With the product structure tree shown and a beginning inventory of zero for all components and finished items, how many assembly As are needed to produce 25 product Xs?
Question 1Planning numbers are somewhat aggregated (month by month) in:
detailed planning and control.
tactical planning.
operational planning.
strategic planning
Question 2With the product structure tree shown and a beginning inventory of zero for all components and finished items, how many assembly As are needed to produce 25 product Xs?
125
250
325
400
Question 3If a manufacturer had no inventory of any kind but had orders for 10 finished units of their sole product, their buyer would know what parts to order if they were supplied with a:
backward schedule.
bill of material.
rough-cut capacity plan.
planning horizon order sheet.
Question 4The inventory that companies hold to protect themselves against uncertainties in either demand or replenishment time is called:
safety stock.
anticipation inventory.
hedge inventory.
smoothing inventory.
Question 5The planning technique that uses the master production schedule to monitor key resource requirements is:
rough-cut capacity planning.
horizon planning.
resource planning.
handfield planning.
Question 6Forty percent of a house painter’s business is exterior work and the other sixty percent is interior. The average exterior paint job takes 30 hours of labor and $500 of paint and primer, but the average interior job takes only 6 hours of labor and $80 of paint and primer. If he gets 25 service calls for the coming month and 30 calls for the month after that, which of the following resource requirements is correct?
The painter has a labor demand of greater than 850 hours but less than 900 hours for the next two months.
The painter has supply costs of greater than $13,400 but less than $13,500 for the next two months.
The painter has a labor demand of greater than 800 hours but less than 850 hours for the next two months.
The painter has supply costs of greater than $13,500 but less than $13,600 for the next two months.
Question 7Bottom-up planning should be used when the product/service mix is unstable and resource requirements vary greatly across the offerings.
True
False
Question 8A law firm always orders 50 cases of paper from their office supply company. They incur an annual holding cost of $15 per case and have an ordering cost of $25 each time they place an order. If their annual demand is 480 cases, how much could they save annually by switching to their economic order quantity?
$15
$25
$40
$80
Question 9The order quantity in a periodic review system rises as the on-hand inventory falls.
True
False
Question 10This graph of expected sales level and expected output shows:
a chase production plan is being used.
a level production plan is being used.
a mixed production plan is being used.
planning levels have been computed.
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