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Scheduling Bottlenecks

APICS defines bottleneck as 'a facility, function, department, or resource whose capacityis equal to or less than thedemand put upon it'.

In intermittent manufacturing, it is almost impossible to balance the available capacity of the various workstations with the demand for their capacity. As a result, some workstations are overloaded and others are under-loaded. The overloaded workstations are called bottlenecks.

Planning for Execution

PAC is responsible for planning and preparing order’ s release to the shop floor. The order should be reviewed to be sure that the necessary tooling, material and capacity are available. Tooling is not generally considered in MRP program, so at this
stage, material availability must be checked. Checking capacity availability is a twostep process. First, the order must be scheduled to see when the capacity is needed, and second, the load on work centers must be checked in that period.

PAC Definitions

Order Processing
APICS defines order processing as the activity required to administratively process a customers’ order and make it ready for shipment or production.

Multi Warehouse System

We want to know what happens to the service level as more distribution centers are added to the system. To make valid comparisons, we must freeze the sales volume. We can then compare the costs as we add distribution centers to the system.

Transportation costs
Generally, as more distribution centers are added to a system, we expect the following:

Transportation Costs

In a physical distribution system, transportation function is concerned with the movement of goods from the factory to the end customer through a number of intermediaries.

In a typical distribution setup, the finished goods are shipped to the factory warehouse, from the factory warehouse, the goods are shipped to the distribution warehouses, from the distribution warehouses the goods are sent to local storage. From the local storage, the goods are sent to the final customers.

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