Module 4 - Supply

Question 2

Which of the following is defines as the process of converting the MPS into the load for critical resources?
- Resource capacity planning
- multilevel mastr scheduling
- RCCP
- ATP

Answer 2

RCCP.

Rough-cut capacity planning (RCCP) is defined as the process of converting the MPS into capacity needs for critical resources: workforce, machinery, warehouse space, vendors’ capabilities, and, in some cases, money. Essentially, it is a validity check for the MPS.

ATP is incorrect, because it is the uncommitted portion of a company’s inventory and planned production, maintained in the MPS to support customer order promising. Resource capacity planning is incorrect, because it is used to determine the load placed on resources by product families in the production plan. Multilevel master scheduling is incorrect, because it is a master scheduling technique that enables any level in an end item’s BOM to be master-scheduled.

Question 3

A master production schedule should be loaded to a level that is
- capable of fully utilizing available capacity
- no greater than can be realistically produced
- equal to sales orders
- equal to the sales forecast

Answer 3

no greater than can be realistically produced. The master schedule is the translation of the forecast into a statement of manufacturing output. It is a statement of production and not of demand. A critical role of master scheduling is initiating action to adjust or increase the capacity of critical resources.

Question 4

A company that uses a functional layout produces several product families that use the same work centers, with some units being a standard design and others having custom design. Which of the following management decisions is most applicable as it relates to master scheduling?

Level and type of inventory to stock

Use of a quantity/period or flow rate

Use of a final assembly schedule

Relevance of a demand time fence

Answer 4

Decisions would be required on which products to keep in stock as finished goods versus assemblies.

Question 5

Rough-cut capacity planning (RCCP) checks which of the following data?

Answers

Critical resources

Inventory

Materials and labor

Resources for a family of products

Answer 5

In order to validate the feasibility of the master production schedule, RCCP uses a bill of resources to check critical resources.

Question 6

The purposes of a modular bill of material include which of the following?

Answers

Translating the sales and operations plan to the master production schedule

Providing for easier material requirements planning processing

Minimizing inventory for unique components

Facilitating forecasting

Answer 6

Facilitating forecasting. A modular bill of material is a type of planning bill that is arranged in product modules or options. It is often used in companies where the product has many optional features.

Question 7

Which of the following is the best reason for performing master scheduling at the narrowest point of the product structure?

Answers

Any other point adversely affects material requirements planning.

There are fewer items to master-schedule at the narrowest point.

Any higher point contains unknown customer order uniqueness.

Planning is more accurate due to aggregation of bill-of-material levels.

Answer 7

There are fewer items to master schedule at the narrowest point.

Question 8

A scheduler at a factory is very cautious and is particularly concerned about the possibility of unanticipated extra orders. Which of the following needs to be long enough to factor in potential increases in capacity?

Answers

Final assembly schedule

Liquid zone

Cumulative lead time

Planning horizon

Answer 8

The planning horizon is the amount of time a plan extends into the future. It is normally set to cover a minimum of cumulative lead time, time for lot sizing low-level components, and time for capacity changes of primary work centers or key suppliers.

Question 9

The point in time inside which changes to the master schedule typically must be approved by an authority higher than the master scheduler is referred to as the:

Answers

capable-to-promise.

cutoff date.

demand time fence.

planning time fence.

Answer 9

The demand time fence is a point in time inside which demand is based on customer orders rather than forecasts and changes to the master schedule must be approved by an authority higher than the master scheduler. Contrast this with the planning time fence, where changes in the schedule may be made within the constraints of the production plan and are made manually by the master scheduler.

Question 10

Orders for a specific assembly have been released over the last two weeks. Stockroom personnel have reported unplanned issues for one component and returns of another component. Which of the following is the most likely cause of this situation?

Answers

The master scheduling horizon is not long enough.

There are errors in the inventory records for the two components.

Material availability checking is not being performed before release of the orders.

An engineering change for the assembly is not in the bill of material.

Answer 10

An engineering change for the assembly is not in the bill of material. Product design engineers may have changed the components used in the product without updating the bill of material, resulting in the unplanned issue for one component and the return of the other component.