University:
Cameron University
Course:
MGMT 3613 | Operations Management
Academic year:

2024
Views:

102

Pages:

2
Author:

inao6uk

MGMT 3613 | Operations Management Chapter 13 Notes 1. Contrast independent and dependent demand. • Dependent demand is for items that are subassemblies or component parts to be used in the production of finished goods. (Ex: raw materials/parts to build a car) • Independent demand is the item itself. (Ex: the car) 2. When is MRP appropriate? • • When transferring the finished product requirements of the master schedule into time-phased requirements for subassemblies and component parts. To determine when and how much to order. 3. How is safety stock included in a material requirements plan? • To maintain smooth operations 4. What factors can create safety stock requirements in a MRP plan? • • • A bottleneck process that can cause shortages in downstream processes Late orders Longer fabrication or assembly times 5. What is meant by safety time? • Scheduling orders for arrival or completion sufficiently ahead of the time they are needed in order to eliminate or reduce the chance of waiting for those items 6. Contrast net-change system and regenerative system. • • Net-change system updates MRP records continuously Regenerative system updates MRP records periodically 7. Briefly discuss the requirements of effective MRP. • • • A computer and the necessary software programs to handle computations and maintain records. Accurate and up-to-date master schedules, bills of materials and inventory records Integrity to file data 8. What are the main advantages of MRP? • • • • Low levels of in-process inventories Ability to keep track of material requirements Ability to evaluate capacity requirements generated by a given master schedule A means of allocating production time 9. Describe MRP II • • • Expands scope of materials planning to include capacity requirements planning Involves other functional areas of an organization in the planning process Evolved from MRP because manufacturers recognized additional needs 10. What is lot sizing and what is its main goal? Why is it an issue with lumpy demand? • • • Lot sizing is choosing a lot size for ordering or production Goal is to minimize sum of ordering cost and holding cost Issue with lumpy demand because planning horizon shorter with lumpy demand 11. Contrast planned-order receipts and scheduled receipts. • • Planned-order - quantity expected to be received by the beginning of the period in which it is shown Scheduled - open orders scheduled to arrive from vendors or elsewhere in the pipeline 12. How does ERP differ from MRP II? • MRP II is an expanded approach to production resource planning, involving other areas of a firm in the planning process and enabling capacity requirements planning. ERP, however, is an integration of financial, manufacturing and human resources on a single computer system (standardized record keeping). 13. What are some costs of ERP? • • Hardware/Software/Professional services/Internal staff costs Maintaining/Upgrading/Optimizing costs