4970 Final

Master production scheduling (MPS) and resource planning are a part of which MPC phase?

Detailed Planning

Sales and operations planning (SOP) and demand management are a part of which MPC phase?

Direction Setting

Measuring and control are a part of which MPC phase?

Direction Setting Detailed Planning Execution

The lifetime of a customer order (the time from receiving the order until order fulfillment) is longest in which environment?

Engineering-to-order

What is the demand management function's contribution to sales and operations planning?

Ensuring that the operations plan considers all aspects of demand

In which environment is the demand management function least likely to provide customers with promise dates?

Make-to-stock

The lifetime of a customer order (the time from receiving the order until order fulfillment) is shortest in which environment?

Make-to-stock

Demand management is the firm's connection to what entity?

Marketplace

What is the order of planning decisions in order from lowest to highest data processing cost?

Master production scheduling- sales and operations planning- strategic business unit

Purchasing, vendor evaluation, and invoice management are typically covered in which module of an ERP system?

Materials management

Which of the following MPC components is primarily responsible for tasks such as purchasing, vendor management, and inventory control?

Materials management

Which of the following supply chain metrics is most useful for measuring customers satisfaction in a make-to-order system?

Order fulfillment lead time

Assuming that forecasts errors are normally distributed, what is the relationship between mean absolute deviation and standard deviation?

SD > MAD

Which of the following MPC components is primarily responsible for coordinating the planning efforts of marketing, finance, operations, and human resources?

Sales and operations planning (SOP)

Many key sales and operations planning linkages are outside the manufacturing planning and control (MPC) system. True/False.

True

Mean absolute deviation (MAD) measures

Magnitude of forecast error

A manufacturer of jet airplanes would most likely be what type of firm?

Make-to-order

A manufacturer of printer paper would most likely be what type of firm?

Make-to-stock

In an exponential smoothing forecast, a higher level of alpha will place more emphasis on recent history. True/False

True

If average demand for a quarter is 1,000 and demand in the fourth quarter is 750, what is the seasonal factor for quarter IV?

0.75

For a firm with average daily sales of $200,000, current inventory (Id) of $1,000,000, and costs of sales (CS) of 50 percent, what is the average days of inventory (Id)?

10 days

What is the cash-to-cycle time for a firm with the following financial parameters? S = $10,000,000, d = 60, I = $1,000,000, AR = $750,000, CS = 60%, AP = $250,000?

17 days

In an assemble-to-order environment, how many different product combinations are possible if the product is made from 12 components, each of which has three different options?

531,441 (parts to the power of components 3^12 = 531,441)

The recommended number of product groups for SOP is ______

6-12

Collaborative planning, forecasting, and replenishment (CPFR) has been defined by the Voluntary Interindustry Commerce Standards Association as a process involving how many steps?

9

What is the correct formula to calculate days of sales invested in accounts receivable (ARd)? AR = accounts receivable, S = sales of d days

ARd = (AR + d)/ S

In pyramid forecasting, the "roll-up" process involves

Adding together family forecasts to determine the aggregate forecast

In pyramid forecasting, the "force-down" process involves

Allocating aggregate forecast changes to product families

A local coffee house restaurant would most likely be what type of firm?

Assemble-to-order

In which environment is defining the customer order in terms of components and options the key focus of demand management

Assemble-to-order

What us the proper rank of different environments from lowest to highest need to communicate with the customer?

Assemble-to-order, make-to-order, engineer-to-order

According to the Supply Chain Council, which of the following most accurately describe delivery performance benchmarks for large industrial products?

Average, 70%; best in class, 95%

According to the Supply Chain Council, which of the following most accurately describe inventory days of supply benchmarks for large industrial products?

Average, 85 days; best in class, 55 days

In a make-to-stock environment, what is the key problem?

Balancing inventory levels with customer service requirements

Mean error of a forecast provides information concerning the forecast's

Bias

Compared to a moving-average forecast, an exponential smoothing forecast places more emphasis on recent history. True/False/Both/Can't determine

Can't be determined without more information

Which value indicates the better forecast? a. Mean error of 10% b. Forecast error of 100 units c. Both are equal d. Cannot be determined

Cannot be determined

To support data analysis without burdening the operational ERP system, many firms employ which of the following?

