Term
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Definition
-Reduce Dependency
-Customer Supplier
-Disruptions
-Enhance Reliability and Response Time |
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Term
| Why should Busniness' Carry inventory |
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Definition
| Inventory decouple's the dependency that one part of the supply chain my have on another. |
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Term
| Why do business' avoid carrying too much inventory |
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Definition
| Because there are cost associated with holding too much inventory. Like storage space, and warehouse workers. Excess inventory is an investment that is providing no financial return and increases a busniess' cost. |
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Term
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Definition
| The fixed cost that is associated with ordering inventory |
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Term
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Definition
| The cost of changing equipment from producing one product to producing another. |
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Term
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Definition
| Costs associated with carrying inventory |
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Term
| Independant Demand Inventory |
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Definition
| Inventory whose demand is dictated by the marketplace. |
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Term
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Definition
| On-hand Inventory/Average Daily Demand |
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Term
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Definition
| Inventory is used as a buffer for when demand exceed the capabilities of production. |
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Term
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Definition
| Inventory consisting of products that have completed all stages of production |
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Term
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Definition
| Maintenance, Repair and operating inventory. Is items that consist of the day to day items that are necessary for running the day-today operations of the business |
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Term
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Definition
| A system in which a group of identical products or customers is processed through one step in the process and then the entire group moves to the next step. |
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Term
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Definition
An aggregate planning approach that uses inventory stored from period to period to reduce the need to change the output as demand changes. [image] Use inventory to Offset Demand |
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Term
| Work-in process inventory |
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Definition
| Inventory of work that has begun processing, but has not yet been completed |
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Term
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Definition
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Term
| Dependent Demand Inventory |
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Definition
| Inventory whose demand is determined by the production schedule for finished products. Dependent demand items usually are components and raw materials. |
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Term
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Definition
| The percent of Orders Satisfied from existing Inventory. |
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Term
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Definition
| Orders must be made before the inventory runs out. This is the time required the recieve inventory that has been ordered. |
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Term
| Fixed Quantity/Interval Re-Order Point (ROP) Model |
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Definition
| An independent demand inventory management system that reorders when inventory drops to a specific level. |
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Term
| Fixed Quantity Reorder Point |
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Definition
| Always order the same amount with enough time to recieve more before you stock out. |
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Term
| Fixed Interval Reorder Point |
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Definition
| Always order at the same time, but adjust the quantity to get you through the next interval. |
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Term
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Definition
| Says When to order but not how many |
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Term
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Definition
Says how many to order.
D = annual demand
S = The cost of ordering per order
H = inventory carrying cost per unit |
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Term
| MRP (materials Requirements Planning) |
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Definition
Used to manage dependant inventory
-plans for future releases based on production schedules. |
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Term
| Master Production Schedule |
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Definition
| A schedule of end products that must be completed in a specific time period. (gives the demand for the MRP) |
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Term
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Definition
| A computer file containing information about an inventory item such as the quantity on hand, the cost, and so on. |
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Term
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Definition
| A computer file containing information about the materials required to produce a product or component. |
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Term
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Definition
-Inventory mast File
-Bill of Materials
-Master Production Schedule |
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Term
| 5 Basic Modes of Moving Materials |
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Definition
-Truck/Highway
-Rail/Train
-Air/Plane
-Ocean/Barge
-Pipeline |
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Term
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Definition
Full Truck load
-Transporting goods in a truck that is full |
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Term
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Definition
Light Truck Load
-Transporting goods in a partially filled truck |
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Term
| Intermodal Transportation |
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Definition
| At least two different transportation modes are used in moving the goods from origin to destination |
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Term
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Definition
| Example 12.1 (go over in book) |
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Term
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Definition
| Shipment directly from supplier to manufacturer. |
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Term
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Definition
| Periodic shipments from supplier to a warehouse, then periodic shipments from the warehouse to the retailer. |
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Term
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Definition
| Continuous shipments from the supplier to a warehouse, then continuous shipments from the warehouse to the retailer. |
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Term
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Definition
| Customs Trade Partnership Against Terrorism. Helps to secure supply chains |
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Term
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Definition
| Radio Frequency Identifier Tags. These are being used in supply chains systems more readily. |
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Term
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Definition
-Monitor Vehicle locations
-Estimate time arrivals
-update customers
-Increase Security |
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Term
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Definition
| Systems that reduce the waste in the production process. (waste is anything that that does not contribute to the process) Is this something the customer will pay for? |
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Term
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Definition
Improving Process Productivity
Reducing Inventory
Improving Quality
Increase Worker involvment |
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Term
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Definition
| Match the rate of production to the rate of demand at very small time increments |
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Term
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Definition
| how often you must produce a product in order to meet demand. The lower the takt time the better. |
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Term
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Definition
Time required to process one unit multiplied by the quantity of demand. Actual Hours * Utilization * Efficiency |
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Term
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Definition
Link Production rate to demand
Demand pulls the products through the production system. (see Book) |
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Term
| Inventory Focused Techniques |
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Definition
-Kahnban
-Spaghetti Diagram
-Small Batch Production |
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Term
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Definition
| Increases the number of time equipment must be changed over, which can cut into capacity. Only economic when changover times are minimal. |
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Term
| Capacity (Small-Batch Production) |
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Definition
Problem 10-13
Identify the amount of capacity that is not needed for production and use all of it for changeover.
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Term
Small-Batch Production formula
D
Hreq
Havail
T |
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Definition
-D = demand during the planning horizon
-Hreq = Hours of capacity Required
-Havail = Hours of capacity available
-T = Time it takes to perform a changeover |
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Term
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Definition
-Reduces material Movement
-small-scale equipment
-workeres responsible for broad tasks
-cross-trained employees
-flex the number of workers in a cel |
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Term
| Competitive Advantages of Lean |
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Definition
| -Eliminate Waste (reduce cost) |
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Term
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Definition
-Used in capital intensive services
-Obtain max rev through differential pricing
-Requires Segmenting Customer Base
Allocate the right type of capacity to the right type of customer at the right price and time to maximize revenue or yield |
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Term
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Definition
Take more reservations than you have capacity (airlines and hotels)
Example 13.5 (book) |
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Term
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Definition
| Produce a given volume in specified amount of time. |
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Term
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Definition
-Usually sends customers away
-Starts waiting lines (backlog) |
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Term
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Definition
| A queue of orders is waiting to be processed) |
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Term
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Definition
Inventory Remains constant
-Adjust to meet varying demand;hiring and firing workers |
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Term
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Definition
| Production rate remains the same, and inventories are used to offset demand while keeping the workforce level. (example 14.1) |
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Term
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Definition
Anything that inhibits a process towards completing its goals.
-Resource
-Policy
-Internal
-External Factors |
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Term
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Definition
| A framework for managing the constraints of a system in a way that maximizes the system's accomplishment of it sgoals |
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Term
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Definition
-Identify the Constraint
-Exploit the constraint
-Elevate the constraint
-Subordinate Steps 2&3
-If steps 2-4 eliminate constraint go back |
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Term
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Definition
| The time a resource is used and contributing to throughput divided by the time the resource was available |
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Term
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Definition
| Running a machine or resource when it deosn't contribute to throughput |
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Term
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Definition
| Dollars Generated by Sales (Constraint Managment) |
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Term
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Definition
| Constraints Placed immediately before a constraint. |
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Term
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Definition
| A buffer placed prior to shiping |
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Term
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Definition
| A measure of inventory productivity that is computed by dividing sales by the average value of the inventory. |
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