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backflushing  Exploding an end item's BOM to determine the quantities of the components that were used to make the item.
bill of materials (BOM)  One of the three primary inputs of MRP; a listing of all of the raw materials, parts, subassemblies, and assemblies needed to produce one unit of a product.
capacity requirements planning  The process of determining short-range capacity requirements.
changes  Revisions of due dates or order quantities, or cancellations of orders.
cumulative lead time  The sum of the lead times that sequential phases of a process require, from ordering of parts or raw materials to completion of final assembly.
dependent demand  Demand for items that are subassemblies or component parts to be used in the production of finished goods.
distribution resource planning (DRP)  A method used for planning orders in a supply chain.
enterprise resource planning (ERP)  Integration of financial, manufacturing, and human resources on a single computer system.
exception reports  Data on any major discrepancies encountered.
gross requirements  Total expected demand for an item or raw material in a time period.
inventory records  One of the three primary inputs in MRP; includes information on the status of each item by time period.
load reports  Department or work center reports that compare known and expected future capacity requirements with projected capacity availability.
lot sizing  Choosing a lot size for ordering or production.
low-level coding  Restructuring the bill of materials so that multiple occurrences of a component all coincide with the lowest level at which the component occurs.
manufacturing resources planning (MRP II)  Expanded approach to production resource planning, involving other areas of a firm in the planning process and enabling capacity requirements planning.
master schedule  One of three primary inputs in MRP; states which end items are to be produced, when these are needed, and in what quantities.
material requirements planning (MRP)  A computer-based information system that translates master schedule requirements for end items into time-phased requirements for subassemblies, components, and raw materials.
net-change system  Approach that updates MRP records continuously.
net requirements  The actual amount needed in each time period.
order releases  Authorization for the execution of planned orders.
pegging  The process of identifying the parent items that have generated a given set of material requirements for an item.
performance-control reports  Evaluation of system operation, including deviations from plans and cost information.
planned-order receipts  Quantity expected to be received by the beginning of the period in which it is shown.
planned-order releases  Planned amount to order in each time period; planned-order receipts offset by lead time.
planned orders  Schedule indicating the amount and timing of future orders.
planning reports  Data useful for assessing future material requirements.
product structure tree  A visual depiction of the requirements in a bill of materials, where all components are listed by levels.
projected on hand  Expected amount of inventory that will be on hand at the beginning of each time period.
regenerative system  Approach that updates MRP records periodically.
scheduled receipts  Open orders scheduled to arrive from vendors or elsewhere in the pipeline.
time fences  Series of time intervals during which order changes are allowed or restricted; the nearest fence is most restrictive to change, the farthest is least restrictive.







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