GMS 401 : GMS 401 - Chapter 14.docx
Document Summary
Dependent demand: demand for subassemblies, parts, or raw materials that are derived from the plan for production of finished goods. Stating which end (finished/completed) items are to be produced. What quantities for the next 12 weeks or so. Quantities in an mps are determined to: Are determined to fully satisfy customer orders and forecasts: bill of materials: Listing of all of the subassemblies, parts, and raw material that are needed to produce one unit of a finished product. Thus, each finished product has its own bill of material. A bill of material is related to: The assembly diagram (see slide 6 for another example) Product structure tree. (see slide 7 for another example) Planning bill also known as a pseudo bill or a kit is a combination of several boms. While it does not relate to a real product, its use will result in the calculation of the right number of components to be purchased or produced.