Operations Management /Supply Chain and Production Planning Part 2
Supply Chain and Production Planning Part 2
This deck covers key concepts in supply chain and production planning, including net requirements, planned-order releases, production planning, strategic resourcing, and various production methods.
What are net requirements?
The actual amount that we need to purchase in each time period: = Gross requirements - Projected on-hand
Tap to flip
Space↑↓
←→Navigate
SSpeak
FFocus
1/30
Key Terms
Term
Definition
What are net requirements?
The actual amount that we need to purchase in each time period: = Gross requirements - Projected on-hand
Hover to peek or log in to view all
What are planned-order releases?
Planned amount to order in each time period
If an end good has a one week production time and a customer requires the order to be ready in week 8, when should the key components (lead time=3 weeks) be ordered?
8-1-3=4
Week 4
Which of the following is the planned-order release using an MRP program if the gross requirement is 5,000 and the inventory on hand is 1200?
5000-1200=3800
What data must be considered in production planning?
The data that must be considered include:
-the end item being created
-the component parts to make the end item
-how much is required at the time
-whe...
Identify the gross requirement, net requirement, on hand, and planned order of releases for Sound explosion's order for 18000 speakers.
Gross requirements=18000
On hand=10000
Net requirements=8000
Planned order of releases=8000
Hover to peek or log in to view all
Related Flashcard Decks
Study Tips
- Press F to enter focus mode for distraction-free studying
- Review cards regularly to improve retention
- Try to recall the answer before flipping the card
- Share this deck with friends to study together
| Term | Definition |
|---|---|
What are net requirements? | The actual amount that we need to purchase in each time period: = Gross requirements - Projected on-hand |
What are planned-order releases? | Planned amount to order in each time period |
If an end good has a one week production time and a customer requires the order to be ready in week 8, when should the key components (lead time=3 weeks) be ordered? | 8-1-3=4
Week 4 |
Which of the following is the planned-order release using an MRP program if the gross requirement is 5,000 and the inventory on hand is 1200? | 5000-1200=3800 |
What data must be considered in production planning? | The data that must be considered include:
-the end item being created
-the component parts to make the end item
-how much is required at the time
-when the quantities are required to meet demand
-shelf life of stored materials |
Identify the gross requirement, net requirement, on hand, and planned order of releases for Sound explosion's order for 18000 speakers. | Gross requirements=18000
On hand=10000
Net requirements=8000
Planned order of releases=8000 |
What is strategic resourcing? | An institutional procurement process that continuously improves and re evaluates the purchasing activities in the company |
What is procurement? | The purchase of merchandise or services at the optimum possible total cost |
What does OCT mean? | Order cycle time |
What is fill rate? | Total quantity received/ total quantity ordered |
What is defect rate? | Total quantity defective/ total quantity received |
What does 'on time' mean in supply chain terms? | Orders received on time/ total orders |
What is Perfect Purchase Order Percent? | Order arrives on time, without damage, and with perfect documentation at the right location with correct quantities of all SKUs ordered |
What is production? | Is the process by which inputs are combined, transformed, and turned into outputs. |
What is an input? | A resource used in creation of output |
What is transformation in production? | The operation or action that takes place |
What is an output? | What is created by transforming the inputs |
What is manufacturing? | To transform materials via assembly, fabrication, conversion processes into a finished product, especially by means of a large scale industrial operation |
Name the three methods of production. | Continuous production
Job production
Batch process |
What is job production? | Low volume, one of a kind
Ex; custom motorcycle |
What is batch process? | Higher volume, multiple products
Ex: bakery |
What is contiguous production? | High volume low variety
Ex: Pepsi |
What is paperboard for packaging? | Continuous process(very high volume, highly standardized product) |
What is break-even analysis? | Numbers of units that must be sold in order to produce a profit of zero(recovers relevant costs) |
What is the break-even equation? | Break even= fixed cost/(unit price-variable cost) |
What is assembly line balancing? | The process of optimizing an assembly line to minimize costs and maximize gains |
Name the 5 steps of the assembly line balancing analysis. | 1. Specify sequential relationships
2. Determine workstation cycle time(WCT)
3. Determine theoretical minimum number of workstations
4. Assign tasks, one at a time, to the first workstation until the sum of the task times is equal to the workstation cycle times
5. Determine the efficiency of your assembly process |
What is WCT? | Production time per day/ planned units of output |
What is the efficiency equation? | Sum of task time/(number of workstations x WCT) |
What is TNW (theoretical number of workstations)? | Sum of task time/ WCT |