Chapter 5

A planning bill of material is A. A bill of material for new products B. A bill of material for products still in development C. A bill of material that represents probable usage in an assemble-to-order environment D. Any bill of material used in planning activities

C. A bill of material that represents probable usage in an assemble-to-order environment PAGES 163-164

In which environment is a planning bill-of-material (BOM) most likely to be used? A. Make-to-stock B. Engineer-to-order C. Assemble-to-order D. All of the offered choices are equally likely

C. Assemble-to-order PAGE 155

Available to promise (ATP) is likely to be least useful in which environment? A. Make-to-order B. All of the offered choices are equally likely C. Make-to-stock D. Assemble-to-order

C. Make-to-stock Page 159 Customers tend to expect immediate delivery from inventory for make-to-stock items.

Which formula is used to calculate the projected available inventory balance? A. Projected available inventory = Previous available inventory + Master production schedule − AVG (Forecast, Actual orders) B. Projected available inventory = Previous available inventory + Master production schedule + MAX (Forecast, Actual orders) C. Projected available inventory = Previous available inventory + Master production schedule − MAX (Forecast, Actual orders) D. Projected available inventory = Previous available inventory + Master production schedule + AVG (Forecast, Actual orders)

C. Projected available inventory = Previous available inventory + Master production schedule − MAX (Forecast, Actual orders) PAGES 160

The master production schedule (MPS) translates the sales and operations plan (SOP) into A. Efficient lot sizes B. Specific production orders C. Forecast demand D. A specific production plan

D. A specific production plan PAGES 153

Inside the planning fence, which of the following is true? A. New customer orders are not accepted B. Available-to-promise (ATP) calculations ignore forecasts C. New production orders can be entered D. Changes to production orders are not allowed

D. Changes to production orders are not allowed PAGE 169

Cycle stock is A. Inventory carried to cover emergency or unforeseen demand B. The total stock during a given period C. Inventory created to fulfill demand in a seasonal cycle D. Inventory carried as a result of lot size requirements

D. Inventory carried as a result of lot size requirements PAGE 158

Master production schedule (MPS) must be stated in terms that relate to a producible product. True False

TRUE PAGE 153

The master production schedule (MPS) considers preferred lot sizes constructing the plan. True False

TRUE PAGE 157

A Super Bill represents average usage of components in an assemble-to-order environment. True False

TRUE PAGE 163-164

When the master production schedule (MPS) is frozen for some period, changes to the plan within that period are typically prohibited. True False

TRUE PAGE 169

Inside the demand fence, which of the following is true? A. Available-to-promise (ATP) calculations ignore forecasts B. New customer orders are not accepted C. New production orders cannot be entered D. Changes to production orders are not allowed

A. Available-to-promise (ATP) calculations ignore forecasts PAGE 169

One key to avoiding an overstated master production schedule (MPS) is to A. Force the MPS to match the production plan (in terms of total units) B. Freeze the MPS for at least four weeks C. Always maintain a negative available-to-promise (ATP) balance D. Always maintain a positive available-to-promise (ATP) balance

A. Force the MPS to match the production plan (in terms of total units) PAGE 170

The master production schedule (MPS) is A. Neither a statement of current production nor current demand B. A statement of both current production and current demand C. A statement of current production D. A statement of current demand

A. Neither a statement of current production nor current demand PAGE 154

Given the following information what is the projected available balance in period 4? Period Period Period Period Period 1 2 3 4 5 Beginning on hand = 10 Forecast 10 8 5 15 12 Projected Available Balance Master Production Schedule 10 0 20 10 0 A. 15 B. 12 C. 17 D. 10

B. 12 PAGES 157-158

The master production schedule (MPS) differs from the forecast by considering I. Capacity limits II. Production costs III. The sales and operations plan (SOP) A. I and III only B. I, II, and III C. I and II only D. I only

B. I, II, and III PAGE 153

The master production schedule (MPS) shows when products will physically be available to ship.

FALSE PAGE 153 Actual availability is subject to executing the MPS according to plan.

The master production schedule (MPS) must be stated in terms of actual products. True False

FALSE PAGE 154 The MPS can be stated in terms of options, modules, or the "average" final product.

Which Of the following are prerequisites to implementing a master production scheduling system? I. Define the master production schedule (MPS) unit II. Install an enterprise resource planning (ERP) system III. Train an employee in MPS concepts and techniques A. I only B. I and II only C. I and III only D. I, II, and III

I and III only PAGE 152