Section 3 Quiz Questions
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- 1.Which basic production planning stragety will build inventory and avoid the costs of excess capacity?
- A.
Chase strategy
- B.
Level production strategy
- C.
Cycle counting strategy
- D.
Demand matching strategy
- 2.For the purposes of production planning, prodcut families should be established on the basis of...
- A.
Market segments
- B.
Similarity of manufacturing process
- C.
The availability of materials
- D.
The availability of machinery
- 3.If the opening inventory is 100 units, salers are 500 units, and the ending inventory is 200 units, what will manufacturing produce?
- A.
300 units
- B.
400 units
- C.
500 units
- D.
600 units
- 4.Under which of the following circumstances will firms generally make to stock?
- A.
Demand is unpredictable
- B.
Many product options exist
- C.
Required delivery times are shorter than the time needed to make the product
- D.
Customers require special engineering
- 5.The information needed to develop an MPS will come from which of the following?
- A.
The capacity requirements plan
- B.
The forecast of individual end items
- C.
Production activity control
- D.
The material requirements plan
- 6.Which of the following is a characteristic of the MPS?
- A.
It facilitates forecasting
- B.
It works with families of products
- C.
It is an agreed-upon plan between production and marketing/sales
- D.
It cannot e used for order promising
- 7.Which of the following is an objective of an MPS?
- A.
To maximize utilization of equipment
- B.
To keep the sales department happy
- C.
To maintain the desired level of customer service
- D.
To minimize inventory investment
- 8.Which of the following statements is most accurate about the MPS?
- A.
It is an agreed-upon plan between finance and manufacturing
- B.
If it is poorly done, we can expect past-due schedules and unreliable delivery promises
- C.
It is a plan for families of products that manufacturing expects to make over some period in the future
- D.
It provides input to the production plan
- 9.What is the portion of inventory or production that is not committed to customer orders called?
- A.
Free stock
- B.
Available-to-promise
- C.
Excess production
- D.
Waste
- 10.Which of the following is true about time fences in an MPS system?
- A.
Changes far out in the planning horizon can be made with little or no cost to manufacturing
- B.
In the "frozen zone", capacity and materials can easily be committed to new orders
- C.
Changes in the near future on the planning horizon are less costly to make than changes far out
- D.
The master planner should be authorized to make changes in the frozen zone
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