4362 - Quiz 3 (chap 5 & 7)

The disaggregation of the SOP into production plans for specific products defines the

Correct Answer: a. product mix that will be produced

Maintaining a stable workforce working and/or a constant rate of output while shortages and surpluses are absorbed by fluctuating inventory levels is which of the following SOP strategies?

Correct Answer: b. Level

In an overview of the MPC activities, which of the following activities follows SOP?

Correct Answer: b. Master Production Scheduling

Which of the following statements is correct?

Correct Answer: d. All of the above statements are correct

(TYPE 1) ) In a chase strategy, if the forecasted demand in April is 2,400 units, and there are 20 working days in April, how much inventory should be held at the end of March if the goal is 10 days' supply?

Correct Answer: 1,200 Answer range +/- 5 (1195 - 1205)

(TYPE 4) Given that beginning inventory level is 400 units, total forecasted demand over the net 12 months is 18,000 units, and desired ending inventory level at the end of the 12th month is 600 units, what should be the planned production per month if a level strategy is used? (round to the nearest integer)

Correct Answer: 1,516 Answer range +/- 5 (1511 - 1521)

(TYPE 4) Given the following information, prepare the MPS using a Fixed Order Quantity (FOQ) of 90 and calculate the projected available inventory balances. What is the projected available inventory balance at the end of period 3? Safety Stock = 30 Periods 1 2 3 4 5 6 Forecast 70 90 110 100 95 90 Projected Available Balance (Inventory) 103 Master Production Schedule

Correct Answer: 103 Answer range +/- 1 (102 - 104)

Use discrete available-to-promise (ATP) logic, and the master production schedule (MPS) for the following information. How many units are available-to-promise in period 1? Periods 1 2 3 4 5 6 Forecast 95 88 83 65 70 77 Orders 75 23 18 15 10 0 Projected Available Balance (Inventory) 12 Master Production Schedule 200 0 200 0 0 200 Available-to-Promise

Correct Answer: 114 Answer range +/- 1 (113 - 115)

Given the following information, prepare the MPS using a Fixed Order Quantity (FOQ) of 170 and calculate the projected available inventory balances. What is the projected available inventory balance at the end of period 4? Safety Stock = 0 Periods 1 2 3 4 5 6 Forecast 95 88 83 65 70 77 Projected Available Balance (Inventory) 118 Master Production Schedule

Correct Answer: 127 Answer range +/- 1 (126 - 128)

(TYPE 2) Use discrete available-to-promise (ATP) logic, and the master production schedule (MPS) for the following information. How many units are available-to-promise in period 3? Periods 1 2 3 4 5 6 Forecast 95 88 83 65 70 77 Orders 75 23 18 15 10 0 Projected Available Balance (Inventory) 12 Master Production Schedule 200 0 200 0 0 200 Available-to-Promise

Correct Answer: 157 Answer range +/- 1 (156 - 158)

(TYPE 3) Given the following information, prepare the MPS using a Fixed Order Quantity (FOQ) of 200 and calculate the projected available inventory balances. What is the projected available inventory balance at the end of period 4? Safety Stock = 0 Periods 1 2 3 4 5 6 Forecast 77 70 65 83 88 95 Projected Available Balance (Inventory) 80 Master Production Schedule

Correct Answer: 185 Answer range +/- 1 (184 - 186)

Given the following information, prepare the MPS using a Fixed Order Quantity (FOQ) of 200 and calculate the projected available inventory balances. What is the projected available inventory balance at the end of period 4? Safety Stock = 0 Periods 1 2 3 4 5 6 Forecast 77 70 65 83 88 95 Projected Available Balance (Inventory) 80 Master Production Schedule

Correct Answer: 185 Answer range +/- 1 (184 - 186)

(TYPE 3) Given the following information, prepare the MPS using a Fixed Order Quantity (FOQ) of 100 and calculate the projected available inventory balances. What is the projected available inventory balance at the end of period 3? Safety Stock = 0 Periods 1 2 3 4 5 6 Forecast 78 80 82 84 84 82 Projected Available Balance (Inventory) 60 Master Production Schedule

Correct Answer: 20 Answer range +/- 1 (19 - 21)

Given the following information, prepare the MPS using a Fixed Order Quantity (FOQ) of 200 and calculate the projected available inventory balances. What is the projected available inventory balance at the end of period 2? Safety Stock = 10 Periods 1 2 3 4 5 6 Forecast 180 230 260 220 270 240 Projected Available Balance (Inventory) 13 Master Production Schedule

Correct Answer: 203 Answer range +/- 1 (202 - 204)

(TYPE 5) Given that a chase strategy is used, regular production capacity is 12000 units with a per unit cost of $15, overtime capacity may be used with a per unit cost of $ 24, forecasted demand for the month is 13,800 units, beginning inventory is 1,450 units, desired end of month inventory is 800 units. What is the total cost of production in this month to match the sales plan?

