99. * Limited options exist Modify capacity Use capacity Intermediate-range planning Subcontract Add personnel Add equipment Build or use inventory Add shifts Short-range planning Schedule jobs Schedule personnel Allocate machinery * Long-range planning Add facilities Add long lead time equipment *

104. Estimate Capacity Requirements Item Client X Client Y Annual demand forecast (copies) 2000.00 6000.00 Standard processing time (hour/copy) 0.50 0.70 Average lot size (copies per report) 20.00 30.00 Standard setup time (hours) 0.25 0.40 [ Dp + ( D / Q ) s ] product 1 + ... + [ Dp + ( D / Q ) s ] product n N [1 – ( C /100)] M =

105. Estimate Capacity Requirements Item Client X Client Y Annual demand forecast (copies) 2000.00 6000.00 Standard processing time (hour/copy) 0.50 0.70 Average lot size (copies per report) 20.00 30.00 Standard setup time (hours) 0.25 0.40 [2000(0.5) + (2000/20)(0.25)] client X + [6000(0.7) + (6000/30)(0.4)] client Y (250 days/year)(1 shift/day)(8 hours/shift)(1.0 – 15/100) M =

106. Estimate Capacity Requirements Item Client X Client Y Annual demand forecast (copies) 2000.00 6000.00 Standard processing time (hour/copy) 0.50 0.70 Average lot size (copies per report) 20.00 30.00 Standard setup time (hours) 0.25 0.40 M = = 3.12  4 machines 5305 1700

117. Seasonal patterns are characterized by repeatable periods of ups and downs over short periods of time; if you have seasonal patterns, you should have complementary demand

118. Cyclical patterns are regular patterns in a data series that take place over long periods of time.

142. Dock Aisle TIME PERIOD 1 2 3 4 5 6 Total Requirement* 6 12 18 15 13 14 78 Current employment = 10 part-time clerks

144. Level Production Plan

145. Chase Production Strategy

153. Independent Demand A B(4) C(2) D(2) E(1) D(3) F(2) Dependent Demand Independent demand is uncertain. Dependent demand is certain.

154. MRP Inputs MRP Processing MRP Outputs Master schedule Bill of materials Inventory records MRP computer programs Changes Order releases Planned-order schedules Exception reports Planning reports Performance- control reports Inventory transaction Primary reports Secondary reports

164. An ordering schedule that covers the gross requirements for each week is called lot-for-lot (LFL) .

165. The fixed order quantity policy (FOQ) uses a fixed order size for every order or production run.

171. Develop a tentative master production schedule Use MRP to simulate material requirements Convert material requirements to resource requirements Firm up a portion of the MPS Is shop capacity adequate? Can capacity be changed to meet requirements Revise tentative master production schedule Change capacity Yes No Yes No