100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Summary Introduction to Materials Management, Global Edition, ISBN: 9781292162355 Production Logistics $4.85
Add to cart
Quickly navigate to
Preview
  2.  
  3. Hogeschool Rotterdam (HR)
  4.  
  5. Management of resources

Summary

Summary Introduction to Materials Management, Global Edition, ISBN: 9781292162355 Production Logistics

2 reviews
 4 purchases
  • Course
  • Management of resources
  • Institution
  • Hogeschool Rotterdam (HR)
  • Book
  • Introduction to Materials Management

Summary of chapters 2 to 6, 8 and 9 of the book introduction to materials management. The summary is based on the theory questions from the relevant chapters, so all the important topics in each chapter are summarized in a few sentences.

Preview 4 out of 24  pages

Document information

  • No
  • 2 t/m 6, 8 en 9
  • November 1, 2021
  • 24
  • 2021/2022
  • Summary

Subjects

  • productie logistiek
  • logistiek
  • master scheduling
  • capacity management
  • inventory fu
  • production planning system
  • material requirements planning
  • production activity control
  • forecasting and demand management

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

Written for

  • Hogeschool Rotterdam (HR)
  • Minor supply chain management
  • Management of resources
All documents for this subject (1)

2  reviews

review-writer-avatar

By: sjkluft • 4 months ago

review-writer-avatar

By: TKreek • 3 year ago

Translated by Google

Very clear summary, covers all mc questions. Highly recommended!

Seller

avatar-seller
jaspervanoosten

Reviews received

Content preview

Introduction to
materials management
A summary based on the theory questions. From chapter 2 till 6 and
chapter 8 and 9.

,Table of contents
Chapter 2 – Production planning system..................................................................................................................2
Chapter 3 – Master scheduling.................................................................................................................................6
Chapter 4 – Material requirements planning............................................................................................................8
Chapter 5 – Capacity management.........................................................................................................................11
Chapter 6 – Production activity control..................................................................................................................14
Chapter 8 – Forecast and demand management....................................................................................................18
Chapter 9 – Inventory fundamentals......................................................................................................................21




1

,CHAPTER 2 – PRODUCTION PLANNING SYSTEM
What are the four questions a good planning system must answer?
 What are we going to make or provide to customers?
 What does it take to make?
 What do we have?
 What do we need?

2. Define capacity and priority. Why are they important in production planning?
 Priority, relates to what products are needed (quantity and when)  marketplace establishes the
priorities
 Capacity, capability of manufacturing to produce goods and services  depends on resources of the
company
 Demand vs resources

3. Describe each of the following plans in terms of their purpose, planning horizon, level of detail, and planning
cycle:

A. Strategic plan  statement for major goals and objectives expects to achieve over the next 2 to 10
years or more
B. b. Business plan  Financially based plan, with revenues. Comes from financial, production, marketing
and engineering and is made every 6 to 12 months.
C. c. Production plan  quantities of product, desired inventory levels, resources availability, resources
needed  made each month or quarter
D. d. Master production schedule  Production plan for individual end items  made each week or
month
E. e. Material requirements plan  plan for production and purchase of components – high detail level
F. f. Production activity control (PAC)  is responsible for planning and controlling the flow of work
through the factory, planning horizon is very short  made daily.

4. Describe the responsibilities and inputs of the marketing, production, finance, and engineering departments
to the strategic business plan.
 Owns plans of each department to achieve to objectives set by the strategic business plan
 Financial statement, projected revenues, projected balance sheet, projected income statement.

5. Describe the relationship among the production plan, the master production schedule, and the material
requirements plan.
 Production plan is a global planning of products groups, MPS for individual end items, MRP plan for
the production and purchase of components used in making the end items  they all have quantities
that must be produced, inventory levels, resources available and resources needed.

6. What is the difference between strategic business planning and sales and operations planning (SOP)? What
are the major benefits of SOP?
 Process of continually revising the strategic business plan and coordinating plans for the various
departments, latest forecasts and market and economic developments are taken into account.
 Benefits: Provides a means of managing change – ensures the various department plans are realistic
and coordinated and support the business plan – realistic plan that can achieve company objectives –
permits better management of production, inventory, and backlog.

7. What is MRP II?
 Manufacturing resource plan – provides coordination between marketing and production

8. What is ERP?
 Enterprise resource planning – whole enterprise is taken into account.


2

, 9. What two changing conditions led to the development of ERP systems?
 Computer and information technologies (IT)
 Integration of knowledge and decision making in all aspects of direct and indirect functions and areas
that impact material flow and material management.

10. In the short run, how can capacity be changed?
 People can be hired and laid off, overtime and short time can be worked, and shift can be added or
removed.

11. When making a production plan, why is it necessary to select a common unit or to establish product
families?
 Little detail is needed so it’s necessary to establish product families to make to production, because
it’s not possible for an individual level.

12. On what basis should product groups (families) be established?
 Similarity of manufacturing process

13. What are five typical characteristics of the production planning problem?
 A time horizon of 12 months is used, with periodic updating
 Production demand consists of one or a few product families or common units
 Demand is fluctuating or seasonal
 Planned equipment are fixed within the time horizon
 A variety of management objectives are set, such as low inventories, efficient plant operation, good
customer service, and good labour relations.

14. Describe each of the four basic strategies used in developing a production plan. What are the advantages
and disadvantages of each?
 Chase strategy
 Production levelling
 Subcontracting
 Hybrid strategy

15. What is a hybrid strategy? Why is it used?
 Finding the combination of strategies that minimizes the sum of all costs involved, providing the level
of service required, and meeting the objectives of the financial and marketing plans.

16. Describe four conditions under which a firm would make-to-stock or make-to-order.
 Make to stock
o Demand is fairly consistent and predictable
o There are few products options
o Delivery times demanded by the marketplace are much shorter than the time needed to
make the product
o Product has a long shelf life
 Make to order
o Goods are produced to customer specification
o The customer is willing to wait while to order is being made
o The product is expensive to make and store
o Several product options are offered

17. What information is needed to develop a make-to-stock production plan?
 Forecast by period for the planning horizon
 Opening inventory
 Desired ending inventory
 Any past-due customer orders.

18. What are the steps in developing a make-to-stock production plan?

3

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller jaspervanoosten. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $4.85. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

68175 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$4.85  4x  sold
  • (2)
Add to cart
Added