Keyword assignment 13 1. Material requirements planning:A dependent demand technique that uses a bill-of-material, inventory, expected receipts, and a master production schedule to determine material requirements. 2. Master production schedule: A timetable that specifies what is to be made (usually finished goods) and when. 3. Bill of material: A list of the hierarchy of components, their description, and the quantity of each required to make one unit of a product. 4. Modular bills: Bills of material organized by major subassemblies or by product options. 5. Planning bills:Material groupings created in order to assign an artificial parent to a bill of material; also called “pseudo” bills. 6. Phantom bills of material: Bills of material for components, usually assemblies, that exist only temporarily; they are never inventoried. 7. Low-level coding: A number that identifies items at the lowest level at which they occur. 8. Lead time:In purchasing systems, the time between placing an order and receiving it; in production systems, the wait, move, queue, setup, and run times for each component produced. 9. Gross material requirements plan: A schedule that shows the total demand for an item (prior to subtraction of on-hand inventory and scheduled receipts) and (1) when it must be ordered from suppliers, or (2) when production must be started to meet its demand by a particular date. 10. Net requirements plan: The result of adjusting gross requirements for inventory on hand and scheduled receipts. 11. Planned order receipt: The quantity planned to be received at a future date. 12. Planned order release: The scheduled date for an order to be released. 13. Demand driven MRP: Strategically alters lead times and precisely places safety stock within the BOM structure to improve MRP performance. 14. System nervousness: Frequent changes in an MRP system. 15. Time fences: A means for allowing a segment of the master schedule to be designated as “not to be rescheduled.” 16. Pegging: In material requirements planning systems, tracing upward the bill of material from the component to the parent item. 17. Buckets: Time units in a material requirements planning system. 18. Lot-sizing decision: The process of, or techniques used in, determining lot size. 19. Lot for lot: A lot-sizing technique that generates exactly what is required to meet the plan. 20. Periodic order quantity: An inventory-ordering technique that issues orders on a predetermined time interval, with the order quantity covering the total of the interval’s requirements. 21. Material requirements planning II: A system that allows, with MRP in place, inventory data to be augmented by other resource variables; in this case, MRP becomes material resource planning. 22. Closed loop MRP system: A system that provides feedback to the capacity plan, master production schedule, and production plan so planning can be kept valid at all times. 23. Load report: A report showing the resource requirements in a work center for all work currently assigned there as well as all planned and expected orders. 24. Distribution resource planning: A time-phased stock- replenishment plan for all levels of a distribution network. 25. Enterprise resource planning: An information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders. 26. Efficient consumer response: Supply chain management systems in the grocery industry that tie sales to buying, to inventory, to logistics, and to production.