Question 1

Which basic production planning strategy avoids hiring and layoff costs and the costs of excess capacity?
A) demand matching
B) operation smoothing
C) subcontracting
D) all the above
E) none of the above

Accepted Answer

Subcontracting allows a company to meet demand without incurring the costs associated with hiring, layoffs, or maintaining excess capacity.

Question 2

Which of the following are characteristics of an MRPII system?
I. It incorporates the plans of marketing, production and finance.
II. It is a fully integrated planning and control system.
III. It has feedback from the bottom up.
A) I only
B) II only
C) III only
D) I, II and III

Accepted Answer

I. MRPII systems incorporate the plans of marketing, production, and finance to ensure that there is an integrated approach to planning and control of production operations.
II. MRPII systems are fully integrated planning and control systems that aim to streamline the entire production process, from planning to delivery, by providing visibility into all aspects of production.
III. MRPII systems rely on feedback from the bottom up, as well as the top down, to ensure that production plans are executed successfully and that any issues are addressed and resolved promptly.

Question 3

A production planning strategy which turns away extra demand is called:
A) production leveling
B) demand matching
C) hybrid strategy
D) all of the above
E) none of the above

Accepted Answer

None of the options listed specifically describe a strategy that turns away extra demand. The correct term for such a strategy is "demand rejection" or "demand limiting," which is not provided in the options.

Question 4

Which of the following statements is best about sales and operations planning?
A) it provides an means of updating the material requirements plan
B) it includes only the marketing and production plans
C) it is usually updated on a monthly basis
D) it has no effect on inventory levels

Accepted Answer

Sales and operations planning (S&OP) is typically updated on a monthly basis to reflect changes in demand and supply and to ensure that the organization's strategic goals are aligned with its operational capabilities.

Question 5

Which of the following plans has the longest planning horizon and the least level of detail?
A) strategic business plan
B) production plan
C) master production schedule
D) all of the above have the same level of detail
E) none of the above

Accepted Answer

A strategic business plan typically has a planning horizon of 5-10 years and is focused on high-level goals and objectives. It has the least level of detail compared to the production plan or master production schedule, which are more short-term and specific to operational activities.

Question 6

The ability of manufacturing to produce goods and services is called:
A) scheduling
B) production planning
C) capacity
D) routing
E) none of the above

Accepted Answer

Capacity refers to the maximum amount of goods or services that can be produced using the available resources in a given period of time. This includes the production capacity of a factory, the capacity of a service provider to handle clients, or the capacity of a transportation system to carry passengers or goods. Scheduling, production planning, and routing are all important elements of capacity management but are not equivalent to capacity itself.

Question 7

Which of the following is a characteristic of a production plan?
A) time horizons are five years
B) the production plan is for individual items
C) the only objective is to have an efficient plant
D) all of the above are characteristics of a production plan
E) none of the above is characteristic of a production plan

Accepted Answer

Production plans typically have shorter time horizons (not necessarily five years), cover a range of items (not just individual items), and aim for multiple objectives beyond just plant efficiency, such as meeting demand, minimizing costs, and optimizing resource use.

Question 8

Over a 10-week period the cumulative sales are forecast at 10,000 units, the opening inventory is
200 units and the closing inventory is to be 100 units. What should be the weekly planned production for level production?
A) 990
B) 1000
C) 1010
D) 1030
E) none of the above

Accepted Answer

The answer of Over a 10-week period the cumulative sales...

Question 9

Over the time span of the production plan, which of the following can usually be varied to change capacity?
A) work force
B) inventories
C) plant and equipment
D) all of the above
E) a and b above

Accepted Answer

The answer of Over the time span of the production...

Question 10

Which basic production planning strategy will build inventory and avoid the costs of excess capacity?
A) demand matching (chase)
B) production leveling
C) subcontracting
D) all the above
E) none of the above

Accepted Answer

Production leveling aims to build inventory during low demand periods and avoid excess capacity during high demand periods. This helps to reduce holding costs associated with excess inventory and also minimizes the need for expensive overtime or temporary labor when demand spikes. Demand matching (chase) and subcontracting, on the other hand, are not necessarily aimed at building inventory and may not be the best strategies for avoiding the costs of excess capacity.

Question 11

Priority in production planning relates to:
A) routing
B) how much of what is needed and when
C) capacity
D) an objective of the firm
E) none of the above

Accepted Answer

Priority in production planning refers to determining how much of a product is needed and when it is needed. This includes forecasting demand, determining the necessary inventory levels, and planning production schedules to meet customer demands. Routing refers to the physical path that materials take through the manufacturing process, capacity refers to the maximum output a system can produce, and an objective of the firm is a broader goal that may include production planning as one aspect.

Question 12

For the purposes of production planning, product groups should be established on the basis of:
A) market segments
B) similarity of manufacturing process
C) the availability of materials
D) the availability of machinery
E) all of the above

Accepted Answer

Establishing product groups on the basis of similarity of manufacturing process allows for more efficient production planning and optimization. It helps to minimize changeovers between different products and reduces setup times, leading to higher productivity and lower costs. While market segments, availability of materials, and machinery may play a role in determining product groups, they are not as critical as the similarity of manufacturing process. Therefore, option B is the best choice.

