Introduction to Materials Management

by Arnold, J.R. Tony; Chapman, Stephen N.

• ISBN13: 9780130144904
• ISBN10: 0130144908
• Edition: 4th
• Format: Hardcover
• Copyright: 2001-01-01
• Publisher: PRENTICE HALL

Summary

For courses in Materials Management, Production and Inventory Control, and Logistics taught out of business and industrial technology departments. This is the only text listed in the American Production and Inventory Control Society (APICS) DPIM Exam Content Manual as the text reference for the Basics of Supply Chain Management (BSCM) CPIM certification examination. Written in a simple and user-friendly style, it covers all the basics of supply chain management and production and inventory control.

Table of Contents

Introduction to Materials Management	1	(16)
Introduction	1	(1)
Operating Environment	2	(3)
The Supply Chain Concept	5	(5)
What Is Materials Management?	10	(4)
Summary	14	(1)
Key Terms	15	(1)
Questions	15	(1)
Problems	15	(2)
Production Planning System	17	(28)
Introduction	17	(1)
Manufacturing Planning and Control System	18	(5)
Sales and Operations Planning (SOP)	23	(2)
Manufacturing Resource Planning (MRP II)	25	(1)
Enterprise Resource Planning (ERP)	26	(1)
Making the Production Plan	27	(11)
Summary	38	(1)
Key Terms	39	(1)
Questions	39	(1)
Problems	40	(5)
Master Scheduling	45	(26)
Introduction	45	(1)
Relationship to Production Plan	46	(3)
Developing a Master Production Schedule	49	(6)
Production Planning, Master Scheduling, and Sales	55	(8)
Summary	63	(1)
Key Terms	63	(1)
Questions	63	(1)
Problems	64	(7)
Material Requirements Planning	71	(46)
Introduction	71	(4)
Bills of Material	75	(8)
Material Requirements Planning Process	83	(12)
Using the Material Requirements Plan	95	(6)
Summary	101	(1)
Key Terms	101	(1)
Questions	102	(1)
Problems	103	(14)
Capacity Management	117	(24)
Introduction	117	(1)
Definition of Capacity	117	(2)
Capacity Planning	119	(1)
Capacity Requirements Planning (CRP)	120	(2)
Capacity Available	122	(5)
Capacity Required (Load)	127	(2)
Scheduling Orders	129	(3)
Making the Plan	132	(2)
Summary	134	(1)
Key Terms	135	(1)
Questions	136	(1)
Problems	136	(5)
Production Activity Control	141	(35)
Introduction	141	(3)
Data Requirements	144	(3)
Order Preparation	147	(1)
Scheduling	147	(7)
Load Leveling	154	(1)
Scheduling Bottlenecks	154	(4)
Theory of Constraints and Drum-Buffer-Rope	158	(2)
Implementation	160	(1)
Control	161	(7)
Production Reporting	168	(1)
Summary	168	(1)
Key Terms	169	(1)
Questions	169	(1)
Problems	170	(6)
Purchasing	176	(19)
Introduction	176	(4)
Establishing Specifications	180	(2)
Functional Specification Description	182	(3)
Selecting Suppliers	185	(3)
Price Determination	188	(3)
Impact of Material Requirements Planning on Purchasing	191	(2)
Key Terms	193	(1)
Questions	193	(1)
Problems	194	(1)
Forecasting	195	(33)
Introduction	195	(1)
Demand Management	196	(1)
Demand Forecasting	197	(1)
Characteristics of Demand	197	(3)
Principles of Forecasting	200	(1)
Collection and Preparation of Data	200	(1)
Forecasting Techniques	201	(2)
Some Important Intrinsic Techniques	203	(5)
Seasonality	208	(4)
Tracking the Forecast	212	(6)
Summary	218	(1)
Key Terms	219	(1)
Questions	219	(1)
Problems	219	(9)
Inventory Fundamentals	228	(27)
Introduction	228	(1)
Aggregate Inventory Management	229	(1)
Item Inventory Management	229	(1)
Inventory and the Flow of Material	230	(1)
Supply and Demand Patterns	231	(1)
Functions of Inventories	231	(2)
Objectives of Inventory Management	233	(2)
Inventory Costs	235	(4)
Financial Statements and Inventory	239	(5)
ABC Inventory Control	244	(4)
Summary	248	(1)
Key Terms	249	(1)
Questions	249	(1)
Problems	250	(5)
Order Quantities	255	(21)
Introduction	255	(1)
Economic-Order Quantity (EOQ)	256	(6)
Variations of the EOQ Model	262	(1)
Quantity Discounts	263	(1)
Use of EOQ When Costs Are Not Known	264	(2)
Period-Order Quantity (POQ)	266	(3)
Summary	269	(1)
Key Terms	269	(1)
Questions	270	(1)
Problems	270	(6)
Independent Demand Ordering Systems	276	(32)
Introduction	276	(1)
Order Point System	277	(2)
Determining Safety Stock	279	(8)
Determining Service Levels	287	(2)
Different Forecast and Lead-Time Intervals	289	(1)
Determining When the Order Point Is Reached	290	(2)
Periodic Review System	292	(2)
Distribution Inventory	294	(4)
Key Terms	298	(1)
Questions	298	(1)
Problems	299	(9)
Physical Inventory and Warehouse Management	308	(21)
Introduction	308	(1)
Warehouse Management	308	(7)
Physical Control and Security	315	(1)
Inventory Record Accuracy	316	(8)
Key Terms	324	(1)
Questions	324	(1)
Problems	325	(4)
Physical Distribution	329	(31)
Introduction	329	(3)
Physical Distribution System	332	(2)
Interfaces	334	(1)
Transportation	335	(3)
Legal Types of Carriage	338	(2)
Transportation Cost Elements	340	(4)
Warehousing	344	(6)
Packaging	350	(2)
Materials Handling	352	(1)
Multi-Warehouse Systems	353	(3)
Key Terms	356	(1)
Questions	357	(1)
Problems	358	(2)
Products and Processes	360	(36)
Introduction	360	(1)
Need for New Products	360	(2)
Product Development Principles	362	(2)
Product Specification and Design	364	(3)
Process Design	367	(1)
Factors Influencing Process Design	368	(1)
Processing Equipment	369	(1)
Process Systems	370	(2)
Selecting the Process	372	(4)
Continuous Process Improvement (CPI)	376	(13)
Key Terms	389	(1)
Questions	389	(2)
Problems	391	(5)
Just-in-Time Manufacturing	396	(32)
Introduction	396	(1)
Just-in-Time Philosophy	397	(1)
Waste	398	(2)
Just-in-Time Environment	400	(10)
Manufacturing Planning and Control in a JIT Environment	410	(12)
Which to Choose---MRP (ERP), Kanban, or Theory of Constraints?	422	(2)
Summary	424	(1)
Key Terms	425	(1)
Questions	425	(1)
Problems	426	(2)
Total Quality Management	428	(28)
What Is Quality?	428	(2)
Total Quality Management (TQM)	430	(4)
Quality Cost Concepts	434	(2)
Variation as a Way of Life	436	(3)
Process Capability	439	(4)
Process Control	443	(3)
Sample Inspection	446	(2)
ISO 9000	448	(1)
Benchmarking	449	(3)
JIT, TQM, and MRP II	452	(2)
Key Terms	454	(1)
Questions	454	(1)
Problems	455	(1)
Readings	456	(5)
Index	461