apics_mpr 经典350题题库

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번호 Problem Solution1-1 When the forecast has outliers in the data, they must be adjusted by a process called :

A) Exponential smoothingB) Double smoothingC) FilteringD) Trending

The correct answer is C)Outliers are data points which randomly occur outside the normal series of data. These outliers must be adjusted or they will skew the data, making the future forecast less accurate. This process of adjusting is known as filtering.

1-2 The Panel consensus method is recognized as a form of which of the following types of forecasting ?A) QuantitativeB) QualitativeC) CausalD) Panel smoothing

The correct answer is B)The Panel consensus method uses a series of questionnaires to achieve a convergence of expert opinion. It does not calculate a forecast quantitatively.

1-3 In order to forecast cash flow in a make-to-order company, which of the following must be converted into dollars ?A) Carrying cost of finished goodsB) Critical work center costsC) Standard yield percentagesD) Final assembly schedule

The correct answer is D)The final assembly schedule is the actual build schedule in a make-to-order environment. It represents the final products which have been sold to customers. This information, converted to dollars, gives an excellent measure of future cash flow. (Vollmann, Berry, and Whybark, Manufacturing Planning and Control Systems, Chapter 6).

1-4 All of the following would be good measures of MPS achievement except :A) Customer service as measured by on time deliveryB) Dollars of output per weekC) Equivalent actual units of output versus planD) Percent fill rate from inventory

The correct answer is A)The planned order release creating demand from a branch warehouse would become a gross requirement at the central warehouse offset for transport leadtime.

1-5 At times, data used to forecast will be of poor quality. Which of the following would be the correct action for the stated data quality problem ?I. Filter and adjust for abnormal demandII. Accept data omissions and plan around themIII. Accept normal variations in the dataIV. Substitute for data omissions A) I, II, and III B) I, III, and IVC) II, III, and IV D) I, II, and IV

The correct answer is B)Data omissions should never be accepted. The original data should be obtained or a substitute should be entered.

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번호 Problem Solution2-1 The relationship between resource requirements planning and rough cut capacity planning is similar to the relationship between which of the following ?

A) Production planning to master schedulingB) Production planning and MRPC) Master production scheduling and MRPD) MRP to input/output control

The correct answer is A)Resource requirements planning is a high level check on resources. This would be similar to the production plan. In fact, resource requirements planning is done to validate the production plan. Rough cut capacity plannning checks critical work centers to validate the master production schedule. (Fogarty, Blackstone and Hoffmann, Production and Inventory Management, Chapter 1).

2-2 Outside the demand timefence, the master scheduler consumes the forecast by :A) Multiplying the forecast errors by the actual ordersB) Using actual orders when actual orders are less than forecastC) Using forecast when actual orders are less than forecastD) By computing the available to promise

The correct answer is C)Beyond the demand timefence, forecasts are consumed by using the actual orders only if they exceed the forecast requirements.

2-3 Once a company has agreed to the production plan, it is manufacturing's responsibility to :A) Create the capacity planB) Change the master schedule to meet demandC) Meet the planD) Beat the plan

The correct answer is C)Once the production plan has been agreed to by the Manufacturing, Marketing, and Finance areas, then it is Manufacturing's job to "hit the plan." A production plan provides the necessary guidance to all departments. This prevents the plan from becoming a wish list. For example, if Marketing would like additional production to support a promotion, the production plan would cause a discussion regarding tradeoffs; that is, what will not be produced if the increase in production forces required capacity to exceed available capacity.

2-4 Which of the following types of demand would require a forecasting system ? I. Independent demandII. Service part demandIII. Dependent demand A) I and II B) I and III C) II and III D) I, II, and III

The correct answer is A)Independent demand and service part demand would need to be forecast. Dependent demand would be calculated by MRP.

2-5 In an assemble-to-order company with many final configurations, few subassemblies, and many components, good master scheduling practices would include :A) Establishing the master schedule at the final configurationB) Setting the MPS at the subassembly levelC) Setting the final assembly schedule from the production planD) Setting the MPS at the component level

The correct answer is B)An assemble to order company will MPS at the subassembly level to start the production process, but will not make the final product until a customer order arrives. By master production scheduling at the assembly level, it allows the components to be ordered to ensure quick response to the customer. (Vollmann, Berry, and Whybark, Manufacturing Planning and Control Systems, Chapter 6).

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번호 Problem Solution3-1 In order to project future cash flows in a make-to-order company, which of the following must be converted to dollars ?

A) Planned component purchase ordersB) Carrying cost of raw materialsC) Carrying cost of finished goodsD) Costed work center standards

The correct answer is A)In order to project future cash flow in a make-to-order company, you must be able to convert the planned component purchase orders to the dollars of outflow to purchase the components. (Vollmann, Berry, and Whybark, Manufacturing Planning and Control Systems, Chapter 6).

3-2 In deciding which forecasting technique to use, a company's management must take many factors into account. Which of the following must be considered ?I. The cost versus the value of the forecastII. The order promising policyIII. The degree of accuracy necessary A) I and II B) I and III C) II and III D) I, II, and III

The correct answer is B)The cost of producing the forecast versus the value to be received must always be considered. If a high level of accuracy is required, this will help determine the technique to use. Order promising policy has no bearing on the method of forecasting.

3-3 In order to be useful in master scheduling, a forecast should be expressed in :A) Dollars of shipmentsB) Units of shipmentsC) Capacity hoursD) Labor hours

The correct answer is B)For the forecast to be useful, it must be expressed in items, quantities, and dates. Dollars are not useful in master scheduling and would have to be converted to units to be useful.

3-4 The delivery cycle can be best defined as :A) The time elapsed between receipt of the order and productionB) Time elapsed between product shipment and customers receiptC) The time elapsed between the receipt of the customer order and the shipment of the productD) None of the above

The correct answer is C)Delivery cycle time is the actual time from receipt of the customer order to the time of product shipment.

3-5 A company uses a random location storage system in its warehouses. While the inventory balances are accurate, it is plagued by picking problems. Which of the following should be checked ?I. Personnel could need retrainingII. Locations should be cycle counted to verify correct locations on the systemIII. Purchase orders may be late A) I and II B) I and III C) II and III D) I, II, and III

The correct answer is A)Whether purchase orders are arriving late reallyhas no bearing on a locator system. Until stock is placed in a location, the system does not know it exists. A review of training would be warranted as new people may not have been trained properly to pick. Also, locations in a warehouse must be cycle counted similar to inventory records to validate procedures.

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번호 Problem Solution4-1 The removal of outliers from data in order to provide a reasonable historical base from which to forecast is called

A) Regression B) Time series decomposition C) Filtering D) Smoothing

The correct answer is C)

4-2 Which of the following will most impact the Master Production Schedule if inaccurate ?A) Bill of material structuresB) Lead times of raw materialsC) Operation sequencingD) Inventory balances

The correct answer is D)The inventory balances of the MPS items, if not accurate, will cause the MPS to be overstated or understated depending on the error.

4-3 When a tracking signal limit is exceeded, which two of the following should be done ?Ⅰ. The alpha should be adjusted Ⅱ. The cause should be determinedⅢ. Corrective action should be takenⅣ. The limit should be adjustedA) Ⅰ, Ⅲ B) Ⅰ, Ⅳ C) Ⅱ, Ⅲ D) Ⅱ, Ⅳ


4-4 The customer service measure, on time delivery, would be used in a company to : A) Determine the forecast errorB) Evaluate the performance of suppliersC) Select the least costly transportation modeD) Evaluate manufacturing performance

The correct answer is D)The ability of manufacturing to deliver to customers on time is a key measurement in most companies. While the measure cannot be used alone as a measure of manufacturing performance, it is a key measure to ensure customers are satisfied. The measure clearly would not be used to determine forecast error, evaluate suppliers (although as a supplier measure, on time delivery would be a measure) or select the least costly mode of transportation.

4-5 Which of the following is true of an aggregate forecast of a group of items or SKU's ? A) It may be divided by the number of SKU's to establish the SKU forecastsB) It is usually a better forecast than the SKU's forecasted individuallyC) It is of little value when SKU forecasts are availableD) It is used to establish EOQ quantities

The correct answer is B)

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번호 Problem Solution5-1 You look at a company's production plan and notice that the production each month is the same and the inventory is fluctuating. This is called a :

A) Chase strategyB) Inventory strategyC) Capacity strategyD) Level strategy

The correct answer is D)A level strategy allows the fluctuation in demand to be absorbed in the inventory. Production is maintained at a flat or level rate each month.

5-2 Which of the following is used to convert the master production schedule into detail requirements ?A) Production planning B) Rough-cut capacity planningC) Production activity control D) Material requirements planning

The correct answer is D)

5-3 The term "sigma" is used to refer to :A) The variation in the normal distributionB) The standard deviationC) The absolute deviationD) None of the above

The correct answer is B)Sigma refers to the standard deviation which measures dispersion of data.

5-4 Which of the following are reasons a time fence is used in Master Production Scheduling ?

A) Because manufacturing resources are committed after a certain pointB) To regulate changes in the scheduleC) To ensure materials arrive on time to support MPSD) None of the above

The correct answer is B)The primary purpose of a time fence is to define where changes can occur automatically versus those changes that require management approval.

5-5 Which of the following best defines a backorder ?A) Product which has been allocated but not issued to a manufacturing orderB) An unfilled customer orderC) The last order on a shipmentD) Freight picked up on a return trip

The correct answer is B)The ninth edition of the Apics Dictionary defines a backorder as " an unfilled customer order or commitment. A backorder is an immediate (or past due) demand against an item whose inventory is insufficient to satisfy demand."

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번호 Problem Solution6-1 A make-to-order manufacturing company would like to cut its backlog from four months to two months. If annual demand is 120 units, the production plan this year should be how many units ?

A) 100 B) 120C) 140 D) 160


6-2 Which of the following best describes pyramid forecasting ?A) It uses simulation to choose the best methodB) It aggregates and disaggregates dataC) It is most useful in product life cycle forecastingD) It operates on the basis that the most recent past will predict the future

The correct answer is B)Pyramid forecasting aggregates and disaggregates the data. Focus forecasting uses simulation to choose the forecasting method which has worked best based on the past as the best indicator of the future. Pyramid forecasting does not use product life cycles, but rather aggregates and disaggregates based on geographic regions, time, or product families.

6-3 The relationship between customer service and inventory levels can be best described by which of the following?A) Statistically, increases in customer service levels require increases in safety stockB) Reductions in inventory levels always result in reduced customer serviceC) Increases in customer service levels always require increases in safety stockD) The relationship between inventory levels and customer service has not been proven

The correct answer is A)Statistically, increases in customer service levels would require increases in safety stock. However, practically speaking, this is not always the case. Reliable supply chains and reliable forecasting may allow increases in customer service without the corresponding increase in safety stock.

6-4 In the manufacturing of forecast deviations, MAD is frequently preferred over standard deviation for all of the following reasons EXCEPT :A) The standard deviation is more difficult to calculate.B) MAD is capable of being updated conveniently with the use of exponential smoothingC) MAD is the expected forecast error for the next forecast periodD) MAD is a more precise measurement


6-5 Which of the following are inputs to the Master Production Schedule ? I. Production planII. Material requirements planIII. Inventory balancesIV. Customer orders A) I, II, and IV B) I, III, and IV C) II, III, and IV D) I, II, III, and IV

The correct answer is B)All of the answers are inputs to the MPS except MRP. The MPS is an input to the MRP system.

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번호 Problem Solution7-1 Which of the following parts of Master Planning are components of demand management ?

I. Master schedulingII. Order serviceIII. ForecastingIV. Production and resource planning A) I and II B) II and IV C) I, II, and III D) II and III

The correct answer is D)Order service and forecasting are components of demand management. The other two answers pertain to the supply of resources.

7-2 Which of the following are principles of production planning ? I.. Production planning is a top management responsiblityII. The master production schedule requirements should . equal the production planIII..Facility requirements are planned using the production .plan A) I and II B) I and IIIC) II and III D) I, II, and III

The correct answer is D)All three answers are principles of production planning. The sum of the master production schedule will equal the production plan.

7-3 The practice of reducing the forecast by actual customer orders is known as A) Available-to-promise B) Order integrationC) Demand commitment D) Forecast consumption


7-4 A manufacturer in a make-to-order environment would most likely stock :A) Raw materialsB) SubassembliesC) Manufactured partsD) Finished goods

The correct answer is A)To shorten the time necessary to make products to order, make-to-order companies will often times stock raw materials which are common to their manufacturing. This helps reduce the leadtime necessary to manufacture the product ordered.

7-5 A master production schedule should be loaded to a level that is A) Equal to the sales forecastB) Equal to sales ordersC) No greater than has been produced in the pastD) No greater than can be realistically produced


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번호 Problem Solution8-1 Which of the following are true statements regarding pull systems ?

I. Just-in-time uses pull systems in productionII. They are best for distribution systemsIII. Inventory management in distribution is decentralized with pull systems A) I and II B) I and III C) II and III D) I, II, and III

The correct answer is B)In production, a pull system only requires items to be produced as they are pulled by demand. Just-in Time methodology would use a pull system to move product through the manufacturing processes. Centralized "push" systems are best for distribution networks so inventories can be best utilized throughout the distribution network. If a field warehouse is ordering from a central supply, this would be an example of a pull system in a distribution network.

8-2 In a make-to-order environment, which of the following is th LEAST important reason for managing orders through all phases of company activities ?A) To determine the impact of specifications on customer promise datesB) To determine the impact of engineering resources on customer ordersC) To manage overall lead time and maintain a satisfactory level of customer serviceD) To maintain a sufficient backlog of customer orders


8-3 Master production schedule decisions directly evaluate :A) The final assembly scheduleB) Long range resource and capacity availabilityC) The need and feasibility of requirements and resource availabilityD) Production activity control

The correct answer is C)Master production schedule decisions directly evaluate the need and feasibility of resource and requirement availability. The master schedule does not pertain to long range plans, final assembly, or production activity control.

8-4 Which of the following ratios could be measures of customer service ?I. Order lines filled versus lines orderedII. Complete orders shipped on timeIII. Quantity shipped versus quantity orderedA) I and IIB) I and IIIC) II and IIID) I, II, and III

The correct answer is D)There are many measures available to properly gauge customer service. These are just three of many.

8-5 In a make-to-order business, which of the following can be used to forecast cash flow ?A) Month end balance of finished goods inventoryB) Capacity utilizationC) Final assembly scheduleD) Labor efficiency

The correct answer is C)The final assembly schedule is the actual build schedule and would be a predictor of the shipments and would translate into future cash flow.

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번호 Problem Solution9-1 If a forecast is understated, which of the following will be underestimated ?Ⅰ. CapacityⅡ. Ship load Ⅲ. Component needs

A) Ⅱ B) Ⅲ C) Ⅰ, Ⅲ D) Ⅱ, Ⅲ


9-2 A company has several warehouses and each warehouse maintains its own inventory levels. Which of the following methods would best support the management of the inventory throughout the warehouse system ?A) Distribution resource planningB) Reorder point with safety stockC) Economic order quantityD) Limit inventory method

The correct answer is A)Distribution resource planning uses planning logic similar to MRP which allows the planning of inventory at warehouse locations. The leadtimes are established for inventory movements between warehouses. Because the logic uses time phasing, inventory management is most effective using DRP in a warehouse network.

9-3 If a company changes its service level policy from 99 percent to 90 percent, all of the following will increase EXCEPT A) Lost sales B) Inventory C) Customer complaints D) Expediting activity


9-4 In which of the following environments will the final assembly schedule normally correspond to the MPS ?I. Make-to-stockII. Make-to-orderIII. Assemble-to-order A) I B) II C) I and II D) II and III

The correct answer is A)In a make-to-stock company, there is no need for a separate final assembly schedule because products are stocked in their final assembled form for delivery to the customer.

