Product Management

Assignment 7 Production and Operations Management Due 11-17-2013

1. Contrast independent and dependent demand.

a. Dependent demand is for items that are subassemblies or component parts to be used in the production of finished goods

b. Independent demand is the item itself

2. When is MRP appropriate?

c. When transferring the finished product requirements of the master schedule into time-phased requirements for subassemblies and component parts.

d. To determine when and how much to order.

3. Briefly define or explain each of the following terms:

a. Master Schedule is a plan for individual commodities to produce in each time period such as production, staffing, inventory, etc.

b. Bill of Materials is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, parts and the quantities of each needed to manufacture an end product.

c. Inventory records computer-based record of the quantity and kind of inventory (1) at hand, (2) committed (allocated) to firm-orders or to work-in-process, and (3) on order. It often also includes history of the recent transactions in each inventory item. Also called stock record.

d. Gross requirements Gross requirements plan is 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

e. Net requirements The requirements for an item based on its gross requirements (from forecasts, customer orders or upper level demand), minus stock already on-hand and scheduled receipts. If the total is below the specified safety stock, a planned order is generated based on the lot size. The generation of a new planned order for a given net requirement is normally done only after calculating the effect of rescheduling all incoming receipts to the dates required. "

4. How does the ERP differ from the purpose of MRP II?

e. MRP II is an expanded approach...