Deck 2: Production Planning System

Question 1

Production leveling is continually producing an amount:

A) greater than average demand
B) equal to the average demand
C) less than average demand
D) none of the above

Answer 1

B

Question 2

Firms make to stock when

A) product has a long shelf life
B) demand is fairly constant and predictable
C) there are few product options
D) all of the above

Answer 2

D

Question 3

________is a process for continually revising the strategic business plan and coordinating plans of the various departments.

A) SOP
B) MRPII
C) JIT
D) MRP

Answer 3

SOP

Question 4

What questions must be answered in resource requirements planning?

Question 5

A company wants to produce 500 units over the next e months at a level rate. The months have 20, 21, and 19 working days, respectively. On average, how much should the company produce each day to level production?

Question 6

In a ________environment, manufacturers wait until an order is received from a customer before starting to manufacture the goods.

A) make- to- stock
B) make- to- order
C) assembly- to- order
D) engineer- to- order

Question 7

Discuss the general procedure for developing a level production plan.

Question 8

________is the ability to produce goods and services. It means having the resources available to satisfy demand.

A) MRPII
B) Production leveling
C) Capacity
D) Subcontracting

Question 9

A company wants to produce 10,000 units of an item over the next three months at a level rate. The first month has 20 working days; the second 20 working days; and the third 10 working days because of an annual shutdown. On average, how much should the company produce each day to level production?

Question 10

As a strategy, subcontracting means always producing at the level of ________demand and meeting any additional demand through subcontracting.

A) maximum
B) level
C) minimum
D) all of the above

Question 11

What information is needed to make a production plan?

Question 12

Given the objectives set by the strategic business plan, production management is concerned with:

A) quantities of each product group that must be produced in each period
B) the resources of equipment, labor, and material needed in each period
C) the desired inventory levels
D) all of the above

Question 13

Under what conditions do firms make- to- order?

Question 14

________is responsible for research, development, and design of new products or modifications to existing ones.

A) Production
B) Marketing
C) Finance
D) Engineering

Question 15

What are the advantages of the chase strategy?

Question 16

If opening inventory is 400 units, demand is 900 units, and production is 800 units, what will be the ending inventory?

Question 17

A company plans to produce 20,000 units in a 3 month period. The months have 20, 21, and 22 days respectively. How much will be produced in each of the three months?

Question 18

The first level in the manufacturing planning and control (MPC) system is:

A) material requirement plan
B) production plan
C) strategic business plan
D) master production schedule

Question 19

________is responsible for deciding the sources and uses of funds available to the firm, cash flows, profits, return on investment, and budgets.

A) Engineering
B) Finance
C) Production
D) Marketing

Question 20

A company wants to develop a level production plan for a family of products. The opening inventory is 100 units, and an increase to 160 units is expected by the end of the plan. The demand for each period is given. How much should the company produce
each period? What will be the ending inventories in each period. Assume all periods have the same number of working days.

Question 21

The disadvantage of a production leveling strategy is that it results in smooth level of operations that avoids the costs of changing production levels.

Question 22

The larger scope of ERP systems allows the tracking of orders and other important planning and control information throughout the entire company from procurement to ultimate customer delivery.

Question 23

The process of determining the resources required and comparing them to the available resources takes place at each of the planning levels and is the problem of capacity management.

Question 24

As a firm moves from strategic planning to production activity control, the purpose changes from general direction to specific detailed planning, the time span decreases from years to days, and the level of detail increase from general categories to individual components and workstations.

Question 25

The strategic business plan integrated the plans of all departments in an organization and is normally updated monthly.

Question 26

Sales and operations planning is medium range and includes the marketing, production, engineering, and finance plans.

Question 27

The objective in developing a production plan is to maximize the costs of carrying inventory, changing production level, and stocking out not supplying the customer what is wanted when it is wanted).

Question 28

MRP II provides coordination between marketing and production.

Question 29

The production plan sets the general levels of production and inventories over the planning horizon.

Question 30

Along with the market and financial plans, the production plan is concerned with implementing the strategic business plan. The planning horizon is usually eighteen to sixty months and is typically reviewed each year.