Question 1

The words "product family," "budget allocation," and "long-term" fit best with which level of the generic framework for resource planning?

Accepted Answer

A)  Aggregate planning-Level 1 
B)  Disaggregation-Level 2 
C)  Execution-Level 3 
D)  Shop floor controlling-Level 4 
A)  Aggregate planning-Level 1 
B)  Disaggregation-Level 2 
C)  Execution-Level 3 
D)  Shop floor controlling-Level 4 A

Question 2

A company makes traffic signals for downtown streets. They are interested in developing a product structure tree for one of their traffic signal models. Each traffic signal is composed of a housing and bracket assembly. Each housing assembly is composed of optical and casing subassemblies. Each bracket assembly is composed of a hanger part and a wire outlet part. The optical subassembly is composed of 4 wire lead subassemblies, 3 lens parts, 3 bulbs, and 3 socket parts. Each casing subassembly is composed of 3 plastic molds and 3 hardware subassemblies. Each wire lead subassembly is made up of 1 conductor part, 1 insulation part, and 4 spade connector parts. Each hardware subassembly is made up of 4 nuts, 4 bolts, and 8 washers.
a.How many spade connectors are needed to make one traffic signal?
b.How many bolts are needed to make one traffic signal?

Accepted Answer

a. 16 spade connectors; b. 12 bolts
a.4 connectors are in 1 wire lead and 4 wire leads are in 1 optical subassembly which are in 1
housing assembly which is in 1 traffic signal, for a total of 16 spade connectors.b.4 bolts are in 1 hardware subassembly, and 3 hardware subassemblies are in 1 casing subassembly which is in 1 housing assembly which is in 1 traffic signal, for a total of 12 bolts.

Question 3

End items in a master production schedule (MPS) or final assembly schedule must be forecast.

Accepted Answer

A) True 
 B)False  True

Question 4

A paint company has the following aggregate demand requirements and cost data for the upcoming year by quarter.
Table 2
 $$\begin{array} { | l | l | } 
\hline \text { QUARTER } & \begin{array} { l } 
\text { FORECAST DEMAND } \
\text { (UNITS) }
\end{array} \
\hline 1 & 1,200 \
\hline 2 & 1,500 \
\hline 3 & 1,900 \
\hline 4 & 1,000 \
\hline \text { TOTAL: } & 5,600 \
\hline
\end{array}$$ $\begin{array}{ll}
\text { Previous quarter's production: } & 900 \text { units } \
\hline \text { Beginning inventory: } & 0 \
\hline \text { Backorder costs: } & \$ 60 / \text { unit } \
\hline\text { Inventory-holding cost }\\text { (on ending inventory): } & \$ 12 / \text { unit/quarter } \
\hline \text { Hiring employees: } & \$ 30 / \text { unit increase } \
\hline \text { Firing employees: } & \$ 70 / \text { unit decrease } \
\hline\text { Unit cost: } & \$ 45 / \text { unit } \
\hline \text { Overtime cost: } & \$ 67.50 / \text { unit }\
\end{array}$ ____________________________________________________________________
-Using the information in Table 2, determine the change in workforce costs (hiring and firing employees) if the paint company decides to use a chase strategy.

Accepted Answer

A)  $93,000 
B)  $84,000 
C)  $280,000 
D)  $30,000 
A)  $93,000 
B)  $84,000 
C)  $280,000 
D)  $30,000

Question 5

When demand is seasonal, inventory cannot be used to stabilize production and employment rates.

Accepted Answer

A) True 
 B)False

Question 6

Which aggregate planning strategy generally would result in the least amount of inventory?

Accepted Answer

A)  Level production strategy 
B)  Chase demand strategy 
C)  Fixed-order-quantity rule 
D)  Lot-for-lot (LFL) rule 
A)  Level production strategy 
B)  Chase demand strategy 
C)  Fixed-order-quantity rule 
D)  Lot-for-lot (LFL) rule

Question 7

Determine the net requirement for E if the gross requirement for A is still 200 and current on-hand inventory balance for A is 60, D is 200, E is 100, and F is 600.

Accepted Answer

A)  Less than or equal to 1,000 units 
B)  Greater than 1,000 but less than or equal to 1,500 units 
C)  Greater than 1,500 but less than or equal to 2,000 units 
D)  Greater than 2,000 but less than or equal to 2,500 units 
A)  Less than or equal to 1,000 units 
B)  Greater than 1,000 but less than or equal to 1,500 units 
C)  Greater than 1,500 but less than or equal to 2,000 units 
D)  Greater than 2,000 but less than or equal to 2,500 units

Question 8

What is capacity requirements planning (CRP)?

Accepted Answer

Capacity requirements planning (CRP) is

Question 9

Explain the three levels of resource planning.

Accepted Answer

Level 1 is aggregate planning, which is

Question 10

Which lot sizing rule is best when inventory carrying costs are high and setup/order costs are low?

