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Exam 2 page of notes - Chapter 5- Forecasting Chapter 6:...

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Chapter 5- Forecasting Chapter 6: Aggregate Planning and Inventory Management Operations scheduling & inventory management are Most critical activities. (*3catgories below)Operations managers= balance capacity (labor, materials, 1. Long-range= over a year plan established 1 st , general, specific outputs in aggregate production plan ((APP) workforce size, inventory), major decisions. 2. Intermediate, Medium Plans= 6-18 months, minor details in capacity, or employment levels. Master production schedule ((MPS) is more detailed than APP; shows quantity & time of end product. IE QUIZ an appointment book. 3. Short Range= few days, most detailed, exact item quantity for day or hour. Materials Requirement planning ( (MRP)*provides planning information* detailed process for Master production schedule) calculates exact quantities, dates needed by, planned order releases.MRP links internal operations. MRP evolved into Close-Loop MRP = includes APP, MPS, MRP. MRP-II = lacks ability to link foreign branches to headquarters, also with external supply chain. MRP II “what if” analysis. Then evolved to enterprise resource planning (ERP) Distribution Requirement Planning (DRP) = time phased from warehouse to distribution centers. Definitions: ABC inventory controls which items should be counted more frequently than others. Aggregate Production Plan= process translates annual business & marketing plans & forecasts into production plans for a product . Demand management -includes aggregate demand, orders received, promotions, safety stock. Costs= inventory, set-up, machine operating, hiring, firing, training, overtime. 3 Strategies: 1: The Chase Production Strategy (QUIZ ? chase = make-to-order ) adjusts capacity to match demand. Make-to-order manufacturing firms - (one-of a kind products.) 2: The level Production Strategy- highly skilled labor- make-to-stock manufacturing -low prices, fast delivery. 3: The mixed production Strategy- stable workforce. Assignable variations: can be eliminated ,from cause.
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This note was uploaded on 03/27/2008 for the course MGT mgt301 taught by Professor Gentleman during the Spring '08 term at Colorado State.

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Exam 2 page of notes - Chapter 5- Forecasting Chapter 6:...

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