AST-SEPT03-ERP-SES-08

AST-SEPT03-ERP-SES-08 - Learning Objectives Describe steps...

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Learning Objectives Describe steps in the production planning process of a high volume manufacturer like Fitter Snacker Describe Fitter Snacker’s production and materials management problems Describe how a structured process for production and materials management planning enhances efficiency and decision making
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Learning Objectives Describe how production planning data in an ERP system can be shared with suppliers to increase supply-chain efficiency
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Production and Materials Management at Fitter Snacker Must answer the following questions: How much of each bar should be produced? What quantities of raw materials should be ordered? When should raw materials be ordered
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General Approaches to Production Make-to-stock: Items produced in anticipation of orders Make-to-order: Items produced to meet specific customer orders Assemble to order: Final product assembled from make-to-stock items
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Fitter Snacker Manufacturing Process Raw Material Warehouse Mixer Mixer Mixer Mixer Form Bake Pack Finished Goods Warehouse Snack Bar Line
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Fitter Snacker Production Problems Communications Marketing does not share data with production (sales promotions and large, unexpected orders) Inventory True inventory status not known No real-time data on actual sales Accounting and Purchasing Difficulty forecasting raw material and labor costs Adjusting accounts for actual vs. standard costs time consuming and done infrequently
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Production Planning Process Work from sales forecast to create
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AST-SEPT03-ERP-SES-08 - Learning Objectives Describe steps...

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