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Review Questions 219

assignment ties together the materials listed in the BOM that are needed for
production, the work centers where the fi nal product will be manufactured, and
the operations in the routing that the company will use to manufacture it.
The production information system provides detailed reports to monitor
and manage the production process. Companies utilize a stock / requirements list
to view the different activities that impact the quantity of materials in inventory.

KEY TERMS

Backfl ushing Order completion
Bill of materials (BOM) Planned order

Component assignment Product routing
Confi rmation Production capacity
Goods issue Production order

Goods receipt Production resource tools
Item category Stock/requirement list
Make-to-order Task list
Make-to-stock Work center
Operations Work-in-process (WIP)

REVIEW QUESTIONS

1. Explain the function of a bill of materials in the production process.
2. What is the signifi cance of item categories in a bill of materials?

3. Explain the structure of a bill of materials.
4. What is the function of a work center in production?
5. Briefl y discuss the key data in a work center master record.

6. What is a product routing? What is it used for?
7. Explain the relationship between operations and sequences.
8. Explain the relationship between bills of materials, work centers, and
product routings.

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