9-5 If capacity equals 5,000 labor hours, a schedule of which two items below will yield the maximum profit ?---------------------------------------------- Item Sales Labor Mfg. h Opportunity Hrs. Each Profit. Each---------------------------------------------------- Ⅰ 3,000 1.0 $ 0.9Ⅱ 2,000 1.5 1.65Ⅲ 1,000 2.0 . 2.4Ⅳ . 500 4.0 . 3.5-----------------------------------------------A) Ⅰ, Ⅲ B) Ⅰ, Ⅳ C) Ⅱ, Ⅲ D) Ⅱ, Ⅳ


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번호 Problem Solution10-1 A final assembly schedule is the final schedule of what will be assembled to meet the customers order. The final assembly schedule should be completed :

A) At the last possible momentB) When the customer's order is receivedC) When the master production schedule is doneD) As the parts are ready for assembly

The correct answer is A)When a final assembly process is involved with making the finished product, Master production scheduling is only concerned with the anticipated build schedule of the common products (e.g., number of Thunderbirds). The actual configuration of the product is done when the customer orders the product. As such, the product should be kept in its most common form until the latest possible time for final assembly to the customer's specification.

10-2 Which of the following actions is most effective when load chronically exceeds average capacity ?A) Revising the master production schedule B) Expediting the important jobsC) Releasing orders earlyD) Regenerating the material requirements plan

The correct answer is A)

10-3 In a distribution requirements planning system, in-transit lead time is accounted for by :A) Safety stock in the receiving warehouseB) Being offset as a gross requirement in the supply warehouseC) Safety stock in the supply warehouseD) None of the above

The correct answer is B)In DRP, the lead time between warehouses is offset as the planned shipment to the receiving warehouse becomes the gross requirement in the supply warehouse. This logic is similar to the leadtime offset in an MRP system where the planned order release is offset by the leadtime to purchase or make the part.

10-4 Delivery lead time can be best defined as :A) The time elapsed between receipt of the customer order to product shipmentB) The time elapsed between product shipment and customer receiptC) The time elapsed between delivery of raw materials and productionD) None of the above

The correct answer is D)Delivery lead time is the actual time from the receipt of the customer order to the delivery of the product.

10-5 Period 1 2 3 4 5----------------------------------------------Forecast 10 10 10 10 10Orders 10 . 6 6 4 2PAB 30 80 70 60 50 ATP 30 MPS . 60 On Hand . 40Based on the above MPS record, what is the cummulative available to promise in period 2 :A) 20 B) 24 C) 72 D) 84

The correct answer is C)The ATP logic breaks out as:ATP = MSP-(sum all orders up until the next MPS) = 60 - (6 + 6 + 4 + 2) = 42 for period 2Cumulative ATP = 30 + 42 = 72

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번호 Problem Solution11-1 Errors in the master schedule can result from data inaccuracies in which of the following ?

A) Component lead timesB) Inventory balancesC) Bills-of-material structure D) Manufacturing routings


11-2 Which of the following are objectives of the master schedule ?I. A level repeating scheduleII. Changes are kept to a minimumIII. The schedule sums to the production planIV. Maintain planning bills A) I, II, and IIIB) II, III, and IV C) I, II, and IVD) I, III, and IV

The correct answer is A)The master schedule objectives are to keep a level repeating schedule, to minimize changes to the schedule, and to push them to future periods to keep them from disrupting the schedule. It should sum to the production plan. The master schedule does not maintain the planning bills.

11-3 A backlog can be best defined as :A) The manufacturing queue on the floorB) All the customer orders received but not yet shippedC) A delay in order taking caused by slow computer response timeD) None of the above

The correct answer is B)It is common in long lead time products such as airplanes, to have large backlogs which manufacturing works to.

11-4 Demand management encompasses which of the following functions?I. ForecastingII. Order entryIII. Master Production Scheduling A) I and II B) I and III C) II and III D) I, II, and III

The correct answer is A)Demand management includes the functions of forecasting, order entry, order promising, branch warehouse requirements, interplant orders, and service parts requirements.

11-5 Which of the following factors is LEAST important in determining a production plan ?A) Resource availability B) The inventory planC) The sales forecast D) The production schedule


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번호 Problem Solution12-1 How many mean absolute deviations does it take to satisfy customer service at a 95% level ?

A) 1.60B) 2.06C) 2.56D) 2.91

The correct answer is B)The 2.06 MAD level provides a 95% probability ofhaving what the customer ordered.

12-2 Based on the following information, the production plan for this company should be : Starting inventory 1200 Forecasted demand 2000 Projected ending inventory 1500A) 1200B) 1500C) 2000D) 2300

The correct answer is D)This company plans to increase its inventory from 1200 to 1500 and meet demand for 2000. Therefore the production plan needs to reflect the 2000 demand + the 300 increase in inventory or it must produce 2300. (Vollmann, Berry, Whybark, Manufacturing Planning and Control Systems, Chapter 7).

12-3 In resource planning, the bill of resources is based on which of the following ?A) The lot size of a typical productB) The lot size of each product C) One unit of the typical product D) One unit of each product


12-4 Which of the following should be considered during the production planning process ?I. Component requirementsII. Capacity availabilityIII. Manufacturing labor needs A) I and IIB) I and III C) II and III D) I, II, and III

The correct answer is C)In production planning, component availability would not be determined, as MRP would handle this. However, capacity would be checked at a rough cut level and manufacturing labor needs could be determined. Component availability might be checked at the production planning level if it were a scarce component.

12-5 Which of the following statements is true if there is a significant variation between actual and planned demand ?I. Safety stock will be higherII. Potential for stockouts will be greaterIII. Mean absolute deviation will be lowerA) I and IIB) I and IIIC) II and IIID) I, II, and III

The correct answer is A)When demand is uncertain, the variation between forecast demand and actual demand will be high, causing the mean absolute deviation to be high. Since safety stock is a function of forecast error, safety stock will also be higher than normal.

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번호 Problem Solution13-1 Which of the following are generally true in a make-to-stock company ?

I. The MPS is stated in end itemsII. .Products are made to customer orderIII. Customer orders are pulled from finished goods inventory A) I and IIB) I and IIIC) II and IIID) I, II, and III

The correct answer is B)Products are not produced to customer order, but are pulled from finished goods inventory. As such, the MPS would be stated in end items.

13-2Four common levels of detail in forecasting are listed below. which of the following properly ranks the levels of detail above from the lowest to the highest ?Ⅰ. Product family (units)Ⅱ. Product family (dollars)Ⅲ. SKU's (units)Ⅳ. End items (units)A) Ⅰ, Ⅱ, Ⅲ, Ⅳ B) Ⅰ, Ⅱ, Ⅳ, Ⅲ C) Ⅱ, Ⅰ, Ⅲ, Ⅳ D) Ⅱ, Ⅰ, Ⅳ, Ⅲ


13-3 A manufacturing company would like to increase its backlog from one month to two months. The annual demand for their product is 600 units. How many units should they produce ? A) 500B) 550C) 600D) 650

The correct answer is B)The company currently produces 600 units annually or 50 per month. Their current backlog is one month or 50 units. In order to increase their backlog by one month, they will need to produce 50 less than their annual demand, or 550 units.

13-4 Which of the following statements are true regarding the MPS in a make to order company with a short promise leadtime and long manufacturing leadtimes ?I. The MPS is derived from a forecast on the long term horizonII. Actual customer demand would provide the .requirements in the short-termIII. A mix of actual demand and forecast would generate .requirements in the mid-term horizonA) I and II B) I and IIIC) II and III D) I, II, and III

The correct answer is D)Because customer orders are not far enough into the future to plan capacity needs, some forecast of demand would be required.

13-5 If it is assumed that final products and lower-level subassemblies are made both to stock and to order, which of the following final assembly schedule(FAS) practices should be adopted ?A) Commitment to an FAS should be made as early as possible.B) The planning horizon of the FAS should be shorter than that of the master production schedule.C) The shipping schedule should correspond to the FAS with the required offset.D) Order promising should not be tied to the FAS


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번호 Problem Solution14-1 Which of the following best describes the term synchronization to the production plan ?

A) Workcenters work together in a linear fashionB) Shipping is balanced to the customers needC) Changes in the master schedule are communicatedD) Capacity available equals capacity required

The correct answer is C)The production plan and the master production schedule must be synchronized so that the MPS output equals the production plan output. Changes which occur in either the production plan or the MPS must be linked so they continue to be equal. (Vollmann, Berry, and Whybark, Manufacturing Planning and Control Systems, Chapter 7).

14-2 Trend extrapolation is used in aggregate forecasting in which of the following ways ?A) In identifying cyclical patterns B) In projecting the long-range movementC) In permitting easier graphing of the forecastD) In identifying the presence of seasonality in product demand


14-3 Forecast consumption can be best defined as :A) A manufacturing commitment to produceB) Replacing the forecast with actual orders as receivedC) Using the forecast against the backlogD) Allocating gross requirements

The correct answer is B)Forecast consumption is the process of replacing the forecast with actual orders as they are received. This allows the demand to be properly calculated. If forecast consumption did not occur, the demand for a part would be doubled.

14-4 Which of the following statements regarding a forecast are true ?I. Aggregate forecasts are generally more accurate than for a single itemII. A forecast is more accurate further into the future A) I onlyB) II onlyC) Both I and IID) Neither I nor II

The correct answer is A)A forecast is more accurate as the numbers are aggregated into larger numbers. Forecasts which try to predict the long range future tend to be less accurate.

14-5 All of the following functions are included in physical distribution EXCEPT:A) Customer order entryB) WarehousingC) Final assembly schedulingD) Transportation to customer

The correct answer is C)Final assembly scheduling is a manufacturing process. Physical distribution begins when the product is completed.

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번호 Problem Solution15-1 Which of the following sources of demand should be considered in production planning ?

I. Order backlog from customersII. Scheduled receiptsIII. Interplant transfer of partsA) I and IIB) I and IIIC) II and IIID) I, II, and III

The correct answer is B)All sources of demand should be considered as part of the production planning process, including the customer order backlog, service parts requirements, and interplant demand. Any demand which will have an impact on the production plans must be considered.

15-2 Which of the following best defines the Final Assembly Schedule ?A) It is an anticipated build scheduleB) It is the actual build scheduleC) It is the same as the Master Production ScheduleD) It is the same as available to promise

The correct answer is B)The MPS is the anticipated build schedule and is subject to change. The FAS is the actual build schedule and should be committed to as late as possible.

15-3 The process by which forecast and actual demand may be compared and coordinated in the master scheduled is known as A) Available-to-promise logic B) Measurement of forecast errorC) Consuming the forecast D) Time fencing


15-4 The following question refers to the table below :________________________________________________Item ALeadtime : 0 Lot Size : 25On-hand : 20 Safety Stock : 5________________________________________________Period 1 2 3 4 5 6________________________________________________Forecast 10 10 15 15 15 15Cust. Orders 5 3 2Proj Available .35 25 35 20 30 15 ATPMPS . 25 25 25

The correct answer is B)Available to promise in the first period is equal to the on-hand inventory plus the MPS, minus the customer orders in each period, up to the period the next MPS is scheduled.

Based on the information provided in the Tables above, the available to promise in Week 1 is :A) 40B) 37C) 35D) 40

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번호 Problem Solution16-1 When determining the amount of product which is available to promise, which of the following must be considered ?

A) Forecast orders and projected inventoryB) Forecast orders and the scheduled productionC) Customer orders and the scheduled productionD) Customer orders and the projected inventory

The correct answer is C)When calculating the available-to-promise inventory, only the actual customer orders and the scheduled production, as determined by the Master Production Schedule, are considered. In the first time period only, the on hand inventory would be used until the first MPS is slotted.

16-2 All of the following are priority sequencing rules except :A) Earliest operation due dateB) Least slack ruleC) Latest part due dateD) Shortest operation time

The correct answer is C)Priority sequencing rules are established to determine which job to run next at a work center. There are many different rules for determining the priority. The latest part due date is not one of the types of rules. Sometimes companies will use the earliest part due date. Shortest operation time ignores the due dates and focuses on getting the most jobs through the factory by taking the one with the shortest operation time. (Vollmann, Berry, Whybark, Manufacturing and Planning Control Systems, Chapter 5).

16-3 Listed below is the history of demand for a product. Forecast for May 100 Actual May . 150 Actual June 155 Actual July 140 Actual August . 153 Using single exponential smoothing with an alpha of .10, what would the smoothed average be at the end of August ?A) 111 B) 113 C) 115 D) 117

The correct answer is D)The calculation of the new forecast would be: 100 + .1(150-100) = 105 then (end of May) 105 + .1(155-105) = 110 then (end of June) 110 + .1(140-110) = 113 then (end of July) 113 + .1(153-113) = 117 (end of August)

16-4 Which a sales order that exceeds the demand filter limits is received, the most appropriate action is toA) Issue a partial shipment B) Verify the order with the customerC) Revise the master production schedule D) Change the demand filter limit


16-5 Which of the following should be forecast ?I. Components of a finished goodII. Service partsIII. Finished goods to be shipped from a warehouse A) I and IIB) I and IIIC) II and IIID) I, II, and III

The correct answer is C)Independent demand should be forecast and dependent demand, such as component parts, should be calculated. Service parts and goods shipped from a warehouse are examples of independent demand items.

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번호 Problem Solution17-1 Rough cut capacity planning helps to identify all of the following EXCEPT :

A) Material and personnel shortagesB) Work center capacity based on the loadC) Leadtime constraintsD) Mid to long range capacity issues

The correct answer is B)Rough cut capacity planning provides mid to long range capacity planning. Capacity requirements planning provides detailed work center planning. Rough cut capacity planning will also identify material shortages for key materials and labor shortages for key skills. Remember, rough cut capacity planning is a high level planning process for key resources which may constrain the execution of the manufacturing plan.

17-2 Master schedule changes inside the firm zone must be managed. These changes should be authorized by :A) Plant managerB) Master schedulerC) Senior managerD) Manufacturing supervisor

The correct answer is C)Changes to the schedule for orders inside the firm zone will have major cost and schedule ramifications and should be managed with approval by a senior manager. This could be the President, or the V.P. of Manufacturing or Sales. Whatever the authority, the approval process should not be so cumbersome as to keep changes from ever taking place.

17-3 Which of the following statements is one about a master production schedule ?A) It is the same as a forecast B) It is an estimate of demandC) It is a manufacturing plan D) It uses monthly planning periods


17-4 In statistics terms, one standard deviation equals approximately how many mean absolute deviations ?A) 1.10B) 1.25C) 1.50D) 1.75

The correct answer is B)One standard deviation equals 1.25 MAD.

17-5 A master production schedule should be loaded to a level no greater than : A) Can be realistically attainedB) The sales forecast for the weekC) The customer orders already receivedD) Has been produced historically

The correct answer is A)The master production schedule should be loaded to a level which can be realistically produced based on the capacity available. Historical levels of production may not be realistic depending on the changes which have taken place in a factory. (Orlicky, Material Requirements Planning, Chapter 11).

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번호 Problem Solution18-1 The resource plan is typically stated in all of the following terms EXCEPT A) PoundsB) Item numbersC) Labor hoursD) Machine hours


18-2 The projected available balance represents : A) The projected on hand inventory balanceB) The uncommitted portion of the inventoryC) The leadtime necessary to produceD) Either cumulative or per period data

The correct answer is A)The projected available balance (PAB) is the inventory balance projected into the future. Answer B) is the available to promise.

18-3 Based on the following demands the range would be : Period 1 100 Period 2 140 Period 3 120 Period 4 90 A) 20B) 30C) 40D) 50

The correct answer is D)The range is the spread in a series of observations; from highest to lowest. In this example 140 - 90 = 50.

18-4 In designing a forecasting system, which of the following is the primary considerations ?A) The sample must be representativeB) The purpose of the forecast must be adequately definedC) The data must be derived from the correct sourcesD) The form of the data must be suitable for compilation


18-5 Which of the following statements best describes how the production plan relates to the resource plan ?A) They operate independently B) The resource plan constrains the production planC) The resource plan drives the production planD) The resource plan can only succeed with a level production plan

The correct answer is B)A resource plan provides the level of planning which involves new capital expansion, buildings, machinery, warehouse space, etc. The resource plan provides the information necessary to understand when the production plan cannot be met due to some resource constraint. At that point, management can take action to eliminate the constraint. Resource planning encompasses long, range, aggregate planning. (Vollmann, Berry, and Whybark, Manufacturing Planning and Control Systems, Chapter 4).

