Chapter 03 Quiz
The hierarchical planning process that translates the annual business plan, marketing plans, and demand forecasts into a production plan for a product family in a plant or facility is known as?
Aggregate Production Plan (APP)
A company that is adjusting the production rate and capacity to exactly match demand by increasing and decreasing labor, materials, or necessary resources as needed, is using which basic production strategy?
Chase Production
Which basic production strategy would you use if the required skill level of the production workers is low, the training requirements are low, and the cost of hiring people and terminating them is also low?
Chase Production Strategy
Master Production Scheduling is a process that brings all the demand and supply plans for the business (sales, marketing, development, production, sourcing, and finance) together to provide management with the ability to strategically direct the business to achieve a competitive advantage.
False
The process of converting a parent item's planned order releases into component gross requirements, is called?
MRP Explosion
Companies establish Time Fences in order to?
Minimize the impact of changes and costly disruptions
What is the term used to relate the requirements for a component part back to its parent item? It can be thought of as determining where a component item is used.
Pegging
When a supply chain planner talks about using the BOM to do an MRP Explosion, they are talking about?
The process of converting a parent item's planned order releases into component gross requirements
Companies that adjust the production rate and capacity to exactly match demand by increasing or decreasing labor, materials, or necessary resources, is using the Chase Production Strategy
True
The Master Production Schedule (MPS) is the plan that drives the business. Even small changes in the MPS can cause major changes in the detailed production schedule and the material plan, creating nervousness and instability throughout the organization.
True