Correct Answer: 207,600 Answer range +/- 5 (207595 - 207605)

Given that a chase strategy is used, regular production capacity is 12000 units with a per unit cost of $15, overtime capacity may be used with a per unit cost of $ 24, forecasted demand for the month is 13,800 units, beginning inventory is 1,450 units, desired end of month inventory is 800 units. What is the total cost of production in this month to match the sales plan?

Correct Answer: 207,600 Answer range +/- 5 (207595 - 207605)

Given that beginning inventory level is 1,460 units, total forecasted demand over the next 12 months is 38,000 units, and desired ending inventory level at the end of the 12th month is 3,000 units, what should be the planned production per month if a level strategy is used ? (round to the nearest integer)

Correct Answer: 3,295 Answer range +/- 5 (3290 - 3300)

(TYPE 1) Given the following information, what is the projected available inventory balance at the end of period 4? Periods 1 2 3 4 5 6 Forecast 45 50 55 50 50 60 Projected Available Balance (Inventory) 70 Master Production Schedule 0 80 0 80 80 0

Correct Answer: 30 Answer range +/- 1 (29 - 31)

(TYPE 6) Given that beginning inventory level is 960 units, total forecasted demand over the next 12 months is 13,400 units, and desired ending inventory level at the end of the 12th month is 1,000 units, what is the cost of production per month if a level strategy is used and per unit cost of production is $32? (round to the nearest integer)

Correct Answer: 35,840 Answer range +/- 5 (35835 - 35845)

TYPE 1) Given the following information, what is the projected available inventory balance at the end of period 3? Periods 1 2 3 4 5 6 Forecast 23 26 29 32 35 38 Projected Available Balance (Inventory) 15 Master Production Schedule 50 0 50 0 50 50

Correct Answer: 37 Answer range +/- 1 (36 - 38)

Following a chase strategy, how many workers would be needed in the month of March given that forecasted demand in March is 3,784 units, there are 22 working days, and worker productivity is 4 units per day?

Correct Answer: 43 Answer range +/- 5 (38 - 48)

Following a chase strategy, how many workers would be needed in the month of October given that the forecasted demand in October is 8,470 units, there are 22 working days, and worker productivity is 7 units per day?

Correct Answer: 55 Answer range +/- 5 (50 - 60)

Use discrete available-to-promise (ATP) logic, and the master production schedule (MPS) for the following information. How many units are available-to-promise in period 1? Periods 1 2 3 4 5 6 Forecast 95 88 83 65 70 77 Orders 75 23 18 15 10 0 Projected Available Balance (Inventory) 13 Master Production Schedule 120 120 120 0 120 0 Available-to-Promise

Correct Answer: 58 Answer range +/- 1 (57 - 59)

(TYPE 1) In a chase strategy, if the forecasted demand in April is 2,400 units, and there are 20 working days in April, how much inventory should be held at the end of March if the goal is 5 days' supply?

Correct Answer: 600 Answer range +/- 0 (600 - 600)

Given the following information, prepare the MPS using a Fixed Order Quantity (FOQ) of 60 and calculate the projected available inventory balances. What is the projected available inventory balance at the end of period 2? Safety Stock = 20 Periods 1 2 3 4 5 6 Forecast 60 70 50 35 45 45 Projected Available Balance (Inventory) 20 Master Production Schedule

Correct Answer: 70 Answer range +/- 1 (69 - 71)

(TYPE 2) Use discrete available-to-promise (ATP) logic, and the master production schedule (MPS) for the following information. How many units are available-to-promise in period 4? Periods 1 2 3 4 5 6 Forecast 95 88 83 65 70 77 Orders 75 23 18 15 10 0 Projected Available Balance (Inventory) 112 Master Production Schedule 0 100 100 100 0 100 Available-to-Promise

Correct Answer: 75 Answer range +/- 1 (74 - 76)

(TYPE 3) Following a chase strategy, how many workers would be needed in the month of March given that forecasted demand in March is 3,300 units, there are 22 working days, and worker productivity is 2 units per day?

