Intended learning outcomes: Explain and experience the cumulative fill rate.
Continuation from previous subsection (5.3.1)
The cumulative fill rate is the probability that several different components will be available simultaneously on demand.
If the fill rate for a component is not very close to 100%, then the probability that several items of a product will be available from inventory simultaneously will be very low. For example, if we need to have 10 components from inventory for an assembly, and the fill rate is 95%, the cumulative fill rate is only 60% (» 0.9510), which usually will not suffice. Figure 5.3.1.1 illustrates this phenomenon.
Fig. 5.3.1.1 Cumulative fill rate with components required simultaneously.
Complex products such as machines are very often made up of a large number of components. In this case, avoiding planning errors means ensuring a high fill rate for each component. Materials management, both in techniques and in form, is very dependent on the characteristic features of planning & control.
The animation shows how to calculate the cumulative service level, the term service level being here used identically to fill rate.
Click on the arrow in the top left corner to select the level of output.
Quiz on Chapter 5.3.1. (not yet available): Basic Principles of Materials Management Concepts.[kml_flashembed movie="https://opess.ethz.ch/wp-content/uploads/elements/Quiz_5_3_1.swf" height="75%" width="100%" /]
Course section 5.3: Subsections and their intended learning outcomes
5.3 Introduction to Detailed Planning and Execution
Intended learning outcomes: Disclose basic principles of materials management, scheduling and capacity management concepts. Produce an overview of materials management, scheduling and capacity management techniques. Differentiate between available-to-promise and capable-to-promise.
5.3.1 Basic Principles of Materials Management Concepts
Intended learning outcomes: Present the objectives of materials management. Differentiate between deterministic materials management and stochastic materials management. Differentiate between independent demand and dependent demand. Produce an overview on quasi-deterministic materials management, fill rate, stockout, backorder.
5.3.1b The Cumulative Fill Rate
Intended learning outcomes: Explain and experience the cumulative fill rate.
5.3.2 Overview of Materials Management Techniques — Kanban, Order Point Technique, Cumulative Production Figures Principle (CPFP).
Intended learning outcomes: Disclose the basic classification of detailed planning techniques in materials management. Produce an overview on techniques such as Kanban, order point technique, and CPFP (cumulative production figures principle).
5.3.2b Overview of Materials Management Techniques — Customer Order and Material Requirements Planning (MRP)
Intended learning outcomes: Explain the additional classification for unique demand or demand for high-cost items with a discontinuous demand pattern. Produce an overview on techniques such as Kanban, order point technique, CPFP (cumulative production figures principle), and MRP (material requirements planning).
5.3.3 Basic Principles of Scheduling and Capacity Management Concepts
Intended learning outcomes: Present the objectives of the tasks as well as the overall objective of scheduling and capacity management. Describe the vicious circle caused when capacity bottlenecks prolong the planned production lead-time.
5.3.3b The Overall Objective of Scheduling and Capacity Management
Intended learning outcomes: Present the overall objective of scheduling and capacity management. Disclose to which extent capacity can be stored.
5.3.4 Infinite Loading and Finite Loading
Intended learning outcomes: Differentiate between infinite loading and finite loading. Explain the classification of techniques for capacity management in dependency upon flexibility of capacity and flexibility of order due date.
5.3.4b Overview of Scheduling and Capacity Management Techniques
Intended learning outcomes: Produce an overview on order-oriented infinite loading, order-wise infinite and finite loading, operations-oriented and order-oriented finite loading, constraint-oriented finite loading, load-oriented order release (Loor), capacity-oriented materials management (Corma).
5.3.5 Available-to-Promise (ATP) and Capable-to-Promise (CTP)
Intended learning outcomes: Explain available-to-promise (ATP) and the determination of ATP quantities. Produce an overview on the techniques of multilevel available-to-promise (MLATP) and capable-to-promise (CTP).
