INFORSY-LEC4-P2S (QUIZ 1)

Question 1

estimating future demand for products or
materials in order to make informed decisions about inventory levels and replenishment strategies.

Answer 1

Forecasting

Question 2

is a comprehensive list of all the components, parts, raw materials, and assemblies required to manufacture a product.

Answer 2

Bill of Materials (BOM)

Question 3

It is a critical parameter used to determine when to reorder or replenish inventory to avoid stockouts.

Answer 3

Reorder Point (ROP)

Question 4

the time interval between placing an order and receiving the inventory. It includes order processing time, transportation time, and any other delays.

Answer 4

Lead Time

Question 5

an additional buffer of inventory kept to account for uncertainties and variations in demand and lead time.

Answer 5

Safety Stock

Question 6

the quantity planned to be received at a future date

Answer 6

Planned Order Receipt

Question 7

the scheduled date for an order
to be released.

Answer 7

Planned Order Release

Question 8

Any item of property held in stock by a company, that appears on a company’s balance sheet as assets

Answer 8

Inventory

Question 9

Purchased but not processed, materials and components scheduled for use in making a product

Answer 9

Raw Material

Question 10

Undergone some changes but not
completed

Answer 10

Work-in-process

Question 11

Necessary to keep machinery and processes productive

Answer 11

Maintenance repair/operating (MRO)

Question 12

Completed product awaiting shipment

Answer 12

Finished Goods

Question 13

It is a systematic approach to managing and planning the materials and components needed for the production process.

Answer 13

Materials Resource Planning (MRP)

Question 14

It is a detailed plan that specifies the quantity and timing of the production of finished goods to meet customer demand while considering constraints such as
available capacity, materials, and
resources

Answer 14

Master Production Schedule (MPS)

Question 15

Plan to Stock Steps:

Answer 15

1. Material Requirements Planning
2. Conert MRP to Production Order
3. Schedule Production Orders to Cost Centers
4. Procure Raw Materials
5. Production of Finished Goods and Work-in-Progress
6. Performance Registration
7. Goods Receipt and Goods Issue
8. Conduct Quality Control
9. Stocking in Inventory
10. Deliver Orders

Question 16

• A production planning and inventory control system that determines the quantity and timing for the acquisition of dependent items needed to satisfy customer demand or forecasted demand.
• Ensure availability of materials, components, and products to planned production and for customer delivery
• Sustain the lowest possible level of inventory
• Plan for manufacturing activities, delivery schedules, and purchasing activities

Answer 16

Material Requirements Planning

Question 17

Is used to define the material to be produced, plant location where
production has to be done, date and time of production, and quantity of goods required. A Production Order also
defines which components and sequence of operations are to b used and how the order costs are to be settled.

Answer 17

Convert MRP to Production Order

Question 18

1. A detail of when and where each operation in the manufacturing process is to be performed or executed.
2. Establishment of an activity timetable that gives at which time to start and/or finish each event or operation comprising any procedure or process.
3. It is an important tool for manufacturing and engineering, where it can have a major impact on the productivity of a process. In manufacturing, the purpose of scheduling is to minimize the production time and costs, by telling a production facility when to make, with which staff, and on which equipment.

Answer 18

Schedule Production Orders to Cost Centers

Question 19

Intersection with Procure to Pay

Answer 19

Procure Raw Materials

Question 20

WIP – These are products that are currently at some phase of the manufacturing process. They are unfinished state and therefore you cannot sell them. Once a raw material meets human labor, you should consider it a work in process.

Finished Goods – These are your final assembled products
that are ready for sale.

Answer 20

Production of Finished Goods and Work-in-Progress

Question 21

Production performance evaluation refers to the process of assessing and analyzing the efficiency, effectiveness, and overall
performance of a production system or process within an organization. It involves evaluating various aspects such as
productivity, quality, cost-effectiveness, timeliness, and adherence to set targets or
standards.

Answer 21

Performance Registration

Question 22

____________ is performed when the material is produced as per the Production order and goods are placed at the storage location.

Answer 22

Goods Receipt

Question 23

Using ____________, you can post a material withdrawal, a material issue, or a shipment of goods to a customer. A ________ leads to a reduction in warehouse stock.

Answer 23

Goods Issue

Question 24

_______________ means how a company measures product quality and improves it if need be. ___________can be done in
many ways, from testing products, reviewing manufacturing processes, and
creating benchmarks. This is all done to monitor significant variations in a product.

Answer 24

Quality control

Question 25

___________ is the collection of all the materials and goods stored, whether for use to complete the production process or for sale to the customer

Answer 25

Stocking in Inventory

Question 26

Intersection with Order to Cash

Answer 26

Deliver Orders