What is the lot sizing technique that generates exactly what was required to meet the plan Part 2?

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Term

Material requirements planning (MRP)

Definition

A dependent demand technique that uses bill-of-material, inventory, expected receipts, and a master production schedule to determine material requirements.

Term

Master production schedule (MPS)

Definition

A timetable that specifies what is to be made (usually finished products) and when.

Term

Definition

A listing of the components, their description, and the quantity of each required to make one unit of a product.

Term

Definition

Bills of material organized by major subassemblies or by product options.

Term

Definition

A material grouping created in order to assign an artificial parent to a bill of material; also called "pseudo" bills.

Term

Phantom bills of material

Definition

Bills of materials for components, usually assemblies, that exist only temporarily; they are never inventoried.

Term

Definition

A number that identifies items at the lowest level at which they occur.

Term

Definition

In purchasing systems, the time between recognition of the need for an order and receiving it; in production systems, it is the order, wait, move, queue, setup, and run times for each component.

Term

Gross material requirements plan

Definition

A schedule that shows the total demand for an item (prior to subtraction of on-hand inventory and scheduled receipts) and (1) when it must be ordered from suppliers, or (2) when production must be started to meet its demand by a particular date.

Term

Definition

The result of adjusting gross requirements for inventory on hand and scheduled receipts.

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Definition

The quantity planned to be received at a future date.

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Definition

The scheduled date for an order to be released.

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Definition

Frequent changes in an MRP system.

Term

Definition

A means for allowing a segment of the master schedule to be designated as "not to be rescheduled".

Term

Definition

In material requirements planning systems, tracing upward in the bill of material from the component to the parent item.

Term

Definition

Time units in a material requirements planning system.

Term

Definition

The process of, or techniques used in, determining lot size.

Term

Definition

A lot-sizing technique that generates exactly what is required to meet the plan.

Term

Periodic order quantity (POQ)

Definition

An inventory ordering technique that issues orders on a predetermined time interval, with the order quantity covering the total of the interval's requirements.

Term

Material requirements planning II (MRP II)

Definition

A system that allows, with MRP in place, inventory data to be augmented by other resource variables; in this case, MRP becomes material resource planning.

Term

Definition

A system that provides feedback to the capacity plan, master production schedule, and production plan so planning can be kept valid at all times.

Term

Definition

A report showing the resource requirements in a work center for all work currently assigned there as well as all planned and expected orders.

Term

Distribution resource planning (DRP)

Definition

A time-phased stock-replenishment plan for all levels of a distribution network.

Term

Enterprise resource planning (ERP)