Ops chp 11
Card Set Information
Ops chp 11
Ops chp 11
Ops chp 11
to reduce the direct dependency of a process step on its predecessor
the fixed cost associated with ordering inventory
the cost of changing equipment from producing one product or service to another
costs associated with carrying inventory
cost associated with not having inventory when a customer demands it
delivery of inventory, frequently in small quantities
Independent demand inventory?
inventory whose demand is dictated by the marketplace
Maintenance, repair, and operating (MRO) inventory
inventory that consists of items consumed in the day-to-day activities of a business
An instance when demand cannot be satisfied by existing inventory
inventory consisting of products that have completed all stages of production
system in which a group of identical products or customers is processed through one step in the process and when the entire group moves to the next step.
an aggregate planning approach that uses inventory stored from period to period to reduce the need to change the output rate as demand changes
Work-in-process inventory (WIP)
inventory that has begun processing, but has not yet completed it
the quanitity produced at a workcenter before transferring the products to the next step in the process.
inventory in transit
Percent of orders satisfied from existing inventory
Replenishment lead time?
time required to receive inventory that has been ordered
Fixed-quanitity reorder point (ROP) model?
An independent demand inventory management system that reorders when inventory drops to a specific level
additional inventory used to help meet demand uncertainty
Economix order quantity model?
an apporach used to determine an order quantity that minimizes the sum of ordering and carrying costs.
Periodic review system?
an independent demand management system that orders inventory on fixed time intervals
Material requirements planning (MRP)
an inventory management approach used to manage dependent demand inventory that plans order releases for the future based on production schedules
process of computing net requirements
when a completion date or due date is known and that date must determine a start date
Master production schedule (MPS)?
schedule of end products that must be completed in a specific time period
Bill of material?
in material requirements planning, this is a computer file containing information about the materials required to produce a product or component
Inventory master file?
in material requirements planning, this is a computer file containing information about an inventory item such as the quanitity on hand, the cost, and so on.
in material requirments planning, the total quantity needed to meet-demand.
Beginning on-hand inventory?
quantity of inventory on hand at the beginning of a time period
Ending on-hand inventory
quantity of inventory on hand at the end of a time period
in material requirements planning, gross requirments minus beginning on-hand inventory
Planned order receipt?
in material requirements planning, this is the planned receipt of material that results from a planned order release.
Planned order release?
in material requirements planning, this is the order planned to be released to satisfy a future net requirement
in material requirements planning, ordering exactly the amount of the net requirements
Fixed-quantity order policy?
in material requirements planning, rather than ordering the quantity of the net requirements, orders are placed in increments of a fixed quantity.
primitive reorder point inventory system in which two containers of invenotry are kept. An order for more is placed when one container becomes empty.
a measure of inventory productivity computed by dividing sales by the average value of inventory
dollar value of an item in inventory multiplied by the number of days until it will be sold