Data warehouse

The first step in the collaborative planning, forecasting, replenishment (CPFR) process is

Establish a collaborative relationship

Shop-floor systems are part of which MPC phase?

Execution

Enterprise resource planning (ERP) systems coordinate multiple databases used to gather and maintain the firm's essential data. True/False.

False

In an engineer-to-order environment, the forecasting process is not necessary. True/False.

False

In regression analysis, the dependent variable could be time. True/False.

False

The operations plan is a form of demand forecast. True/False.

False

To make an exponential smoothing forecast more reactive to trends, a lower value of alpha should be used. True/False

False

Which of the following supply chain metrics is most useful for measuring customers satisfaction in a make-to-stock system?

File rate by line item

In a make-to-stock environment, the most likely point where customers order decoupling would take place is

Finished goods

Products that are part of a continuous production process (e.g., petroleum products) would most likely use which form of MPC?

Flow

Uprating an old MPC system can include which of the following? I. Adding new modules or functionality II. Consideration of new decision criteria III. Removing unneeded/obsolete modules or functionality

I. Adding new modules or functionality II. Consideration of new decision criteria III. Removing unneeded/obsolete modules or functionality

Which of the following actions would be likely to decrease the cash-to-cycle time for a firm? I. Automating a key production process (reducing labor content) II. Returning excess inventory to the supplier III. Granting longer payment terms to customers

I. Automating a key production process (reducing labor content) II. Returning excess inventory to the supplier

Which of the following is not a key decision when considering ERP system? I. Business complexity and size II. System costs and available resources III. Requirement of the firm's process

I. Business complexity and size II. System costs and available resources III. Requirement of the firm's process

Which of the following are examples of independent demand? I. Customer orders II. Shipping samples to the sales team III. Use of raw materials in production

I. Customer orders III. Use of raw materials in production

Which types of data are captured and monitored by the demand management function? I. Detailed product mix II. Product pricing III. Overall market trends

I. Detailed product mix II. Product pricing III. Overall market trends

Which of the following is typically not a component of ERP systems? I. E-mail management II. Finance module III. Human resource module

I. E-mail management

Demand management include which of the following? I. Forecasting II. Product shipping II. Entering customer orders

I. Forecasting III. Entering customer orders

Which of the following actions would be likely to increase the cash-to-cycle time for a firm? I. Increasing the cost, but not the price, of a product II. Taking advantage of "early pay" discounts with suppliers III. Revaluing inventory to reflect reductions in purchasing prices

I. Increasing the cost, but not the price, of a product II. Taking advantage of "early pay" discounts with suppliers

Sale and operations planning provides which of the following benefits? I. Key communications links for top management II. A basis to focus production resources III. Detailed production plans

I. Key communications links for top management III. Detailed production plans

Manufacturing Planning and control (MPC) includes which of the following activities? I. Material Management II. Product Marketing III. Coordinating Suppliers

I. Material Management III. Coordination Suppliers

Evaluating forecast accuracy requires an understanding of I. Mean absolute deviation (MAD) II. Mean error (bias) III. Forecast costs

I. Mean absolute deviation (MAD) II. Mean error (bias)

Which of the following are aspects of enterprise resource planning systems? I. Multifunctional- able to provide data concerning many parts of the firm II. Modular- able to combine selected components into a single system III. Independent- each functional area has its own system and data and maintains control of that system and data

I. Multifunctional- able to provide data concerning many parts of the firm III. Independent- each functional area has its own system and data and maintains control of that system and data

Sales and operations planning can be completed at which of the following levels? I. Product family II. Region III. Organizational unit

I. Product family II. Region III. Organizational unit

What of the following are possible components of time series demand? I. Seasonal Variation II. Cyclical variation III. Trend

I. Seasonal Variation II. Cyclical variation III. Trend

ERP systems perform which of the following tasks? I. Support decisions II. Make decisions III. Evaluate decisions

I. Support decisions

Which of the following are true? I. The sales and operations planning plan is usually stated in aggregate units II. The master production schedule is usually stated in end product units III. The sales and operations planning plan and the master production schedule should be stated in the same units

