Supply Planning Flashcards

A supply planner is analyzing 'pegging' information in the MRP system. What does pegging allow the planner to determine?

Answer: The specific parent orders or customer demands that created a particular component requirement

Pegging traces a lower-level requirement back up through the BOM to identify the specific parent orders or ultimate customer demands that generated the need.

Which of the following describes 'time phasing' in MRP?

Answer: Placing requirements and planned orders in specific future time periods based on when they are needed

Time phasing assigns requirements and planned orders to specific calendar periods so the system knows exactly when materials must be available and when orders must be released.

A supply chain manager wants to implement vendor-managed inventory (VMI). What is the primary responsibility that shifts to the supplier under VMI?

Answer: Monitoring the buyer's inventory levels and deciding when and how much to replenish

Under VMI, the supplier takes responsibility for monitoring the customer's inventory and triggering replenishment orders, typically within agreed min/max parameters.

In supply planning, what is the primary purpose of a 'planning bill of materials' (planning BOM)?

Answer: To facilitate master scheduling of a product family when end-item demand is uncertain by expressing options as percentages

A planning BOM uses percentage values for options and features to allow the MPS to be built at the product-family level before specific end-item mix is known.

Which supply planning action is most appropriate when MRP generates an exception message of 'reschedule in'?

Answer: Move the due date of an existing order to an earlier date to meet the requirement sooner

A 'reschedule in' exception means an existing open order is due later than when it is needed — the planner should expedite or move its due date earlier.

A company operates with a 'level production strategy' in aggregate planning. A key trade-off of this strategy compared to a chase strategy is:

Answer: Stable workforce and lower hiring/layoff costs, but potentially higher finished goods inventory costs

Level production maintains a constant output rate regardless of demand, which stabilizes the workforce but requires building and holding inventory during low-demand periods.

In supply planning, what does a 'projected available balance' (PAB) represent in an MRP time-phased record?

Answer: The expected on-hand inventory at the end of each time period after accounting for scheduled receipts and requirements

PAB is the running calculation of expected ending inventory in each MRP period, computed as beginning inventory plus receipts minus requirements.