Unit 6: Forecasting, Scheduling, and Planning Systems

Question 1

is an attempt to predict the future by studying past experiences for the purpose of gaining insights.

Answer 1

Forecasting

Question 2

A ___ helps analyze operating problems by identifying key variables and relationships to improve understanding.

Answer 2

Model

Question 3

refers to demand that is generated by a firm’s production processes.

Answer 3

dependent demand

Question 4

elicit information from specific groups, such as consumers, and are usually conducted via a questionnaire or a phone interview.

Answer 4

survey

Question 5

The ________ method uses only the most recent time period to project the next time period, and each time period has the same weight.

Answer 5

simple moving average

Question 6

True or false? Mean squared error (MSE) is calculated by subtracting a forecast for one time period from the actual value for the same time period.

Answer 6

False. Forecasting error can be calculated by subtracting the forecast for one time period from the actual value for the same time period. However, mean squared error (MSE) is the average of all squared errors.

Question 7

When planning takes place for a time period of 6 to 18 months, it is best described as ________ operations planning.

Answer 7

medium-range

Question 8

Which of the following involves combining individual end-items into groups for planning purposes?

Answer 8

Aggregate planning

Question 9

Which of the following is based on the aggregate plan and is designed to specify exactly what will be produced and when it will be produced?

Answer 9

Master production schedule

Question 10

True or false? In a master production schedule, time buckets serve as boundaries between periods in the planning horizon. As a result, items that fall outside of the time bucket are not included in the plan.

Answer 10

False. Time fences, not time buckets, act as boundaries between periods in the planning horizon and represent the limits for planning. Items falling outside the time fence are not included in the plan.

Question 11

True or false? Demand from customers is a type of independent demand, while demand from a firm’s production processes is a type of dependent demand.

Answer 11

True. Independent demand is demand that is not controlled directly by the company, such as demand from customers. Dependent demand is usually demand for an item that is generated by a company’s production process.

Question 12

Which of the following provides details about a product’s components and structure?

Answer 12

Bill of Materials

Question 13

True or false? If a service firm develops a schedule according to chase demand, the firm will have enough capacity available at all times to meet maximum expected demand.

Answer 13

False. Peak demand, not chase demand, means that sufficient capacity will be available at any time to meet the peak expected demand.

Question 14

King Burgers schedules more workers on busy weekends and fewer workers on slower week days. King Burgers bases its schedule on ________.

Answer 14

chase demand

Question 15

In a manufacturing environment that uses a(n) ________, the main scheduling dilemma stems from knowing the best time to switch from making one product to making another product.

Answer 15

continuous flow process

Question 16

On an assembly line, assigning the same amount of work to each workstation and having the appropriate number and type of workstations is necessary to achieve ________.

Answer 16

balance

Question 17

________, which is based on current usage rates, helps determine which product to manufacture next.

Answer 17

Run-out time

Question 18

MRP II was an improved version of MRP that provided manufacturers with the ability to ________ .

Answer 18

integrate data from non-manufacturing departments