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번호 Problem Solution19-1 All of the following may contribute to an unrealistic master production schedule except :

A) Inaccurate leadtimesB) Incorrect yield estimatesC) Inaccurate sales forecastsD) Incorrect capacities

The correct answer is C)Sales forecasts are generally inaccurate and are often used as an excuse for manufacturing performance. However, the master production schedule is developed to equal the production plan which senior management has agreed to. If the master production schedule is developed realistically to an agreed to sales forecast, then the inaccurate forecast does not contribute to an unrealistic MPS. Factors such as inaccurate leadtimes, inaccurate yields, and manufacturing optimism regarding capacity will contribute to the MPS being unrealistic.

19-2 Based on the following information, what is the mean absolute deviation (MAD) ? Forecast Actual Period Demand Demand 1 100 200 2 150 100 3 150 200 4 200 150 5 200 200 A) 30 B) 40 C) 50 D) 60

The correct answer is C)MAD = the sum of the absolute values of thedeviation/numbers of occurances or MAD = |(100-200)+(150-100)+(150-200)+(200-150) +(200-200)|/5MAD = 250/5MAD = 50

19-3 All of the following may contribute to an unrealistic master production schedule EXCEPTA) Inaccurate lead times B) Inaccurate sales forecastsC) Incorrect yield estimate D) Manufacturing department optimism


19-4 Which of the following statements regarding a business plan are true ?I. A business plan is usually stated in dollarsII. A business plan and the production plan should agreeIII. A business plan considers the capacity of each work centerA) I and II B) I and III C) II and III D) I, II and III

The correct answer is A)While the business plan and the production plan would be stated in different terms, they still should agree. Capacity would be checked in resource terms, not at the work center detail.

19-5 In a master scheduling environment with products that have many low-level components, a few subassemblies, and a large number of final configurations, good practices would include which of the following ?Ⅰ. Setting the MPS at the subassembly levelⅡ. Using the planning bill techniqueⅢ. Setting the final assembly schedule from the production planA) Ⅰ B) Ⅱ C) Ⅰ, Ⅱ D) Ⅰ, Ⅱ, Ⅲ


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번호 Problem Solution20-1 All of the following are sources of demand which should be considered in production planning EXCEPT

A) Customer order backlog B) Service part requirementC) Firm planned orders D) Interplant demands


20-2 Technique used to assess, the capacity implications of a master production schedule include which of the following ?Ⅰ. Critical ratio analysisⅡ. Key work center load analysisⅢ. Product load profile A) Ⅰ B) Ⅱ C) Ⅱ, Ⅲ D) Ⅰ, Ⅱ, Ⅲ


20-3 Safety stocks exist for which of the following reasons ?A) To allow less expensive purchases by buying moreB) To allow for transportation timeC) To provide protection against the uncertainties of supply and demandD) None of the above

The correct answer is C)Safety stock exists to protect against unknown future demand and the uncertainties of supply.

20-4 A forecasting system is required for which of the following elements of total demand of an item ?Ⅰ. Independent demand Ⅱ. Dependent demandⅢ. Replacement-part demand

A) Ⅱ B) Ⅰ, Ⅲ C) Ⅱ, Ⅲ D) Ⅰ, Ⅱ, Ⅲ


20-5 If the master production schedule is overstated, which of the following will occur ?A) The factory will produce moreB) The backlog will be realisticC) Priorities will not be validD) Raw material costs will improve

The correct answer is C)The more unrealistic the Master Production Schedule becomes, the more invalid the priorities will become. If overstated, the backlog will grow until such time as the plant cannot possibly overcome the problem.

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번호 Problem Solution21-1 All of the following techniques are useful in increasing plant capacity EXCEPTA) Forming productivity groupsB) Line balancing C) Emphasizing throughput at bottleneck work centersD) Increasing the queue time for critical work centers


21-2 A company publishes their customer backlog as 4 weeks. Which of the following best defines customer backlog ?A) Overdue shipmentsB) Orders received but not acknowledgedC) Orders shipped but not received by the customerD) Orders received but not yet shipped

The correct answer is D)THe APICS Dictionary, Ninth Edition defines customer backlog as "all the customer orders received but not yet shipped." Some industries, such as aerospace, operate with a consistent level of backlog.

21-3 The minimum planning horizon for master scheduling should be ?A) The cumulative lead time B) At least six months plus material lead timeC) The combined lead time plus a safety lead time of one monthD) 52 weekly time buckets


21-4 Which of the following best describes the term customer backlog ?A) Orders promised after the customer wants themB) Orders received but not yet shippedC) Orders shipped but not yet billedD) Orders received but not entered into system

The correct answer is B)The definition of customer order backlog is those orders which have been received but not yet shipped. The backlog should constantly be monitored against the competition to ensure the backlog is not the result of poor processes. This would allow a competitor to win business based on leadtime.

21-5 Exponential smoothing techniques are desirable in a production and inventory control environment for which of the following reasons ?Ⅰ. Low costⅡ. Long-range accuracyⅢ. Flexibility of application A) Ⅰ B) Ⅱ C) Ⅰ, Ⅲ D) Ⅰ, Ⅱ, Ⅲ


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번호 Problem Solution22-1 The product your company manufactures is due for a design change at the end of the model year. Which of the following factors should be considered in planning the production for the current model ?

I. The accuracy of the forecast for the remainder of the current model year II..The cost of obtaining parts if demand exceeds the forecastIII..The probability of having leftover parts when the .model year endsIV..The marketing plans for the new model designA) I, II, and III B) I, II, and IVC) I, III, and IVD) II, III, and IV

The correct answer is A)When models change, there are many factors to consider to ensure inventory unique to the old model is used up. At the same time, the components for the new model need to be planned to ensure a smooth transition to the new model. The accuracy of the forecast must be considered to make sure parts are neither overordered nor underordered. If the production phase out of the old model is not well planned, there is a danger of having leftover parts or a need to order small lots to support the remaining production. Marketing plans, which identify the sales channels, demographics, etc. for which the new model is targeted would not be considered when planning the production. The sales plans would be developed from the marketing plans and would support the forecast by which production would be planned.

22-2 Which of the following statements are true regarding production planning ?I. It is senior management's responsibiltyII. The master scheduler should "disaggregate" the production plan to the master scheduleIII. It focuses corporate production goalsA) I and II B) I and IIIC) II and III D) I, II, and III

The correct answer is D)All of the statements are true with regard to the production plan.

22-4 Based on the following data, what is the mean absolute deviation? Forecast Actual Period Demand Demand 1 200 150 2 200 100 3 200 250 4 200 300A) 0B) 50C) 75D) 100

The correct answer is C)MAD = the sum of the absolute values of the deviations divided by the number of occurrences.MAD=[(200-150)+(200-100)+(200-250)+(200-300)]/4MAD= 300/4MAD= 75

22-5 Which of the following are among the three components of master planning ?Ⅰ. Production and resource planing Ⅱ. ForecastingⅢ. Demand Management Ⅳ. Master schedulingA) Ⅰ, Ⅱ B) Ⅰ, Ⅳ C) Ⅰ, Ⅲ, Ⅳ D) Ⅱ, Ⅲ


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번호 Problem Solution23-1 Which of the following statements correctly describe the relationship of forecasting and order service ?

Ⅰ. Order service deals with uncertain customer orders.Ⅱ. Forecasts are used only for what cannot be planned or calculated.Ⅲ. The forecast alone is used for production and resource planning.Ⅳ. Demand management integrates uncertain forecasts with certain order service.A) Ⅰ, Ⅲ B) Ⅰ, Ⅲ, Ⅳ C) Ⅱ, Ⅲ, Ⅳ D) Ⅱ, Ⅳ


23-2 Which of the following are included in a closed loop MRP system ? I. Master Production SchedulingII. Capacity Requirement PlanningIII. Purchasing A) I and II B) I and III C) II and III D) I, II, and III

The correct answer is D)All of the above are included, plus production planning, shop floor control activities, and financial systems.

23-3 All of the following items should be forecast EXCEPTA) Spare service parts B) Maintenance requirements for equipmentC) Finished-good demand at the retailed location D) Components of a finished good


23-4 In measuring forecast deviations, MAD is generally favored over the use of standard deviation for all of the following reasons except :A) Standard deviation is more difficult to calculateB) MAD can be updated easily by using exponential smoothingC) MAD is a more precise measureD) MAD is the expected forecast error for the next period

The correct answer is C)Standard deviation is a more precise measure of forecast deviation. However, MAD is easier to compute using absolute variations and can be updated conveniently in the exponential smoothing formula. Precision is not the overriding factor when forecasting.

23-5 A forecast consists of which two numbers ?A) The projection and the error B) The projection and the outliersC) The projection and the forecast D) The error and the variance


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번호 Problem Solution24-1 In using a DRP system, aggregate forecasts are often used. These aggregate forecasts are then broken down into detailed forecasts by distribution center. When this happens, which of the following will most likely occur ?

A) The forecast will become more accurate B) Relative errors will increaseC) Inventory levels at the centers will increaseD) Inventory accuracy will decline

The correct answer is B)As aggregate forecasts are broken down into more and more detail, the relative errors will increase. The user must be careful not to adjust the detailed forecasts in such a way that bias enters the forecast. This would cause the aggregate forecast to vary widely.

24-2 Which of the following is not a "general method" of forecasting ?A) Qualitative B) Intrinsic C) Extraneous D) Quantitative


24-3 What should the level of accuracy be in a forecast A) Each industry requires a different level of accuracyB) The error rate should be 5% or lessC) Accuracy needed depends on the impact of the forecast errorD) None of the above

The correct answer is C)The level of accuracy depends on the impact the forecast has on the business. The higher the level of accuracy of the forecast, the more it costs.

24-4 Lot size = 20Safety Stock = 0 Leadtime = 2 Period 1 2 3 4 5 6 -------------------------------------------- Forecast 10 10 10 20 20 20 Orders PAB ATP MPS ON HAND = 30 Based on the time phased record above, schedule releases should occur in which periods?A) Periods 1, 2, 3B) Periods 2, 3, 4C) Periods 3, 4, 5D) Periods 4, 5, 6

The correct answer is B)The projected balance drops below zero in periods 4, 5, and 6 with lots scheduled for periods 2, 3, and 4, as the release date would be two periods earlier.

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번호 Problem Solution25-1 All of the following techniques are useful for increasing capacity except:

A) Form teams to increase outputB) Balance lines more effectivelyC) Increase throughput at bottlenecksD) Increase queue time at critical work centers

The correct answer is D)Increasing the queue time at critical work centers will do nothing to change the capacity level at the work center. In fact, the increased queue will most likely cause capacity to decrease due to increased clutter at the work center.

25-2 Which of the following will generally give a more forecast ?A) Shorter periods B) Smaller geographic unitsC) Detailed product levels D) Nearer time periods


25-3 In an MRP system, service parts are handled by which of the following :I. As independent demand added to the parts gross requirementsII. As dependent demand added to the parts gross requirementsIII. Forecasted like an independent demand item A) I and II B) I and III C) II and IIID) I, II, and III

The correct answer is B)Service parts are added to the part's gross requirements so they would be an independent demand item. This would require them to be forecasted.

25-4 ACTUAL SALES FORECAST May 130 100 June . 90 120 July 100 . 140 August . 110 . 130 Based on the above information, which of the following statements are true regarding the deviation ?I. The mean absolute deviation is 30II. The cumulative deviation is 120 A) I B) II C) Both I and II D) Neither I nor II

The correct answer is A)The absolute sum of the forecast errors is 120: when divided by the number of occurrences, equals 30. The cumulative deviation is -60, however.

25-5 Which of the following actions should the Master Scheduler take if the ATP line shows a negative balance ?A) Wait to see if the customer orders are realB) Compare the orders to the forecast to see if they were planned by the sales departmentC) Change the master schedule to overcome the negativeD) Tell customers you can't promise product

The correct answer is C)While changes to the master schedule should be avoided, a negative ATP is a real problem because it is using customer orders to make the calculation. This would indicate that the orders themselves can't be delivered as promised. This would probably warrant a change in the schedule, as well as calling the customer to see if order dates can be changed.

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번호 Problem Solution26-1 Which of the following are objectives of production planning ?

I. Ensure top management involvementII. Measure actual work center output versus planIII. Establish the level of manufacturing outputIV. Integrate manufacturing with other business activities A) I, II, and IIIB) I, II, and IV C) I, III, and IV D) II, III, and IV

The correct answer is C)The four objectives of production planning are:1) To integrate business planning to detailed operation planning activities2) To ensure top management involvement3) To communicate the production plan4) To drive the Master ScheduleMeasuring actual versus plan output is a production control activity.

26-2 Company A has a multilevel distribution network. Where would the top level record in the DRP system best reside ?A) At the manufacturing plantB) At the distribution center closest to the manufacturing plantC) At the distribution center closest to the customerD) At the customer site

The correct answer is D)The top level DRP record should be at the point closest to the customer. If the information can be best gathered at the customer site, then this would be the best place. Many companies are now managing the inventory at the customer location.

26-3 Which of the following problems can be corrected at the rough-cut capacity planning level ?I. Overloads at critical work centersII. Excess capacity at any work center III. Excess load versus plant capacity A) I B) I and IIIC) II and IIID) I, II, and III

The correct answer is B)Rough cut capacity planning checks the capacity at critical work centers (or the plant), not at each work center. Capacity requirements planning provides the load by work center.

26-4 Which of the following changes would push the forecast horizon further into the future ?Ⅰ. Use of quaters, rather than months, as the length of the period.Ⅱ. The use of more forecasting periods.Ⅲ. Involvement with a longer lead-time resource.A) Ⅰ, Ⅱ B) Ⅰ, Ⅲ C) Ⅰ, Ⅱ, Ⅲ D) Ⅱ


26-5 The median can be defined as the :A) Average of a group of valuesB) Middle value of a group of valuesC) Most common or frequent value of a group of valuesD) Sum of the deviations divided by the number of values

The correct answer is B)The median is the MIDDLE value where half the values are above and half the values are below the median.

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번호 Problem Solution27-1 Which of the following characteristics are associated with long-range forecast ?

Ⅰ. External data Ⅱ. Greater use of qualitative techniquesⅢ. Recurring or periodic natureⅣ. Few forecasts of products or familiesA) Ⅰ, Ⅱ B) Ⅱ, Ⅲ C) Ⅰ, Ⅱ, Ⅳ D) Ⅱ, Ⅲ, Ⅳ


27-2 A resource plan is used to :A) Develop the load by product familyB) Establish build schedules by productC) Plan the use of energy in a companyD) Develop long range plans for equipment, faciliites, and capital

The correct answer is D)Resource planning is used for the long range planning of facilities, equipment, and capital. The calculations are made based on the capacity and load of key resources (i.e., a plant or warehouse). These calculations are done based on the forecast.

27-3 What is generally considered to be "true" demand ?A) Original quantity and requested shipping date B) Original quantity and actual shipping dateC) Adjusted quantity and requested shipping date D) Adjusted quantity and actual shipping date


27-4 Which of the following are reasons for maintaining safety stock in finished goods inventory ?I. It covers errors in forecastII..The MPS plan may not be achieved even if realisticIII..The inventory will buffer production from sales variations A) I and IIB) I and IIIC) II and IIID) I, II, and III

The correct answer is D)All of the above are good reasons for maintaining safety stock at the end item level.

27-5 Each of the following is a correct response to the indicated data-quality problem EXCEPT ?A) Accept and plan around data omissions B) Filter and adjust the model for abnormal demandC) Get original data or substitute for a data omission D) Accept normal variation


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번호 Problem Solution28-1 For the time horizon beyond the cumulative leadtime, any change to the Master Schedule can be made except :

A) Those caused by poor inventory accuracyB) Those caused by bill of material changesC) Those having a major impact on capacityD) Those caused by poor quality

The correct answer is C)Beyond the cumulative leadtime for a product, the only problem to the MPS would be impacts on capacity. If large orders were booked which caused significant capacity constraints, the master scheduler would need to be informed.

