Deck 12: Managing Production Across the Supply Chain

Question 1

Given the forecast and booked orders shown in the table, and a beginning inventory of 120, what is the MPS for period 4? The company operates with a lot size of 144. $$\begin{array} { | l | c | c | c | c | } \hline \text { Period } & 1 & 2 & 3 & 4 \\\hline \text { Forecasted Demand } & 500 & 450 & 400 & 600 \\\hline \text { Booked Orders } & 520 & 400 & 325 & 450 \\\hline \text { Projected ending inventory } & & & & \\\hline \text { Master production schedule } & & & & \\\hline \text { Available to Promise } & & & & \\\hline\end{array}$$

A)432
B)576
C)288
D)144

Answer 1

576

Question 2

Which of these correctly explains the relationship between available to promise inventory and the master production schedule for any week beyond the first week of the schedule when production is scheduled? Note that ATP is available to promise, MPS is master production schedule, EI is ending inventory, and OB is orders booked.

A)ATP = MPS + $\sum O B$
B)MPS = ATP + $\sum O B$
C)ATP = EI + MPS - $\sum O B$
D)MPS = $\sum O B$ + ATP - EI

Answer 2

MPS = ATP + $\sum O B$

Question 3

Given the forecast and booked orders shown in the table, and a beginning inventory of 75, what is the available to promise inventory for period 4? The company operates with a lot size of 50. $$\begin{array} { | l | c | c | c | c | } \hline \text { Period } & 1 & 2 & 3 & 4 \\\hline \text { Forecasted Demand } & 500 & 450 & 400 & 600 \\\hline \text { Booked Orders } & 520 & 400 & 325 & 450 \\\hline \text { Projected ending inventory } & & & & \\\hline \text { Master production schedule } & & & & \\\hline \text { Available to Promise } & & & & \\\hline\end{array}$$

A)150
B)145
C)155
D)140

Answer 3

150

Question 4

Master scheduling accomplishes which of these?

A)calculates the quantity of material orders
B)calculates the timing of material orders
C)determines when specific products will be made
D)sets overall workforce levels

Question 5

The length of time that the master schedule record extends into the future is the:

A)transient phase.
B)ATP.
C)planning horizon.
D)forecast.

Question 6

Given the forecast and booked orders shown in the table, and a beginning inventory of 120, what is the projected ending inventory for period 4? The company operates with a lot size of 144. $$\begin{array} { | l | c | c | c | c | } \hline \text { Period } & 1 & 2 & 3 & 4 \\\hline \text { Forecasted Demand } & 500 & 450 & 400 & 600 \\\hline \text { Booked Orders } & 520 & 400 & 325 & 450 \\\hline \text { Projected ending inventory } & & & & \\\hline \text { Master production schedule } & & & & \\\hline \text { Available to Promise } & & & & \\\hline\end{array}$$

A)34
B)38
C)46
D)22

Question 7

On the master schedule record, the amount of product that will be finished and available for sale at the beginning of each week is the:

A)master production schedule.
B)booked orders.
C)projected inventory.
D)available to promise inventory.

Question 8

Which of these correctly explains the relationship between available to promise inventory and the master production schedule for the first week of the schedule when production is scheduled? Note that ATP is available to promise, MPS is master production schedule, EI is ending inventory, and OB is orders booked.

A)ATP = MPS + $\sum O B$
B)MPS = ATP + $\sum O B$
C)ATP = EI + MPS - $\sum O B$
D)MPS = $\sum O B$ + ATP - EI

Question 9

Given the forecast and booked orders shown in the table, and a beginning inventory of 120, what is the ATP for period 4? The company operates with a lot size of 144. $$\begin{array} { | l | c | c | c | c | } \hline \text { Period } & 1 & 2 & 3 & 4 \\\hline \text { Forecasted Demand } & 500 & 450 & 400 & 600 \\\hline \text { Booked Orders } & 520 & 400 & 325 & 450 \\\hline \text { Projected ending inventory } & & & & \\\hline \text { Master production schedule } & & & & \\\hline \text { Available to Promise } & & & & \\\hline\end{array}$$

A)92
B)108
C)126
D)144

Question 10

Available to promise inventory is always zero for the first week in the master production schedule.

Question 11

Which of these statements is best?

