Exam I

Which of the following statements is best? none of the above/below are true dependent demand items should be forecast all of the above/below are true forecasts for families of products should be built up from individual product forecasts a forecast for sales next week will not be as accurate as for a year from now

A. None of the above/below are true

Given the following table, calculate the ATP. There are 50 units on hand. Week 1 2 3 4 5 Customer orders 20 20 15 30 10 Scheduled receipts 50 ATP ATP in week two is 10 ATP in week one is 10 ATP in week one is 30 ATP in week three is 35 ATP in week one is 5

ATP in week one is 5

If the opening inventory is 100 units, the sales are 500 units and the ending inventory is 200 units, then manufacturing must produce: 300 units 500 units none of the above/below 400 units 600 units

600 Units

The MPS is a vital link the production planning system because it: I. Keeps priorities valid. II. Forms the basis for determining the capacity needed. III. Is input to the material requirements plan. IV. Is input to the production plan. A. I, II and IV B. I, III and IV C. II, III and IV D. I, II and III E. I, II, III and IV

D. I, II and III

The available capacity will be influenced by: I. Product specification. II. Product mix. III. Work effort. IV. Units of measurement III only I, II and IV only II, III and IV only IV only I, II and III only

I, II and III only

Which of the following are generally considered overall objectives of an organization? I. Providing good customer service. II. Maintaining high levels of inventory investment. III. Optimizing use of resources. IV. Providing sufficient return on investment. I and III only I, III and IV only All of the above/below I and II only I, II and III only

I, III, and IV only

What is the mean absolute deviation and mean square error of the following forecasts? Month Actual Sales Forecast January 68 60 February 48 50 March 50 60 April 30 30 MAD = 20, MSE = 168 MAD = 20, MSE = 1 MAD = 42, MSE = 5 MAD = 5, MSE = 42 MAD = 5, MSE = 20

MAD = 5, MSE = 42

A statement of a schedule of requirements for individual end items is called: capacity plan master production schedule none of the above/below production plan material requirements plan

Master Production Schedule (MPS)

Which of the following statements is best? A. all of the above/below are true B. forecasts should be made for all items, models, and options manufactured C. none of the above/below are true D. forecasts made in dollars for total sales should be used for manufacturing e. if we wish to forecast demand, then past sales must be used for the forecast

NOT B

Operation overlapping means: A. moving work to the next operation as a group of pieces is completed B. using alternate routings C. locating work centers close together to reduce materials handling D. the same job running on two machines at the same time E. running two or more jobs at the same time

NOT C

Which of the following plans has the longest planning horizon and the least level of detail? material requirements plan strategic business plan production plan master production schedule none of the above/below

SBP

What important assumption is made about statistical (quantitative) forecasting methods? seasonal variations are small all of the above/below random variations are small demand trend is seldom linear the past is a valid indicator of the future

the past is a valid indicator of the future

Which statement is best? the planned order release of the parent becomes the net requirement of the component all of the above/below the planned order release of the parent generates the gross requirement of the component none of the above/below the planned order release of the component becomes the order receipt of the parent

the planned order release of the parent generates the gross requirement of the component

Given the following data, complete the table. There are 30 on hand. Order quantity is 60 units. Week 1 2 3 4 Forecast 20 30 50 20 Projected available MPS ATP is 10 in week 2 none of the above/below production is scheduled in week 4 the projected available in week 4 is 30 the projected available in week 3 is 40

the projected available in week 4 is 30

Available capacity in production planning is: a measure of the ability of a plant to consume raw materials all of the above/below none of the above/below the amount of inventory that can be held in a warehouse the quantity of work that can be performed in a given period of time

the quantity of work that can be performed in a given period of time