Z94.14 - Operations & Inventory Planning & Control
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EARLIEST DUE DATE (EDD). A priority rule that sequences the jobs in queue according to their due date. Earliness. If a job is finished before its due date, the difference between its completion date and due date.
ECONOMIC ORDER QUANTITY (EOQ). A type of fixed order quantity which determines the amount of product to be purchased or manufactured at one time in order to minimize the total cost involved, including the ordering costs and carrying costs. The general economic order quantity equation is: where EOQ is the quantity to be ordered, S is the annual sales, A is the ordering cost, r is the carrying cost, and u is the unit cost. (See CARRYING COST, ORDERING COST.)
EDD. (See EARLIEST DUE DATE.)
EFFECTIVE DATE. The date on which a component or an operation is introduced or severed from a bill of material or a routing sheet. The effective dates are used in the explosion process to create demands for the correct material or labor. Normally, bill of material systems provide for an effective "start date" and "stop date." Control may also be by serial number rather than date.
EFFECTIVITY. (See EFFECTIVE DATE.)
EFFICIENCY. The relationship between the planned resource requirements, such as labor or machine time, for a task(s) and the actual resource time charged to the task(s).
END PRODUCT. The finished product which is shipped from that facility. Syn: end item.
ENGINEERING CHANGE ORDER. A document issued by engineering to modify the bill of material and/or graphic drawing previously released to manufacturing that modifies the configuration of an end product or component. (See CONFIGURATION CONTROL.)
EXCEPTION MESSAGE. (See ACTION MESSAGE.)
EXCEPTION REPORTS. Reports that list or flag only those items that deviate from plan.
EXPEDITING. The rushing or chasing of production orders which are needed in less than the normal lead time. (See DISPATCHING.)
EXPLOSION. The function of utilizing the parent assembly bill of material to determine the quantity needed of every subassembly or component.
EXPONENTIAL SMOOTHING. A type of weighted average forecasting technique in which past observations are geometrically discounted according to their age. The heaviest weight is assigned to the most recent datum. The smoothing is termed "exponential" because data points are weighted in accordance with an exponential function of their age. The technique makes use of a smoothing constant to apply to the difference between the most recent forecast and the critical sales datum, which eliminates the necessity of carrying historical sales data. The approach can be used for data whether or not they exhibit trend or seasonal patterns.
EXTRINSIC FORECAST. A forecast based on a correlated leading indicator. For example, estimating window sales based on housing starts. Extrinsic forecasts tend to be more useful for large aggregations such as total company sales than for individual product sales. (See INTRINSIC FORECAST.)
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