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

inventory whose demand is dictated by the marketplace

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 

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

time required to receive inventory that has been ordered 

An independent demand inventory management system that reorders when inventory drops to a specific level 

additional inventory used to help meet demand uncertainty

an apporach used to determine an order quantity that minimizes the sum of ordering and carrying costs. 

an independent demand management system that orders inventory on fixed time intervals 

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 

schedule of end products that must be completed in a specific time period 

in material requirements planning, this is a computer file containing information about the materials required to produce a product or component

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. 

quantity of inventory on hand at the beginning of a time period

quantity of inventory on hand at the end of a time period

in material requirements planning, gross requirments minus beginning on-hand inventory

in material requirements planning, this is the planned receipt of material that results from a 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

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