Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
51 Cards in this Set
- Front
- Back
|
Types of Resource Planning |
1. Materials Planning 2. Capacity Planning -Long-range planning: >1 yr -Intermediate-range planning: 6-18 months -Short-range planning: 1 day-6 months |
|
|
Aggregate Planning |
-Specify the optimal combination of: Production rate Workforce level Inventory on hand -Product group or broad category (aggregation) -Long-range planning period (>1 yr) -Goals: meet demand, inventory policy, use capacity efficiently, minimize costs |
|
|
Inputs |
-External: economy, market demand, raw material availability, competitors, external capacity -Internal: current physical capacity, current workforce, inventory levels, activities required for production |
|
|
Key Demand Strategies |
-Chase: Match production to customer order rate by hiring/firing employees -Level: Stable workforce with constant output. Inventory and backlogs absorb fluctuation in demand. -Combination: stable workforce with variable hours (overtime/flexible schedules) |
|
|
Costs Relevant to Aggregate Planning |
-Labor costs -Hiring, Firing, Training costs -Inventory holding costs -Backordering costs |
|
|
Master Production Scheduling (MPS) |
Determine amounts and dates of each end item to be produced -Inputs: Beginning inventory, forecast, customer orders -Outputs: Projected inventory, MPS, uncommitted inventory -Driven by rough cut capacity planning and materials requirements planning |
|
|
Rough Cut Capacity Planning |
Verifies equipment and labor availability |
|
|
Materials Requirements Planning |
Breaks end product requirements into a materials plan for component parts. -Inputs: MPS, Inventory records, bill-of-material (product structure of components) |
|
|
MRP Outputs |
-MRP Explosion: Process of converting planned production of parent item into component gross requirements. -Planned orders: order to be released in future -Rescheduling of production -Inventory status data |
|
|
Manufacturing Resource Planning (MRP II) |
-Goal: Plan and monitor all resources of a manufacturing firm (closed loop): manufacturing, marketing, finance, engineering. -Simulate the manufacturing system |
|
|
Enterprise Resource Planning Systems (ERP) |
Information system connecting all functional areas and operations of an organization and in some cases, suppliers and customers via common software infrastructure and database. -ERP provides means for supply chain members to share info so that scarce resources can be fully utilized to meet demand while minimizing supply chain inventories |
|
|
Categories of Inventory |
1. Finished goods 2. Raw materials 3. Work-in-process (WIP) 4. Maintenance, repair, and operating supplies (MRO) |
|
|
2 primary functions of inventory |
1. Buffer uncertainty in the marketplace 2. Decouple dependencies in the supply chain (Dependent demand) |
|
|
Inventory related costs |
-Item cost -Ordering costs -Carrying/holding cost: risk, storage, insurance, taxes, capital or finance. -Stockout costs |
|
|
Inventory Accuracy |
Refers to how well the inventory records agree with physical count |
|
|
Cycle Counting |
Physical inventory taking technique done on a regular basis (not once or twice a year) to reconcile discrepancies between the physical inventory and inventory record |
|
|
Inventory System |
Set of policies and controls that monitor levels of inventory and determines: 1. How much to order -Economic Order Quantity (EOQ) -Price Break Model 2. Inventory level to be maintained -Reorder Point -Safety Stock 3. When to order -ABC inventory analysis -Inventory turnover analysis |
|
|
Economic Order Quantity |
Goal is to find order quantity (Q) that minimizes the total cost (TC) of managing inventory. -Simple model: known/constant |
|
|
R |
Annual Demand |
|
|
C |
Cost/Unit |
|
|
Q |
units per order |
|
|
S |
Ordering cost |
|
|
k |
Holding rate |
|
|
Continuous Review System (Q System) |
Always ordering same quantity, reorder point varies |
|
|
Periodic Review (P) System |
P system requires that inventory be check after a fixed interval Order quantity varies to bring inventory to predetermined level |
|
|
ABC Method of Inventory Analysis |
Determine annual $ usage Rank items according to annual $ usage |
|
|
Average Inventory Turnover |
Higher average inventory turnover is better. Cost of goods sold/Avg aggregate inventory level (Raw/WOP/finished goods costs) |
|
|
Warehouse |
Accumulating Allocating Assorting Sorting of inventory |
|
|
Distribution Centers |
Emphasize rapid movement of products through the facility |
|
|
Cross-Docking |
Practice of unloading an inbound vehicle and reloading the product onto an outbound vehicle |
|
|
Private Warehousing |
High throughput volume, market density, customer service, security Stable demand Special physical control |
|
|
Public Warehousing |
Low throughput volume, market density, customer service, security Fluctuating demand No special physical control |
|
|
Centralized Warehousing |
Low customer service, substitutability, SS requirement, operating costs High product value Special warehousing requirements Large purchase size Diverse product line Longer lead times |
|
|
Decentralized warehousing |
High customer service, substitutability, SS requirement, operating costs Low Product value Small Purchase size Limited product line Shorter lead times |
|
|
Productivity Ratio |
(Lbs/Day)/(labor hours/day) |
|
|
Trends in warehousing |
Expansion of services Third party providers Reduced labor intensity: increased automation Integration of warehouse and logistics information systems Flexibility |
|
|
Time and place utility |
products delivered at right time and desired location |
|
|
Common Carriers |
Offer transportation services to all shippers at published rates between designated locations without discrimination |
|
|
Contract Carriers |
Not bound to serve general public. Serve specific customers under control. |
|
|
Exempt Carriers |
Exempt from regulation of services & rates if transporting certain products (i.e. produce, livestock, coal, or newspapers) |
|
|
Private Carrier |
Not subject to economic regulation. Typically transports goods for the company that owns it. (i.e. Hyvee) |
|
|
Modes of Transportation |
Motor carriage, rail, air, water, pipeline Intermodal |
|
|
Cost of Transportation Mode, low to high |
Pipeline, water, railroad, motor, air |
|
|
Transit time, low to high |
Air, motor, railroad, water |
|
|
Accessibility, low to high |
Water, air, railroad, motor |
|
|
Carrier selection determinants |
Price, Transit time, reliability, capability, accessibility, security |
|
|
Bill of Lading |
Legal document between the shipper and carrier detailing various aspects of the transportation |
|
|
Freight Bill |
Carrier's invoice for charges for a given shipment Credit terms are stipulated by the carrier and can vary extensively Credit may be denied if the charges are worth more than the freight |
|
|
Carrier Reduction Strategy |
Reducing # of carriers a shipper uses to help improve relationships, management, and costs has some risk |
|
|
Transportation Regulation and Deregulation |
Deregulation of freight transportation in 80s let to market freedom in pricing, open markets, and long term contracts Major exceptions of deregulation: Pipeline, rail |
|
|
Foreign Trade Zones |
Goods enter without customs, can be stored indefinitely or reexported. If the final product is exported out of the country, no domestic duty/tax need to be paid. If the final product is imported into the country, duties and taxes paid only with the goods leave the FTZ. |