A)Master scheduling shows the sales and operations plan in greater detail on a product-by-product basis.
B)Sales and operations planning shows the master schedule in greater detail on a product-by-product basis.
C)Master scheduling shows the sales and operations plan in greater detail on a supplier-by-supplier basis.
D)Sales and operations planning shows the master schedule in greater detail on a supplier-by-supplier basis.

Question 12

A unit that has not been sold or otherwise committed to any other customer should be considered available to promise.

Question 13

Which step in the top down model of manufacturing planning and control system comes after sales and operations planning?

A)master scheduling
B)material requirements planning
C)production activity control
D)vendor order management

Question 14

On the master schedule record, the amount of product that will be finished and available for sale each week given those units have already been promised to customers is the:

A)master production schedule.
B)booked orders.
C)projected inventory.
D)available to promise inventory.

Question 15

Which of the following statements regarding master production scheduling calculations is BEST?

A)Forecasted demand always exceeds booked orders.
B)Booked orders always exceed forecasted demand.
C)If booked orders are greater than forecasted orders, there must be a master production schedule for that period.
D)If ending inventory is greater than or equal to zero, there is no master production schedule quantity for that period.

Question 16

Given the forecast and booked orders shown in the table, and a beginning inventory of 20, what is the available to promise inventory for the first period? There are no LOT quantity constraints. $$\begin{array} { | l | c | c | c | c | } \hline \text { Period } & 1 & 2 & 3 & 4 \\\hline \text { Forecasted Demand } & 200 & 220 & 240 & 200 \\\hline \text { Booked Orders } & 190 & 80 & 30 & 10 \\\hline \text { Projected ending inventory } & & & & \\\hline \text { Master production schedule } & & & & \\\hline \text { Available to Promise } & & & & \\\hline\end{array}$$

A)0
B)10
C)20
D)40

Question 17

Since the booked orders figure represents actual customer demand in a master schedule, that value is always less than or equal to forecasted demand.

Question 18

Given the forecast and booked orders shown in the table, and a beginning inventory of 25, what is the master production schedule quantity for period 4? $$\begin{array} { | l | c | c | c | c | } \hline \text { Period } & 1 & 2 & 3 & 4 \\\hline \text { Forecasted Demand } & 70 & 65 & 60 & 55 \\\hline \text { Booked Orders } & 80 & 50 & 30 & 10 \\\hline \text { Projected ending inventory } & & & & \\\hline \text { Master production schedule } & 55 & & & \\\hline \text { Available to Promise } & 0 & & & \\\hline\end{array}$$

A)35
B)40
C)55
D)70

Question 19

Given the forecast and booked orders shown in the table, and a beginning inventory of 0, what is the available to promise inventory for period 3? There are no LOT quantity constraints. $$\begin{array} { | l | c | c | c | c | } \hline \text { Period } & 1 & 2 & 3 & 4 \\\hline \text { Forecasted Demand } & 100 & 100 & 90 & 90 \\\hline \text { Booked Orders } & 103 & 87 & 54 & 21 \\\hline \text { Projected ending inventory } & & & & \\\hline \text { Master production schedule } & & & & \\\hline \text { Available to Promise } & & & & \\\hline\end{array}$$

A)0
B)12
C)24
D)36

Question 20

From a revenue standpoint, a producer would rather have higher forecasted demand than booked orders.

Question 21

A manufacturing company enters 2016 with a forecast and customer orders as shown in the table. They have a beginning inventory of 25 units and a batch size of 25 units (all MPS quantities must be in multiples of 25). Complete the rest of the master production schedule by filling in the projected ending inventory, master production schedule quantity, and available to promise rows.

Question 22

Given the forecast and booked orders shown in the table, and a beginning inventory of 12, complete this master production schedule. The company operates with a lot size of 144.

Question 23

Confirmed demand for products is called ________ in master scheduling.

Question 24

When calculating ending inventory, what does the option presented in the -maximum(F,OB)portion of the equation accomplish? In other words, why don't we always subtract the F value or always subtract the OB value.

Question 25

Consider the product structure tree shown below: With a beginning inventory of twenty for all components on level one, five for all components on level two, and zero for all components on level three and finished items, how many K's are needed to produce 25 product X's?

A)530
B)540
C)550
D)560

Question 26

The longer the production and supplier lead times, the longer the master scheduling record's planning horizon needs to be.

