Podcast
Questions and Answers
What is a characteristic of independent demand?
What is a characteristic of independent demand?
- It is a result of dependent demand
- It is affected by trends, seasonal patterns, and general market conditions (correct)
- It is used to determine the quantity of components and parts
- It is affected by the production planning process
What is the purpose of the Aggregate Production Plan (APP)?
What is the purpose of the Aggregate Production Plan (APP)?
- To determine the quantity of end items to be produced
- To manage the distribution of products to customers
- To construct facilities and purchase major equipment (correct)
- To plan the production of components and parts
What is the difference between the Master Production Schedule (MPS) and the Aggregate Production Plan (APP)?
What is the difference between the Master Production Schedule (MPS) and the Aggregate Production Plan (APP)?
- MPS is more detailed and has a shorter planning horizon (correct)
- MPS is used for production planning, while APP is used for distribution planning
- MPS is used for short-range planning, while APP is used for long-range planning
- MPS is less detailed and has a longer planning horizon
What is the purpose of the Closed-Loop MRP system?
What is the purpose of the Closed-Loop MRP system?
What is the purpose of Manufacturing Resource Planning (MRP-II)?
What is the purpose of Manufacturing Resource Planning (MRP-II)?
What is the purpose of Distribution Requirement Planning (DRP)?
What is the purpose of Distribution Requirement Planning (DRP)?
What is the primary goal of suppliers in matching supply and demand?
What is the primary goal of suppliers in matching supply and demand?
What type of demand is described by the internal demand for parts based on the demand of the final product?
What type of demand is described by the internal demand for parts based on the demand of the final product?
What is the potential consequence of a missed due date or stock-out in supply chain management?
What is the potential consequence of a missed due date or stock-out in supply chain management?
What is the primary focus of operations managers in the hierarchical operations planning process?
What is the primary focus of operations managers in the hierarchical operations planning process?
What is the term for the process of planning and coordinating the production and delivery of products?
What is the term for the process of planning and coordinating the production and delivery of products?
What is the purpose of ERP software applications in supply chain management?
What is the purpose of ERP software applications in supply chain management?
What is the relationship between dependent demand items and the final product?
What is the relationship between dependent demand items and the final product?
What is the result of not accurately forecasting demand in supply chain management?
What is the result of not accurately forecasting demand in supply chain management?
What is the primary purpose of the master production schedule in the service industry?
What is the primary purpose of the master production schedule in the service industry?
What does the multilevel bill of materials show?
What does the multilevel bill of materials show?
What is the primary purpose of the Super Bill of Materials?
What is the primary purpose of the Super Bill of Materials?
What triggered the development of Enterprise Resource Planning (ERP) systems?
What triggered the development of Enterprise Resource Planning (ERP) systems?
What is the primary difference between MRP and ERP systems?
What is the primary difference between MRP and ERP systems?
What was the primary limitation of MRP systems by the end of the 20th century?
What was the primary limitation of MRP systems by the end of the 20th century?
What is the primary function of Materials Requirement Planning (MRP) systems?
What is the primary function of Materials Requirement Planning (MRP) systems?
What is the Bill of Materials (BOM) in supply chain management?
What is the Bill of Materials (BOM) in supply chain management?
Study Notes
Service Industry Production Scheduling
- In the service industry, the master production schedule may be an appointment log or book, ensuring that capacity (e.g., skilled labor or professional service) is balanced with demand.
Bill of Materials (BOM)
- An engineering document that shows an inclusive listing of all component parts and assemblies making up the final product.
- Multilevel Bill of Materials shows the parent-component relationships and the specific units of components known as the planning factor.
- The multilevel bill of materials can be presented as an indented bill of materials, where each level of indentation increases by one.
- Super Bill of Materials (also known as planning BOM, pseudo BOM, phantom BOM, or family BOM) enables the firm to forecast the total demand for end products.
MRP vs ERP
- Materials Requirement Planning (MRP) systems were the first choice in the US for planning and managing purchasing, production, and inventories.
- By the end of the 20th century, MRP systems could not handle the added tasks of international business, leading to the development of Enterprise Resource Planning (ERP) systems.
- ERP systems replaced legacy MRP systems and coordinate information requirements for purchasing, planning, scheduling, and distribution in a complex global environment.
Aggregate Planning
- Aggregate planning involves matching supply and demand to achieve optimal levels of cost, quality, and customer service.
- Suppliers must accurately forecast demand to produce and deliver the right quantities at the right time and cost.
Hierarchical Operations Planning
- Operations planning is usually hierarchical and can be divided into three broad categories:
- Long-range: Aggregate Production Plan (APP) involving the construction of facilities and major equipment purchase.
- Intermediate: Master Production Schedule (MPS) showing the quantity and timing of end items.
- Short-range: Detailed planning process for components and parts to support the master production schedule (Materials Requirement Planning - MRP).
Operations Planning
- Closed-loop MRP incorporates the aggregate production plan, the master production schedule, material requirements plan, capacity requirements plan, and manufacturing resource planning (MRP-II).
- MRP-II incorporates the business and sales plans with the closed-loop MRP system.
- Distribution requirement planning (DRP) describes the time-phased net requirements from warehouses and distribution centers, based on customer demand minus any on-hand in-transit inventories.
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Description
Learn about the principles of supply chain and logistics management, including master production schedules and bill of materials. This quiz is based on the BSSL1208 course, Fall 2022, at UTAS.