Question 1

To make effective use of a dependent inventory demand model, what information is necessary for an operations manager?

Accepted Answer

The answer of To make effective use of a dependent...

Question 2

Finite capacity scheduling is an algorithm designed to schedule a group of orders appropriately across the entire shop.

Accepted Answer

Finite capacity scheduling is used to allocate resources and schedule orders within the constraints of available capacity in a manufacturing or production environment.

Question 3

An item is called a dependent demand item because demand is dependent on customer preferences.

Accepted Answer

Dependent demand items are those whose demand is directly tied to the demand for another item, typically a finished product, rather than customer preferences.

Question 4

A resource planning process takes sales and operations plans; processes information in the way of time standards, routings, and other information on how the firm produces its services or products; and then plans the input requirements.

Accepted Answer

The resource planning process involves taking sales and operations plans and using information like time standards and routings to determine the input requirements needed for production.

Question 5

An intermediate item must have a least one components and least one parent.

Accepted Answer

An intermediate item is typically part of a larger assembly process, meaning it is both a component of a higher-level item (parent) and composed of other components.

Question 6

The aggregate plan, derived from the master production schedule, specifies in more detail how much which products is to be made and at what times.

Accepted Answer

The aggregate plan is a high-level plan that outlines overall production levels and resource requirements, while the master production schedule specifies the exact products and quantities to be produced at specific times.

Question 7

Material requirements planning (MRP) is a computerized information system developed specifically to aid in managing dependent demand inventory and scheduling replenishment orders.

Accepted Answer

MRP is indeed a computerized system used to manage dependent demand inventory and scheduling replenishment orders.

Question 8

Safety stock is more complex for independent demand items than for dependent demand items.

Accepted Answer

The answer of Safety stock is more complex for independent...

Question 9

The master production schedule is a forecast of demand for families of products.

Accepted Answer

The master production schedule (MPS) is a plan for the production of individual products, not a forecast of demand. It specifies what is to be made and when, based on the demand forecast, inventory levels, and production capacity.

Question 10

Dependent demand occurs because the quantity required is a function of the demand for other items held in inventory.

Accepted Answer

Dependent demand occurs when the demand for an item is dependent on the demand for another item. For example, the demand for car wheels is dependent on the demand for cars. As such, the quantity of car wheels needed is not based on customer demand for car wheels, but rather on the production plan for cars.

Question 11

Complete the following MRP schedule:

Accepted Answer

The answer of Complete the following MRP schedule: 
...

Question 12

Explain the major difference for resource planning in service firms compared to manufacturers.

Accepted Answer

The answer of Explain the major difference for resource planning...

Question 13

Using a periodic order quantity generates a high level of average inventory because it creates inventory remnants.

Accepted Answer

The answer of Using a periodic order quantity generates a...

Question 14

Lot- for- lot (L4L) is a rule that maintains the same order quantity each time an order is issued.

Accepted Answer

Lot-for-lot (L4L) is an inventory management rule that orders exactly what is needed for production based on the current demand, rather than ordering the same quantity each time.

Question 15

An action bucket is the first week's entry of the planned order release row.

Accepted Answer

An action bucket is the first week's entry of the planned order release row.

Question 16

A purchased item is a component received by the company and taken out of inventory.

Accepted Answer

A purchased item is added to inventory when received by the company, not taken out.

Question 17

Consider the MPS, BOM, and inventory data shown below.
Master Production Schedule: the following table shows the MPS start quantities.  Bill of Material:
- Item A uses 2 each of component D, 1 each of component C and 2 each of subassembly B.
- Subassembly B uses 2 each of component E. 
Selected Inventory Data: $$\begin{array} { | c | l | c | c | c | } 
\hline \text { Item } & \begin{array} { c } 
\text { Lot Size } \
\text { Technique }
\end{array} & \text { Lead Time } & \begin{array} { c } 
\text { Scheduled } \
\text { Receipts }
\end{array} & \text { On- Hand } \
\hline \mathrm { B } & \mathrm { L } 4 \mathrm {~L} & 1 & 40 \text { in period 1 } & \
\mathrm { C } & \mathrm { POQ } = 3 & 2 & & 40 \
\mathrm { D } & \mathrm { FOQ } = 250 & 1 & \
\mathrm { E } & \mathrm { L } 4 \mathrm {~L} & 2 & 160 \text { in period 2 } & \
\hline
\end{array}$$  Construct the MRP schedule using the above information.

Accepted Answer

The answer of Consider the MPS, BOM, and inventory data...

Question 18

What is a bill of materials? Discuss.

Accepted Answer

The answer of What is a bill of materials? Discuss....

Question 19

One technique for projecting time- phased capacity requirements for workstations is capacity requirements planning.

Accepted Answer

Capacity Requirements Planning (CRP) is a method used to determine the amount of labor and machine resources required to meet production goals, making it a technique for projecting time-phased capacity requirements for workstations.

Question 20

In MRP, the inventory record divides the future into time periods called time baskets.

Accepted Answer

The answer of In MRP, the inventory record divides the...

Quiz 13: Resource Planning

To make effective use of a dependent inventory demand model, what information is necessary for an operations manager?

Finite capacity scheduling is an algorithm designed to schedule a group of orders appropriately across the entire shop.

An item is called a dependent demand item because demand is dependent on customer preferences.

A resource planning process takes sales and operations plans; processes information in the way of time standards, routings, and other information on how the firm produces its services or products; and then plans the input requirements.

An intermediate item must have a least one components and least one parent.

The aggregate plan, derived from the master production schedule, specifies in more detail how much which products is to be made and at what times.

Material requirements planning (MRP) is a computerized information system developed specifically to aid in managing dependent demand inventory and scheduling replenishment orders.

Safety stock is more complex for independent demand items than for dependent demand items.

The master production schedule is a forecast of demand for families of products.

Dependent demand occurs because the quantity required is a function of the demand for other items held in inventory.

Complete the following MRP schedule:

Explain the major difference for resource planning in service firms compared to manufacturers.

Using a periodic order quantity generates a high level of average inventory because it creates inventory remnants.

Lot- for- lot (L4L) is a rule that maintains the same order quantity each time an order is issued.

An action bucket is the first week's entry of the planned order release row.

A purchased item is a component received by the company and taken out of inventory.

What is a bill of materials? Discuss.

One technique for projecting time- phased capacity requirements for workstations is capacity requirements planning.

In MRP, the inventory record divides the future into time periods called time baskets.