Z94.14 - Operations & Inventory Planning & Control

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DECENTRALIZED DISPATCHING. The organization of the dispatching function into individual departmental dispatchers. (See CENTRALIZED DISPATCHING.)

DELAY. The time a product spends waiting to be moved or processed.

DELIVERY CYCLE. The actual time from the receipt of the customer order to the shipment of the product.

DELIVERY POLICY. The company's delivery cycle goal. The policy is sometimes stated as "our quoted delivery time."

DEMAND. A need for a particular product or component in a given time period coming from any multiple sources. Demand can be created by customer orders; interplant, interplant, and warehouse requirements; and by predictive forecasting methods. (See DEPENDENT DEMAND, INDEPENDENT DEMAND.)

DEMAND FLOW MANUFACTURING. A means of obtaining material on a just-on-time basis. A pull system versus a push system. A simple means of managing inventory usually without the need of a MRP system.

DEMAND MANAGEMENT. The task of recognizing and managing all of the demands for products to insure that the master scheduler is aware of them. It encompasses activities including forecasting, order entry, order promising, branch warehouse requirements, interplant orders, and service parts requirements. (See MASTER PRODUCTION SCHEDULE.)

DEMONSTRATED CAPACITY. Capacity calculated from actual performance data, usually number of items produced times standard hours per item. Syn: actual capacity.

DEPENDENT DEMAND. Demand directly related to or derived from the demand for other items or end products. Such demands are therefore calculated and should not be forecast. A given inventory item may have both dependent and independent demand at any given time. (See INDEPENDENT DEMAND.)

DIRECT-DEDUCT INVENTORY TRANSACTION PROCESSING. A method of bookkeeping which decreases the book (computer) inventory of an item as material is issued from stock, and increases the book inventory as material is received into stock. The book record is updated concurrently with the movement of material out of or into stock. As a result, the book record represents what is physically in stock. (See PRE-DEDUCT INVENTORY TRANSACTION PROCESSING, POST-DEDUCT INVENTORY TRANSACTION PROCESSING.)

DISBURSEMENT. The issuance of raw material or components from a store room.

DISCRETE ORDER QUANTITY. (See LOT-FOR-LOT.)

DISPATCHING. Selecting, sequencing, and assigning available jobs to individual work stations and/or workers. Dispatching is also associated with tooling and materials handling devices. (See CENTRALIZED DISPATCHING, DECENTRALIZED DISPATCHING, EXPEDITING, SHOP PLANNING, CLOSED LOOP MRP.)

DISPATCHING RULE. The logic of assigning jobs priorities to work centers and/or workers. (See CRITICAL RATIO,  EARLIEST DUE DATE, FIRST-IN-FIRST-OUT, SHORTEST PROCESSING TIME.)

DISTRIBUTION REQUIREMENTS PLANNING (DRP). Determining the needs to replenish inventory at branch warehouses. Frequently a time-phased order point approach is used where the planned orders at the branch warehouse level are "exploded" via MRP logic to become gross requirements on the supplying source. In the case of multi-level distribution networks, this explosion process can continue down through the various levels of master warehouse, factory warehouse, etc., and become input to the master production schedule. Demand on the supplying source(s) is recognized as dependent. (See TIME-PHASED ORDER POINT, PHYSICAL DISTRIBUTION, PULL DISTRIBUTION SYSTEM.)

DISTRIBUTION RESOURCE PLANNING. The extension of distribution requirements planning into the planning of the key resources contained in a distribution system: warehouse space, manpower, money, trucks and freight cars, etc. (See DISTRIBUTION REQUIREMENTS PLANNING.)

DOCK TO FLOW.  The process and elapsed time required to make a part from first contact on the receiving dock to being available for immediate use on the factory flow. Dock to flow implies a conscious effort to avoid moving a part into and our of a parts stockroom prior to use.

DOCK TO STOCK. The process and elapsed time required to move a part from first contact on the receiving dock to being fully available in the stock room. Material handling, purchasing, and quality systems and procedures are all involved.

DOWNTIME. Time when the machines in the plant are not producing because they are down for repairs or other reasons.

DROP SHIPMENT. A distribution arrangement in which the seller serves as a selling agent by collecting orders but does not maintain inventory. The orders are sent to the manufacturer which ships directly to the customer.

DRP. (See DISTRIBUTION REQUIREMENTS PLANNING.)

DUE DATE. The date when purchased material or production material is due to be available for use. Also, often, the date when a customer order has been requested or promised to be shipped.

DYNAMIC LOT SIZING. (See LEAST TOTAL COST, LEAST UNIT COST, PERIOD ORDER QUANTITY, FIXED ORDER QUANTITY.)

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