SCM Exam 3

Which of the following are prerequisites to implementing a master production scheduling system?
I. Define master production schedule (MPS) unit
II. Install an enterprise resource planning (ERP) system
III. Train an employee in MPS concepts and techniques
a. I only
b. I and II only
c. I and III only
d. I, II, and III
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Terms in this set (27)
Which of the following are prerequisites to implementing a master production scheduling system?
I. Define master production schedule (MPS) unit
II. Install an enterprise resource planning (ERP) system
III. Train an employee in MPS concepts and techniques
a. I only
b. I and II only
c. I and III only
d. I, II, and III
C. I and III only
The master production schedule (MPS) translates the sales and operations plan (SOP) into
a. Specific production orders
b. Forecast demand
c. A specific production plan
d. Efficient lot sizes
C. A specific production plan
The master production schedule (MPS) shows when products will physically be available to ship.
a. True
b. False
B. False
The master production schedule (MPS) is
a. A statement of current production
b. A statement of current demand
c. A statement of both current production and current demand
d. Neither a statement of current production nor current demand
D. Neither a statement of current production nor current demand
The master production schedule (MPS) differs from the forecast by considering
I. Capacity limits
II. Production costs
III. The sales and operations plan (SOP)
a. I only
b. I and II only
c. I and III only
d. I, II, and III
D. I, II, III
The master production schedule (MPS) must be stated in terms that relate to a producible product.
a. True
b. False
A. True
The master production schedule (MPS) must be stated in terms of actual products.
a. True
b. False
B. False
In which environment is a planning bill of materials most likely to be used?
a. Make-to-stock
b. Assemble-to-order
c. Engineer-to-order
d. All are equally likely
B. Assemble-to-order
The master production schedule (MPS) considers preferred lot sizes when constructing the plan.
a. True
b. False
A. True
Cycle stock is
a. Inventory created to fulfill demand in a seasonal cycle
b. Inventory carried as a result of lot size requirements
c. The total stock built during a given period
d. Inventory carried to cover emergency or unforeseen demand
B. Inventory carried as a result of lot size requirements
Available-to-promise (ATP) is likely to be least useful in which environment? a. Make-to-stock b. Make-to-order c. Assemble-to-order d. All are equally likelyA. Made-to-stockWhich formula is used to calculate the projected available inventory balance? a. Projected available inventory = Previous available inventory + Master production schedule − AVG(Forecast, Actual orders) b. Projected available inventory = Previous available inventory + Master production schedule + AVG(Forecast, Actual orders) c. Projected available inventory = Previous available inventory + Master production schedule + MAX(Forecast, Actual orders) d. Projected available inventory = Previous available inventory + Master production schedule − MAX(Forecast, Actual orders)D. Projected available inventory = Previous available inventory + Master production schedule − MAX(Forecast, Actual orders)A planning bill of materials is a. Any bill of materials used in planning activities b. A bill of materials for new products c. A bill of materials for products still in development d. A bill of materials that represents probable usage in an assemble-to-order environmentD. A bill of materials that represents probable usage in an assemble-to-order environmentIn an assemble-to-order environment, a planning bill must use at least one unit of each component that could go on a completed product. a. True b. FalseA. TrueThe final assembly schedule (FAS) represents which of the following? I. The assembly plan when a planning bill of fire is used II. The exact set of end products to be built in an assemble-to-order environment III. The plan for moving pre-fabricated components into completed products a. I only b. II only c. III only d. I, II, and IIID. I, II, IIIWhen the master production schedule (MPS) is frozen for some period, changes to the plan within that period are typically prohibited. a. True b. FalseA. TrueInside the demand fence, which of the following is true? a. Changes to production orders are not allowed b. New customer orders are not accepted c. Available-to-promise (ATP) calculations ignore forecasts d. New production orders cannot be enteredC. Available-to-promise calculations ignore forecastsInside the planning fence, which of the following is true? a. Changes to production orders are not allowed b. New customer orders are not accepted c. Available-to-promise (ATP) calculations ignore forecasts d. New production orders can be enteredA. Changes to production orders are not allowedOne key to avoiding an overstated master production schedule (MPS) is to a. Force the MPS to match the production plan (in terms of total units) b. Always maintain a positive available-to-promise (ATP) balance c. Always maintain a negative available-to-promise (ATP) balance d. Freeze the MPS for at least four weeksA. Forces the MPS to match the production plan (in terms of total units)What is the primary consideration when selecting a lot-sizing procedure? a. The nature of the net requirements data b. The number of replenishment orders c. Customer order seasonality d. The number of firm planned ordersA. The nature of the net requirements dataMaterial requirements planning (MRP) lot-sizing procedures are specifically designed for situations where demand is continuous. a. True b. FalseB. FalseMaterial requirements planning (MRP) lot-sizing assumptions include which of the following? I. All requirements for a given period are available at the beginning of that period II. Ordering decisions occur at regular time intervals III. Demand for future periods can be back ordered a. I only b. II only c. I and II only d. I and III onlyC. I, IIWhich of the following are potential sources of uncertainty in a material requirements planning (MRP) system? I. Customer name II. Supply timing III. Demand quantity a. I only b. II only c. I and III only d. II and III onlyD. II, IIIIn a situation where the main source of uncertainty is due to timing of customer order arrivals, which buffering strategy would be expected to perform best? a. Safety stock b. Safety lead time c. Scrap allowance d. All of the above would perform about the sameB. Safety Lead TimeIn a situation where the main source of uncertainty is due to quantity of demand, which buffering strategy would be expected to perform best? a. Safety stock b. Safety lead time c. Scrap allowance d. All of the above would perform about the sameA. Safety StockMaterial requirements planning (MRP) system nervousness can be attributed to which of the following? I. Unplanned demand II. MRP parameter errors III. Firm planned orders a. I only b. II only c. I and II only d. I and III onlyC. I, IIWhich of the following strategies can be useful in reducing material requirements planning (MRP) system nervousness? I. Introducing system stability through time fences II. Careful use of lot-sizing procedures III. Using firm planned orders a. I only b. II only c. I and II only d. I, II, and IIID. I, II, III