Accepted Answer

A)  Lot-for-lot (LFL) 
B)  Fixed-order quantity (FOQ) 
C)  Periodic-order quantity (POQ) 
D)  Gross requirements (GR) 
A)  Lot-for-lot (LFL) 
B)  Fixed-order quantity (FOQ) 
C)  Periodic-order quantity (POQ) 
D)  Gross requirements (GR)

Question 11

Resources include materials, equipment, facilities, information, technical knowledge and skills, and people.

Accepted Answer

A) True 
 B)False

Question 12

A company currently has no items in inventory. The demand for the next four months is 200, 400, 250, and 350 units. Assuming a level production rate of 250 units per month, determine the months in which backorders or stockouts will materialize.

Accepted Answer

A)  Only in month 1 
B)  In months 2 and 4 
C)  In months 2, 3, and 4 
D)  In months 2 and 3 
A)  Only in month 1 
B)  In months 2 and 4 
C)  In months 2, 3, and 4 
D)  In months 2 and 3

Question 13

Capacity requirements are computed by multiplying the number of units scheduled for production at a work center by:

Accepted Answer

A)  the setup time and then subtracting the unit resource requirements. 
B)  the setup time and then adding the unit resource requirements. 
C)  the unit resource requirements and then adding in the setup time. 
D)  the unit resource requirements and then subtracting the setup time. 
A)  the setup time and then subtracting the unit resource requirements. 
B)  the setup time and then adding the unit resource requirements. 
C)  the unit resource requirements and then adding in the setup time. 
D)  the unit resource requirements and then subtracting the setup time.

Question 14

The bill of material (BOM) for Products A and B are shown below followed by a table of inventory data (called Exhibit 1). The master production scheduling (MPS) for A calls for 150 units of A to be completed in Week 4 and another 225 units to be completed in Week 5. End item A has a two-week lead time. The MPS calls for 400 units of B to be completed in Week 6. End item B has a one-week lead time.   Exhibit 1
 $\begin{array}{|l|l|l|l|}
\hline \text { DATA CATEGORY } & \text { C } & \text { D } & \text { E } \
\hline \text { Lot Sizing Rule } & \text { FOQ }=800 & \text { LFL } & \text { POQ =4 } \
\hline \text { Lead Time } & 1 \text { week } & 2 \text { weeks } & 1 \text { week } \
\hline \text { Scheduled Receipt } & 400 \text { (Week 1) } & 80 \text { (Week 1) } & \text { None } \
\hline \text { Beginning Inventory } & 80 & 60 & 100 \
\hline
\end{array}$ ____________________________________________________________________
-Using the data given in Exhibit 1, determine the gross requirements for Item E in Week 2.

Accepted Answer

A)  450 
B)  300 
C)  1,600 
D)  1,900 
A)  450 
B)  300 
C)  1,600 
D)  1,900

Question 15

If A has a gross requirement to build 200 units and an on-hand inventory for A of 60, determine the net requirement for D if its current on-hand inventory balance for D is 200 (all other components have no (zero) current inventory).

Accepted Answer

A) Less than or equal to 1,000 units 
B) Greater than 1,000 but less than or equal to 1,500 units 
C) Greater than 1,500 but less than or equal to 2,000 units 
D) Greater than 2,000 but less than or equal to 2,500 units 
A) Less than or equal to 1,000 units 
B) Greater than 1,000 but less than or equal to 1,500 units 
C) Greater than 1,500 but less than or equal to 2,000 units 
D) Greater than 2,000 but less than or equal to 2,500 units

Question 16

Level 3 planning, i.e. detailed planning and execution, represents aggregate planning at higher management levels of an organization.

Accepted Answer

A) True 
 B)False

Question 17

Which is the most comprehensive solution for a firm if a load report shows not enough capacity is available?

Accepted Answer

A)  Revise the bill of materials (BOM) and increase capacity. 
B)  Change the action bucket. 
C)  Change the master production schedule (MPS) and add capacity. 
D)  Rerun materials requirements planning (MRP). 
A)  Revise the bill of materials (BOM) and increase capacity. 
B)  Change the action bucket. 
C)  Change the master production schedule (MPS) and add capacity. 
D)  Rerun materials requirements planning (MRP).

Question 18

Define a master production schedule (MPS) and explain how it differs from a final assembly schedule.

Accepted Answer

A master production schedule (MPS) is a

Question 19

An example of aggregation would be an ice cream manufacturer developing targets to produce a number of gallons of each flavor along with the purchasing requirements for specific ingredients for a one-week period.

Accepted Answer

A) True 
 B)False

Question 20

The bill of material (BOM) for Products A and B are shown below followed by a table of inventory data (called Exhibit 1). The master production scheduling (MPS) for A calls for 150 units of A to be completed in Week 4 and another 225 units to be completed in Week 5. End item A has a two-week lead time. The MPS calls for 400 units of B to be completed in Week 6. End item B has a one-week lead time.   Exhibit 1
 $\begin{array}{|l|l|l|l|}
\hline \text { DATA CATEGORY } & \text { C } & \text { D } & \text { E } \
\hline \text { Lot Sizing Rule } & \text { FOQ }=800 & \text { LFL } & \text { POQ =4 } \
\hline \text { Lead Time } & 1 \text { week } & 2 \text { weeks } & 1 \text { week } \
\hline \text { Scheduled Receipt } & 400 \text { (Week 1) } & 80 \text { (Week 1) } & \text { None } \
\hline \text { Beginning Inventory } & 80 & 60 & 100 \
\hline
\end{array}$ ____________________________________________________________________
-Using the data given in Exhibit 1, determine the projected on-hand inventory for Item C, beginning in Week 8.

