.
Changes - Answers :Revisions of due dates or order quantities, or cancellations of
orders
Aggregate planning - Answers :Intermediate-range capacity planning, usually covering 2
to 12 months.
Sales and operations planning - Answers :Intermediate-range decisions to balance
supply and demand, integrating financial and operations planning.
Level capacity strategy - Answers :Maintaining a steady rate of regular-time output while
meet- ing variations in demand by a combination of options.
Chase demand strategy - Answers :Matching capacity to demand; the planned output
for a period is set at the expected demand for that period.
Simulation models - Answers :Computerized models that can be tested under different
scenarios to identify acceptable solutions to problems.
Yield management - Answers :The application of pricing strategies to allocate capacity
among various categories of demand.
Master production schedule (MPS) - Answers :This schedule indicates the quantity and
timing of planned completed production.
Rough-cut capacity planning (RCCP) - Answers :Approximate balancing of capacity and
demand to test the feasibility of a master schedule.
Time fences - Answers :Points in time that separate phases of a master schedule
planning horizon.
Available-to-promise (ATP) inventory - Answers :Uncommitted inventory.
Dependent demand - Answers :Demand for items that are subassemblies or component
parts to be used in the production of finished goods.
Material requirements planning (MRP) - Answers :A methodology that translates master
schedule requirements for end items into time-phased requirements for subassemblies,
components, and raw materials.
Master schedule - Answers :One of three primary inputs in MRP; states which end items
are to be pro- duced, when these are needed, and in what quantities.
Cumulative lead time - Answers :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) - Answers :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.
Product structure tree - Answers :A visual depiction of the requirements in a bill of
materials, where all components are listed by levels.
Low-level coding - Answers :Restructuring the bill of materials so that multiple
occurrences of a component all coincide with the lowest level at which the component
occurs.
Inventory records - Answers :One of the three primary inputs in MRP; includes
information on the status of each item by time period.
Gross requirements - Answers :Total expected demand for an item or raw material in a
time period.
Scheduled receipts - Answers :Open orders scheduled to arrive from vendors or
elsewhere in the pipeline.
Projected on hand - Answers :Expected amount of inventory that will be on hand at the
beginning of each time period.
Net requirements - Answers :The actual amount needed in each time period.
Planned-order
receipts - Answers :Quantity expected to be received by the beginning of the period in
which it is shown.
Planned-order releases - Answers :Planned amount
to order in each time period; planned-order receipts offset by lead time.
Pegging - Answers :The process of identi- fying the parent items that have generated a
given set of material requirements for an item.
Regenerative system - Answers :Approach that updates MRP records periodically.
Net-change system - Answers :Approach that updates MRP records continuously.
Planned orders - Answers :Schedule indicating the amount and timing of future orders.
Order releases - Answers :Authorization for the execution of planned orders.
Changes - Answers :Revisions of due dates or order quantities, or cancellations of
orders
