concepts

Question 1

Which of the following determines the timing and quantity of material orders to meet the Master schedule?

Answer 1

Material requirements planning

Question 2

In the context of master scheduling, confirmed customers demand for product is defined as

Answer 2

booked orders

Question 3

In the context of master scheduling, the company’s best estimate of the demand in any period is

Answer 3

forecasted demand

Question 4

A listing of all the subassemblies, intermediates, parts and raw materials that go into a parent assembly showing the quantity of each to make and assembly is

Answer 4

bill of material (BOM)

Question 5

The master schedule record tracks several pieces of information. Which of the items listed is NOT typically apart of the master schedule?

Answer 5

projected labor levels

Question 6

A system used when demand occurs in only a single point in time is the definition of

Answer 6

single period inventory systems

Question 7

A company which produces electricity is considering buying extra coal to hold in inventory. They want to buffer against a potential strike at a major coal producer which would likely result in a significant price increase. This type of inventory id

Answer 7

hedging

Question 8

An extreme change in the supply position upstream in a supply chain generated by a small change in demand downstream in the supply chain is the definition of

Answer 8

The Bullwhip effect

Question 9

Companies holf hedge inventory due to

Answer 9

uncertainty in supply or demand

Question 10

John Deere produces riding lawk mowers before peak demand because there is a mismatch between downstream demand levels and upstream production capacity. This type of inventory is

Answer 10

smoothing

Question 11

A philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity is the definition of

Answer 11

Just-In-Time (JIT)

Question 12

A temporary endeavor undertaken to create a unique product, service or result is the definiton of

Answer 12

a project

Question 13

a production control approach that uses containers, cards, or visual cues to control the production and movement of goods through the supply chain is

Answer 13

kanaban system

Question 14

an effort to shorten the overall duration of a project by reducing the time it takes to perform certain activities is known as

Answer 14

crashing

Question 15

In the _______, project planners develop a broad description of what the project is and what its scope will be

Answer 15

concept phase

Question 16

In the Realco Breadmaster case, the owner asked the marketing manager “When a customer calls up, how do you know if you can meet his order?” The marketing manager replied “from experience, nearly all orders can be filled within two weeks, so we promise them in three weeks just in case”. The following statement is true:

Answer 16

This approach does not incorporate master production scheduling and will likely result in customer shortages and low customer satisfaction

Question 17

A computer manufacturer maintains an extra 1,000 computer mice in inventory to protect themselves against uncertainties in either demand or replenishment time. This type of inventory is:

Answer 17

safety stock

Question 18

The type of demand which is tied to the production of another item (table legs are an example):

Answer 18

dependent

Question 19

The Northcutt Bikes Service Division provides spare parts (tires, seats, etc.) directly to the many retail businesses that sell and service Northcutt Bikes. They need an inventory management system for spare parts that addresses ordering policy, order quantity (EOQ) and Reorder Point. The demand for the spare parts is:

Answer 19

Independent