Question 27

Material requirements planning is performed at a greater level of detail than master scheduling.

Question 28

An operations manager should be able to take the master schedules and add them up to arrive at the inventory and production levels in the sales and operations plan.

Question 29

Consider the product structure tree shown below: With a beginning inventory of zero for all components and finished items, how many assembly E's are needed to produce 20 product X's?

A)900
B)1000
C)1200
D)1500

Question 30

________ translates the master schedule for final products into detailed material requirements.

Question 31

Describe the scope, inputs, and outputs of sales and operations planning, master scheduling, and MRP.

Question 32

Consider the product structure tree shown below: With a beginning inventory of twenty for all components on level one, five for all components on level two, and zero for all components on level three and finished items, how many more K's than F's are needed to produce 25 product X's?

A)15
B)10
C)5
D)0

Question 33

The estimated inventory level of an end item at the end of each time period is the ________.

Question 34

Consider the product structure tree shown below: With a beginning inventory of ten for all components on level one, five for all components on level two, and zero for all components on level three and finished items, how many assembly E's are needed to produce 20 product X's?

A)1175
B)1500
C)1325
D)1225

Question 35

In order to calculate the ending inventory for period 42, you need to know what the ending inventory was for period 41.

Question 36

Given the forecast and booked orders shown in the table, and a beginning inventory of 120, complete this master production schedule. The company operates with a lot size of 144.

Question 37

Explain all of the information that is provided by a master schedule.

Question 38

________ translates the sales and operations plan into specifics by product and establishes when each customer order will be fulfilled.

Question 39

The longer the production and supplier lead times, the ________ the MPS record's ________ should be.

Question 40

Consider the product structure tree shown below: With a beginning inventory of zero for all components and finished items, how many assembly A's are needed to produce 25 product X's?

A)125
B)250
C)325
D)400

Question 41

Component J is ordered on February 1, is received, and is ready to use on February 8. Its planning lead time is seven days.

Question 42

MRP nervousness refers to the notion that a small change at the top of a bill of material can have drastic effects on items farther down the bill of material.

Question 43

The planning technique that uses the master production schedule to monitor key resource requirements is:

A)rough-cut capacity planning.
B)horizon planning.
C)resource planning.
D)handfield planning.

Question 44

MRP is NOT capable of:

A)lowering inventory levels.
B)helping a firm meet their master schedule commitments.
C)telling a firm's suppliers what needs to be made and by when.
D)sequencing jobs at a machining center.

Question 45

Which of these actions would tend to make an MRP system less nervous?

A)using the same component, such as a fastener, at multiple levels throughout the product structure tree
B)making the minimum order quantity as small as possible
C)increasing the number of levels in a product structure tree
D)increasing the minimum order quantities only at the highest level of a bill or materials

Question 46

Company B has no inventory at any level and a structure tree as shown below. They will need 145 E's to make 12 units of end item X.

Question 47

Using this MRP record and a lead time of 3 weeks, what should the planned orders be in week 1? $$\begin{array} { | l | c | c | c | c | c | } \hline & 1 & 2 & 3 & 4 & 5 \\\hline \text { Gross Requirements } & & & 400 & 500 & 300 \\\hline \text { Scheduled receipts } & 0 & 0 & 0 & 0 & 0 \\\hline \text { Projected ending Inventory } & 100 & 100 & & & \\\hline \text { Net Requirements } & & & & & \\\hline \text { Planned Receipts } & & & 300 & & \\\hline \text { Planned Orders } & & & & & \\\hline\end{array}$$

A)200
B)300
C)400
D)500

Question 48

With an inventory as shown in the table, how many assembly E's should be produced or purchased to produce 15 product X's with this product structure tree? $$\begin{array} { | l | c | c | c | c | c | c | } \text { Item } & \mathrm { X } & \mathrm { A } & \mathrm { B } & \mathrm { C } & \mathrm { D } & \mathrm { E } \\\hline \text { Inventory } & 5 & 15 & 20 & 8 & 6 & 17 \\\hline\end{array}$$

