354 Making it Happend

CONTINUOUS REPLENISHMENT (CR) Often called CRP for Continuous
Replenishment Process or Program. The practice of partnering between
distribution channel members that changes the traditional replenishment
process from distributor-generated purchase orders, based on economic
order quantities, to the replenishment of products based on actual and
forecasted product demand.
CUMULATIVE LEAD TIME The longest time involved to accomplish the
activity in question. For any item planned through MRP it is found by reviewing
each bill of material path below the item, and whichever path
adds up the greatest number defines cumulative lead time. Also called aggregate
lead time, stacked lead time, composite lead time, or critical path
lead time.
CYCLE COUNTING A physical inventory-taking technique where inventory
is counted on a periodic schedule rather than once a year. For example,
a cycle inventory count may be taken when an item reaches its
reorder point, when new stock is received, or on a regular basis, usually
more frequently for high-value fast-moving items, and less frequently for
low-value or slow moving items. Most effective cycle counting systems
require the counting of a certain number of items every work day.
DAMPENERS A technique within Material Requirements Planning used
to suppress the reporting of certain action messages created during the
computer processing of MRP. Extensive use of dampeners is not recommended.
DEMAND A need for a particular product or component. The demand
could come from a variety of sources (i.e., customer order, forecast, interplant,
branch warehouse, service part), or to manufacture the next
higher level. See Dependent Demand, Independent Demand.
DEMAND MANAGEMENT The function of recognizing and managing all
of the demands for products to ensure that the master scheduling function
is aware of them. It encompasses the activities of forecasting, order
entry, order promising, branch warehouse requirements, interplant requirements,
interplant orders, and service parts requirements.
DEMONSTRATED CAPACITY Capacity calculated from actual performance
data, usually number of items produced times standard hours per
item plus the standard set-up time for each job. Sometimes referred to as
earned hours.
DEPENDENT DEMAND Demand is considered dependent when it comes
from production schedules for other items. These demands should be calculated,
not forecasted. A given item may have both dependent and independent
demand at any given time. See Independent Demand.
DIRECT-DEDUCT INVENTORY TRANSACTION PROCESSING A method of
inventory bookkeeping which decreases the book (computer) inventory