SCM Chapter 6

Name the 3 different types of production strategies:

-Chase production -Level production -Mixed production

Capacity

A firm's labor and machine resources

Which strategy relies on a constant output rate and capacity while varying inventory and backlog levels to handle the fluctuating demand pattern?

Mixed Production Strategy

Master Production Schedule (MPS)

Plan spans six to eighteen months. Shows the quantity & timing of end items

Rough-Cut Capacity Planning (RCCP)

Used to check feasibility of MPS. Converts MPS from production needed to capacity required, then compares it to capacity available

Resource Requirement Planning (RRP)

a long-range capacity planning module, checks if aggregate resources are able to satisfy aggregate production. gross labor hours & machine hours

Capacity Requirements Planning (CRP)

a short-range capacity planning technique that is used to check the feasibility of the material requirements plan (MRP)

Which of the following results from using the chase production strategy? a. The workforce fluctuates in response to the demand pattern b. Finished goods inventories always remain constant c. Both A & B d. None of these

c. Both a & b

Short Range or MRP plan

covers a few days to a few weeks. Detailed planning process for components and parts to support the master production schedule

Which of the following MRP terms represents a committed order awaiting delivery for a specific period? a. Projected on-hand inventory b. Time bucket c. Net requirement d. Scheduled receipt

d. scheduled receipt

Calculating projected on hand inventory

on hand inventory - gross requirements + scheduled receipts.

Long-range - Aggregate Production Plan (APP)

usually covers a year or more, involves the construction of facilities & major equipment purchase