Master Planning of Resources Flashcards

What is a 'planning bill of materials' used for in master scheduling?

Answer: To represent a family of products for aggregate planning purposes

A planning BOM is an artificial grouping of items used to facilitate master scheduling for product families with common components.

Which forecasting method calculates the average of the most recent 'n' periods?

Answer: Simple moving average

Simple moving average averages a set number of the most recent data periods, dropping the oldest as a new period is added.

Mean Absolute Deviation (MAD) is used in forecasting to measure:

Answer: The average absolute difference between forecasted and actual demand

MAD measures forecast accuracy by averaging the absolute values of individual forecast errors, regardless of direction.

What does a 'tracking signal' in forecasting detect?

Answer: Whether forecasts are consistently biased in one direction

A tracking signal monitors the cumulative forecast error to detect when a model is consistently over- or under-forecasting.

In master planning, 'time phasing' means:

Answer: Scheduling supply and demand across specific future time periods

Time phasing assigns quantities of supply and demand to specific future time periods, enabling planners to see imbalances over time.

Which of the following best describes 'collaborative planning, forecasting, and replenishment' (CPFR)?

Answer: A process where trading partners jointly develop demand forecasts and replenishment plans

CPFR is a supply chain collaboration process in which retailers and suppliers share data to jointly develop forecasts and replenishment orders.