Deck 13: Resource Management

Question 1

The purpose of a master production schedule (MPS) is to break down the aggregate planning decisions into such details as order sizes and schedules for individual subassemblies and resources by week and day.

Answer 1

False

Question 2

Which of the following is true of the lot-for-lot (LFL) rule

A) It minimizes the costs associated with production setups.
B) It ignores the costs associated with purchase orders.
C) It maximizes the amount of inventory that needs to be carried.
D) It masks the true nature of dependent demand.

Answer 2

It ignores the costs associated with purchase orders.

Question 3

The lot-for-lot (LFL) rule is best applied when:

A) inventory-carrying costs are high.
B) space constraints are low.
C) costs associated with purchase orders are high.
D) setup costs are moderate.

Answer 3

inventory-carrying costs are high.

Question 4

In manufacturing, a _____ is a statement of how many finished items are to be produced and when they are to be produced.

A) master production schedule
B) capacity requirements plan
C) materials requirements plan
D) planned order receipt

Question 5

Resource management for most service-providing organizations generally requires as many intermediate levels of planning as it does for manufacturing.

Question 6

Which of the following is true of a master production schedule (MPS)

A) Its primary output is a time-phased report for scheduling raw materials purchase.
B) It provides a means for evaluating alternative schedules in terms of capacity requirements.
C) Its input is obtained from the materials requirements planning.
D) It projects the requirements for the individual parts based on the demand for the finished goods.

Question 7

Which of the following lot sizing rules bases the order quantity on a standard-size container or pallet load

A) The lot-for-lot rule
B) The fixed-order quantity rule
C) The periodic-order quantity rule
D) The gross requirements rule

Question 8

A company currently has 100 items in inventory. The demand for the next four months is 500, 800, 900, and 300 units. Determine the monthly production rate if a level strategy is selected with the goal of ending the fourth month with 400 units in inventory.

A) 500 units/month
B) 700 units/month
C) 900 units/month
D) 1100 units/month

Question 9

In the context of aggregate planning options, which of the following costs are an implication of allowing stockouts

A) Inventory-carrying costs
B) Lost sales and customer loyalty costs
C) High labor costs and premiums
D) Separation costs

Question 10

A company currently has no items in inventory. The demand for the next four months is 200, 400, 250, and 350 units. Assuming a level production rate of 350 units per month, determine the ending inventory at the end of the fourth month.

A) 100
B) 150
C) 200
D) 250

Question 11

__________is the process of translating aggregate plans into short-term operational plans that provide the basis for weekly and daily schedules and detailed resource requirements.

A) Aggregation
B) Execution
C) Disaggregation
D) Enterprise resource planning

Question 12

For goods-producing firms, at which of the following levels of resource planning does scheduling for individual subassemblies and resources by week and day take place

A) Aggregate planning
B) Disaggregation
C) Execution
D) Demand forecasting

Question 13

Capacity requirements are computed by multiplying the number of units scheduled for production at a work center by the:

A) the unit resource requirements and then adding in the setup time.
B) the setup time and then subtracting the unit resource requirements.
C) the setup time and then adding in the unit resource requirements.
D) the unit resource requirements and then subtracting the setup time.

Question 14

In a garments factory, a part requires 0.10 hours of labor per unit in Work Center B and 1 hour of setup time. The planned order release (order size) for a week is 2000 units. Which of the following is the capacity requirement for a week at Work Center B

A) 101
B) 151
C) 201
D) 251

Question 15

A company currently has 500 items in inventory. The demand for the next 2 months is 900 and 1200 units. Assuming a level production rate of 1000 units per month, determine the ending inventory at the end of the second month.

A) 300
B) 400
C) 500
D) 600

Question 16

The periodic-order quantity (POQ) can be determined using an economic time interval, which is the economic order quantity (EOQ) divided by _____.

A) on-hand inventory
B) annual demand
C) gross requirements
D) total required inventory

Question 17

Aggregate planning:

A) is not driven by demand forecasts.
B) includes detailed staff schedules.
C) helps in defining budget allocations and resource requirements.
D) does not translate forecast into production plans.

Question 18

Enterprise resource planning (ERP) systems integrate all aspects of a business into a unified information system.

Question 19

In industries where jobs have low skill requirements, changing workforce levels can be cost effective.

Question 20

Which of the following is true of a level production strategy

A) Labor schedules are dynamic.
B) Equipment schedules are stable.
C) There are no capacity restrictions.
D) The production rate keeps changing.

Question 21

__________is the process of determining the amount of labor and machine resources required to accomplish the tasks of production on a more detailed level, taking into account all component parts and end items in the materials plan.

A) Capacity requirements planning
B) Materials requirements planning explosion
C) Disaggregation
D) Execution

Question 22

__________refers to moving work from one workstation to another, assigning people to tasks, setting priorities for jobs, scheduling equipment, and controlling processes.

A) Aggregate planning
B) Disaggregation
C) Capacity planning
D) Execution

Question 23

__________is the process of using the logic of dependent demand to calculate the quantity and timing of orders for all subassemblies and components that go into and support the production of the end item(s).

A) Final assembly schedule
B) Materials requirements planning explosion
C) Disaggregation
D) Capacity requirements planning

Question 24

Which of the following lot sizing rules is best applied when setup or order costs are high

A) The fixed-order quantity rule
B) The lot-for-lot rule
C) The periodic-order quantity rule
D) The gross requirements rule

Question 25

_____ are the quantity of a component needed to support production at the next-higher level of assembly.

A) Planned order receipts
B) Scheduled receipts
C) Explosions
D) Gross requirements