2020-11-01T20:29:59+03:00[Europe/Moscow] en true Reasons to have safety stock, Safety stock definition, Solution to lead time variation, Disaggregation, The master scheduling process' three outputs, Bill of Materials, two-bin system, Pure Level Strategy, Pure Chase Strategy, Inventory's two fundamental decisions, Inventory management's objective, Methods to modify capacity in aggregate planning, Information Required to Do Aggregate Planning, Aggregate Demand's Balance, Types of units used in aggregate planning, Ways to handle demand in level production when it varies, Cycle Counting, MRP Inputs, Quantity Discount's Effect, Fixed-order-interval (FOI) model, Uncommitted Inventory term, Aggregate Planning's Decisions, Fixed Order Quantities, MRP Primary Outputs, MRP Secondary Outputs, Positive Ways to Reduce Safety Stock, Negative Way to Reduce Safety Stock, Lot-for-lot, EOQ Model's Purpose, Fill rate, Example of how to calculate expected inventory, Transportation's Objective, Reason why twice as much inventory does not provide twice the customer service level, Reason why it is important to be able to assume that demand will be level during each six-month period, Fact about Level Strategy, Recommended method for calculating the quantities of each component required to assemble multiple finished product units, Tip for quantity discount problems, Average number of orders per year, Average Inventory, Order quantity flashcards

MSC 385 Supply Chain Test 3

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  • Reasons to have safety stock
    Demand can vary and lead time can vary
  • Safety stock definition
    Stock that is held in excess of expected demand due to variable demand and/or lead time
  • Solution to lead time variation
    Safety time
  • Disaggregation
    Breaking down the current month's aggregate plan into a master schedule
  • The master scheduling process' three outputs
    Projected inventory, master production schedule, and uncommitted inventory
  • Bill of Materials
    A listing of all of the assemblies, subassemblies, parts, and raw materials needed to produce one unit of a product
  • two-bin system
    There are two containers of inventory; reorder when the first is empty
  • Pure Level Strategy
    Always produces the same amount every period, whether through regular time, overtime, or subcontracting
  • Pure Chase Strategy
    There is no inventory; it produces exactly what is needed; quantities and costs fluctuate according to needs
  • Inventory's two fundamental decisions
    customer service level and inventory ordering and carrying cost
  • Inventory management's objective
    To achieve satisfactory customer service levels while keeping inventory costs within reasonable bounds
  • Methods to modify capacity in aggregate planning
    Hiring and laying off workers, overtime/slack time, part-time workers, building up inventories, and subcontracting
  • Information Required to Do Aggregate Planning
    Demand Quantity and Demand Timing
  • Aggregate Demand's Balance
    If demand exceeds capacity, it attempts to alter capacity, demand, or both
  • Types of units used in aggregate planning
    Aggregate units of output per month, customers served, Total monthly output dollar value, total factory output, labor hours and other measures that relate to capacity
  • Ways to handle demand in level production when it varies
    Maintain a certain amount of excess capacity to handle increases in demand, hire temporary workers, use overtime, wait as long as possible before committing to a certain level of supply capacity, postponement
  • Cycle Counting
    A physical count of items in inventory
  • MRP Inputs
    Master schedule, Bill of Materials, and Inventory Records
  • Quantity Discount's Effect
    They improve pricing through larger purchase quantities, but make firms inefficient, so total cost should be examined instead of just inventory cost
  • Fixed-order-interval (FOI) model
    orders are placed at fixed time intervals
  • Uncommitted Inventory term
    Available-to-Promise Inventory
  • Aggregate Planning's Decisions
    What price to set and what strategy to use
  • Fixed Order Quantities
    The quantity ordered never varies, but the timing and type of goods can vary
  • MRP Primary Outputs
    Planned orders, Order releases, and Changes
  • MRP Secondary Outputs
    Performance-control reports, Planning reports, and Exception reports
  • Positive Ways to Reduce Safety Stock
    Reduce lead times, improve supply reliability, order more frequently, and/or forecast more accurately
  • Negative Way to Reduce Safety Stock
    Increase the risk of stockouts
  • Lot-for-lot
    The order or run size is set equal to that period's demand
  • EOQ Model's Purpose
    It identifies the optimal order quantity by minimizing order costs and holding costs
  • Fill rate
    The percentage of demand filled by the stock on hand
  • Example of how to calculate expected inventory
    If you need inventory in Week 4 and the inventory has a two week lead time, order it in Week 2.
  • Transportation's Objective
    to minimize the cost of holding inventory
  • Reason why twice as much inventory does not provide twice the customer service level
    There is a limit to how high service level can go
  • Reason why it is important to be able to assume that demand will be level during each six-month period
    If demand varies, the company will have to calculate EOQ every month
  • Fact about Level Strategy
    It will always have inventory in some, if not all periods
  • Recommended method for calculating the quantities of each component required to assemble multiple finished product units
    Calculate one unit's necessary component quantities, then multiply that by the needed number of units
  • Tip for quantity discount problems
    Change S for quantity discounts, not price
  • Average number of orders per year
    D/Q
  • Average Inventory
    Q/2
  • Order quantity
    Q