Question 13

Which of the following statements is most appropriate regarding production planning?
A) a high level of detail is not needed
B) a translation must be made from product demand to capacity demand
C) product groups based on similarity of manufacturing process should be used in planning
D) all of the above are true
E) none of the above is true

Accepted Answer

Production planning involves translating product demand into capacity demand, using product groups based on the similarity of manufacturing processes, and requires a high level of detail to ensure efficiency and effectiveness in meeting production goals.

Question 14

Determining the need for labor, machines, physical resources to meet the production objectives of the firm is called:
A) production control
B) production planning
C) capacity planning
D) all of the above
E) none of the above

Accepted Answer

Determining the need for labor, machines, physical resources to meet the production objectives of the firm is called capacity planning. Production control and production planning are related to managing and controlling the production process once capacity planning is complete. Therefore, the correct answer is C) capacity planning.

Question 15

The function of setting the limits or levels of manufacturing operations based on the market plan and resource availability is called:
A) production planning
B) production activity level
C) capacity planning
D) all of the above
E) none of the above

Accepted Answer

Production planning involves setting the goals and objectives of manufacturing operations, ensuring that the necessary resources are available, and determining the best way to allocate those resources to meet demand. This includes setting production levels based on the market plan and available resources, which is the function described in the question. Production activity level refers specifically to the actual amount of production being carried out, while capacity planning involves determining the resources needed to meet production goals. Therefore, while these concepts are related to production planning, they are not the same as the function described in the question.

Question 16

In terms of INCREASING level of detail, which is the best sequence of activities?
I. Material requirements planning.
II. Master production scheduling.
III. Production planning.
A) I, II and III
B) I, III, and II
C) II, III, and I
D) II, I, and III
E) III, II, and I

Accepted Answer

In order to increase the level of detail in the production planning process, the best sequence of activities is to start with production planning (III), then move onto master production scheduling (II) which involves breaking down production plans into specific time periods, and finally perform material requirements planning (I) which is the most detailed stage and involves determining the exact materials needed for each specific production task. Therefore, the correct sequence is III, II, and I, which is option E.

Question 17

Which of the following is an input to the production plan?
A) strategic business plan
B) financial plan
C) market plan
D) engineering plan
E) all of the above are inputs

Accepted Answer

All of the above plans are inputs to the production plan. The strategic business plan provides the overall direction and goals, the financial plan outlines the budget and resources available, the market plan identifies customer needs and demand, and the engineering plan details the technical specifications and requirements. All of these inputs are necessary to develop a comprehensive and effective production plan.

Question 18

If the opening inventory is 100 units, the sales are 500 units and the ending inventory is 200 units, then manufacturing must produce:
A) 300 units
B) 400 units
C) 500 units
D) 600 units
E) none of the above

Accepted Answer

The formula for calculating units produced is: Opening Inventory + Units Produced - Ending Inventory = Sales.

Substituting the values given in the question, we get:

100 + Units Produced - 200 = 500
Units Produced = 600

Therefore, the manufacturing must produce 600 units.

Question 19

A statement of a schedule of requirements for individual end items is called:
A) a master production schedule
B) a material requirements plan
C) a production plan
D) a capacity plan
E) none of the above

Accepted Answer

A statement of a schedule of requirements for individual end items is known as a master production schedule. A material requirements plan is a detailed plan for when to order and how much to order of each component needed to produce the end items listed in the master production schedule. A production plan outlines the general production strategy, while a capacity plan is a plan for maintaining enough resources to meet demand. Therefore, the best choice for this question is A.

Question 20

Which of the following is a basic strategy in developing a production plan?
A) hybrid strategy
B) production leveling
C) chase strategy
D) a and b above
E) b and c above

Accepted Answer

Production leveling and chase strategy are both basic strategies in developing a production plan. Production leveling aims to maintain a consistent production rate, while the chase strategy adjusts production to match demand.

Quiz 2: Production Planning System

Which basic production planning strategy avoids hiring and layoff costs and the costs of excess capacity?

Which of the following are characteristics of an MRPII system? I. It incorporates the plans of marketing, production and finance. II. It is a fully integrated planning and control system. III. It has feedback from the bottom up.

A production planning strategy which turns away extra demand is called:

Which of the following statements is best about sales and operations planning?

Which of the following plans has the longest planning horizon and the least level of detail?

The ability of manufacturing to produce goods and services is called:

Which of the following is a characteristic of a production plan?

Over a 10-week period the cumulative sales are forecast at 10,000 units, the opening inventory is 200 units and the closing inventory is to be 100 units. What should be the weekly planned production for level production?

Over the time span of the production plan, which of the following can usually be varied to change capacity?

Which basic production planning strategy will build inventory and avoid the costs of excess capacity?

Priority in production planning relates to:

For the purposes of production planning, product groups should be established on the basis of:

Which of the following statements is most appropriate regarding production planning?

Determining the need for labor, machines, physical resources to meet the production objectives of the firm is called:

The function of setting the limits or levels of manufacturing operations based on the market plan and resource availability is called:

In terms of INCREASING level of detail, which is the best sequence of activities? I. Material requirements planning. II. Master production scheduling. III. Production planning.

Which of the following is an input to the production plan?

If the opening inventory is 100 units, the sales are 500 units and the ending inventory is 200 units, then manufacturing must produce:

A statement of a schedule of requirements for individual end items is called:

Which of the following is a basic strategy in developing a production plan?