A)91
B)147
C)193
D)225

Question 49

There is no beginning inventory. What are the net requirements in week 4 if there is a scheduled receipt of 100 units each week and a two week production lead time? $$\begin{array} { | l | c | c | c | c | c | } \hline & 1 & 2 & 3 & 4 & 5 \\\hline \text { Gross Requirements } & 500 & 450 & 400 & 500 & 300 \\\hline \text { Scheduled receipts } & 100 & 100 & 100 & 100 & 100 \\\hline \text { Projected ending Inventory } & & & & & \\\hline \text { Net Requirements } & & & & & \\\hline \text { Planned Receipts } & 450 & 400 & 300 & 300 & \\\hline \text { Planned Orders } & 300 & 300 & & & \\\hline\end{array}$$

A)250
B)300
C)350
D)400

Question 50

If a manufacturer had no inventory of any kind but had orders for 10 finished units of their sole product, their buyer would know what parts to order if they were supplied with a:

A)backward schedule.
B)bill of material.
C)rough-cut capacity plan.
D)planning horizon order sheet.

Question 51

Material requirements planning is used to manage independent demand inventory.

Question 52

A(n)________ is a record or graphical rendering that shows how all the subassemblies, intermediates, parts, and raw materials are put together to make the Level 0 item.

Question 53

Gross requirements in an MRP record can be met by inventory from previous weeks, scheduled receipts, or planned receipts.

Question 54

Throughout every MRP record, ending inventory is equal to the ending inventory from the previous period, plus the master production schedule quantity, minus the orders booked for that period.

Question 55

There are 200 units in inventory at the start of week 1. What are the net requirements in week 4 if there is a scheduled receipt of 100 units every other week and a two week production lead time? $$\begin{array} { | l | c | c | c | c | c | } \hline & 1 & 2 & 3 & 4 & 5 \\\hline \text { Gross Requirements } & 550 & 450 & 400 & 400 & 500 \\\hline \text { Scheduled receipts } & 100 & 0 & 100 & 0 & 100 \\\hline \text { Projected ending Inventory } & & & & & \\\hline \text { Net Requirements } & & & & & \\\hline \text { Planned Receipts } & 350 & 450 & & & \\\hline \text { Planned Orders } & 350 & 300 & & & \\\hline\end{array}$$

A)250
B)300
C)350
D)400

Question 56

The process of ________ occurs when a planner works backwards from the master production schedule and the product structure tree to determine when all parts and subassemblies must be ordered and assembled in order to meet MPS due dates.

Question 57

In a bill of material, a parent may have many children but a child may have only one parent.

Question 58

An MRP system cannot answer the question:

A)"how much?"
B)"when?"
C)"what?"
D)"why?"

Question 59

There are 50 units in inventory at the start of week 1 for this company, which runs a lot-for-lot MRP system. There is a one week lead time for all shipping and production quantities regardless of volume. What are the quantities of the planned orders for this item for the first six weeks? $$\begin{array} { | l | c | c | c | c | c | c | c | c | } \hline & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \\\hline \text { Gross Requirements } & 50 & 20 & 30 & & 40 & & & \\\hline \text { Scheduled receipts } & & & & & & & & \\\hline \text { Projected ending } & & & & & & & & \\\hline \text { Inventory } & & & & & & & & \\\hline \text { Net Requirements } & & & & & & & & \\\hline \text { Planned Receipts } & & & & & & & & \\\hline \text { Planned Orders } & & & & & & & & \\\hline\end{array}$$

A)20, 30, 0, 40, 0, 0
B)35, 0, 60, 0, 0, 0
C)5, 30, 0, 40, 20, 0
D)35, 0, 0, 40, 20, 0

Question 60

MRP uses backward scheduling.

Question 61

Calculate the average lateness using the earliest due date criterion to determine the schedule for these five jobs. $$\begin{array} { | c | c | c | } \hline \text { Job } & \text { Process Time } & \text { Due Date } \\\hline \text { A } & 2 & 7 \\\hline \text { B } & 8 & 16 \\\hline \text { C } & 4 & 4 \\\hline \text { D } & 10 & 17 \\\hline \text { E } & 5 & 15 \\\hline\end{array}$$

A)3
B)10
C)12.4
D)14

Question 62

What is the average lateness of these seven jobs if they are scheduled using the earliest due date criterion? $$\begin{array} { | c | c | c | } \hline \text { Job } & \text { Process Time } & \text { Due Date } \\\hline \text { Job 1 } & 15 & 23 \\\hline \text { Job 2 } & 7 & 15 \\\hline \text { Job 3 } & 12 & 34 \\\hline \text { Job 4 } & 8 & 16 \\\hline \text { Job 5 } & 11 & 27 \\\hline \text { Job 6 } & 10 & 19 \\\hline \text { Job 7 } & 13 & 28 \\\hline\end{array}$$

A)19.2
B)18.7
C)17.8
D)16.5

Question 63

What is the planned order for head assemblies in Week 2?

