9-10

Question 1

Dependent demand

Answer 1

For an item that is generated by a company’s production process

Question 2

Material requirements planning MRP

Answer 2

To manage inventory for a dependent demand items companies often use MRP

Question 3

Independent demand

Answer 3

Involves finished goods

Question 4

Dependent demand is based on what

Answer 4

A companies production process

Question 5

Forecasting, qualitative methods

Answer 5

Build up
Survey
Test markets
Panel of experts
Time series method

Question 6

Build up

Answer 6

Goes to the bottom line employees to the top of the business

Question 7

Timeseries method

Answer 7

Simple moving average
Weighted, moving average
Exponential smoothing
Regression and correlation analysis

Question 8

Delphi technique

Answer 8

Uses a panel of experts, and surveys to figure out the likelihood, and outcome of future events

Question 9

Simple moving average

Answer 9

Predict most recent time period. To project the next time period
However, any oddities will reflect in the production

Question 10

Mean absolute deviation, MAD

Answer 10

To estimate forcasting error

Question 11

Aggregate planning

Answer 11

Combining of individual and items into groups/families a parts for planning purposes

Question 12

Long-range planning

Answer 12

Five years

Question 13

Medium range

Answer 13

6 to 18 months

Question 14

When developing a master production schedule, a company must ensure that what

Answer 14

The schedule is realistic in terms of resources and material requirements

Question 15

MPS

Answer 15

Based on aggregared plan
Disaggregates the aggregated plan because it’s a specific statement of what will need to be produced and a specific date for production

Question 16

MPS takes into account what?

Answer 16

Projected demand an actual orders that have already been received to figure out what inventory is still unsold when customers place new orders

Question 17

Priority control

Answer 17

Making the plan happen

Question 18

Daily dispatch list

Answer 18

Gives order of priority for jobs to be completed at a department/work station

Question 19

Peak demand

Answer 19

Sufficient capacity available at any time to meet peak demand

Question 20

Chase demand

Answer 20

Adjust production rate to match demand (increase work schedules, let people go home for the day etc)

Question 21

The planning horizon for an aggregate plan in a JIT environment is…

Answer 21

Somewhat shorter

Question 22

What type of batch sizes are planned in a JIT environment?

Answer 22

Small ones

Question 23

True or false capacity planning is not necessary in a JIT environment

Answer 23

False

Question 24

What type of timeframe is used in the planning horizon of a master schedule when JIT is used?

Answer 24

2 to 3 months

Question 25

How do you shorter the times of fact, master scheduling when JIT is used?

Answer 25

As a result, when compared to MRP environment, the master schedule is frozen for less time in a JIT environment

Question 26

Why is order release Planning eliminated when scheduling in a JIT environment?

Answer 26

In a pull system, parts and materials will only be produced in response to a downward signal

Question 27

The master schedule in a JIT environment is only used when items with long lead times need to be ordered

Answer 27

True
The master schedule is used only when items with long lead times need to be ordered and serves as an intermediate step to final assembly scheduling

Question 28

What characteristic of a JIT environment impact the final assembly schedule?

Answer 28

The elimination of unnecessary inventory in WIP and finish goods impacts the final assembly schedule