parts required for the production of the finished goods. What is Master Production Schedule? Master Production Schedule specifies production quantities of each Independent Demand item for a planning horizon of 12 to 15 weeks. Total of MPS quantities must be in accordance with the aggregate production plan. What is Bill of Materials? Bill of materials is structured list of components, ingredients, and materials needed to make an end product. Items needed to produce a given part are called components or “children”. The part into which the components go us called The BOM also gives the number “Parent”. of units of a child item needed to produce one unit of the parent item. What is Low-Level coding and what how is it used? A level code starting from zero at the top of the BOM tree and incremented by 1 going down each level of the BOM tree is assigned. Then, the lowest level at which an item appears is called Low-Level code. The MRP computations are processed one level at a time, starting from level zero. What are the benefits of MRP? Better response to customer orders Faster response to market changes Improved utilization of facilities and labor Reduced inventory levels What are the inputs required for MRP? Master Production Schedule Bill of Materials Inventory status What is in MRP? “Lot Sizing” The process of combining net requirements into production lots is called lot sizing. What are the reasons for using a lot sizing method other than Lot-for-lot? Lot-for-lot often requires too many lots that may not be economically justifiable Sometime lot-for-lot generates absurdly small lots Answers to problems 1. Given dL = 130, = 80, and for 80% service level, Z = 0.84 dLT ROP = 130 + 0.84 x 80 = 197.2, or round up to 198 for at least 80% service level 2. d = D/No. of days per year = 600/300 = 2 per day Z for 90% service level = 1.285 a. Given: L = 4 days Constant, = 2.4 per day, therefore = 2.4 = 4.8 d dLT
parts required for the production of the finished goods. What is Master Production Schedule? Master Production Schedule specifies production quantities of each Independent Demand item for a planning horizon of 12 to 15 weeks. Total of MPS quantities must be in accordance with the aggregate production plan. What is Bill of Materials? Bill of materials is structured list of components, ingredients, and materials needed to make an end product. Items needed to produce a given part are called components or “children”. The part into which the components go us called “Parent”. The BOM also gives the number of units of a child item needed to produce one unit of the parent item. What is Low-Level coding and what how is it used? A level code starting from zero at the top of the BOM tree and incremented by 1 going down each level of the BOM tree is assigned. Then, the lowest level at which an item appears is called Low-Level code. The MRP computations are processed one level at a time, starting from level zero. What are the benefits of MRP? Better response to customer orders Faster response to market changes Improved utilization of facilities and labor Reduced inventory levels What are the inputs required for MRP? Master Production Schedule Bill of Materials Inventory status What is “Lot Sizing” in MRP? The process of combining net requirements into production lots is called lot sizing. What are the reasons for using a lot sizing method other than Lot-for-lot? Lot-for-lot often requires too many lots that may not be economically justifiable Sometime lot-for-lot generates absurdly small lots Answers to problems 1. Given dL = 130, dLT = 80, and for 80% service level, Z = 0.84 ROP = 130 + 0.84 x 80 = 197.2, or round up to 198 for at least 80% service level 2. d = D/No. of days per year = 600/300 = 2 per day Z for 90% service level = 1.285 a. Given: L = 4 days Constant, d = 2.4 per day, therefore dLT = 2.4 = 4.8
Fa12-3110-StudyGuide-e3.docx