28-2 Which of the following statements correctly describes the characteristics of a general method of forecasting ?Ⅰ. Qualitative methods are based on the historical pattern of a time series.Ⅱ. Quantitative methods are a computational projection of a numeric relationship.Ⅲ. Intrinsic methods are based on intuitive or judgmental evaluation.Ⅳ. Extrinsic methods are based on external patterns.A) Ⅰ, Ⅱ, Ⅳ B) Ⅰ, Ⅲ C) Ⅱ D) Ⅱ, Ⅳ


28-3 When evaluating the production plan, top management would consider which of the following ?I. Inventory buildII. Production level by monthIII. Work center capacityIV. Potential outsourcing plansA) I, II, and IIIB) I, II, and IVC) II, III, and IVD) I, II, III, and IV

The correct answer is B)The production plan is top management's handle on the business and is not a detailed plan. Therefore, work center capacity would not be evaluated. The inventory build, the production level by month, and the possible outsourcing plans certainly would be evaluated by top management in running the business.

28-4 A given part had the 4 monthly forecast errors listed below. What is the mean absolute deviation ? Jan Feb Mar Apr Forecast Error -100 +200 -200 +500 A) 100B) 200C) 250D) 400

The correct answer is C)The mean absolute deviation is calculated by dividing the sum of the absolute error by the number of observations. In this example, the absolute sum of the forecast errors is 1000 divided by the number of observations which is 4 or 1000/4 = 250.

28-5 Which of the following functions would NOT be included as demand management ?A) ForecastingB) Order promisingC) Requisition approvalD) Interplant orders

The correct answer is C)Demand management is the function of recognizing all demands for goods and services to support the marketplace (APICS Dictionary, Ninth Edition). This function includes forecasting, order entry, order promising, determining branch warehouse requirements, interplant orders, and service parts rerquirements.

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번호 Problem Solution29-1 The purpose of holding inventory in distribution centers is to :

A) Improve customer service by keeping stock near the customersB) Reduce transportation and warehousing costsC) Minimize inventory investmentD) Increase inventory turns through the network

The correct answer is A)The reason to keep inventory in distribution centers is to improve customer service by keeping inventory close to the customers. Although transportation and warehousing costs rise, responsiveness to the customer is a necessity in many businesses.

29-2 Which of the following best decribes a seasonal demand index ?A) Alpha factor is greater than .5B) Ratio of demand above or below the averageC) Beta factor to calculate seasonalityD) Weights the most recent month's demand highest

The correct answer is B)A seasonal demand index estimates how much demand during a season will be above or below the average demand for the product. For example, if a product sells 1200 units per year, the average monthly volume will be 100 per month. If however, the month of July is part of the slow season, the index may be .6 or 60 units. December may be at the height of the season and require an index of 1.3, meaning that 130 units will be sold during December.

29-3 Qualitative forecasting methods are used for which of the following types of problems ?Ⅰ. To adjust quantitative forecasts Ⅱ. To evaluate highly repetitive, stable dataⅢ. To assess new markets, processes, or technologiesA) Ⅰ B) Ⅰ, Ⅱ, Ⅲ C) Ⅰ, Ⅲ D) Ⅱ, Ⅲ


29-4 A company uses actual customer orders to reduce the forecast. This process is known as:A) Capable to promiseB) Available to promiseC) Forecast consumptionD) Demand balancing

The correct answer is C)Forecast consumption uses actual customer orders to reduce the forecasted shipments. Rules are established to determine what to do with the over/under consumption. These rules provide direction for the master scheduler to adjust the schedule for the over/under amounts.

29-5 If the master production schedule becomes overloaded due to equipment problems, all of the following could be used as techniques to resolve the overload EXCEPT :A) OvertimeB) Additional shifts on SaturdayC) Reduce the leadtime to process orders faster D) Subcontract some work

The correct answer is C)It would be beneficial if customers could be contacted to LENGTHEN order leadtime, not shorten it, until the problem is resolved.

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번호 Problem Solution30-1 What is the new forecast using exponential smoothing given the following data:

Old Forecast = 100 Alpha = .10 Demand = 120A) 102B) 105C) 106D) 108

The correct answer is A)The calculation: Fcst/new = Fcst/old + alpha (Demand-fcst/old) = 100 + .10 (120-100) = 100 + .10 (20) = 102

30-2 Which of the following would be most useful in determining the production planning horizon ?A) Capacity acquisition time frameB) Order backlogC) Delivery leadtimeD) Customer sales cycle

The correct answer is A)The production plan time horizon would be influenced by several factors, including the cumulative leadtime of the manufacturing process, the business plan cycle, and the time it requires to acquire more capacity. The production plan should be far enough in the future to project the need for more capacity. This will keep a company from being surprised and allow adequate time for plannning.

30-3 All of the following are decompositions of data EXCEPTA) Qualitative B) Trend C) Seasonal D) Nonannual cycle


30-4 Which of the following stages are part of the product life cycle ? I. IntroductionII. MaturityIII. DeclineA) I and II B) I and III C) II and III D) I, II, and III

The correct answer is D)All of those mentioned are part of the product life cycle. The stage of growth acceptance after introduction is also part of the cycle.

30-5 A panel of experts are assembled and asked to fill out questionnaires about your business. The questionnaires are then used to produce another set of questionnaires which are then distributed to the panel again. Which forecasting method is being used ?A) Consensus of opinionsB) Panel consensusC) Historic analogyD) Additive trend

The correct answer is B)The panel consensus method uses a series of questionnaires until a convergence of expert opinion is reached.

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번호 Problem Solution31-1 In a distribution resource planning system, the ability to check physical distribution resources exists. These resources would include :

I. Tractor and trailer capacityII. Warehouse storage spaceIII. Finances A) I and II B) I and III C) II and III D) I, II, and III

The correct answer is D)Distribution resource planning allows a resourcecheck on critical resources in distribution, similar to manufacturing resource planning in manufacturing. These critical resources could be physical assets, such as warehouse space, trailer capacity, or finances to ensure the proper capital is available to meet the plan.

31-2 Extrinsic forecasting models include all of the following excep t:A) Econometric modelsB) Historical analysisC) Analysis of leading indicatorsD) Competitors actions

The correct answer is B)The historical analysis is a forecast based on internal factors.

31-3 Which of the following would best describe "in transit" inventory ?A) Parts moving from one operation to another in the same plant B) Parts being put away in a warehouseC) Parts moving from a plant to a distribution centerD) Parts moving through a cell in manufacturing

The correct answer is C)In transit inventory can be best defined as material moving between geographic locations. This would include plant to distribution centers or movement between warehouses.

31-4 Which of the following techniques are useful in increasing the capacity ?I. Form teams to address throughputII..Expand the bottleneck work centers to increase throughputIII..Increase the queues to provide work centers with enough workA) I and IIB) I and IIIC) II and IIID) I, II, and III

The correct answer is A)Expanding the capacity can be done in many ways. Productivity teams can be formed to address throughput, and they should address the throughput at the bottleneck work centers first. Additionally, overtime can be worked or subcontractors can be hired. Incresing the queues will not increase the capacity but will only serve to exascerbate the problem. In fact, increasing the amount of work which is on the floor will actually decrease the throughput.

31-5 Which of the following represents functional goals in a business?I. Sales want no missed deliveries and a broad product lineII..Engineering wants a shorter product development timeIII..Finance wants to minimize investment in equipment and inventoryIV.Manufacturing wants long production runs to minimize unit costsA) I, II, and III B) I, III, and IV C) I, II, and IV D) II, III, and IV

The correct answer is B)All of the answers support the functional goals in a business except Engineering, which would like more development time.

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번호 Problem Solution32-1 The responsiveness of moving average forecast to a step or ramp change would be improved if

A) The number of periods were increased B) The weight of the most recent observation were decreasedC) The number of periods were decreasedD) The weight of the earliest observations were increased


32-2 Which of the following best explains the use of a tracking signal ?A) Signals that a specific job is behind scheduleB) Signals that capacity is exceededC) Signals that a forecast is no longer validD) Signals that the MPS is overloaded

The correct answer is C)A tracking signal is used to monitor the forecast quality. It does this by calculating the sum of the variations of the forecast and the actual values and divides this result by the MAD of the variations.

32-3 When using exponential smoothing, which of the following is a good decision in selecting a smoothing constant ?A) Select a high α with stable dataB) Select a low α if there is a great deal of randomness in the dataC) Select α= 1 to forecast your data with no errorD) Select α = 0.5 to weight past observation strongly


32-4 The frequency of revisions to a forecast should be :A) Once per quarterB) Once per monthC) Once per weekD) Depends on the business

The correct answer is D)The frequency of revision really depends on the business and how accurate the forecast is.

32-5 Which of the following correctly identifies the type of forecasting method with the movement of the data ?A) The simple moving average is a good technique to level data.B) The additive trend method is good for seasonal data.C) Regression is most appropriate for seasonal data.D) Indexing would be used with level data.


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번호 Problem Solution33-1 Which of the following best defines the impact on the company of having an overloaded master schedule ?

I. Delivery performance will erodeII. Work in process will grow III. Cost per unit will go down due to high utilization A) I and II B) I and III C) II and III D) I, II, and III

The correct answer is A)While the cost per unit produced could go down in a cost accounting sense, the actual costs will reduce the profit due to the inefficiency of work-in-process, longer leadtimes, and possibly lost business.

33-2 All of the following involve extrinsic factors EXCEPTA) Company advertising B) Competitive actionsC) Weather D) National or international events


33-3 Item : 2000Leadtime: 0 Lot Size: 50 On-hand: 50 Safety Stock: 0------------------------------------------------Period 1 2 3 4 5------------------------------------------------Forecast . 30 30 30 30 30 Customer Orders 40 20 . 5 Proj Avail BalanceAvail-to-PromiseMPS 50 50 Based on the above MPS table, if the company promises to ship 15 units to a customer in period 3, what is the available-to-promise in period 3 ?A) 10 unitsB) 15 unitsC) 20 unitsD) 25 units

The correct answer is D)Available-to-promise logic is used to be able to accurately promise customers when their order will be deliverable. Inventory on hand of 50 is consumed by orders for 60 in periods 1 and 2. The -10 in period 2 is covered by the production of 50 in period 2, leaving 40 available. Of this 40, 15 can be promised, leaving 25 available to promise. (Vollmann, Berry, Whybark, Manufacturing Planning and Control Systems, Chapter 6).

33-4 A company has two plants; one is a final assembly plant and the other produces subassemblies which supplies the assembly plant. How is the interplant demand carried in the subassembly plant ? A) Safety stock absorbs the demandB) Similar to a customer order in the master scheduleC) As components in MRPD) As a purchase order on the assembly plant

The correct answer is B)The interplant demand, while not a customer order, would be handled in a manner similar to a customer order in the MPS. That is, the interplant demand would be a gross requirement for the supplying plant.

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번호 Problem Solution34-1 Pyramid forecasting is a forecasting techniques which

A) Aggregate and disaggregate data B) Uses simulation to find the best forecasting method.C) Operates on the basis that the recent past is the best indicator of the near future.D) Is useful in product life cycle forecasting


34-2 The process known as forecast consumption is important to master production scheduling because it :A) Monitors actual demand versus the forecastB) Keeps bias from creeping into the forecast C) Helps to eliminate poor dataD) Provides supporting data to top management

The correct answer is A)The forecast consumption reduces the forecast by the actual demand as it occurs. This allows the master scheduler to monitor the actual orders versus the forecast. This also ensures the demand is not doubled with forecast demand and actual demand.

34-3 Which of the following types of demand would be included in Distribution Requirements Planning ?I. Warehouse demandII. Raw material demandIII. Interplant demand of finished goodsA) I and II B) I and III C) II and III D) I, II, and III

The correct answer is B)Independent demand would be included in a DRP plan. Warehouse demand and finished goods demand would be included. Raw materials would not.

34-4 Forecast system design requires all of the following EXCEPTA) Defining designed intrinsic or extrinsic relationshipsB) Establishing flags or limits to monitor systems performancesC) Evaluation of various models for costD) Computing forecast error on a weekly basis


34-5 The Master Production Schedule is generally used for which of the following :I. Driving the distribution requirements planII. Establishing a rough-cut capacity planIII. Input to the MRP system A) I and IIB) I and IIIC) II and III D) I, II, and III

The correct answer is C)The MPS is not used to drive the DRP plan. Rather, input from demands at the warehouse level become input to MPS.

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번호 Problem Solution35-1 Which of the following forecasting techniques fits the indicated life cycle stage ?

A) Multiple regression forecasts are primarily used for start-up effortsB) Judgemental forecasts are primarily used for steady-state effortsC) Historical analogy is best used for start-up effortsD) Simple moving averages are best used for start-up efforts


35-2 Which of the following would be a symptom of a mismanaged master schedule ?I. The capacity plan is level loadedII. The on-time delivery rate is less than 90%III. Leadtimes in the factory are excessively shortIV. Past due shop orders occasionally occur A) I and IIB) II and III C) II and IV D) III and IV

The correct answer is B)When the capacity plan is overloaded or front loaded, a mismanaged master production schedule could be the cause. When on-time delivery is less than 90% or excessively short leadtimes exist in the factory, then a mismanaged schedule could be the cause. Past due shop orders can occur occasionally even when the schedule is well managed.

35-3 Which measures of forecasting error represent the tendency of the forecast to be either above or below the actual observation ?Ⅰ. BiasⅡ. Mean absolute deviationⅢ. Standard deviationⅣ. Tracking signalsA) Ⅰ B) Ⅰ, Ⅳ C) Ⅰ, Ⅱ, Ⅳ D) Ⅱ, Ⅲ


35-4 All of the following are techniques used to assess the capacity impact of a master production schedule except:A) Critical ratio analysisB) Critical work center loadC) Product load profileD) Rough-cut capacity plan

The correct answer is A)Critical ratio is a priority sequencing rule to tell if a job is on time. The rule is based on the formula: Time remaining divided by Work remaining. If the ratio is 1.0 the job is on time. A ratio of less than 1.0 indicates the job is behind schedule. If the ratio is greater than 1.0, the job is ahead of schedule. Critical ratio is not used to validate capacity.

35-5 All of the following are based for forecast method selection EXCEPTA) Accuracy B) CostC) Customer order policy D) Order lead times


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번호 Problem Solution36-1 All of the following forecasting techniques are intrinsic except :

A) Moving averageB) Exponential smoothingC) Leading indicatorsD) Trend analysis

The correct answer is C)Leading indicators are an external measure which may predict a trend in the business.

36-2 Long-range forecasts are associated with which of the following techniques?I. .A small number of products or familiesII. Recurring or periodic dataIII. Qualitative techniques are used more frequently than short range forecastsIV. External data A) I and IIB) I and IIIC) I, III, and IV D) II, III, and IV

The correct answer is C)Long-range forecasts generally do not use recurring or periodic data. They frequently use external data to determine trends in the data. Qualitative techniques are frequently used in place of "hard" data. A small number of products or families are forecasted because aggregate data tends to be more accurate. Also, long range forecasts tend to be used for more macro decisions so detailed accuracy is not as important.

36-3 If the load on the factory continually exceeds the available capacity, which of the following actions should be taken ?A) Re-prioritize the large customers' jobsB) Change the master production scheduleC) Lengthen the leadtimes quoted to the customersD) Regenerate the capacity plan

The correct answer is B)If the master production schedule is continually overloaded, then the only option is to revise the master production schedule to reflect realistic production levels. While this may lengthen the leadtimes to the cusomers, it will also mean on time production for customers. Additional capacity may need to be obtained to alleviate the overload and keep leadtimes competitive.

36-4 Which of the following applies to the alpha factor used in the exponential smoothing forecast formula ?I. Larger values of alpha give more weight to recent demandsII. Smaller values of alpha utilize older data moreIII. Larger values provide a less responsive forecast A) I and II B) I and III C) II and III D) I, II, and III

The correct answer is A)Larger values of alpha provide for a more responsive forecast based on more recent demands.

36-5 Which measures of forecast error represent the distance of the error around the actual ?Ⅰ. BiasⅡ. Mean absolute deviationⅢ. Standard deviationⅣ. Tracking signalsA) Ⅰ, Ⅲ, Ⅳ B) Ⅰ, Ⅳ C) Ⅱ D) Ⅱ, Ⅲ


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번호 Problem Solution37-1 Which of the following statements is valid ?

