Requirements for a product or service caused by the demand for other products or services. This type of internal demand does not need a forecast, but can be calculated based on the demand for the other products or services.
What is dependent demand?
100
A term that refers to the process that helps companies keep demand and supply in balance. The terminology
is meant to capture the importance of cross-functional work.
What is sales and operations planning?
100
Is a means for determining the number of parts, components, and materials needed to produce a product
What is materials requirements planning (MRP)?
100
A structure for organizing a project where a self-contained
team works full time on the project.
What is pure project?
100
The demands for various items are unrelated to each other.
What is independent demand?
200
A type of forecast in which data relating to past
demand are used to predict future demand.
What is time series analysis?
200
The number of production workers needed each period.
What is workforce level?
200
A computer file that contains the complete product description, listing the materials, parts, and components and the sequence in which the product is created.
What is bill of materials (BOM)?
200
Shows in a graphic manner the amount of time involved and the sequence in which activities can be performed.
Often referred to as a bar chart.
What is Gantt chart?
200
The amount of inventory carried in addition to the expected demand.
What is safety stock?
300
A measure that indicates whether the forecast average
is keeping pace with any genuine upward or downward changes in demand.
What is tracking signal?
300
Unused inventory carried from a previous period.
What is inventory on hand?
300
Time-phased plan specifying how many and when the firm plans to build each end item.
What is Master Production Schedule (MPS)?
300
The time that an activity can be delayed; the difference
between the late and early start times of an activity.
What is slack time?
300
An inventory control model where the amount requisitioned is fixed and the actual ordering is triggered by inventory dropping to a specified level of inventory.
What is fixed–order quantity model (or Q-model)?
400
A forecasting technique that assumes that past data and future projections fall around a straight line.
What is linear regression forecasting?
400
A plan that combines options available for meeting demand.
What is a mixed strategy?
400
A feature of MRP systems that identifies the difference between the number of units currently included in the
master schedule and the actual (firm) customer orders.
What is available to promise?
400
The hierarchy of project tasks, subtasks, and work packages.
What is work breakdown structure?
400
An inventory control model that specifies inventory is ordered at the end of a predetermined time period. The interval of time between orders is fixed and the order quantity varies.
What is fixed–time period model (or P-model)?
500
An Internet tool to coordinate forecasting, production, and purchasing in a firm’s supply chain.
What is Collaborative Planning, Forecasting, and Replenishment (CPFR)?
500
Allocating the right type of capacity to the right type of customer at the right price and time to maximize revenue or yield.
What is yield management?
500
An MRP system that calculates the impact of a change in the MRP data (the inventory status, BOM, or master
schedule) immediately. This is a common feature in current systems.
What is net change system?
500
Extension of the critical path models that considers the trade-off between the time required to complete an activity and cost. This is often referred to as “crashing” the project.
What is time–cost models?
500
A physical inventory-taking technique in which inventory is counted on a frequent basis rather than once or twice a year.