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