Question 1

A master production schedule shows the beginning inventory is 100 units,the forecast is 250 units,and actual customer orders are 400 units.Using a lot-for-lot rule,what is the MPS quantity for period 1?

Accepted Answer

The MPS quantity is calculated as actual customer orders minus beginning inventory, which is 400 - 100 = 300 units.

Question 2

Which of the following would benefit the most from MRP?

Accepted Answer

Vacuum cleaner production would benefit the most from MRP because it involves many components and parts that need to be planned for and ordered in advance to ensure efficient production. MRP would help keep track of inventory levels and production schedules to ensure that all the necessary parts are available when needed. Gasoline production, building a bridge, and producing aluminum cans do not have as many individual components that need to be tracked and planned for, so MRP may not be as beneficial in those industries.

Question 3

A detailed description of an "end item" along with a list of all of its raw materials,parts,and subassemblies is shown in a:

Accepted Answer

A "BOM" (Bill of Materials) is a comprehensive list of all the materials, parts, and subassemblies that are needed to manufacture a finished product (the "end item"). The BOM includes quantities and descriptions for each item, allowing for accurate and efficient planning and procurement of all necessary components. The other options - MPS (Master Production Schedule), Planning Horizon, and DRP (Distribution Resource Planning) - do not include the same level of detail as a BOM regarding the specific components required for the end item.

Question 4

The following table shows capacity requirements data for making tabletops.  Which of the following is TRUE?

Accepted Answer

In Day 4 and 5, there is an excess demand of 80 and 60 units, respectively. The total excess demand is 140 units. On Day 3, the capacity is 260, and the demand is only 200. Therefore, the excess capacity on Day 3 is 60 units. Hence, all the excess demand in Day 4 and 5 (140 units) can be shifted to Day 3, along with the excess capacity of 60 units. This way, Day 3 can produce 300 units (260 + 140 - 60), which is enough to meet the total demand for tabletops. No overtime, new machines or capacity increase is needed.

Question 5

Software that consolidates all of the business planning systems and data throughout an organization is:

Accepted Answer

ERP (Enterprise Resource Planning) is a software solution that integrates and manages all the core business processes across various departments and locations within an organization. It consolidates all the data into a single system, including financial data, customer data, supply chain data, and other operational data, providing a unified view of the entire organization. MPS (Master Production Schedule), MRP (Material Requirements Planning), and DRP (Distribution Resource Planning) are specific systems that focus on production and inventory planning and do not provide broader integration across all departments.

Question 6

A master production schedule shows the beginning inventory is 200 units,the forecast is 600 units,and the actual customer orders is 500 units.Using a lot-for-lot rule,what is the MPS quantity for period 1?

Accepted Answer

A lot-for-lot rule means that the MPS quantity will be equal to the actual customer orders for each period. Therefore, the MPS quantity for period 1 will be 500 units.

Question 7

Which of the following pieces of information is NOT contained in an MRP secondary report?

Accepted Answer

The answer of Which of the following pieces of information...

Question 8

A master production schedule shows the beginning inventory is 40 units,the forecast is 100 units,and actual customer orders are 80 units.What is the quantity that is available to promise in period 1?

Accepted Answer

Available to promise (ATP) is the quantity that is promised to customers minus the quantity that has already been sold to customers. In this case, the promised quantity is the forecasted demand, which is 100 units. The quantity that has already been sold is the actual customer orders, which is 80 units. Therefore, the ATP for period 1 is 100 - 80 = 20 units. However, the question is asking for the quantity that is available to promise, which includes the beginning inventory. Therefore, the ATP is 20 + 40 = 60 units. The correct answer is D.

Question 9

Advanced planning and scheduling systems:

Accepted Answer

The answer of Advanced planning and scheduling systems:
...

Question 10

All of the following are outputs from an MRP system EXCEPT:

Accepted Answer

Forecasts are inputs to the MRP system, not outputs. Outputs from an MRP system include order releases, change orders, and exception reports.

Question 11

An MRP schedule is as follows.What are the net requirements in week 2?

Accepted Answer

In week 2, the gross requirements are 50 units (30+20), and the scheduled receipts are 30 units from week 1. Therefore, the net requirements are 20 units (50-30).

Question 12

Which of the following is NOT an input to an MRP system?

Accepted Answer

Order releases are outputs of an MRP system, not inputs. They are the instructions to manufacturing or purchasing departments to produce or buy a specified quantity of an item in a specific time frame.

Question 13

The entire time period covered by the MPS is the:

Accepted Answer

The planning horizon is the time period covered by the MPS. The MPS identifies the quantity and timing of production for finished products over the planning horizon, usually in weeks or months. The other options are not the correct answers. Time bucket refers to the time interval for which MPS data is calculated, cumulative lead time is the total time required to produce and deliver a product from the time of order entry, and production schedule refers specifically to the sequence and timing of production for individual products.

Question 14

Benefits of ERP systems include all of the following EXCEPT:

Accepted Answer

ERP implementation is not easy and can be time-consuming and costly. The benefits of ERP systems include fewer data entry errors, more informed business decisions, improved customer service, and streamlined processes.

Question 15

The primary purpose of an MRP system is to:

Accepted Answer

The primary purpose of MRP (Material Requirements Planning) system is to match supply and demand by calculating the quantity and timing requirements of materials needed to manufacture products based on production schedules. It helps to optimize inventory levels, reduce lead times, and ensure timely delivery of finished goods. It does not involve developing forecasts or scheduling personnel, and while transportation and deliveries can be planned within an MRP system, it is not the primary purpose.

Question 16

An MPS shows:

Accepted Answer

An MPS stands for Master Production Schedule which is a detailed planning document that outlines the quantities of end items to be completed in each time period. It helps in managing inventory levels, production planning and scheduling, as well as communicating production plans to other departments. While change orders, the number of each type of part needed, and scheduled releases for parts and components may be included in an MPS, they are not its primary focus.

Question 17

A master production schedule shows the beginning inventory is 50 units,the forecast is 80 units,and actual customer orders are 70 units.Using a lot-for-lot rule,what is the MPS quantity for period 1?

Accepted Answer

The MPS quantity is calculated by subtracting the beginning inventory from the higher of the forecast or actual orders. Here, actual orders (70) are less than the forecast (80), so we use the forecast. MPS quantity = Forecast (80) - Beginning Inventory (50) = 30 units.

Question 18

A master production schedule shows the beginning inventory is 50 units,the forecast is 200 units,and actual customer orders are 220 units.What is the quantity that is available to promise in period 1?

Accepted Answer

The available to promise (ATP) is calculated as beginning inventory plus forecast minus actual customer orders. Here, 50 + 200 - 220 = 30 units are needed to meet the forecast, leaving 0 units available to promise.

Question 19

A company has decided to outsource the production of key components for its main product to suppliers.What effect will this have on the product's bill of materials?

Accepted Answer

Outsourcing production of key components will reduce the number of levels in the bill of materials, making it flatter.

Question 20

If the planning horizon is 12 weeks,the cumulative lead time must be:

Accepted Answer

The cumulative lead time must be less than or equal to the planning horizon to ensure that all activities can be completed within the planned timeframe. If it exceeds the planning horizon, there wouldn't be enough time to complete all necessary tasks.

Quiz 12: Demand Planning: Forecasting and Demand Management