“CHAPTER 11”

Resource management 1. Deals with the planning, execution, and control of all the
resources that are used to produce goods or provide services in a value chain.
Aggregate planning 2. Is the development of a long-term output and resource plan in
aggregate units of measure.
Disaggregation 3. Is the process of translating aggregate plans into short-term
operational plans that provide the basis for weekly and daily schedules and detailed
resource requirements.
Execution 4. Refers to moving work from one workstation to another, assigning people
to tasks, setting priorities for jobs, scheduling equipment, and controlling processes.
Shop floor control 5. Planning and execution in manufacturing is sometimes called
_______.
Enterprise resource planning (ERP) 6. Is an important information systems tool for
manufacturing resources across the value chain.
ERP systems 7. Integrate all aspects of a business-accounting customer relationship
management, supply chain management , manufacturing, sales, human resources-into a
unified information system, and they provide more timely analysis and reporting sales,
customer, inventory, manufacturing, human resource, and accounting data.
Demand management 8. Marketing strategies can be used to influence demand and to
help create more feasible aggregate plans.
Production-rate changes 9. One means of increasing the output rate without changing
existing resources is through planned overtime.
Workforce changes 10. Changing the size of the workforce is usually accomplished
through hiring and layoffs.
Inventory changes 11. In planning for fluctuating demand, inventory is often built up
during slacks period and held for peak periods.
Facilities, equipment, and transportation 12. Represent long-term capital investments.
Level production strategy 13. Plans for the same production rate in each time period.
Chase demand strategy 14. Sets the production rate equal to the demand in each time
period.
Master production schedule (MPS) 15. Is a statement of how many finished items are
to be produced and when they are to be produced.
Firm orders 16. The known customer orders determine the MPS.
Final assembly schedule (FAS) 17. Defines the quantity and timing for assembling
subassemblies and component parts into a final finished goods.
Materials requirements planning (MRP) 18. Is a forward-looking, demand-based
approach for planning the production of manufactured goods and ordering materials and
components to minimize unnecessary inventories and reduce costs.
Dependent demand 19. Is demand that is directly related to the demand of other SKUs
and can be calculated without needing to be forecasted.
Bill of materials (BOM) 20. Defines the hierarchical relationships between all items that
comprise a finished goods, such as subassemblies, purchased parts, and manufactured
in-house parts.
Product structure 21. Some firms call the BOM as a ______.
Bill of materials (BOM) 22. May also define standard times and alternative routings for
each item.
Bill of labor (BOL) 23. For labor-intensive services, the analogy to the BOM is a ______.
Bill of labor (BOM) 24. Is a hierarchical record analogous to a BOM that defines labor
inputs necessary to create a good or service.
End items 25. Are finished goods scheduled in the MPS or FAS that must be forecasted.
Parent item 26. Is manufactured from one or more components.
Components 27. Are any items (raw materials, manufactured parts, purchased parts)
other than an end item that goes into a higher-level parent item.
Subassembly 28. Always has at least one immediate parent and also has at least one
immediate component.
Subassemblies 29. (sometimes called intermediate items) reside in the middle of the
BOM.
Lot sizing 30. Orders might be consolidated to take advantage of ordering economies of
scale.
MPR explosion 31. Is the process of using the logic of dependent demand to calculate
the quantity and timing of orders for all subassemblies and components that go into and
support the production of the end items.
Time buckets 32. Are the time period size used in the MRP explosion process and
usually are one week in length.
Gross requirements 33. Are the total demand for an item derived from all of its parents.
Scheduled or planned receipts 34. Are orders that are due or planned to be delivered.
Shop or manufactured order 35. If the order is produced in-house.
Planned order receipt 36. Specifies the quantity and time an order is to be received.
Planned order release 37. Specifies the planned quantity and time an order is to be
released to the factory or a supplier.
Projected on-hand inventory 38. Is the expected amount of inventory on hand at the
beginning of the time period considering on-hand inventory from the previous period plus
scheduled receipts or planned order receipts minus the gross requirements.
Lot sizing 39. Is the process of determining the appropriate amount and timing of
ordering to reduce costs.
Lot-for-lot rule 40. An ordering schedule that covers the gross requirements for each
week.
Action bucket 41. Is the current time period.
Fixed-order-quantity rule 42. Uses a fixed order size for every order or production run.
Periodic-order-quantity rule 43. Orders a quantity equal to the gross requirement
quantity in one or more predetermined time periods minus the projected on-hand quantity
of the previous time period.
Capacity requirements planning 44. Is the process of determining the amount of labor
and machine resources required to accomplish the tasks of production on a more detailed
level, taking into account all component parts and end items in the materials plan.
Capacity requirements 45. Are computed by multiplying the number of units scheduled
for production at a work center by the unit resource requirements and then adding in the
setup time.