MKT MIDTERM: CHAPTER 6

Name 3 different types of production strategies

-Chase Production -Level Production -Mixed Production

Chase Production

-adjusts capacity to match demand. -make to order firms -highly skilled labor -one-of kind, specialty products

Level Strategy

-relies on constant output while varying inventory according to fluctuating demand inventory

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

Long Range Aggregate Production Plan (APP)

Mixed Production Strategy

Maintains stable core workforce while using other short-term means, such as overtime, subcontracting & part time helpers to manage short-term demand. -works well with firms producing multiple products

_____________________ is a long range capacity planning module, checks if aggregate resources are able to satisfy aggregate production. Gross labor hours and machine hours.

Resource Requirements Planning

______________________ used to check feasibility of Master production schedule. Converts MPS from production needed to capacity required, then compares it to capacity available.

Rough cut capacity planning

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

Short Range or MRP

Which strategy relies on a constant output rate and capacity while varying inventory and backlog levels to handle the fluctuating demand pattern? a. Mixed Production Strategy b. The Level Production Strategy c. The Chase Production Strategy d. The Aggregate Production Strategy

b. the level production strategy

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

A firm's labor and machine resources is known as ____________

capacity

Short Range capacity planning technique that is used to check the feasibility of Material Requirements Plan is known as ________________________

capacity requirements planning

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. schedules receipt

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

master production schedule MPS