Term
| The goal of aggregate planning is to achieve a production plan that attempts to balance the organization's resources and meet expected demand. (True/False) |
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Term
| Aggregate planning is used to establish general levels of employment, output, and inventories over an intermediate-range of time. (True/False) |
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Definition
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Term
One area to which aggregate planning decisions relate is:
a. job sequencing
b. customer order quantities
c. inventory levels
d. location
e. layout |
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Term
Essentially, the output of aggregate planning is the:
a. marketing plan
b. production plan
c. rough-cut capacity plan
d. assignment plan
e. material requirements plan |
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Definition
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Term
In doing "aggregate planning" for a firm producing paint, the aggregate planners would most likely deal with:
a. just gallons of paint, without concern for the different colors and sizes
b. gallons of paint, but be concerned with the different colors to be produced
c. gallons, quarts, pints, and all the different sizes to be produced
d. all the different sizes and all the different colors by size
e. none of the above |
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Definition
| a. just gallons of paint, without concern for the different colors and sizes |
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Term
Aggregate planners attempt to balance:
a. demand and inventories
b. demand and costs
c. capacity and inventories
d. capacity and costs
e. capacity and demand |
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Definition
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Term
MRP is used within most MRPII and ERP systems.
(True/False) |
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Definition
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Term
| A master schedule contains a listing of all the assemblies, parts, and materials needed to produce one unit of an end item. (True/False) |
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Definition
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Term
The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the:
a. master schedule
b. bill-of-materials
c. inventory-records
d. assembly-time chart
e. net-requirements chart |
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Definition
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Term
The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the:
a. master production schedule
b. bill-of-materials
c. inventory-records
d. assembly-time chart
e. net-requirements chart |
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Definition
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Term
| The objective of inventory management is to minimize the cost of holding inventory. (True/False) |
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Definition
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Term
| The two main concerns of inventory control relate to the costs and the level of customer service. (True/False) |
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Definition
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Term
In a two-bin inventory system, the amount contained in the second bin is equal to the:
a. ROP
b. EOQ
c. amount in the first bin
d. optimum stocking level
e. safety stock |
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Definition
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Term
In the A-B-C classification system, items which account for fifteen percent of the total dollar-volume for a majority of the inventory items would be classified as:
a. A items
b. B items
c. C items
d. A items plus B items
e. B items plus C items |
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Definition
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Term
In the basic EOQ model, if D = 60 per month, S = $12, and H = $10 per unit per month, EOQ is:
a. 10
b. 12
c. 24
d. 72
e. 144 |
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Definition
b. 12
EOQ = SQRT(2DS/H) = SQRT((2*60*12)/10) = 12 |
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Term
If average demand for an inventory item is 200 units per day, lead time is three days, and safety stock is 100 units, the reorder point is:
a. 100 units
b. 200 units
c. 300 units
d. 600 units
e. 700 units |
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Definition
e. 700 units
ROP = d * LT = (200)(3)+100 = 700 units |
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Term
| JIT refers to a production system in which input resources arrive for processing just as the preceding batch is completed.(True/False) |
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Definition
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Term
| A functioning MRP system is required prior to using JIT as the planning and control system.(True/False) |
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Definition
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Term
In the JIT philosophy, the ideal lot size is:
a. the economic order quantity
b. the economic run size
c. one unit
d. the capacity of the standard container
e. N=(DT(1+X))/C |
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Definition
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Term
The term that refers to the automatic detection of defects is:
a. kaizen
b. kanban
c. autonomation
d. automation
e. 100% inspection |
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Definition
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Term
A system of lights used at each workstation to signal problems or slowdowns is:
a. command and control center
b. automation
c. andon
d. pull system
e. kanban |
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Definition
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Term
| The All Seasonings Company uses 3,200 glass jars at one of its jar-filling workstations each eight hours of production. The cycle time for a standard container, which holds 90 jars, averages 45 minutes. If management uses an efficiency factor of twenty percent, how many containers should be used? |
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Definition
N = ?
D = 3200/8 = 400 jars per hour
T = 45/60 = .75 hour
X = .20
C = 90 jars
N = DT(1+X)/C = (400)(.75)(1.20)/90 = 360/90 = 4 containers |
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