Supply and demand matching — definition?
Aligning resources to meet customer needs.
Demand types — three categories?
Runners, repeaters, strangers.
Independent demand — role?
Driven by customer orders, not dependent.
Master Production Schedule — purpose?
Plans production and stabilizes demand.
Bill of Materials — structure?
Hierarchical list of components and assemblies.
Lead time — meaning?
Time to produce or acquire an item.
MRP sheets — function?
Detail procurement and production schedules.
Repeaters — demand pattern?
Seasonal, regular demand during specific periods.
Strangers — demand pattern?
Products never made before.
Dependent demand — based on?
Parent item requirements and BOM.
Demand smoothing — goal?
Even out demand over periods.
Time-phased product structure — use?
Schedules backward from delivery date.
Gross requirements — what?
Total demand from all parent items.
Planned order releases — purpose?
When to order or produce to meet net requirements.
Test your knowledge with 7 questions on Operations Planning and Demand Management.
1. What is the primary purpose of matching supply and demand in operations management?
2. What is the purpose of classifying demand types in production management?
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