Chapter 7 Questions
The final assembly schedule (FAS) represents which of the following? I. The assembly plan when a planning bill-of-materials (BOM) is used II. the exact set of end products to be built in an assemble - to - order environment III. The plan for moving pre-fabricated components into completed products
All of the above
The master production schedule (MPS) differs from the forecast by considering I. Capacity limits II. Production costs III. The sales and operations plan (SOP)
All of the above
A planning bill of material is
A bill of material that represents probably usage in an assemble - to - order environment
The master production schedule (MPS) translates the sales and operations plan (SOP) into
A specific production plan
Cycle stock is
Inventory carried as a result of lot size requirements
Available-to-promise (ATP) is likely to be least useful in which environment?
Make-to-stock
Which of the following are prerequisites to implementing a master production scheduling system? I. Define master production schedule unit II. Install an enterprise resource planning system III. Train an employee in MPS concepts and techniques
Define a master production schedule unit and train an employee in MPS concepts and techniques
The master production schedule (MPS) must be stated in terms of actual products
False
True or False: The master production schedule (MPS) shows when products will physically be available to ship
False
The master production schedule (MPS) is a
Neither a statement of current production nor current demand
What formula is used to calculate the projected available inventory balance?
Projected available inventory = Previous available inventory + master production schedule - MAX (forecast, actual orders)
In which environment is planning bill-of-material (BOM) most likely to be used
Assemble - to - order
Inside the demand fence, which of the following is true?
Available - to - promise (ATP) calculations ignore forecasts
One key to avoiding an overstated master production schedule (MPS) is to
Force the MPS to match the production plan (in terms of total units)
A super bill represents average usage of components in an assemble - to - order environment?
True
The master production schedule (MPS) considers preferred lot sizes when constructing the plan
True
The master production schedule (MPS) must be stated in terms that relate to a producible product
True
When the master production schedule (MPS) is frozen for some period, changes to the plan within that period are typically prohibited.
True