A) MAD = 1.25 standard deviationB) Standard deviation = alpha (MAD)C) Standard deviation = 1.25 MADD) MAD = Standard deviation/n

The correct answer is C)The standard deviation is equal to 1.25 MAD. MAD is a simpler formula to use in calculating the safety stock.

37-2 The load on the plant is constantly exceeding the capacity. What action should be taken to alleviate the situation ?A) Only manufacture the most important jobsB) Increase the inventory levelC) Complete the easy jobsD) Change the master schedule

The correct answer is D)When the master schedule is overloaded consistently, the only solution is to reschedule jobs. In order to reschedule, the right people (those who got the scheduler into the problem) must help to alleviate the overload. Policies must then be established to ensure the problem does not repeat. The most important people to participate in the reschedule are the sales and marketing people, who can provide insight into which orders to reschedule and can contact customers regarding the changes.

37-3 Planning bills are referred to as psuedo bills. This reference occurs because they :A) Are modular bills of materialsB) Represent bill structures of parts that cannot be builtC) Are manufacturing bills used in final assemblyD) Facilitate capacity planning

The correct answer is B)Pseudo bills are planning bills of material which facilitate planning by assigning percentages to the options for a product. They are for products which are not being built. For example, a car can be ordered with a manual transmission or an automatic transmission. The manual transmission may be ordered only 10% of the time while the automatic is ordered 90%. The bill of materials would be as follows: Transmission | | ------------------------ . | . | Manual .10 Automatic .90As the transmissions are planned for 10,000, the manual transmissions would be planned at 1,000 while the automatic transmissions would equal 9,000.

37-4 Based on the following information, what should safety stock be to achieve a 95% customer service level? (Round to nearest whole number) Actual Forecast Period Demand Demand 1 200 100 2 300 250 3 250 200 4 200 250 5 250 250

A) 50 B) 76C) 103 D) 112

The correct answer is C)The absolute sum of the forecast errors equals 250/5 periods = a MAD of 50. The MAD value for 95% = 2.06 so 50 x 2.06 = 103.

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번호 Problem Solution38-1 Which of the following are components of Master Planning?

I. Production and resource planningII. ForecastingIII. Demand managementIV. Master schedulingA) I and II B) I and IVC) I, II, III, and IVD) II and III

The correct answer is C)There are four activities which are included as part of Master Planning: forecasting (II), order service, production and resources planning (I), and master scheduling (IV). Demand management (III) is a component of Master Planning and includes order service and forecasting.

38-2 Which of the following need to be considered in determining the detail required for capacity planning?I. Quality of the information versus the cost of acquiring itII. Length of time to change capacityIII. Training period for new employees A) I and IIB) I and III C) IID) I, II, and III

The correct answer is D)All of the answers should be considered in determining whether a detailed capacity plan is necessary or whether a rough cut capacity plan will suffice.

38-3 A company has changed its customer service policy from 90 percent to 95 percent. Which of the following will occur?I. Inventory will decreaseII. Customer satisfaction will increaseIII. Warehousing costs will increaseA) I and IIB) I and IIIC) II and IIID) I, II, and III

The correct answer is C)An increase in customer service policies will increase the inventory level. This results from needing more inventory to ship customer orders from stock 95% of the time. This will have the positive customer satisfaction impact but the additional inventory will require more warehousing and material handling to accomodate the extra inventory.

38-4 Which of the following statements are true regarding time-phased order point?I. Lot sizing is eliminatedII. It is more effective than re-order pointIII. Uses MRP logic for independent demandA) I and IIB) I and IIIC) II and IIID) I, II, and III

The correct answer is C)Time-phased order point uses MRP logic for independent demand items. As a result, lot sizes are needed to determine the right quantity to order. Since MRP logic is used, time-phased order point can be used for gross requirements which are created from a forecast.

38-5 Each of the following statements describes the Z value EXCEPTA) It represents a continuous number of standard deviations B) It relates distance to probabilityC) It shows the amount of skew in the data D) It relates to the mean absolute deviation


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번호 Problem Solution39-1 Which of the following will result from the level strategy of production planning?

I. Production occurs at exactly the same rate as the sales forecast for each periodII. Inventory will generally buildIII. The labor force and capacity usage remains stable A) I and II B) I and IIIC) II and IIID) I, II, and III

The correct answer is C)Using the level strategy, the production rate remains stable and fluctuations in demand will be absorbed in inventory.

39-2 Rough-cut capacity planning is used because :A) It provides an early warning for schedule problemsB) It provides a capacity requirements planC) It is completed before the initial master scheduleD) None of the above

The correct answer is A)Rough-cut capacity planning is completed at a macro level after MPS is completed but not committed to. It provides a check that the MPS is realistic. Rough-cut capacity planning represents the high level resource load on a critical work center.

39-3 Which of the following statements regarding a forecast are true ?I. Aggregate forecasts are more accurate than for a single itemII. The further into the future a forecast is, the more accurate it becomesIII. Forecasts are good as planning tools onlyA) I and IIB) I and IIIC) II and IIID) I, II, and III

The correct answer is B)Forecasts tend to be more accurate as the numbers are aggregated. For example, it is easier to predict a total sales number for a company than the individual units supporting the sales. Therefore, forecasts are good for business planning but companies must be able to quickly adjust for the actual demand variations which occur. Forecasts are also more accurate the closer term they are.

39-4 Forecast system management likely involvesⅠ. Comparison of the forecast with the actual value.Ⅱ. Random evaluation of forecast performance.Ⅲ. A Pareto-based evaluation of the cost of forecast error.Ⅳ. Tracking signals to "flag" out-of-tolerance situations.A) Ⅰ, Ⅳ B) Ⅱ, Ⅳ C) Ⅰ, Ⅲ, Ⅳ D) Ⅱ, Ⅲ, Ⅳ


39-5 Which of the following would be considered long term capacity decisions ?I. Build a new plantII. Buy new machinesIII. Work overtime A) I and II B) I and III C) II and III D) I, II, and III

The correct answer is A)Working overtime would be considered a short-term solution to a capacity constraint.

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번호 Problem Solution40-1 Available-to-promise is the :

A) Inventory on hand not orderedB) Uncommitted portion of the inventory and planned productionC) Unallocated portion of the gross requirementsD) Inventory for preferred customers

The correct answer is B)Available-to-promise is the uncommitted portion of the inventory and the planned production maintained in the master schedule. It is done to support the promising of orders for customers.

40-2 Forecasting is commonly used in which of the following situations ?Ⅰ. Inventory control Ⅱ. Final assembly schedulingⅢ. Customer communication policy managementⅣ. Capacity managementA) Ⅰ, Ⅱ B) Ⅱ, Ⅲ C) Ⅰ, Ⅳ D) Ⅱ, Ⅳ


40-3 A resource plan can be stated in all of the following terms except :A) Labor hoursB) Machine hoursC) WeightD) Part numbers

The correct answer is D)Resource planning is capacity planning at the business plan level. As such, the plan is designed to ensure long range capacity will be available. The resource plan uses high level units of measure such as labor hours, machine hours, or any other homogeneous unit to combine all items. Detailed part numbers would not be used.

40-4 Which of the following would generally be considered a critical resource?I. Special components made from compositesII. Financing in a highly leveraged companyIII. Common raw materialsIV. Skilled labor for key operations A) I, II, and IV B) I, II, and III C) II, III, and IV D) I, II, III, and IV

The correct answer is A)Special alloy components could be critical particularly if using rare materials. In a company with a high debt load, financing could be difficult or very expensive. Additionally, the skilled labor needed in key operations would also be critical.

40-5 Which of the following best describes the use of a tracking signal in forecasting ?A) Large positive or negative numbers indicate the forecast for the item is not proper B) Tracking signals should be ignored except for high frequencyC) Tracking signal indicates the trend in the forecastD) None of the above

The correct answer is A)Forecast errors, if the proper forecast method is being used, should trend toward zero. If the forecast is becoming highly inaccurate, the tracking signal would show large positive or negative numbers.

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번호 Problem Solution41-1 Given the following information, the mean absolute deviation is :

Sum of the Absolute Errors = 200 . Number of Errors = 400 A) 0.5B) 1C) 2D) 4

The correct answer is A)The formula for MAD equals the sum of the absolute errors divided by the number of errors. In the above example 200/400 = .5

41-2 The components of master planning that are parts of demand management are Ⅰ. Forecasting Ⅱ. Order serviceⅢ. Production and resource planningⅣ. Master schedulingA) Ⅰ, Ⅱ B) Ⅱ, Ⅳ C) Ⅰ, Ⅱ, Ⅳ D) Ⅰ, Ⅳ


41-3 A forecast which uses single smoothing with a trend correction is called : A) Second order smoothingB) Additive trendC) Horizontal seasonalD) None of the above

The correct answer is A)Second order smoothing provides a point from which the trend can be measured in addition to the exponential smoothing.

41-4 Each of the following is an interaction of demand managemnt EXCEPT A) The forecast is consumed by customer ordersB) The demand fence permits changes to production capacityC) The planning fence constraints changes to the production schedule.D) The demand fence is based on order or production lead time


41-5 Capacity utilization is calculated as :A) Actual output divided by design capacityB) Actual output divided by effective capacityC) Actual output divided by demonstrated capacityD) Actual output divided by standard labor hours

The correct answer is A)Actual output is the rate of output achieved while design capacity is the maximum output attainable. Effective capacity is the maximum output attainable with limitations such as mechanical problems, changeovers, product mix, etc. Utilization is calculated by dividing actual output by design capacity.

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번호 Problem Solution42-1 Master production schedule stability can be achieved by all of the following except:

A) Firming planned ordersB) Freezing the schedule inside the demand fenceC) Using the greater of orders or forecastD) Requiring upper level approvals for changes

The correct answer is C)Master production schedule stability can be achieved using several methods, including the firm planned orders which would require the scheduler to act to make changes; requiring senior level approval for changes so cost impacts are understood; and freezing the schedule inside the demand fence so no changes can occur. Using the greater of forecasts or orders will cause more instability, and may in fact cause overstatement in the MPS.

42-2 Period 1 2 3 4 5------------------------------------------Forecast 10 10 10 20 20Orders . 0 0 0 0 0 PABMPS . 30On hand 20 Based on the above MPS record, what is the projected available balance in period 3 ?A) 0 B) 10 C) 20 D) 30

The correct answer is C)Beginning with 20 on hand in period 1, the available inventory would be -10 in period 3 plus the production of 30 scheduled in that period would provide for 20 to be available in period 3.

42-3 Just-in-Time methodsⅠ. Suggest the smooth flow of inventory in the production processⅡ. Encourage suppliers to operate separately from demandersⅢ. Are based on the inventory-push principleA) Ⅰ B) Ⅰ, Ⅲ C) Ⅱ, Ⅲ D) Ⅲ


42-4 The technique of creating a bill of material based on the common components of a product is a(n) :A) Option definitionB) Modular billC) Phantom billD) None of the above

The correct answer is B)Modular bills are used to group like components together to simplify the planning for complex products with many options.

42-5 The rough-cut capacity plan will differ from the resource plan in which of the following ways?I. The rough-cut capacity plan is less detailed than the . resource planII. The rough-cut capacity plan considers more . production resourcesIII. Leadtimes are offset in the rough-cut capacity plansIV. Rough-cut plans are displayed in months or quarters A) I and II B) II and IIIC) II and IV D) III and IV

The correct answer is B)Rough-cut capacity plans are more detailed than resource plans and consider more production resources. Rough-cut plans are disaggregated to days or weeks while resource plans are in months or quarters.

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번호 Problem Solution43-1 To screen for outliers, a forecast system would :

A) Identify exceptional demand based on a parameterB) Generate the forecast without using the outliersC) Create data using the trend automaticallyD) None of the above

The correct answer is A)The forecast system can provide the forecaster with exceptional demand "outliers" so the effect of the outliers can be dampened by the forecaster. This keeps the forecast from being skewed. Some software does this automatically.

43-2 The final assembly schedule is A) Generally used in make-to-stock and make-to-order environmentsB) Constrained by the production planC) Based on customer orders for end itemsD) Most effective when used at the lowest level of the bill of materials


43-3 A company with a cumulative leadtime of 13 weeks to manufacture has a planning horizon of 11 weeks. Which of the following will occur ?I. Order releases for suppliers could be inside the leadtimeII. Constant expediting will occurIII. Manufacturing inefficiencies will be created A) I and IIB) I and IIIC) II and IIID) I, II, and III

The correct answer is D)A planning horizon is defined in the ninth edition of the APICS Dictionary as "the amount of time a plan extends into the future." The planning horizon should extend as a minimum to cover the longest cumulative leadtime, plus time for lot sizing low level components and to make capacity changes. If the plan is short, releases to suppliers will occur without adequate leadtime for the suppliers to manufacture and ship the product to arrive on time.

43-4 In a make-to-order environment, which of the following is the least important reason for managing the customers order through the all phases of company activities ?A) Meeting customer delivery datesB) Determining the impact of engineering changesC) Maintaining a sufficient backlogD) Managing leadtimes and customer satisfaction

The correct answer is C)The primary function in a make-to-order environment is to manage the customer orders to meet customer delivery dates. In doing this, the leadtimes must be managed. If the customer delivery dates are met through the management of leadtimes, then customer satisfaction will be high. Because engineering changes can dramtically impact the leadtime, these changes need to be controlled and communicated to the customer, if the delivery date will be delayed. The least important is to manage the backlog. Backlog occurs when orders are greater than the capacity to produce. If the orders are meeting the customer delivery dates, then the backlog will take care of itself. (Vollmann, Berry, Whybark, Manufacturing Planning and Control Systems, Chapter 8).

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번호 Problem Solution44-1 Companies which master schedule at the end item level are :

A) Make-to-stockB) Make-to-orderC) Assemble-to-orderD) Engineer-to-order

The correct answer is A)Companies that schedule at the end item level are usually make-to-stock companies; that is, they are shipping from stock to the customer. Examples of make-to-stock companies would be consumer products companies such as Hershey Foods, Kodak, etc. The inventory needed is calculated statistically based on the customer service levels desired for each class of inventory.

44-2 In master scheduling, hedging refers to a practice withⅠ. Uses safety lead times to protect against late deliveriesⅡ. Provides safety inventory in case option mixes are different than forecastⅢ. Provides safety inventory in case volume is greater than forecastⅣ. Provides safety inventory in case volume is greater than forecastA) Ⅰ, Ⅱ, Ⅳ B) Ⅰ, Ⅲ C) Ⅱ, Ⅳ D) Ⅲ


44-3 Which of the following pieces of information must be available in order to prepare a realistic MPS ?I. Knowledge of all production requirementsII. Available capacityIII. Load profile of each MPS itemA) I and IIB) I and III C) II and IIID) I, II, and III

The correct answer is D)All of the information must be available to build a realistic MPS.

44-4 Pegging assists the master scheduler by Ⅰ. Identifying for a given item the source requirementⅡ. Identifying where safety stock or capacity should be placedⅢ. Identifying bottlenecked work centersA) Ⅰ B) Ⅲ C) Ⅰ, Ⅱ D) Ⅱ, Ⅲ


44-5 Why is Distribution Resource Planning considered a "push" inventory management system ?A) Inventory is "pushed" to feed warehouses from a central locationB) Inventory is "pushed" to field warehouses when they reach their reorder points C) Push systems allow decentralized control of inventoryD) None of the above

The correct answer is A)Inventory is managed throughout the distributionnetwork from a centralized location. It is "pushed" to where it is needed based on demand so the inventory in the whole network is managed.

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번호 Problem Solution45-1 Which of the following statements regarding forecasts is correct ?

I. Forecasts for a single product will be more accurate than for the product's family forecastII. A forecast for a repetitive event will be more accurate than for a single eventIII. Forecast of near term events are more accurate than long term events A) I and II B) I and III C) II and III D) I, II, and III

The correct answer is C)Forecasts for a product family are generally more accurate, as are forecasts for repetitive events, as a historical base can be used. Also, forecasts for near term events will generally be more accurate. Forecasts become less accurate further into the future.

45-2 Which of the following best defines a backorder?A) Product which has been allocated, but not charged to a manufacturing orderB) An unfilled customer order or commitmentC) The last order on a shipmentD) The pickup of freight on a return trip

The correct answer is B)A backorder is an unfilled customer order which will be shipped at a later date.