I. The sales and operations planning plan is usually states in aggregate units II. The master production schedule is usually stated in end product units

Advantages of the sales and operations planning process include I. Visibility of the interaction between functional groups II. Identification of the trade-offs between functional groups III. The ability to overproduce the plan without the need for additional meetings

I. Visibility of the interaction between functional groups II. Identification of the trade-offs between functional groups

Mechanisms to ensure support for the sales and operations planning process can include I. Informal adjustments to the plan between SOP meetings II. Contracts between functional groups III. Senior executive involvement

II. Contracts between functional groups III. Senior executive involvement

The least squares method of linear regression minimizes I. The error of the slope II. The squared distance between each point and the line III. The error of the intercept

II. The squared distance between each point and the line

Which of the following are examples of dependent demand? I. Customer orders II. Using finished goods tock to build preloaded store displays III. Raw material usage

II. Using finished goods tock to build preloaded store displays III. Raw material usage

Which of the following decisions would be most likely to be made using a highly aggregated estimate of general business tends? I. Individual product plans II. Product line development III. Constructing a new plant

III. Constructing a new plant

Which of the following is an example of a casual model? I. Product sales increasing over time II. Lawn mower sales decreasing in the winter III. Increasing appliance sales when housing construction increases

III. Increasing appliance sales when housing construction increases

In the MPC process, capacity decisions (equipment, facilities, suppliers, etc.) are most likely to occur in which time horizon?

Long

As forecasts are extended further in the future, the prediction interval is the most likely to

Increase

In a time series analysis, time is the

Independent variable

Which of the following supply chain metrics is most useful for measuring the firm's management of inventory levels?

Inventory days of supply

Regression analysis where the relationship between variables is a straight line is called

Linear regression

Decisions concerning the balance of supply and demand are made in the ____ phase of sales and operations planning.

Pre-SOP meeting

Capacity leveling, material requirement planning (MRP), and a bill of materials processing are typically covered in which module of an ERP system?

Production planning and control

Which of the following MPC components is primarily responsible for supporting and managing manufacturing activities?

Productions planning and control

Products that are part of a one-time production process (e.g., bridges or aircraft carriers) would most likely use which form of MPC?

Project

The main goal of a CPFR process is to

Reduce the variance between supply and demand

Sources of demand that are part of demand management include all of the following except? a. Customer orders b. Service parts c. Scrap products d. Promotional inventory

Scrap Products

A forecast used for master production scheduling and control is likely to cover a period of

Several days to a few weeks

A forecast used for sales and operations planning to likely to cover a period of

Several months to a year

In the MPC process, detailed scheduling decisions are most likely to occur in which time horizon?

Short

What is the order of planning decisions in order from highest to lowest aggregation level?

Strategic business unit- sales and operations planning- master production scheduling

In an engineer-to-order environment, the most likely point where customers order decoupling would take place is

Suppliers

The customer order decoupling point is best described as

The point in the supply chain where demand changes from dependent to independent

The "functional silo" problem refers to

The tendency for decisions to be made without considering other functional areas

A moving-average forecast is often superior to a simple average because it considers only recent data. True/False.

True

Capacity planning occurs during the supply planning phase of sales and operations. True/False.

True

One of the most important ways to reflect special events (promotions, product changes, etc.) is to directly modify the product forecast. True/False

True

One role of sales and operations planning is to provide early warning when demand a supply become unbalanced. True/False.

True

Seasonal variations are generally associated with the seasons of the year, while cyclical variations refer to other annual patterns. True. False.

True

The exponential smoothing forecast considers all past data. True/False.

True

The master production schedule disaggregates the operations plan. True/False.

True

With additive seasonal variation, the seasonal change is constant regardless of trends. True/ False.

True

Sales and operations planning balances supply and demand at the _____ level

Volume level

The four fundamentals issues in sales and operations planning are?

Volume, mix, demand and supply

In an assemble-to-order environment, the most likely point where customers order decoupling would take place is

Work-in-process parts and components

In the least square regression analysis, if the value of a has been calculated as 10 and b has been found to be 100, what is the equation of the line?

Y = 10 + 100X