Correct Answer: 75 Answer range +/- 5 (70 - 80)

(TYPE 3) Following a chase strategy, how many workers would be needed in the month of October given that the forecasted demand in October is 8,250 units, there are 22 working days, and worker productivity is 5 units per day?

Correct Answer: 75 Answer range +/- 5 (70 - 80)

Given that beginning inventory level is 1,320 units, total forecasted demand over the next 12 months is 36,000 units, and desired ending inventory level at the end of the 12th month is 2,000 units, what is the cost of production per month if a level strategy is used and per unit cost of production is $32? (round to the nearest integer)

Correct Answer: 97,813 Answer range +/- 5 (97808 - 97818)

A make-to-order company carries finished goods inventories for most, if not all, of its end items.

Correct Answer: False

MPS supports the Resource Planning activity in the front-end of the. MPC framework.

Correct Answer: False

Order promising can be coordinated with the MPS by using a concept known as Sales and Operations Planning (SOP).

Correct Answer: False

Pre-SOP meeting is held within Manufacturing Planning and Control (MPC) management.

Correct Answer: False

SOP meeting is held once a year.

Correct Answer: False

The MPS is an aggregate statement of the manufacturing output required to reach company objectives

Correct Answer: False

The final assembly schedule (FAS) and the MPS are one and the same

Correct Answer: False

The final assembly schedule (FAS) and the MPS are one and the same.

Correct Answer: False

A planning bill of materials describes the related options or modules that make up the average end item.

Correct Answer: True

A stable operations plan results in far fewer execution problems.

Correct Answer: True

Financial budgets should be integrated with master production scheduling activities.

Correct Answer: True

MPS specifies the products (or product options) that will be completed, the time of completion, and the quantities to be completed

Correct Answer: True

Many key sales and operations planning linkages are outside the MPC system.

Correct Answer: True

SOP balances Supply & Demand at the Volume Level

Correct Answer: True

The disaggregation of the SOP into production plans for specific products defines the product mix that will be produced.

Correct Answer: True

The intention of the SOP process is to produce complete and integrated plans, budgets, objectives, and goals that are used by managers to make decisions and provide the basis for evaluating performance.

Correct Answer: True

The principle input to SOP process is sales forecast update.

Correct Answer: True

The value of the SOP is questionable if there is no monitoring of performance.

Correct Answer: True

The use of Chase strategy in SOP will result in

Correct Answer: c. Minimal inventory carrying/back order costs

(TYPE 4) Given the following information, prepare the MPS using a Fixed Order Quantity (FOQ) of 90 and calculate the projected available inventory balances. What is the projected available inventory balance at the end of period 3? Safety Stock = 30 Periods 1 2 3 4 5 6 Forecast 70 90 110 100 95 90 Projected Available Balance (Inventory) 103 Master Production Schedule

Correct Answer: 103Answer range +/-1 (102 - 104

TYPE 1) In a chase strategy, if the forecasted demand in November is 1,800 units, and there are 24 working days in November, how much inventory should be held at the end of October if the goal is 8 days' supply?

Correct Answer: 600Answer range +/-0 (600 - 600)

The cushion to protect the master production schedule against uncertainty in demand is referred to as

Safety Stock

The Bill of Materials for a finished product specifies the

all of the options are part of BOM

A two-level MPS is most useful in which MPC environment?

Assemble-to-Order

SOP provides the key communication links for top management to coordinate the various planning activities in a business.

True

Matching the production rate to the sales forecast by hiring and laying off employees is which of the following SOP strategies?

b. Chase

The operations plans is

b. a managerial statement of desired production output

When the delivery date (promise date) is negotiated with customers, the coordination with MPS is made by using the following concept

c. Available-to-Promise (ATP)

Which of the following statements is true? I. The SOP is usually stated in aggregate units II. The MPS is usually stated in end product units III. SOP & MPS should be stated in the same units

d. I and II only