Ops chp 11

  1. Decouple?
    to reduce the direct dependency of a process step on its predecessor 
  2. Order cost?
    the fixed cost associated with ordering inventory 
  3. Changeover cost?
    the cost of changing equipment from producing one product or service to another 
  4. Carrying cost?
    costs associated with carrying inventory 
  5. Stockout cost?
    cost associated with not having inventory when a customer demands it
  6. Continuous replenishment?
    delivery of inventory, frequently in small quantities
  7. Independent demand inventory?
    inventory whose demand is dictated by the marketplace
  8. Maintenance, repair, and operating (MRO) inventory 
    inventory that consists of items consumed in the day-to-day activities of a business 
  9. Stockout?
    An instance when demand cannot be satisfied by existing inventory 
  10. Finished-good inventory?
    inventory consisting of products that have completed all stages of production 
  11. Batch processing?
    system in which a group of identical products or customers is processed through one step in the process and when the entire group moves to the next step. 
  12. Level production?
    an aggregate planning approach that uses inventory stored from period to period to reduce the need to change the output rate as demand changes 
  13. Work-in-process inventory (WIP)
    inventory that has begun processing, but has not yet completed it 
  14. Transfer batch?
    the quanitity produced at a workcenter before transferring the products to the next step in the process. 
  15. Pipeline inventory?
    inventory in transit 
  16. Service level?
    Percent of orders satisfied from existing inventory
  17. Replenishment lead time?
    time required to receive inventory that has been ordered 
  18. Fixed-quanitity reorder point (ROP) model?
    An independent demand inventory management system that reorders when inventory drops to a specific level 
  19. Safety stock?
    additional inventory used to help meet demand uncertainty
  20. Economix order quantity model?
    an apporach used to determine an order quantity that minimizes the sum of ordering and carrying costs. 
  21. Periodic review system?
    an independent demand management system that orders inventory on fixed time intervals 
  22. Material requirements planning (MRP)
    an inventory management approach used to manage dependent demand inventory that plans order releases for the future based on production schedules 
  23. Netting?
    process of computing net requirements
  24. Back-ward scheduling?
    when a completion date or due date is known and that date must determine a start date 
  25. Master production schedule (MPS)?
    schedule of end products that must be completed in a specific time period 
  26. Bill of material?
    in material requirements planning, this is a computer file containing information about the materials required to produce a product or component
  27. Inventory master file?
    in material requirements planning, this is a computer file containing information about an inventory item such as the quanitity on hand, the cost, and so on. 
  28. Gross-requirements?
    in material requirments planning, the total quantity needed to meet-demand. 
  29. Beginning on-hand inventory?
    quantity of inventory on hand at the beginning of a time period
  30. Ending on-hand inventory
    quantity of inventory on hand at the end of a time period
  31. Net requirements?
    in material requirements planning, gross requirments minus beginning on-hand inventory
  32. Planned order receipt?
    in material requirements planning, this is the planned receipt of material that results from a planned order release.
  33. Planned order release?
    in material requirements planning, this is the order planned to be released to satisfy a future net requirement 
  34. Lot-for-lot ordering?
    in material requirements planning, ordering exactly the amount of the net requirements
  35. Fixed-quantity order policy?
    in material requirements planning, rather than ordering the quantity of the net requirements, orders are placed in increments of a fixed quantity. 
  36. Two-bin system?
    primitive reorder point inventory system in which two containers of invenotry are kept. An order for more is placed when one container becomes empty.
  37. Inventory turns?
    a measure of inventory productivity computed by dividing sales by the average value of inventory 
  38. Dollar days?
    dollar value of an item in inventory multiplied by the number of days until it will be sold 
Card Set
Ops chp 11
Ops chp 11