Accepted Answer

A)  800 units 
B)  645 units 
C)  155 units 
D)  0 units 
A)  800 units 
B)  645 units 
C)  155 units 
D)  0 units

The words "product family," "budget allocation," and "long-term" fit best with which level of the generic framework for resource planning?

End items in a master production schedule (MPS) or final assembly schedule must be forecast.

When demand is seasonal, inventory cannot be used to stabilize production and employment rates.

Which aggregate planning strategy generally would result in the least amount of inventory?

Determine the net requirement for E if the gross requirement for A is still 200 and current on-hand inventory balance for A is 60, D is 200, E is 100, and F is 600.

What is capacity requirements planning (CRP)?

Explain the three levels of resource planning.

Which lot sizing rule is best when inventory carrying costs are high and setup/order costs are low?

Resources include materials, equipment, facilities, information, technical knowledge and skills, and people.

A company currently has no items in inventory. The demand for the next four months is 200, 400, 250, and 350 units. Assuming a level production rate of 250 units per month, determine the months in which backorders or stockouts will materialize.

Capacity requirements are computed by multiplying the number of units scheduled for production at a work center by:

If A has a gross requirement to build 200 units and an on-hand inventory for A of 60, determine the net requirement for D if its current on-hand inventory balance for D is 200 (all other components have no (zero) current inventory).

Level 3 planning, i.e. detailed planning and execution, represents aggregate planning at higher management levels of an organization.

Which is the most comprehensive solution for a firm if a load report shows not enough capacity is available?

Define a master production schedule (MPS) and explain how it differs from a final assembly schedule.

An example of aggregation would be an ice cream manufacturer developing targets to produce a number of gallons of each flavor along with the purchasing requirements for specific ingredients for a one-week period.

Goods, Services, and Operations Management

Value Chains

Measuring Performance in Operations

Operations Strategy

Technology and Operations Management

Goods and Service Design

Process Selection, Design, and Analysis

Facility and Work Designs

Supply Chain Design

Capacity Management

Forecasting and Demand Planning

Managing Inventories

Operations Scheduling and Sequencing

Quality Management

Appendix: Quality Management

Quality Control and Spc

Appendix: Queuing Analysis

Appendix: Modeling Using Linear Programming

Lean Operating Systems

Appendix: Simulation

Project Management

Appendix: Decision Analysis

Filters

Exam 13: Resource Management

The words "product family," "budget allocation," and "long-term" fit best with which level of the generic framework for resource planning?

End items in a master production schedule (MPS) or final assembly schedule must be forecast.

When demand is seasonal, inventory cannot be used to stabilize production and employment rates.

Which aggregate planning strategy generally would result in the least amount of inventory?

Determine the net requirement for E if the gross requirement for A is still 200 and current on-hand inventory balance for A is 60, D is 200, E is 100, and F is 600.

What is capacity requirements planning (CRP)?

Explain the three levels of resource planning.

Which lot sizing rule is best when inventory carrying costs are high and setup/order costs are low?

Resources include materials, equipment, facilities, information, technical knowledge and skills, and people.

A company currently has no items in inventory. The demand for the next four months is 200, 400, 250, and 350 units. Assuming a level production rate of 250 units per month, determine the months in which backorders or stockouts will materialize.

Capacity requirements are computed by multiplying the number of units scheduled for production at a work center by:

If A has a gross requirement to build 200 units and an on-hand inventory for A of 60, determine the net requirement for D if its current on-hand inventory balance for D is 200 (all other components have no (zero) current inventory).

Level 3 planning, i.e. detailed planning and execution, represents aggregate planning at higher management levels of an organization.

Which is the most comprehensive solution for a firm if a load report shows not enough capacity is available?

Define a master production schedule (MPS) and explain how it differs from a final assembly schedule.

An example of aggregation would be an ice cream manufacturer developing targets to produce a number of gallons of each flavor along with the purchasing requirements for specific ingredients for a one-week period.

Goods, Services, and Operations Management

Value Chains

Measuring Performance in Operations

Operations Strategy

Technology and Operations Management

Goods and Service Design

Process Selection, Design, and Analysis

Facility and Work Designs

Supply Chain Design

Capacity Management

Forecasting and Demand Planning

Managing Inventories

Operations Scheduling and Sequencing

Quality Management

Appendix: Quality Management

Quality Control and Spc

Appendix: Queuing Analysis

Appendix: Modeling Using Linear Programming

Lean Operating Systems

Appendix: Simulation

Project Management

Appendix: Decision Analysis

Filters