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Questions and Answers
What is the primary function of a firm planned order in MRP planning?
What is the primary function of a firm planned order in MRP planning?
- To stop the production line completely
- To ensure orders can still be adjusted automatically
- To allow the MRP system to automatically adjust the order
- To override the MRP system's ability to change the order (correct)
When are firm planned orders typically utilized?
When are firm planned orders typically utilized?
- When vendors are not available
- When the MRP system is disabled
- During high sales seasons
- Within the planning time fence by lower-level firms and closer-tiered vendors (correct)
What can firm planned orders signal for?
What can firm planned orders signal for?
- To stop production immediately
- To change the production schedule completely
- To cancel all existing orders
- For purchasing to order parts and/or production (correct)
Which scenario may cause a planner to use firm planned orders as a 'safety net'?
Which scenario may cause a planner to use firm planned orders as a 'safety net'?
What can a firm planned order ensure regarding the production line?
What can a firm planned order ensure regarding the production line?
What distinguishes a planned order from a firm planned order?
What distinguishes a planned order from a firm planned order?
What action does a planner take when they use a firm planned order?
What action does a planner take when they use a firm planned order?
Within what interval are lower-level firms and closer-tiered vendors most likely to use firm planned orders?
Within what interval are lower-level firms and closer-tiered vendors most likely to use firm planned orders?
What might a planner do in response to seasonal fluctuations?
What might a planner do in response to seasonal fluctuations?
How can firm planned orders help avoid potential production issues?
How can firm planned orders help avoid potential production issues?
Which key element is involved in the distinction shown in Exhibit 4-61?
Which key element is involved in the distinction shown in Exhibit 4-61?
What is the purpose of using a firm planned order as a 'safety net'?
What is the purpose of using a firm planned order as a 'safety net'?
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Study Notes
Firm Planned Orders
- A firm planned order is a way for the MRP planner to override the MRP system's ability to change the planned order.
- Firming the order allows the planner to take control of the order and prevent the MRP system from making changes.
- Lower-level firms and closer-tiered vendors within the planning time fence often use firm planned orders.
- Firm planned orders serve as a signal for purchasing to order the required parts and/or production.
- They can also be used as a "safety net" in response to seasonal or low-usage capacity events.
- For example, a planner may use firm planned orders to ensure production line capacity during peak sales periods.
Distinction between Planned Orders and Firm Planned Orders
- Planned orders can be changed by the MRP system.
- Firm planned orders are fixed and cannot be changed by the MRP system.
- The planner has the ability to override the MRP system's changes when using firm planned orders.
- Scheduled delivery dates are ahead of the planned order date in the case of firm planned orders.
Firm Planned Orders
- A firm planned order is a way for the MRP planner to override the MRP system's ability to change the planned order.
- Firming the order allows the planner to take control of the order and prevent the MRP system from making changes.
- Lower-level firms and closer-tiered vendors within the planning time fence often use firm planned orders.
- Firm planned orders serve as a signal for purchasing to order the required parts and/or production.
- They can also be used as a "safety net" in response to seasonal or low-usage capacity events.
- For example, a planner may use firm planned orders to ensure production line capacity during peak sales periods.
Distinction between Planned Orders and Firm Planned Orders
- Planned orders can be changed by the MRP system.
- Firm planned orders are fixed and cannot be changed by the MRP system.
- The planner has the ability to override the MRP system's changes when using firm planned orders.
- Scheduled delivery dates are ahead of the planned order date in the case of firm planned orders.
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