Rough Cut Capacity Planning:
Rough Cut Capacity Planning Once the Master Production Schedule is completed the rough cut capacity planning takes place. So, in order to prevent an over production of materials, a determination of the appropriate amount of capacity and warehousing is required. This is required in order to avoid an abundance of inventory and warehousing costs which could create problems.
Lumpy Demand:
Lumpy Demand This type of demand involves a period of zero demands. The demand for certain part occurs only when they are being produced.
Cost of Supply:
Cost of Supply It is the net income of a company after taking into consideration the increase/decrease of the expenses that were incurred due to the final product.
Time Fencing:
Time Fencing A timeline that provides guidelines for scheduling times to establish changes in operating procedures. During these time intervals, changes can be made to orders.
ABC Inventory:
ABC Inventory Measures the inventory in order of importance then allocates control efforts. Classifies according to relative importance. A Very Important B Moderately important C Least important
Economic Order Quantity EOQ:
Economic Order Quantity EOQ A model used to know how much to order. This measure identifies the order size so that the annual costs of holding/ordering inventory are minimized. The basic economic order quantity model The economic production quantity model The quantity discount model
Lead Time:
Lead Time A service that allows customers to know when they can expect to have their orders filled.