SOM464 CH.2 Quiz

Over a 10-week period the cumulative sales are forecast at 10,000 units, the opening inventory is 200 units and the closing inventory is to be 100 units. What should be the weekly planned production for level production? A) 990 B) 1000 C) 1010 D) 1030 E) none of the above

A) 990

Which of the following plans has the longest planning horizon and the least level of detail? A) strategic business plan B) production plan C) master production schedule D) all of the above have the same level of detail E) none of the above

A) strategic business plan

Priority in production planning relates to: A) routing B) how much of what is needed and when C) capacity D) an objective of the firm E) none of the above

B) how much of what is needed and when

Which basic production planning strategy will build inventory and avoid the costs of excess capacity? A) demand matching (chase) B) production leveling C) subcontracting D) all the above E) none of the above

B) production leveling

Determining the need for labor, machines, physical resources to meet the production objectives of the firm is called: A) production control B) production planning C) capacity planning D) all of the above E) none of the above

C) capacity planning

Which of the following statements is most appropriate regarding production planning? A) a high level of detail is not needed B) a translation must be made from product demand to capacity demand C) product groups based on the similarity of the manufacturing process should be used in planning D) all of the above are true E) none of the above is true

D) all of the above are true

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 A) I, II and III B) I, III, and II C) II, III, and I D) II, I, and III E) III, II, and I

E) III, II, and I