45-3 Which of the following factors are utilized in a DRP system ?I. Transit time between warehousesII. On hand inventory at each locationIII. Economic order quantity calculationIV. Forecast of demand by warehouseA) I, II, and IIIB) I, II, and IVC) II, III, and IVD) I, II, III, and IV

The correct answer is B)Distribution Requirements Planning is the function of determining the need to replenish inventory at branch warehouses. It does this by using the netting logic similar to MRP to plan inventory at each location based on the leadtimes to move product to each location. The forecast and customer orders would generate the gross requirements and the inventory is netted at each warehouse location. Economic order quantity calculations would not be part of the DRP system.

45-4 For make-to-stock companies, a 100% service level implies huge inventory levels. In make-to-order companies, immediate delivery would imply :A) Significant expeditingB) Substantial idle capacityC) Supplier leadtimes of zeroD) Few engineering changes

The correct answer is B)In order for a make-to-order company to make immediate delivery, there needs to be substantial idle capacity. This would allow them to take every order and immediately manufacture the product. It would require no engineering changes and a significant level of inventory to respond quickly.

45-5 The major advantage of a two level MPS process is :A) Simplified MPS processB) Products are planned as the market place demandsC) The second level protects against errors at the first levelD) Accuracy is improved

The correct answer is B)A two-level MPS approach allows assemble-to-order firms to plan products based on percentages to be sold without forecasting all possible end item configurations. This allows the planning to mirror the market place demand.

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번호 Problem Solution46-1 A bill of resources is :

A) A display of past capacity requirements based on released ordersB) A list of the cumulative standard hours per unitC) A listing of required capacity and key resources needed to manufacture one unitD) A chart of the final assembly completions and planned order completions by date

The correct answer is C)A bill of resources displays the required capacity and key resources needed to manufacture one unit of a product or family.

46-2 In a Just-in-time environment, the Master Production Schedule should be :A) End items; units per weekB) End items; units per day C) End items, units per monthD) End items; units bi-weekly

The correct answer is B)In a just-in-time environment, the MPS would bestated in a rate as units per day.

46-3 A firm planning order is A) A firm requirement and a planned scheduling quantity/dateB) A planned requirement and a firm scheduling quantity/dateC) A computer scheduled order D) A released order


46-4 Of all the problems which can occur with forecasting, the most critical problem for management is :A) Forecast errorB) Unpredictable trendC) Controlling biasD) Short-term variations

The correct answer is C)According to Vollmann, Berry, and Whybark, in Chapter 16 of Manufacturing Planning and Control Systems, the most critical problem for management is to control bias. "It is often easier to live with large errors (large MAD) if that's what it takes to reduce bias." Bias is the consistent deviation of the forecast in one direction. If the forecast is not corrected and the bias continues, then the foundation for the business plan will be weak.

46-5 The bill of resource representsⅠ. A major part of material requirements planningⅡ. The amount of resource required to produce an itemⅢ. Setup times and per-lot timesⅣ. The total time per units by key work centersA) Ⅰ, Ⅲ B) Ⅱ, Ⅳ C) Ⅰ, Ⅱ, Ⅲ D) Ⅱ, Ⅲ, Ⅳ


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번호 Problem Solution47-1 A company with a cumulative longest lead time of 13 weeks to manufacture has a planning horizon of 11 weeks. Which of the following will occur ?

I. Order releases for the vendor will be inside the lead timeII. Constant expediting will occurIII. Manufacturing inefficiencies will occur A) I and II B) I and III C) II and III D) I, II, and III

The correct answer is D)When the planning horizon is too short, orders will be released without enough leadtime visibility. This will cause a number of problems, including those listed above, to develop as the organization tries to make up the time.

47-2 Outside the demand time fence, the master scheduler consumes the forecast byA) Measuring forecast errors B) Using actual orders when actual orders are less than forecastsC) Using forecasts when actual orders are less than forecastsD) Computing the available-to-promise


47-3 A company has a one machine work center which operates one shift per day for 12 hours, 5 days per week. It is operating at an 80% efficiency and with average utilization of 90%. What is the weekly capacity, to the nearest hour, for this work center ? A) 36B) 43C) 50D) 57

The correct answer is B)The calculated capacity based in the information provided would be: 12 hours per day X 5 days = 60 hours available per week 60 hours x 80% x 90% = 43.20 hours capacity

47-4 The master scheduler should adjust the load profile byⅠ. Adjusting requirements to different time periodsⅡ. Shifting resources among work centersⅢ. Changing the planning and capacity time fencesⅣ. Outsourcing production or selling capacity A) Ⅰ, Ⅱ B) Ⅰ, Ⅲ C) Ⅰ, Ⅱ, Ⅲ D) Ⅰ, Ⅱ, Ⅳ


47-5 All of the following benefits result from master scheduling EXCEPT :A) Plans and commits resources to satisfy customersB) Drives the coordinated production planC) Manages inventory and backlog to appropriate levelsD) Ensures the integration of the business plans from each function

The correct answer is B)The master production schedule integrates the plans from each function, commits resources to satisfy customer demands, drives the detailed capacity and material requirement plans, creates accountability within the company, and manages the inventory and backlog level. It does not drive the production plan.

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번호 Problem Solution48-1 The master production schedule is an input to MRP because of which of the following attributes ?

I. It provides a rough cut capacity planII. It is a time phased schedule of production items A) I B) II C) Both I and IID) Neither I nor II

The correct answer is B)Because MPS is a time phased schedule for end items, MRP receives the quantity and due date for processing in the same format.

48-2 "Planning" methods of product structuring are useful becauseⅠ. The number of end items planned is increasedⅡ. The production forecast is less accurate than the end-item forecastⅢ. Order entry is facilitated through customer-defined modulesA) Ⅱ B) Ⅲ C) Ⅱ, Ⅲ D)Ⅰ, Ⅱ, Ⅲ


48-3 Which of the following are inputs to the Sales and Operations Planning process ?I. Anticipated demandII. CapacitiesIII. New product designIV. Financial resources requiredA) I, II and IIIB) I, III, and IVC) II, III, and IVD) I, II, III, and IV

The correct answer is D)The Sales and Operations Planning process requires inputs of all the above from the representative functions. This allows the company plans to be coordinated at the highest levels before the manufacturing to execute those plans begins.

48-4 Which of the following are key elements in defining available-to-promise ?I. It is uncommitted future inventory or capacityII. It is calculated from the MPSIII. It is used for customer order promisingIV. It is used in make-to-stock and assemble-to-order companies A) I, II, and III B) I, II, and IVC) II, III, and IVD) I, II, III, and IV

The correct answer is A)Available-to-promise (ATP) is used with assemble-to-order and make-to-order companies to commit the uncommitted portion of a company's inventory or planned production.

48-5 Master production schedule decisions directly evaluateA) Long-range resource and capacity availability B) The final assembly schedule C) Necessity and feasibility of requirements and resource availabilityD) The production activity control


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번호 Problem Solution49-1 A company manufactures products which have many low level components, a few subassemblies, and a large number of final configurations. Good master scheduling practices would include :

A) Establishing the final assembly schedule from the production planB) Setting the MPS at the final configurationC) Using the planning bill techniqueD) Setting the MPS at the component level

The correct answer is C)This company would be an assemble-to-order company which makes many final configurations from a few subassemblies and many components. They would not typically master schedule end items. The MPS unit would be a planning bill and have the components as a set of common parts and options. The option usages would be based on percentage estimates.

49-2 Which of the following trade-offs would be considered by top management when evaluating the production plan ?I. Co-operative production agreementsII. Machine schedulingIII. Inventory levels A) I and II B) I and III C) II and III D) I, II, and III

The correct answer is B)Top management would consider inventory levels and co-operative production agreements. However, top management would not be involved in machine scheduling.

49-3 PERIOD ACTUAL DEMAND FORECAST 1 120 100 2 120 120 3 100 130 4 110 140 Based on the above data, the forecast bias is :A) -10B) -20C) -30D) -40

The correct answer is A)Forecast bias = the sum of the (actual demand - forecast demand)/the number of occurrences; or for the above -40/4 = -10.

49-4 The projected available balance represents A) The uncommitted portion of inventory B) Either cumulative or per-period dataC) An inventory balance projected into the future D) Production lead time


49-5 Which of the following statements is correct regarding the production-sales-inventory report ?A) It is only presented in table formatB) It represents either cumulative or per period dataC) It shows production leadtimesD) It does not show cumulative production variances

The correct answer is B)The production-sales-inventory report can be shown in graph form (making A incorrect); production leadtimes are not shown (making C incorrect) and it can show cumulative production variances (making D incorrect). The PSI report can represent either cumulative or per period data.

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번호 Problem Solution50-1 Which of the following statements are true regarding super bills ?

I. It is at the top level of the product structureII. It groups components based on work centersIII. It aggregates components into modules IV. It groups small parts into kits A) I and IIB) I and IIIC) II and IIID) III and IV

The correct answer is B)Super bills are at the top level of the product structure and aggregate lower level components into modules.

50-2 Which of the following statements are true regarding the Final Assembly Schedule?I. It is a statement of the exact set of end products to be builtII. It controls the manufacturing from fabricated products to shipable products III. It schedules the purchase of components not under MPS control which are needed for final assembly A) I and II B) I and III C) II and IIID) I, II, and III

The correct answer is D)All of the statements are true regarding the final assembly schedule.

50-3The final assembly schedule normally corresponds to the master production schedule in which production environment ?Ⅰ. Make-to-orderⅡ. Make-to-stockⅢ. Assembly-to-orderA) Ⅰ B) Ⅱ C) Ⅱ, Ⅲ D) Ⅰ, Ⅲ


50-4 A part had the four monthly forecast errors listed below. What is the mean absolute deviation? Jan Feb Mar Apr Forecast Error -100 +200 -200 +500A) 100B) 200C) 250D) 400

The correct answer is C)The mean absolute deviation is calculated by dividing the sum of the absolute error by the number of observations. In this question, the sum of the absolute errors is: 100 + 200 + 200 + 500 = 1000. Divide 1000 by the number of observations (4) to equal 250.

50-5 Which of the following problems can be found and corrected at the rough-cut capacity level ?A) Excessive queues at suppliersB) Overloads at a work centerC) Load in excess of plant capacityD) Underloads at any work center

The correct answer is C)Rough-cut capacity deals with capacity at critical work centers, and at a high level. Detailed capacity requirements planning would deal with capacity at any given work center. Therefore, rough-cut capacity planning would identify loads in excess of plant capacity early in the planning process. This would allow for correction.

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번호 Problem Solution51-1 A manufacturing company wants to cut its backlog from six months to three months. If the annual demand is 240 units, the production plan for this year should be for how many units of production ?

A) 180B) 240C) 300D) 360

The correct answer is C)The company can produce 20 units per month. The current backlog is 6 months or 120. They want to reduce the backlog to 3 months or 60. In order to reduce the backlog to 60 they will need to produce 60 more than the annual demand of 240 or 300 units.

51-2 Which of the following statements regarding Distribution Requirements Planning is true ?I. It is a time phased order point systemII. Product is pulled by the distribution centersIII. Lead times are the time to move product from central supply to distribution centers A) I and II B) I and III C) II and IIID) I, II, and III

The correct answer is B)Product is "pushed" from a central supply to distribution centers. Assessment of inventory position is made for the whole network by distribution planners. So even though distribution reqirements feed to the central supply, planners assess the inventory position and push product to warehouses.

51-3 The modular bill is a planning bill of materials whichA) Is managed the way the product is sold B) Is at the top level of the product structureC) Groups components based on cost D) Groups small parts


51-4 Which of the following best defines "true demand" ?A) Original quantity and actual shipping dateB) Original quantity and requested shipping dateC) Adjusted quantity and actual shipping dateD) Adjusted quantity and requested shipping date

The correct answer is B)True demand results from the original quantity and requested shipping date. By using this data, stockouts and late deliveries will not distort the data.

51-5 Which of the following are correct statements about production environments ?Ⅰ. The make-to-stock environment has a wide product lineⅡ. The make-to-order environment has a short customer delivery timeⅢ. The make-to-stock environment has low customer interfaceⅣ. The make-to-order environment uses a unique bill of materials for each order.A) Ⅰ, Ⅲ B) Ⅰ, Ⅱ, Ⅲ C) Ⅱ, Ⅲ, Ⅳ D) Ⅲ, Ⅳ


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번호 Problem Solution52-1 Planned orders from the warehouse translate to which of the following in the factory ?

A) Planned orders in the MRP systemB) Scheduled receiptsC) Gross requirements in the MPSD) Inventory in the MPS

The correct answer is C)Planned orders from the warehouse in a DRP system become gross requirements in the Master Production Schedule at the factory. The logic is similar to the MRP logic.

52-2 The master scheduler can use pegging to identify:A) Where safety stock is neededB) Work center constraintsC) The source of requirements for a given itemD) Leadtimes which are in error

The correct answer is C)Pegging provides upward linkage of components to end requirements. It assists the master scheduler in analyzing exception messages from MRP by identifying the source requirement of specific problem items. Pegging does not pertain to safety stock, constrained work centers, or to leadtimes.

52-3 Which item should be master schedule ?A) End item in a make-to-order environment B) Items which use critical resourcesC) Items with short product lead times D) Items which have low costs


52-4 Which of the following will affect the efficient use of warehouse space?I. Cube utilization II. Rack densityIII. Rack accessibilityIV. Order picking processA) I and II onlyB) III and IV onlyC) I, II, and IIID) I, II, III, and IV

The correct answer is D)Warehouse space is usually the largest capital cost in the distribution network. As such, the space needs to be used effectively. This means racks need to be as dense as possible, and the space in those racks needs to be utilized as much as possible without becoming inefficient to operate. Additionally, the operation of the warehouse needs to be efficient, so the picking process and access to the racks must be easy to accomplish.

52-5 Reason to master schedule include Ⅰ. Stabilization of material plansⅡ. Increase expeditingⅢ. Managing key resourcesⅣ. Reducing communication among principal staff A) Ⅰ B) Ⅰ, Ⅲ C) Ⅰ, Ⅱ, Ⅲ D) Ⅱ, Ⅲ, Ⅳ


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번호 Problem Solution53-1 The final assembly schedule should be used to convert the MPS into:

A) An anticipated build scheduleB) An actual build scheduleC) Available capacity to buildD) Demonstrated capacity to build

The correct answer is B)The MPS is the anticipated build schedule. It represents what is planned to be manufactured. The FAS is the actual build schedule for what will be assembled.

53-2 Which of the following describes a planning horizon?A) The amount of time the master schedule extends into the futureB) The cumulative leadtime of a partC) The amount of time the strategic plan extends into the futureD) The time it takes to bring new capacity on line

The correct answer is A)The planning horizon is the amount of time the master schedule extends into the future. The minimum length of the planning horizon should be equal to the cumulative leadtime of the longest leadtime part. It should go out as far as the time it takes to bring new capacity on line.

53-3 Which of the following statements is true about the Master Production Schedule?A) It is the actual build scheduleB) It is the same as the customer ordersC) It is the anticipated build scheduleD) It is the forecast of orders

The correct answer is C)The Master Production Schedule is the planned build schedule for manufacturing. The actual build schedule will often change as the actual build date gets closer. The Final Assembly Schedule is the actual build schedule.

53-4 After the master production schedule is completed, which of the following converts it into detailed component needs?A) Shop floor control systemB) Material requirements planningC) Production planningD) Resource planning

The correct answer is B)The material requirements planning system converts the MPS into detailed component needs using the bill of materials and the inventory balances.

53-5 A company has a distribution center A, 3000 miles away from the supplying plant and a distribution center B, 1000 miles away. If both turn inventory over with the same velocity, which will require the most in-transit inventory (assuming the inventory moves by rail or truck)?I. Center AII. Center B A) I only B) II onlyC) Neither I nor II D) Both I and II

The correct answer is A)Center A would require more product to be in-transit to maintain the velocity due to its distance from the source.

