1.

Capacity strategy
1 Desing flexibility into systems. 5. Field that makes use of forecasting
2 Take stage of life cycle into account. errors?
3 Take a big picture approach to capacity changes.
4. Prepare to deal with capacity chunks.
5 Attempt to smooth out capacity requirements.
6 Identify the optimal operating level.

2. Black box model

Operations function involves systems for
converting inputs into outputs

6. Key Inventory Terms

3. Fields that make use of forecasting
• Accounting: New product/process cost
estimates, profit projections, cash management
• Finance: equipment, timing and amount of
funding
• Human Resources: Hiring activities, recruitment,
interviewing, training
• Marketing: Pricing and promotion, e-business
strategies, global competition strategies
• MIS: new information systems, internet services
• Operations: schedules, capacity planning, work
assignments, inventory planning, project
management
• Product/service design: revision features, design
of new products
-Basic Economic Order Quantity (EOQ) Model:
use to fixed order size that will minimize the sum
of the annual costs of holding and ordering
inventory.
-Economic Production Quantity (EPQ): Similar to
EOQ, but orders received in a single delivery,
units are received incrementally during
production.
-Quantity discounts: price reductions for larger
orders to induce costumers buy in large
quantities.
7. inputs and steps of the MRP
system?

4. Fields that make use of

forecasting, time horizon
Short-range forecast
• Up to 1 year; usually less than 3 months
• Job scheduling, worker assignments
Medium-range forecast
• 3 months to 3 years
• Sales and production planning, budgeting
Long-range forecast
• 3+ years
• New product planning, facility location
8. Aggregate planning strategies 11. explain planning and decision-
• Maintain a level workforce making hierarchy?
• Maintain a steady output rate
• Match demand period by period
• Use a combination of decision variables.

9. Approaches to capacity expansion

12. Planning process

13. Bill of Material

BOM: one of the 3 primary inputs of MRP; a
10. Inventory management listing of all the raw materials, parts,
subassemblies, and assemblies needed to
Tracking of inventory from manufacturers to
produce one unit of a product.
warehouses and from these facilities to point of
sale. Keep always enough stock, Accurate
tracking, and correct priorities based on the
needs for the business. Process of sorting,
ordering, controlling the products in order to
satisfy the costumer.
14. Strategy and issues during a 15. Assembly Time chart
product´s life