An 300- Exam 2 Review (Chung)

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• Topic: Manufacturing resource planning, Material requirements planning, Operations research
• Pages : 4 (701 words )
• Published : April 23, 2012

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AN 300 Review Exam 2
I. Forecasting
* (1) Forecasts are usually wrong. Errors are inevitable and must be expected. (2) Every forecast should include an estimate of error. (3) Forecasts are more accurate for families or groups. (4) Forecasts are more accurate for nearer time periods. Anything that can be done to reduce lead-time will improve forecast accuracy.

* Bias indicates the directional tendency of FE <------> MAD indicates the magnitude of FE

(Weighted) Moving Averages

The Exponential Smoothing Method; Linear Combination
* Another special case of Weighted Moving Average
* F t = F t-1 + α (X t-1 - F t-1 )

II. Aggregate Production Planning
Production Planning strategies: Level, Chase, and Combination * Level: constant workforce & same amount of product in each time period of the plan

* Chase: produce exactly what is needed to satisfy demand during each period

* Combination: combo of Level & Chase approaches while developing the aggregate plan

Decision Variables in Production Planning
* (1) Production, (2) Inventory, & (3) Workforce
* Secondary DV’s Overtime, Undertime, Hiring, Layoff, Backorders, Subcontracting, etc

Production Planning Methods: (Solution Methods)
* Non-Optimal Solutions
(1) Non-quantitative Haggling, (2) Tableau and Graphical Methods, (3) Constant Turnover Ratio, (4) Adjust last year’s plan, (5) Others * Optimal Solutions
(1) Transportation Model, (2) Linear Program [LP], (3) Linear Decision Rule [LDR], (4) Search Decision Rule [SDR], (5) Parametric Production Planning [PPP], (6) Management Coefficient Model, (7) Others * Near-Optimal Solutions

Linear Programming for Production Planning; The Inventory Balance Equality * The HMMS Model

III. Inventory Management
Hierarchical Production Planning Systems; MRP and MRP II
* MRP = Material...