Exam3 - FC - EOQ Independent Demand; Dependent Demand If...

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Unformatted text preview: EOQ Independent Demand; Dependent Demand If Product A needs one unit of Product B, which needs two units of Product C, Product A is a ____ inventory item, while Products B and C are ____ inventory items. Not effective when you try to apply it to each product independently, regardless of required materials. EOQ Derived Demand If you need two units of Product B to produce Product A, order twice the value. Timing and sizing decisions will be very bad because they will not take into consideration the interdependencies that exist between hierarchical levels of production. Material Requirements Planning (MRP) EOQ Creates a fundamental problem when you try to apply its logic independently to each of the dependent demand items in a product’s structure. Generates a set of time phased requirements for each of the items in the product structure, and then makes the timing and sizing decisions to accommodate those time phased requirements. Bill of Materials Master Production Schedule (MPS) Statements of the gross requirements for the finished product (anticipated need schedule for the finished product). Product structure information, showing exactly what components are needed to produce a finished product, and how they are assembled together (the hierarchical product structure information).information)....
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This note was uploaded on 09/08/2011 for the course MAN 3520 taught by Professor Stephengoodman during the Spring '10 term at University of Central Florida.

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Exam3 - FC - EOQ Independent Demand; Dependent Demand If...

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