Question 64

What are the net requirements for head assemblies in Week 4?

Question 65

In material requirements planning, units already on order are referred to as ________ receipts and new orders are termed ________ receipts.

Question 66

The table shows a master schedule for end item Z that is produced according to the product structure tree shown below. Beginning inventories and lead times for components of Z are given in the table. The lot sizes for A, B, and C are 100 units and an L4L rule for E. Complete a materials requirement plan for components A, B, and C.

Question 67

What are the third, fourth, and fifth jobs in a critical ratio sequence? $$\begin{array} { | c | c | c | } \hline \text { Job } & \text { Process Time } & \text { Due Date } \\\hline \text { Job 1 } & 15 & 23 \\\hline \text { Job 2 } & 7 & 15 \\\hline \text { Job 3 } & 12 & 34 \\\hline \text { Job 4 } & 8 & 16 \\\hline \text { Job 5 } & 11 & 27 \\\hline \text { Job 6 } & 10 & 19 \\\hline \text { Job 7 } & 13 & 28 \\\hline\end{array}$$

A)Job 6, Job 5, Job 2
B)Job 2, Job 5, Job 7
C)Job 6, Job 4, Job 7
D)Job 4, Job 2, Job 7

Question 68

What are the net requirements Front Leg Assemblies in Week 4

Question 69

Consider the product structure tree shown below: Assume that the company using this product structure tree has 5 items each at the 0 level, 10 items each at the 1 level and 20 items each at the 2 level. How many units of A, B, and E will the company need to acquire in order to ship an order of 20 X's?

Question 70

What are the net requirements for whiskers in Week 3?

Question 71

What is the planned order for whiskers in Week 2?

Question 72

Consider the product structure tree shown below: With a beginning inventory of twenty for all components on level one, five for all components on level two, and zero for all components on level three and finished items, how many of each component on level three are needed to produce 25 product X's?

Question 73

What is the average lateness of these seven jobs if they are scheduled using the critical ratio criterion? $$\begin{array} { | c | c | c | } \hline \text { Job } & \text { Process Time } & \text { Due Date } \\\hline \text { Job 1 } & 15 & 23 \\\hline \text { Job 2 } & 7 & 15 \\\hline \text { Job 3 } & 12 & 34 \\\hline \text { Job 4 } & 8 & 16 \\\hline \text { Job 5 } & 11 & 27 \\\hline \text { Job 6 } & 10 & 19 \\\hline \text { Job 7 } & 13 & 28 \\\hline\end{array}$$

A)24.3
B)21.7
C)22.5
D)23.4

Question 74

Consider the product structure tree shown below: With a beginning inventory of fifteen for all components on level one, twenty for all components on level two, and zero for all components on level three and finished items, how many of each component on level three are needed to produce 20 product X's?

Question 75

What is Projected ending inventory for Front Leg Assemblies in Week 3

Question 76

What organizational disciplines are required in order for an organization to successfully run a material requirements planning system?

Question 77

What are three advantages of using an MRP system?

Question 78

Cow Company used the master schedule to monitor key resource requirements, such as determining how many workers and the number of machine hours would be needed for each production period. This approach is known as ________.

Question 79

Using the information in the table, determine a schedule for these five jobs using the critical ratio sequence. $$\begin{array} { | c | c | c | } \hline \text { Job } & \text { Process Time } & \text { Due Date } \\\hline \text { A } & 2 & 7 \\\hline \text { B } & 8 & 16 \\\hline \text { C } & 4 & 4 \\\hline \text { D } & 10 & 17 \\\hline \text { E } & 5 & 15 \\\hline\end{array}$$

A)C-D-B-E-A
B)A-C-E-B-D
C)C-A-E-B-D
D)A-D-B-E-C

Question 80

What is the Planned order for Front claws in Week 3?