Ch 11-12 Final Review

Question 1

1) Intermediate range capacity planning that typically covers a 2 to 18 month planning horizon
2) Focus on product/service families
3) Useful for organizations that experience variations in demand

Answer 1

Aggregate planning

Question 2

What is the goal of aggregate planning?

Answer 2

Achieve a plan that will effectively utilize the organization’s resources to satisfy demand

Question 3

Combines all business plans into one integrated plan on a monthly basis and is reviewed by management on an aggregate level

Answer 3

Sales and Operations Planning

Question 4

Reconciles demand and supply plans at detail and aggregate level and linked to operating plan

Answer 4

Sales and Operations Planning

Question 5

What type of plans contain levels of employment, output, inventories, subcontracting, and backorders

Answer 5

Intermediate Plans

Question 6

What are three steps n the planning sequence?

Answer 6

1) Business Plan
2) Aggregate Plan
3) Master Schedule

Question 7

This is the following procedure for:

1) Determine demand for each period
2) Determine capacity for each period
3) Identify pertinent policies
4) Determine costs
5) Develop alternative plans and costs
6) Select the plan that best satisfies the objective

Answer 7

Aggregate Planning Techniques

Question 8

What are the following strategies used for?

1) Maintain a certain amount of excess capacity to increase in demand
2) Maintain a degree of flexibility in dealing with changes
3) Wait as long as possible before committing to a certain level of supply capacity

Answer 8

Dealing with Variation

Question 9

What are aggregate planners concerned with?

Answer 9

1) Demand Quantity

2) Demand Timing

Question 10

Used to shift demand from peak to off-peak periods

Answer 10

Pricing

Question 11

Used to shift demand so it is more matched to supply

Answer 11

Promotion

Question 12

Orders are taken in one period and deliveries promised for a later period

Answer 12

Back orders

Question 13

The following are for what option:

1) Hire or lay off workers
2) Overtime/slack time
3) Part-time workers
4) Inventories
5) Subcontracting

Answer 13

Supply Management Options

Question 14

Maintaining a steady rate of output (supply) while meeting variations in demand by a combination of options

Answer 14

Level Capacity Strategy

Question 15

Matching capacity to demand; the planned output for a period is set at the expected demand for that period

Answer 15

Chase Demand Strategy

Question 16

Shows quantity and timing of specific end items for a scheduled planning horizon

Answer 16

Master Schedule

Question 17

Resource requirements must not exceed resource availability during the horizon

Answer 17

Rough-Cut capacity planning

Question 18

True or false: If demand for resources exceeds supply, deal with analysis AFTER releasing the master schedule

Answer 18

False. Deal with it before

Question 19

It determines the quantity of each item needed to meet demand from all sources

Answer 19

Master scheduling

Question 20

What is the red zone of a time fence?

Answer 20

Frozen (firm or fixed)

- High cost of change

Question 21

What is the yellow zone of a time fence?

Answer 21

Slushy (Somewhat firm)

- Medium cost of change

Question 22

What is the green zone of a time fence?

Answer 22

Liquid (Open)

- Low cost of change

Question 23

Forecast and customer orders projected on hand calculation industrial pumps

Answer 23

MPS

Question 24

A computer based information system that translates master schedule requirements for end items into time-phased requirements for subassemblies, components, and raw materials

Answer 24

Material Requirements Planning (MRP)

Question 25

What are three questions at the component or subassembly levels?

Answer 25

1) What is needed? 2) How much is needed? 3) When is it needed?

Question 26

Demand for items that are subassemblies or components parts to be used in the production of finished goods

Answer 26

Dependent demand

Question 27

- Large quantities are used at specific times with little or no usage at other times - tends to be sporadic and lumpy

Answer 27

Dependent demand

Question 28

True or false: The master schedule should cover a period that is at least equivalent to the longest cumulative lead time

Answer 28

True

Question 29

The sum of the lead times that sequential phases of a process require, from ordering parts to completion of assembly

Answer 29

Cumulative lead time

Question 30

True or false: MRP looks at cumulative lead time in order to determine order start dates

Answer 30

False: They look at it backwards

Question 31

Listing of all of the assemblies, subassemblies, parts, and raw materials needed to produce one unit of a product

Answer 31

Bill of Materials (BOM)

Question 32

A visual depiction of the requirements in a bill of materials, where all components are listed by levels

Answer 32

Product structure tree

Question 33

Information on the status of each item by time period

Answer 33

Time buckets

Question 34

True or false: MRP processing takes the end item requirements specified by the master schedule and “explodes” them into time-phased requirements for assemblies, parts, & raw materials offset by lead times

Answer 34

True

Question 35

Total expected demand (from MPS)

Answer 35

Gross requirements

Question 36

Open purchase/work orders scheduled to arrive

Answer 36

Scheduled receipts

Question 37

Expected inventory in stock at the beginning of each time period

Answer 37

Projected on hand

Question 38

Actual (calculated) amount needed in each time period

Answer 38

Net requirements

Question 39

Quantity to be received at the beginning of the period

Answer 39

Planned-order receipts

Question 40

Amount to create an order for in each time period (offset by lead time)

Answer 40

Planned-order releases

Question 41

Process of identifying the parent items that have generated a given set of material requirements for an item

Answer 41

Pegging

Question 42

The list of all parent items in which an item is used, regardless of whether there is actual demand

Answer 42

Where-used

Question 43

Schedule indicating the amount and timing of future orders

Answer 43

Planned orders

Question 44

Authorize the execution of planned orders

Answer 44

Order release suggestions

Question 45

Revisions of the sates or quantities, or the cancellation of orders

Answer 45

Order change suggestions

Question 46

Evaluate system operation, including deviations from plans and cost

Answer 46

Performance control reports

Question 47

To asses future material requirements

Answer 47

Planning reports

Question 48

Data on any major discrepancies encountered

Answer 48

Exception reports

Question 49

Scheduling orders to arrive or complete sufficiently ahead of their need to reduce/eliminate the chance of part shortage

Answer 49

Safety time

Question 50

Expanded approach to production resource planning, involving other areas of the firm in the planning process and enabling capacity requirements planning

Answer 50

Manufacturing Resources Planning II (MRPII)

Question 51

- MRP II system that includes feedback loops | - Systems evaluate a proposed material plan relative to available capacity

Answer 51

Closed Loop MRP

Question 52

If a proposed plan is not feasible, it must be revised

Answer 52

Capacity requirements planning