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번호 Problem Solution54-1 The master production schedule(MPS) is related to MRP and the production plan in that :Ⅰ. The MPS drives the production planⅡ. The MPS disaggragates the production plan to individual productsⅢ. The MPS is the starting point for MRP

A) Ⅰ, Ⅱ B) Ⅰ, Ⅱ, Ⅲ C) Ⅱ D) Ⅱ, Ⅲ


54-2 A data point which differs significantly from other data points can be defined as a(an) :A) SkewB) SignalC) OutlierD) Regression

The correct answer is C)An outlier is defined as any data point which differs significantly from other data points for a similar phenomenon (APICS Dictionary, Ninth Edition). For example, if the data shows a demand pattern of 20 units per month but in one month there is an increase in demand to 200, the 200 unit demand would be an outlier and be filtered for future forecasts.

54-3 The level methodⅠ. Production exactly the sales forecast in each periodⅡ. Generally does not build up inventoryⅢ. Minimize labor turbulence and stabilizes capacity usageⅣ. Would likely not be used in high cost inventory environmentsA) Ⅰ, Ⅲ B) Ⅲ, Ⅳ C) Ⅰ, Ⅲ, Ⅳ D) Ⅰ, Ⅱ, Ⅲ, Ⅳ


54-4 Which of the following should come first in the business planning process ?A) Production planning B) Sales and Operations planningC) Master production scheduleD) Rough cut capacity plan

The correct answer is B)Sales and Operations planning should come first in the business planning process. The ouput from the Sales and Operations process is the production plan. The production plan then provides input to the master production schedule. The rough cut capacity plan is done to check if the MPS is realistic. (Vollmann, Berry, and Whybark, Manufacturing Planning and Control Systems, Chapter 7).

54-5 Which of the following are correct regarding timefences ?I. Timefences divide the planning horizon into firm, slushy, and free periodsII. During the firm period, changes can be Ready madeIII..During the free period, measurable assets have not . been committedIV..The slushy period will allow some changes but . commitments to materials have generally been made A) I, II, and IV B) I, III, and IV C) II, III, and IV D) I, II, III, and IV

The correct answer is B)The three timefences are firm, slushy, and free (sometimes referred to as liquid). The firm planning period does not allow for changes unless approved at the highest management level due to significant cost impacts. The slushy period allows some minor changes and the free period allows changes easily.

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번호 Problem Solution55-1 The product-sales-inventory report

A) Is represented only in table formB) Represents either cumulative or per-period dataC) Cannot show cumulative production varianceD) Represents production lead times


55-2 PERIOD ACTUAL DEMAND FORECAST 1 120 100 2 120 120 3 100 130 4 110 140 Based on the above date, the mean absolute deviation (MAD) is :A) 10B) 20C) 40D) 80

The correct answer is B)MAD = the sum of the absolute error of (actual demand - forecast demand)/number of occurrences; or, 80/4 = 20.

55-3 The bill of resource is A) A listing of required capacity and key resources needed to manufacture one unit of a selected product, family, or groupB) A display of future capacity requirements based on planned and released orders over a given span of timeC) A lead-time offset chart with final assembly completions and the planned completions to dateD) A chart representing the cumulative standard assembly hours per unit


55-4 The process by which the actual demand and the forecast are compared in the master schedule is known as :A) Cumulative ATPB) A tracking signal C) Demand fencingD) Consuming the forecast

The correct answer is D)According to the APICS Dictionary, Ninth Edition, consuming the forecast is defined as "the process of reducing the forecast by customer orders or other types of actual demand as they are received." A problem in forecast consumption is created when the actual demand is significantly different from the forecast. Decision rules need to be created to logically determine how to handle the over or under forecast situation. (Vollmann, Berry, Whybark, Manufacturing Planning and Control Systems, Chapter 14).

55-5Resource planning can be generally differentiated from rough-cut capacity planning because resource planning Ⅰ. Uses the bill of resources, not a more detailed load profilesⅡ. Deals with product items and componentsⅢ. Does not have a lead-time offset.A) Ⅰ B) Ⅰ, Ⅲ C) Ⅱ D) Ⅰ, Ⅱ, Ⅲ


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번호 Problem Solution56-1 The use of modular bills of material allows the Master Production Schedule to : A) Use a final assembly scheduleB) Be stated in fewer different unitsC) Not equal the production planD) Use phantom bills of material

The correct answer is B)A modular bill of material allows the MPS to be stated in fewer units. This facilitates the MPS process by stating the MPS in the units which are sold, not in the units which are built. For example, instead of trying to MPS every car built, the MPS is for generic parts of a car such as the air conditioner, the tires, two doors, etc. When the customer specifies the actual options, the car is scheduled for assembly with the specific options defined.

56-2 The mean can be defined as the :A) Average of a group of valuesB) Middle value of a group of valuesC) Most common or frequent value in a group of valuesD) Sum of the deviations divided by the number of values

The correct answer is A)The mean is the AVERAGE of a group of values found by adding all the values and dividing by the number of values.

56-3 Which of the following would normally be considered a critical resource ?Ⅰ. Short lead-time componentsⅡ. Financial assetsⅢ. Readily available raw materialsⅣ. Skilled labor for key operationsA) Ⅰ, Ⅱ B) Ⅰ, Ⅲ C) Ⅱ, Ⅳ D) Ⅰ, Ⅱ, Ⅲ, .


56-4 The production plan responsibility rests with :A) Material managerB) Top managementC) V.P. ManufacturingD) V.P. Finance

The correct answer is B)Top management is responsible for the production plan as it "drives" the entire business.

56-5 All of the following are outputs from the Sales and Operations Planning process EXCEPT :A) Sales planB) Production planC) Financial planD) Capacity plan

The correct answer is D)The Sales and Operations Planning process produces plans for each area to execute and be accountable. The various functional organizations develop and implement the following plans: Sales plan (Sales and Marketing) Backlog projection (General Manager) Production plan (Manufacturing) Financial plan (Finance) New product development plan (Engineering) Inventory projection (General Manager)

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번호 Problem Solution57-1 What is the new forecast using exponential smoothing given the following data :

Old forecast = 200Alpha = .50Demand = 250A) 220B) 225C) 230D) 240

The correct answer is B)The formula for exponential smoothing is:Fcst/new = Fcst/old + alpha(Demand - Fcst/old) = 200 + .5 (250-200) = 200 + 25 = 225

57-2 The four-step resource planning processⅠ. Applies to resource planning and rough-cut capacity planningⅡ. Dose not consider product structureⅢ. Calculates resource requirementsⅣ. Determine bills of resource for products or groupsA) Ⅰ, Ⅳ B) Ⅱ, Ⅳ C) Ⅰ, Ⅲ, Ⅳ D) Ⅱ, Ⅲ, Ⅳ


57-3 Performance of master planning can be measured by which of the following ?I. Variance of actual production from the master production scheduleII..The number of MRP reschedule messagesIII..Variance of the master schedule from the .forecast IV..Variance of the master schedule from the production .plan A) I, II, and IV B) II and IIIC) I and III D) III and IV

The correct answer is A)The variance between the master schedule and the forecast is not a measure of planning performance because the production planning and resource planning processes intervene. The other three answers are measures of master planning performance.

57-4 Production planning primarily sates.A) Mid-to long-range resource requirements B) Volume loads by product familyC) Anticipated build schedules for anticipated itemsD) Short- and mid-range capacity requirements and adjustments


57-5 A heavy equipment manufacturer has a product line consisting of complex assembly and multiple features. The master production schedule would be best stated :A) For final product for shipmentB) In terms of major componentsC) On the final assembly scheduleD) None of the above

The correct answer is B)In the case of many optioned products, the MPS should be expressed based on common components of the products. The features would be assembled based on the customer order.

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번호 Problem Solution58-1 A company has two plants; one is a final assembly plant and the other produces subassemblies for the final assembly plant. How is the interplant demand accounted for in the subassembly plant ?

A) Safety stock absorbs the demandB) Similar to a customer order in the master scheduleC) Component demand in MRPD) Purchase order on the final assembly plant

The correct answer is B)The interplant demand would be included in the master schedule in the same way as a customer order. This would be carried as an actual order on the supplying plant.

58-2 The term "hedging" as it refers to master production scheduling, generally refers to :A) A transaction to protect against negative price fluctuationsB) The trimming of safety stock to reduce costsC) Inventory to protect against the uncertainty of demandD) Establishing lead times with a safety factor

The correct answer is C)Hedge stock is inventory used to protect against the uncertainty of demand and is similar to safety stock except a hedge incorporates timing.

58-3 The length of a forecast horizon is primarily determined by the : A) Longest component leadtimeB) Purpose of the forecastC) Customer leadtime demandD) Manufacturing cycle time

The correct answer is B)The length of a forecast horizon is dependent on what the forecast will be used for. If the forecast is to determine the long range capacity needs of the business, the forecast may look out 3-5 years. The quantities would be at an aggregate level. If the forecast is used to generate the annual business plan, then the horizon will be shorter term, 12-18 months, with greater detail than the long range forecast. (Fogarty, Blackstone and Hoffmann, Production and Inventory Management, Chapter 1).

58-4 Which of the following are principles of production planning Ⅰ. Inventory must be managed in aggregate before it can be controlled in detailⅡ. Preparation of the production plan is the responsibility of the master schedulerⅢ. Disaggregation of the production plan is the responsibility of the master schedulerⅣ. The sum of master production schedule requirements will not necessarily equal the production planⅤ. A ling-range production plan should be used to plan facility requirementsA) Ⅰ,Ⅱ B) Ⅰ,Ⅱ,Ⅲ C) Ⅰ,Ⅲ,Ⅴ D) Ⅱ,Ⅳ,Ⅴ


58-5 Which of the following best describes the term logistics in the non-military sense ?A) The movement of finished goods to the final customerB) Obtaining and distributing products and materialsC) Demand management and physical distribution D) None of the above

The correct answer is B)Logistics is the art and science of purchasing, producing, and distributing materials to ensure the products are in the right place and in the proper quantities.

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번호 Problem Solution59-1 when evaluating the production plan, top management would be likely to consider all ot the following trade-offs EXCEPT

A) Inventory accumulation B) Machine maintenance schedulesC) Quality considerations D) Outsourcing or cooperative agreements


59-2 If a company increases the number of distribution centers, which of the following will usually occur ?I. Aggregate safety stock will increaseII. Aggregate cycle time will decreaseIII. Transportation inventories will increaseA) I and IIB) I and IIIC) II and IIID) I, II, and III

The correct answer is B)An increase in the number of distribution centers will increase safety stock as each center will maintain a safety stock. Transportation inventories will increase as more goods will move to the centers and between the centers. Aggregate cycle time will also increase as the total replenishment time to restock will most likely take longer.

59-3 Period 1 2 3 4 5-------------------------------------------Forecast 10 10 10 20 20Orders . 8 6 6 2 2PAB ATP MPS . 30On hand 20Based on the above MPS record, what is the non-cumulative ATP in period 1?A) 12 B) 18 C) 26 D) 42

The correct answer is C)There are 20 on hand to start period 1 plus the production of 30 in period 1 to equal 50. For the horizon, 8 orders have been committed in period 1, 6 orders in period 2, 6 orders in period 3, 2 orders in period 4, and 2 orders in period 5.

59-4 The chase strategy would be likely toⅠ. Have relatively high inventoriesⅡ. Stabilize employment and subcontractingⅢ. Have periodic capacity-change costsⅣ. Use extensive overtime during peak periods A) Ⅰ, Ⅲ B) Ⅰ, Ⅱ, Ⅳ C) Ⅱ, Ⅳ D) Ⅲ, Ⅳ


59-5 Available-to-promise represents :A) The projected on hand inventory balanceB) The uncommitted portion of the inventoryC) The leadtime necessary to produceD) Cumulative data only

The correct answer is B)Available-to-promise (ATP) is defined as the uncommitted portion of the inventory. The projected available balance (PAB) would be Answer A). Leadtimes would be considered in the MPS offsetting while ATP is not cumulative only.

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번호 Problem Solution60-1 An aggregate forecast can be best defined as :

A) A forecast which details each product in a groupB) A forecast for a group of similar productsC) An industry forecast by industry codeD) An accumulation of inventory items

The correct answer is B)A product group forecast is an aggregate forecast of similar products in a product family. This aggregate forecast is generally more accurate than a forecast for each item.

60-2 Which of the following functions are included as part of demand management ?I. ForecastingII. Order entryIII. Approving requisitions A) I and II B) I and III C) II and III D) I, II, and III

The correct answer is A)Approving requisitions would be considered partof the manufacturing process, not demand management.

60-3 A company discovers that their forecast is overstated. As a result, which of the following would be overestimated ?I. Factory loadII. Factory capacityIII. Component partsIV. Subassembly partsA) I, II, and IIIB) I, III, and IVC) II, III, and IVD) I, II, III, and IV

The correct answer is B)Because the forecast is an integral part of the planning, the overestimation of the forecast will have an impact on the future factory load because the load would be planned based on the forecast. The resulting master production schedule will also be overestimated, which will cause the MRP system to plan for too many component parts and subassemblies. The capacity, however, is calculated based on the ability of the factory to produce, regardless of the forecast.

60-4 The resource plane is used to A) Develop volume loads by product familyB) Develop build schedule for selected items or familiesC) Develop long-range requirements for facilities, capital, and equipmentD) Determine short-range resource adjustments to capacity


60-5 A master production schedule is overloaded if it is :A) Equal to the forecastB) Greater than the realistic capacityC) Greater than has been produced in the pastD) More than what was originally planned

The correct answer is B)The master production schedule must be realistic in order to properly plan production. An overloaded schedule is one where the planned production exceeds the factory's ability to produce it.

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번호 Problem Solution61-1 In which of the following industries is the final assembly schedule most critical ? A) Food manufacturingB) Automobile manufacturingC) Chemical processing industryD) Oil industry

The correct answer is B)Assemble to order products offer a great numberof final product configurations. As a result, final assembly scheduling is most important in the automobile industry.

61-2 Although the Master Production Schedule is realistic and "frozen" within the demand time fence, MPS changes will occur due to which of the following :I. Equipment failureII. Vendor quality problemsIII. Manufacturing scrapA) I and IIB) I and III C) II and III D) All of the above

The correct answer is D)All of the above problems can cause the MPS to be misstated. These problems would cause the MPS to be invalid and, as such, should be replanned.

61-3 Which of the following are objectives of production planning ?Ⅰ. Set the level of manufacturing outputⅡ. Consume the forecast with customer ordersⅢ. Compare actual work center output with planned outputⅣ. Integrate manufacturing with sales and other business-plan activities A) Ⅰ B) Ⅰ, Ⅱ, Ⅳ C) Ⅰ, Ⅳ D) Ⅱ, Ⅲ


61-4 Forecast bias includes which of the following statements?I. Forecasts which are consistently highII. Forecasts which are consistently lowIII. Forecast errors which sum to zero A) I and IIB) I and III C) II and IIID) I, II, and III

The correct answer is A)Forecast errors which sum to zero would indicateno bias. Forecasts which tend to be high or low are said to exhibit bias.

61-5 The planning hierarchy must operateA) From bottom up only B) From top down onlyC) Simultaneously in both directions with feedback between levelsD) Integratively at all levels together


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번호 Problem Solution62-1 The master production schedule is the:

A) Manufacturing build planB) Equivalent of a forecastC) Final assembly scheduleD) Same as the production plan

The correct answer is A)The master production schedule is the planned build schedule for manufacturing. It is not the same as a final assembly schedule nor is it equivalent to a forecast. The master production schedule uses the forecast to estimate future demand. The production plan is input for the master schedule.

