IME 410 Review

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

the planned order release of the parent becomes the net requirement of the component

Postponement is best used with items that: A) Have a long lead time and many product configurations B) Are standardized and have short lead times C) Experience a yield that you won't know until the product is complete D) Suppliers with poor delivery performance.

A) Have a long lead time and many product configurations

If a firm wishes to maximize profit, which of the following objectives are in conflict? I. customer service. II. Minimize production costs. III. Minimize inventory costs. IV. Minimize distribution costs. all the above none of the above I and II only I and III only II and III only

All the above

The portion of inventory or production not committed to customer orders is called: free stock available to promise excess production waste excess capacity

Available to promise

Given the following parents and components, how many Bs are required to make an X? Quantities are shown in brackets. ParentX A(2)B(1) A Component B(2)D(1) 1 2 3 4 5

B=2*2+1= 5

Which of the following most requires long-range forecasting (as opposed to short-range or medium-range forecasting) for its planning purposes? cash budgeting job scheduling purchasing production levels capital expenditures

Capital Expenditures

A naive forecast for September sales of a product would be equal to the forecast for August. True False

False

Forecasts should be made for all items, models, and options manufactured. True False

False

The jury of executive opinion forecasting method formally solicits input from customers and potential customers. True False

False

In terms of INCREASING level of detail, which is the best sequence of activities? I.Material requirements planning. II.Master production scheduling. III.Production planning. I, II and III I, III, and II II, III, and I II, I, and III III, II, and I

III, II, and I

Which of the following comes directly from external customers? Dependent demand Independent demand Bill of materials Order quantity

Independent Demand

In the product structure diagram below item X has _______________ demand and item 2 has _______________ demand. dependent, dependent dependent, independent independent, independent independent, dependent none of the above answers are correct

Independent, Independent

Which of the following is a complete closed loop planning system that develops plans for all materials and operations? Capacity requirements planning Enterprise resource planning Supply chain management Material requirements planning

Material requirements planning

A forecast with a time horizon of about 3 months to 3 years is typically called a: long-range forecast. weather forecast. medium-range forecast. strategic forecast. short-range forecast.

Medium-range forecast

A forecasting technique that takes the average demand for some past number of periods is called: trend time analysis moving average exponential smoothing none of the above all of the above

Moving average

In material requirements planning the process of placing the exploded requirements in the proper time periods, based on the assembly lead times involved, is known as: exploding offsetting netting all of the above none of the above

Offsetting

Given this product tree which item(s) should be forecast? only A A, B and C D and E B, C, D, and E all items should be forecast

Only A

The time span for which plans are made is called the: time fence planning horizon time bucket forecast period none of the above

Planning Horizon

Which basic production planning strategy will build inventory and avoid the costs of excess capacity? chase strategy production leveling hybrid strategy all of the above none of the above

Production leveling

One use of short-range forecasts is to determine: facility location. cash budgeting. production levels. planning for new products. research and development plans.

Production levels

Seasonal indices adjust raw data for patterns that repeat at regular time intervals. True False

True

The MPS facilitates order promising, works with individual end products, and is an agreed-upon plan between production and marketing. True False

True

Over the time span of the production plan, which of the following can usually be varied to change capacity? work force inventories plant and equipment all of the above a and b above

a and b above

The document that shows the component parts and the number of parts needed to make one of an assembly or subassembly is called: -a route sheet -a material requirements plan -a bill of material -a material requisition -none of the above

a bill of material

The information needed to develop a master production schedule will be got from: the production plan the forecast of individual end items inventory levels for individual end items all of the above none of the above

all of above

Firms will generally make-to-order when: products are produced to customer specifications there are many product options product is expensive to make and store all of the above none of the above

all of the above

Manufacturing is important to the economy because: it generates wealth it supports service industries it adds value to products all of the above none of the above

all of the above

Which of the following is the best statement about the general principles of forecasting? forecasts are more accurate for larger groups of items forecasts are more accurate for nearer periods of time every forecast should include an estimate of error all of the above are general principles of forecasting none of the above is a general principle of forecasting

all of the above are general principles of forecasting

Which of the following strategies has the shortest delivery lead time and the least customer input? engineer-to-order make-to-order assemble-to-order make-to-stock

make-to-stock

Forecast error will be caused by: random variation from the average demand errors in forecasting average demand difference in lead times a and b above none of the above

none of the above

Which of the following are objectives of an MPS? I. Maintain the desired level of customer service. II. Keep the sales department happy. III. Make the best use of material, labor and equipment. IV. Maintain inventory investment as required. only I is an objective only I and II are objectives only I, II and III are objectives only I, III and IV are objectives only II, III and IV are objectives

only I, III and IV are objectives

Which of the following methods can be used to forecast the demand for a NEW product? equation fitting moving averages qualitative techniques all of the above none of the above

qualitative techniques

Which statement is correct? -planned order releases show when the order is needed -when an order is released, it becomes a planned order -scheduled receipts show when goods were put into inventory -all of the above are correct -none of the above is correct

-none of the above is correct

The PAB is calculated in which way for periods after the demand time fence? 1. PAB = prior period PAM or on-hand balance + MPS - customer orders 2.PAB = prior period PAB or on-hand balance + MPS + customer orders 3.PAB = prior period PAB or on-hand balance + MPS - customer orders 4.PAB = prior period PAB + MPS - greater of customer orders or forecast 5.PAB = prior period PAB + MPS + greater of customer orders or forecast

4.PAB = prior period PAB + MPS - greater of customer orders or forecast

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 400 units 500 units 600 units none of the above

600 units

Demand over the past three months has been 700, 750, and 900. Using a three-month moving average, what is the forecast for month four?

783.5

Firms will generally make-to-stock when: A) demand is unpredictable B) there are many product options C) delivery lead times are long D) all of the above E) none of the above

E) none of the above

In an assemble-to-order company, at which level should master scheduling take place? the component/subassembly level the end item level the raw material/component level it does not matter, any level will do none of the above levels

The component/subassembly level

Materials management can be considered a balancing act because there are trade-offs between customer service and the cost of providing the service. True False

True

Materials requirements planning is a set of priority planning techniques for planning component items below the end item level. True False

True