MRP flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Dependent demand
- Demand for components derived from the demand for parent end items through the bill of materials, so it is calculated rather than forecast independently.
- Master production schedule
- A time-phased statement of the quantities of end items to be produced in each period, which drives material requirements planning and must reflect buildable configurations.
- Available-to-promise
- Scheduled MPS receipts minus customer orders already committed; the first period also subtracts beginning inventory, showing quantity still available to promise to new orders.
- Time fence
- A boundary in the planning horizon separating frozen, slushy, and liquid zones, controlling how much the master schedule may change within each period.
- Forecast consumption
- The practice of netting customer orders against forecast within a defined window so that demand is not counted twice in the master schedule.
- Planning bill
- A super bill or percentage-blend BOM that translates product-family forecasts into option-level or component-level master schedule quantities for configure-to-order products.
- Low-level code
- The deepest level at which an item appears in any product structure, used so MRP explodes an item only after all parent requirements are known.
- Phantom item
- An assembly that is exploded through rather than stocked; it carries no inventory and no planned orders, and only its children are planned.
- Where-used report
- An implosion listing every parent assembly that consumes a given component, used for engineering change impact analysis and quality containment.
- BOM effectivity
- Date ranges on a bill of materials line that determine when a component is valid, so MRP plans it only for orders falling inside the range.
- Cumulative lead time
- The longest total of lead times along any path from the lowest purchased component through all levels to the finished end item.
- Safety lead time
- A buffer applied to order due dates rather than quantities, protecting the plan against timing variability in supply or operations.
- Cycle counting
- Counting inventory in small scheduled increments rather than one annual physical count, measuring record accuracy against tolerances set by item classification.
- Planning scrap
- A percentage carried in the item master that increases component requirements, calculated as order quantity times scrap percent, rather than reducing available supply.
- Net requirement
- Gross requirement plus safety stock minus projected available balance and scheduled receipts; a negative result is treated as zero.
- Lot-for-lot sizing
- A lot-sizing rule that orders exactly the net requirement in each period, minimizing inventory while maximizing order count and setup cost.
- Economic order quantity
- The order size that minimizes total setup plus holding cost, calculated as the square root of two times annual demand times setup cost divided by holding cost per unit.
- Period order quantity
- A lot-sizing rule that sets the order cycle to economic order quantity divided by average periodic demand, ordering enough to cover an integer number of periods.
- Pegging
- The capability to trace a component requirement back to the end item and customer order that generated it, supporting order promising and change impact analysis.
- Net change MRP
- A processing mode that recalculates only the items affected by a change, in contrast to regenerative MRP which recalculates the entire plan.
- Rough-cut capacity planning
- A capacity check on the master production schedule using product-family load factors or resource profiles, performed before the MPS is released to MRP.
- Capacity requirements planning
- The detailed capacity check that converts planned and released orders into work-center load using routings, standard times, and order dates.
- Infinite loading
- A capacity technique that assumes unlimited capacity and shows pure demand by work center and period, without producing a feasible sequence.
- Input/output control
- A work-center monitoring technique comparing actual throughput against planned input and output, where a growing queue signals a capacity shortfall.
- Reschedule-in message
- An action message recommending that an existing scheduled receipt be moved to an earlier date so material arrives in time for its requirement.
- Firm planned order
- A planned order protected from change by MRP regeneration, used to stabilize the near-term plan and protect committed supply.
- Nervousness
- Excessive plan change caused by small demand changes, dampened by time fences, firm planned orders, and stable lot-sizing rules.
- Exception message
- An MRP output flagging a condition needing planner attention, such as a late order or negative inventory, prioritized by action date and severity.
- Release message
- An action message indicating that a planned order's start date has arrived and the order should be converted to a production or purchase order.
- Conference room pilot
- A pre-go-live ERP test in which users run real business processes end to end in the configured system to validate data and process fit.
- Inventory turns
- Cost of goods sold divided by average inventory value, measuring how many times inventory is replenished and consumed over a period.
- Perfect order rate
- The percentage of orders delivered complete, on time, damage-free, and with correct documentation, a composite measure of delivery performance.