Certified in Planning and Inventory Management Part 1

a. Bias
b. Variability
5. Monitor and respond to demand variation
6. Review and/or revise forecast

Master scheduling process creates a master production schedule (MPS) based on input from the sales and operation plan, the external environment, and the internal environment.
A. Create master production schedule (MPS)
B. Determine rough-cut capacity requirements
C. Create material requirements plan
D. Perform capacity requirements planning (CRP)
E. Create final assembly schedule (FAS)
F. Closing the loop

A. Buy Sourcing is the process of identifying a company that provides a needed good or service, these decisions normally are based on supplier cost and capability by comparison to producing the product in house. These decisions include supplier selection, certification, agreements, and partnerships, including vendor-managed inventory (VMI). Total acquisition costs must be considered.
1. Establish external supply
2. Purchase/procure goods and services
a. The purchasing process begins with any of the following signals: purchase requisition, material requirements planning (MRP) output, Kanban signals, and/or buffer.
b. Order processing includes defining terms and conditions, purchase order release, monitoring supplier performance, authorizing supplier to ship, receipt of goods, invoice approval and purchase order closeout.
3. Respond to supply disruptions/changes
a. Supply chain conflicts and risks exist among trading partners and must be identified, analyzed, and addressed. Some examples include disruption of supply, synchronizing supply with demand, minimizing inventory investment, maximizing customer service, and managing total cost.
b. An important part of execution and control is focusing on quality assurance by measuring quality, monitoring process variation, and improving process control.
4. Measure supplier performance

This activity is the function of routing and dispatching the work to be accomplished through the production facility.
1. Flow processes
a. Calculate takt time
b. Authorize backflush/inventory release
2. Batch processes
a. Determine production rate or flow rate
b. Create production schedule, including downtime
c. Create labor schedule and determine staffing
d. Create dispatch/priority list and create work sequence to improve efficiency
e. Monitor utilization/capacity cushion
f. Manage material routing
g. Manage queues
h. Manage bottlenecks
i. Plan for non-standard demand (examples include samples, tests, engineering prototypes)
j. Manage exceptions
k. Create input/output control (I/O)

Those stocks or items used to support production (raw materials and work in process (WIP) items), supporting activities (maintenance, repair, and operating supplies), customer service (finished goods and spare parts) and specialized inventory.
A. Plan inventory investment and days of supply
1. Inventory targets
2. Functions of inventory
3. Basic accounting
4. Inventory valuation methods
5. Lead time

1. Establish service levels
2. Manage inventory costs and tradeoffs

1. Push and pull methods (for example, Kanban)
2. Demand patterns
3. Product costs, preparation costs, and holding costs
4. Lot size formulas and calculations

1. Raw materials
2. Work in process (WIP)
3. Finished goods

1. Point of origin
2. Final customer
3. Special handling
4. Chain of ownership
5. Recall guidelines
6. Maintain lot control and serial numbers
G. Maintenance, repair, and operating (MRO) inventories
H. Manage returns, reworks, reclamation, recycle, reuse, remanufacture and product disposition

1. Cycle count/physical inventory
2. Inventory classification
3. Types of inventory

1. Cost of goods sold (COGS)
2. Inventory turns calculations

1. Shrinkage
2. Scrap
3. Theft
4. Shelf life
5. Obsolescence
6. Damage

1. Company policy
2. Mitigation

1. Distribution requirements planning (DRP)
2. Distribution network
3. Demand
4. Supply
5. Current inventory levels
6. Transit times
7. Item master
8. Backlog

A. Continuous Improvement
1. Conduct benchmarking
2. Identify and eliminate waste and reduce variation
3. Identify and implement process improvements and utilize appropriate quality tools
4. Conduct supplier audit
5. Support sustainability (environmental, financial, social)
6. Manage master data
B. Information, Process and Emerging Technology
1. Develop technology systems requirements and specifications
2. Support technology implementation
3. Maintain technology systems
a. Information technology (examples include enterprise resource planning (ERP), product life cycle management PLM), data analytics)
b. Process technology (examples include robotics, additive manufacturing/3D printing, machine learning)
c. Emerging technology (examples include internet of things, blockchain, artificial/adaptive intelligence (AI))