62-2 Forecast system management likely involvesⅠ. Comparison of the forecast with the actual value.Ⅱ. Random evaluation of forecast performance.Ⅲ. A Pareto-based evaluation of the cost of forecast error.Ⅳ. Tracking signals to "flag" out-of-tolerance situations.A) Ⅰ and Ⅳ only B) Ⅱ and Ⅳ only C) Ⅰ, Ⅲ and Ⅳ only D) Ⅱ, Ⅲ and Ⅳ only


62-3 Listed below is the demand history for a product. If exponential smoothing is used with an alpha factor of .30, what would be the forecast for April ? Average 100 units January . 110 units February . 120 units March 90 unitsA) 102B) 103C) 104D) 105

The correct answer is B)The formula for the exponential smoothing is:old forecast + alpha(actual demand - old forecast) = new forecastFeb fcst= 100 + .3(110 - 100) = 103Mar fcst= 103 + .3(120 - 103) = 108.1Apr fcst= 108.1 + .3(90 - 108) = 102.7

62-4 Which of the following statements is true regarding master scheduling ?I. In make-to-stock production environments, component assembly leadtime is firmII. In make-to-order production environments, final assembly leadtime is firm III. In assemble-to-order production environments, assembly leadtime is firmIV. In make-to-stock production environments, order process and shipping leadtimes are free A) I and II B) I and III C) II and III D) III and IV

The correct answer is C)In make-to-stock environments, component assembly leadtime is slushy and order process and shipping leadtime is firm. In make-to-order and assemble-to-order, final assembly leadtime is firm.

62-5 Which of the following best defines a normal distribution?A) Data points are positively skewedB) Data points are negatively skewedC) No abnormal data existD) Data points are grouped close to the mean

The correct answer is D)Normal distribution means that most of the observations are grouped close to the mean and a deviation from the mean is as likely to be negative as positive. When graphed, the data distribution looks like a bell shaped curve.

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번호 Problem Solution63-1 The mode can be defined as the :

A) Average of a group of valuesB) Middle value of a group of valuesC) Most common or frequent value in a group of valuesD) Sum of the deviations divided by the number of values

The correct answer is C)The mode is the MOST frequent value in a group of values.

63-2 Which of the following would likely occur with a chase strategy ?I. Relatively low inventoriesII. Turbulent employment levelsIII. Overtime costs would increase in peak periodsIV. Capacity change costs would be zero A) I, II, and IVB) I, II, and III C) II, III, and IV D) I, III, and IV

The correct answer is B)With a chase strategy, inventories are kept level while the production plan varies with sales. This would cause low, stable inventories and turbulent employment levels. In addition, overtime would be required during peak periods. Capacity change costs would occur in the chase strategy.

63-3 Based on the following actual and forecasted demand, the total forecast error is : Period Actual Forecast 1 90 100 2 140 120 3 120 140 4 110 130 A) -30 B) 30C) 50 D) 60

The correct answer is A)The forecast error is calculated by subtracting the forecast demand from the actual demand.

63-4 Which measures of forecast error represent the tendency of the forecast to be either above or below the actual observation?Ⅰ. BiasⅡ. Mean absolute deviationⅢ. Standard deviationⅣ. Tracking signalsA) Ⅰ only B) Ⅰ and Ⅳ only C) Ⅰ, Ⅱ and Ⅳ only D) Ⅱ and Ⅲ only


63-5 In an assemble-to-order environment, which of the following statements is true regarding final assembly scheduling ?I. It is frequently stated in terms of customer ordersII. It is used at lower levels of the product structureIII. It is usually based on a daily or shift period of timeA) I and IIB) I and IIIC) II and IIID) I, II, and III

The correct answer is B)The master production schedule would plan the lower level components while the final assembly schedule would schedule the assembly of the product based on the customer's order. It is usually based on a daily or shift rate.

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번호 Problem Solution64-1 The production forecast :

A) Is generated based on production leadtimesB) Represents the product group forecast in two level master schedulingC) Is primarily used with master production scheduled itemsD) Forecasts the group available-to-promise multiplied by option percentages

The correct answer is D)The production forecast is not based on production leadtimes and does not represent the product group forecast. It is used with two level master scheduling and represents the available-to-promise at the group level multiplied by the option percentage.

64-2 Pegging assists the master scheduler by Ⅰ. Identifying for a given item the source requirementⅡ. Identifying where safety stock or capacity should be placedⅢ. Identifying bottlenecked work centersA) Ⅰ B) Ⅲ C) Ⅰ, Ⅱ D) Ⅱ, Ⅲ


64-3 All of the following are symptoms of Master Scheduling problems EXCEPT :A) Late deliveries to customersB) End of month crunchC) Resources which are used inconsistentlyD) Forecasts which are always biased

The correct answer is D)Symptoms of problems with the Master Schedule include late deliveries, disruptions on the plant floor, late deliveries to customers, unplanned overtime, excessive work-in-process, constant expediting, frequent schedule changes, and end of month crunch. Forecast bias is not caused by a problematic master schedule.

64-4 Outside the demand time fence, the master scheduler consumes the forecast byA) Measuring forecast errors B) Using actual orders when actual orders are less than forecastsC) Using forecasts when actual orders are less than forecastsD) Computing the available-to-promise


64-5 If the sum of the forecast errors is 100 for four periods, what should the safety stock level be for a 95% service level? (Round to nearest whole number)A) 52 B) 100C) 141D) 206

The correct answer is A)The mean absolute deviation is 25(100/4), therefore the MAD for a 95% service level is 2.06, so 25 x 2.06 = 51.5 or 52.

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번호 Problem Solution65-1 Which of the following functions should be involved with the development of the production plan ?

I. MarketingII. ManufacturingIII. FinanceA) I and IIB) I and IIIC) II and IIID) I, II, and III

The correct answer is D)The development of the production plan should be a cross functional process. Since the production plan is the main tool used to run the business, it is important that the cross functional input occurs.

65-2 The master scheduler should adjust the load profile byⅠ. Adjusting requirements to different time periodsⅡ. Shifting resources among work centersⅢ. Changing the planning and capacity time fencesⅣ. Outsourcing production or selling capacity A) Ⅰ, Ⅱ B) Ⅰ, Ⅲ C) Ⅰ, Ⅱ, Ⅲ D) Ⅰ, Ⅱ, Ⅳ


65-3 When capacity required exceeds available capacity, actions which could be taken include which of the following ?I. Complete orders soonerII. Change the scheduleIII. Acquire additional equipment A) I and IIB) I and IIIC) II and III D) I, II, and III

The correct answer is C)It is impossible to complete orders sooner without more capacity to do so. The only alternatives are to change schedules or obtain more capacity through subcontract or additional equipment.

65-4 Which of the following is the capability to identify, for a given item, the sources of its gross requirements and/or allocation ?A. Bill of material. B. Inventory turns. C. Material plan. D. Pegging.


65-5 If it is assumed that final products and lower level assemblies are made to order and to stock, which of the following FAS practices should be adopted ?A) Order promising should not be tied to the FASB) Commitment to the FAS should be made as early as possibleC) Shipping schedule should correspond to the FASD) Planning horizon of the FAS should be shorter than the master production schedule

The correct answer is D)The master schedule horizon would have to be longer than the final assembly schedule to accommodate the components and sub-assemblies which must be manufactured to support the stock products as well as the FAS products. The FAS would be committed to at the latest possible moment, so its horizon would not be long enough to accommodate the purchase and manufacture of lower level components and sub-assemblies. (Vollmann, Berry, and Whybark, Manufacturing Planning and Control Systems, Chapter 6).

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번호 Problem Solution66-1 The master scheduler should adjust load profile by :

I. Adjusting requirements to different time periodsII. Adjusting timefencesIII. Shifting resources among work centersIV. Outsourcing production A) I and IIB) I and IIIC) I, II and III D) I, III and IV

The correct answer is D)The master scheduler should adjust the load by shifting resources to work centers, moving requirements to different time periods, or outsourcing production.

66-2 In resource planning, a bill of resources is based on which of the following ?A) One unit of each productB) One unit of the typical productC) The lot size of each productD) The lot size of the typical product

The correct answer is B)The bill of resources bases the capacity measure (e.g. labor hours) on one typical unit of product. From this, the product family's projected output is multiplied by the bill of resources, to extend the resources required to "manufacture" the product family. (Vollmann, Berry, and Whybark, Manufacturing Planning and Control Systems, Chapter 4).

66-3 Which of the following are policies or guidelines established to note where restrictions or changes in opening procedures take place ?A Time fences. B. Planning periods.C. Planning horizon. D. Production downtime.


66-4 When the forecast has outliers in the data, they must be adjusted by a process called :A) Exponential smoothingB) Double smoothingC) FilteringD) Trending

The correct answer is C)Outliers are data points which randomly occur outside the normal series of data. These outliers must be adjusted or they will skew the data, making the future forecast less accurate. This process of adjusting is known as filtering.

66-5 A rush order is an order that is accepted by a supplier with which of the following ?A. Backlogs. B. Back orders. C. Less than the quoted lead time. D. Production constraints.


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번호 Problem Solution67-1 The Panel consensus method is recognized as a form of which of the following types of forecasting ?

A) QuantitativeB) QualitativeC) CausalD) Panel smoothing

The correct answer is B)The Panel consensus method uses a series of questionnaires to achieve a convergence of expert opinion. It does not calculate a forecast quantitatively.

67-2 Which of the following serves as the coordination tool between the business plan and the master schedule ?A. Capacity planning. B. Strategic planning.C. Production plan. D. Sales and operations plan.


67-3 In order to forecast cash flow in a make-to-order company, which of the following must be converted into dollars ?A) Carrying cost of finished goodsB) Critical work center costsC) Standard yield percentagesD) Final assembly schedule

The correct answer is D)The final assembly schedule is the actual build schedule in a make-to-order environment. It represents the final products which have been sold to customers. This information, converted to dollars, gives an excellent measure of future cash flow. (Vollmann, Berry, and Whybark, Manufacturing Planning and Control Systems, Chapter 6).

67-4 All of the following would be good measures of MPS achievement except :A) Customer service as measured by on time deliveryB) Dollars of output per weekC) Equivalent actual units of output versus planD) Percent fill rate from inventory

The correct answer is B)Dollars of output weekly is generally a poor measure of schedule performance especially in plants where a variety of products are produced which have different values. The schedule would be better with a majority of higher priced products. It is preferable to measure the output in equivalent units which manufacturing can relate to in judging their performance.

67-5 Market share, customer share, and customer acquisition are ways of measuring which of the following ?A. Efficiency. B. Utilization.C. Sales. D. Quality.


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번호 Problem Solution68-1 In a DRP environment, demand from a branch warehouse would result in which of the following at the central supply warehouse ?

A) Gross requirementB) Planned order releaseC) Scheduled receiptD) Pick release

The correct answer is A)The planned order release creating demand from a branch warehouse would become a gross requirement at the central warehouse offset for transport leadtime.

68-2 At times, data used to forecast will be of poor quality. Which of the following would be the correct action for the stated data quality problem ?I. Filter and adjust for abnormal demandII. Accept data omissions and plan around themIII. Accept normal variations in the dataIV. Substitute for data omissions A) I, II, and III B) I, III, and IVC) II, III, and IVD) I, II, and IV

The correct answer is B)Data omissions should never be accepted. The original data should be obtained or a substitute should be entered.

68-3 You look at a company's production plan and notice that the production each month is the same and the inventory is fluctuating. This is called a : A) Chase strategyB) Inventory strategyC) Capacity strategyD) Level strategy

The correct answer is D)A level strategy allows the fluctuation in demand to be absorbed in the inventory. Production is maintained at a flat or level rate each month.

68-4 The relationship between resource requirements planning and rough cut capacity planning is similar to the relationship between which of the following ?A) Production planning to master schedulingB) Production planning and MRPC) Master production scheduling and MRPD) MRP to input/output control

The correct answer is A)Resource requirements planning is a high level check on resources. This would be similar to the production plan. In fact, resource requirements planning is done to validate the production plan. Rough cut capacity plannning checks critical work centers to validate the master production schedule. (Fogarty, Blackstone and Hoffmann, Production and Inventory Management, Chapter 1).

68-5 The customer service measure, on time delivery, would be used in a company to : A) Determine the forecast errorB) Evaluate the performance of suppliersC) Select the least costly transportation modeD) Evaluate manufacturing performance

The correct answer is D)The ability of manufacturing to deliver to customers on time is a key measurement in most companies. While the measure cannot be used alone as a measure of manufacturing performance, it is a key measure to ensure customers are satisfied. The measure clearly would not be used to determine forecast error, evaluate suppliers (although as a supplier measure, on time delivery would be a measure) or select the least costly mode of transportation.

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번호 Problem Solution69-1 Outside the demand timefence, the master scheduler consumes the forecast by :

A) Multiplying the forecast errors by the actual ordersB) Using actual orders when actual orders are less than forecastC) Using forecast when actual orders are less than forecastD) By computing the available to promise

The correct answer is C)Beyond the demand timefence, forecasts are consumed by using the actual orders only if they exceed the forecast requirements.

69-2 Once a company has agreed to the production plan, it is manufacturing's responsibility to :A) Create the capacity planB) Change the master schedule to meet demandC) Meet the planD) Beat the plan

The correct answer is C)Once the production plan has been agreed to by the Manufacturing, Marketing, and Finance areas, then it is Manufacturing's job to "hit the plan." A production plan provides the necessary guidance to all departments. This prevents the plan from becoming a wish list. For example, if Marketing would like additional production to support a promotion, the production plan would cause a discussion regarding tradeoffs; that is, what will not be produced if the increase in production forces required capacity to exceed available capacity.

69-3 Which of the following types of demand would require a forecasting system ? I. Independent demandII. Service part demandIII. Dependent demand A) I and IIB) I and III C) II and IIID) I, II, and III

The correct answer is A)Independent demand and service part demand would need to be forecast. Dependent demand would be calculated by MRP.

69-4 Which of the following will most impact the Master Production Schedule if inaccurate ?A) Bill of material structuresB) Lead times of raw materialsC) Operation sequencingD) Inventory balances

The correct answer is D)The inventory balances of the MPS items, if not accurate, will cause the MPS to be overstated or understated depending on the error.

69-5 In an assemble-to-order company with many final configurations, few subassemblies, and many components, good master scheduling practices would include :A) Establishing the master schedule at the final configurationB) Setting the MPS at the subassembly levelC) Setting the final assembly schedule from the production planD) Setting the MPS at the component level

The correct answer is B)An assemble to order company will MPS at the subassembly level to start the production process, but will not make the final product until a customer order arrives. By master production scheduling at the assembly level, it allows the components to be ordered to ensure quick response to the customer.(Vollmann, Berry, and Whybark, Manufacturing Planning and Control Systems, Chapter 6).

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번호 Problem Solution70-1 In order to project future cash flows in a make-to-order company, which of the following must be converted to dollars ?

A) Planned component purchase ordersB) Carrying cost of raw materialsC) Carrying cost of finished goodsD) Costed work center standards

The correct answer is A)In order to project future cash flow in a make-to-order company, you must be able to convert the planned component purchase orders to the dollars of outflow to purchase the components. (Vollmann, Berry, and Whybark, Manufacturing Planning and Control Systems, Chapter 6).

70-2 In deciding which forecasting technique to use, a company's management must take many factors into account. Which of the following must be considered ?I. The cost versus the value of the forecastII. The order promising policyIII. The degree of accuracy necessary A) I and II B) I and III C) II and III D) I, II, and III

The correct answer is B)The cost of producing the forecast versus the value to be received must always be considered. If a high level of accuracy is required, this will help determine the technique to use. Order promising policy has no bearing on the method of forecasting.

70-3 In order to be useful in master scheduling, a forecast should be expressed in :A) Dollars of shipmentsB) Units of shipmentsC) Capacity hoursD) Labor hours

The correct answer is B)For the forecast to be useful, it must be expressed in items, quantities, and dates. Dollars are not useful in master scheduling and would have to be converted to units to be useful.

70-4 The delivery cycle can be best defined as :A) The time elapsed between receipt of the order and productionB) Time elapsed between product shipment and customers receiptC) The time elapsed between the receipt of the customer order and the shipment of the productD) None of the above

The correct answer is C)Delivery cycle time is the actual time from receipt of the customer order to the time of product shipment.

70-5 A company uses a random location storage system in its warehouses. While the inventory balances are accurate, it is plagued by picking problems. Which of the following should be checked ?I. Personnel could need retrainingII. Locations should be cycle counted to verify correct locations on the systemIII. Purchase orders may be late A) I and II B) I and III C) II and IIID) I, II, and III

The correct answer is A)Whether purchase orders are arriving late reallyhas no bearing on a locator system. Until stock is placed in a location, the system does not know it exists. A review of training would be warranted as new people may not have been trained properly to pick. Also, locations in a warehouse must be cycle counted similar to inventory records to validate procedures.

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