Question 1

_____ models seek to determine quantities of different products to produce and sell in order to maximize contribution to profit.
A) Product mix
B) Process selection
C) Linear optimization
D) Linear regression

Accepted Answer

Product mix models are used to determine the optimal combination of products to produce and sell to maximize profit.

Question 2

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.

Accepted Answer

A level production strategy aims to keep equipment schedules stable in order to eliminate the need for frequent setups and changeovers. Labor schedules may still be dynamic, as they can be adjusted to meet production demands, but the equipment schedules should remain the same. Capacity restrictions may still exist, but the production rate is kept constant.

Question 3

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

Accepted Answer

Service-providing organizations often require fewer intermediate levels of planning in resource management compared to manufacturing organizations due to the intangible nature of their outputs and the direct interaction with customers.

Question 4

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

Accepted Answer

Allowing stockouts leads to lost sales and dissatisfied customers, which can result in long-term costs associated with rebuilding customer loyalty and potential damage to the company's reputation.

Question 5

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

Accepted Answer

Disaggregation is the process of breaking down the aggregate plan into specific actions and tasks that need to be accomplished, such as scheduling for individual subassemblies and resources by week and day. The other options are not directly related to this level of planning. Aggregate planning involves higher-level decision making regarding capacity and production rates. Execution involves actually carrying out the planned activities. Demand forecasting involves predicting future demand for the product.

Question 6

_____ 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

Accepted Answer

Gross requirements are the total amount of a component needed to support production at the next higher level of assembly. Planned order receipts and scheduled receipts refer to specific orders and deliveries, while explosions refer to the process of breaking down a finished product into its component parts.

Question 7

_____ 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

Accepted Answer

Execution refers to the actual implementation of a plan, which includes moving work from one workstation to another, assigning people to tasks, setting priorities for jobs, scheduling equipment, and controlling processes.

Question 8

_____ 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

Accepted Answer

This process is known as Materials Requirements Planning (MRP) explosion, which involves breaking down the production plan into parts and determining how much of each component is needed to fulfill the demand for finished products. A is incorrect because final assembly schedule is a high-level view of the overall production plan. C and D are also incorrect because disaggregation is the opposite of MRP explosion (i.e. breaking down high-level plans into more detailed plans), while capacity requirements planning involves determining the resources needed to execute the production plan, rather than calculating the quantity and timing of orders for subassemblies and components.

Question 9

_____ 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

Accepted Answer

Capacity requirements planning is the process of determining the labor and machine resources needed to meet production requirements as determined by the materials plan. It involves breaking down the materials plan into a detailed production schedule that takes into account all component parts and end items, as well as the capacity of the production facility.

Question 10

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

Accepted Answer

The periodic-order quantity (POQ) is determined by dividing the economic order quantity (EOQ) by the economic time interval. Economic time interval is the time between two orders that minimizes total inventory costs. EOQ is calculated using the formula (2DS/H)^(1/2), where D is annual demand, S is the ordering cost, and H is the holding cost per unit. Therefore, the POQ is calculated as (EOQ/economic time interval), and the economic time interval is calculated as EOQ/annual demand. Thus, the correct choice is B, which is annual demand.

Question 11

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

Accepted Answer

To determine the monthly production rate, we need to first calculate the total demand over the four months, which is:

500 + 800 + 900 + 300 = 2500 units

The target ending inventory is 400 units, so the total production needed is:

2500 - 100 (initial inventory) + 400 (ending inventory) = 2800 units

To find the monthly production rate, we divide the total production by the number of months:

2800 / 4 = 700 units/month

Therefore, the best choice is B.

Question 12

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

Accepted Answer

Aggregate planning helps in defining budget allocations and associated resource requirements by translating demand forecasts into production plans.

Question 13

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

Accepted Answer

ERP systems are designed to integrate all aspects of a business, including finance, human resources, manufacturing, and supply chain management, into a unified information system.

Question 14

_____ 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

Accepted Answer

Disaggregation is the process of breaking down or translating aggregate plans into more detailed short-term operational plans, such as weekly or daily schedules and specific resource requirements. This allows for more effective allocation of resources and management of production processes.

Question 15

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.

Accepted Answer

The answer of Which of the following is true of...

Question 16

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

Accepted Answer

The total demand over four months is 200 + 400 + 250 + 350 = 1200 units. With a production rate of 350 units per month over four months, the total production is 350 * 4 = 1400 units. The ending inventory is the total production minus the total demand, which is 1400 - 1200 = 200 units.

Question 17

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.

Accepted Answer

The answer of Which of the following is true of...

Question 18

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.

Accepted Answer

The answer of The purpose of a master production schedule...

Question 19

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

Accepted Answer

In industries where jobs have low skill requirements, the workforce can be easily replaced or reduced without significant financial impact on the company. This makes changing workforce levels a cost-effective solution for managing labor needs.

Question 20

JamTime Music Company manufactures two types of headsets: a basic model and a professional model.In order to manufacture the headsets,they go through two departments: assembly and testing.The assembly department has 9 workers who work 8 hours/day each.The testing department has 3 workers who also work 8 hours/day each.Each basic headset model spends 3 hours in the assembly department and 1.5 hours in the testing department.Each professional headset model spends 5 hours in the assembly department and 3 hours in the testing department.The company makes a net profit of $100 for each basic headset and $175 for each professional headset.JamTime Music Co.predicts that they will sell at least two times as many basic models as professional models.Using this information,determine the objective function to maximize profit.Use the variable B for the number of basic model headsets and P for the number of professional model headsets.
A) 5B + 3P
B) 3B + 5P
C) 100B + 175P
D) 175B + 100P

Accepted Answer

The objective function is the total profit, which is the sum of the profit from each type of headset. The profit from each basic headset is $100, and the profit from each professional headset is $175. The number of basic headsets is B, and the number of professional headsets is P. Therefore, the objective function is 100B + 175P.

Quiz 14: Resource Management

_____ models seek to determine quantities of different products to produce and sell in order to maximize contribution to profit.

Which of the following is true of a level production strategy?

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

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

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?

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

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

_____ 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) .

_____ 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.

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

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.

Aggregate planning:

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

_____ 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.

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

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.

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

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.

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