Q&A Hero

Q: What is the explosion of the MPS and what are the outputs?

Q: What are the key inputs to an MRP system?

Q: ________ ties the basic MRP system to the company's financial system.

Q: ________ is a technique used for projecting time-phased capacity requirements for workstations.

Q: The lot-for-lot (L4L) rule minimizes inventory investment but it also maximizes the number of ________.

Q: A(n) ________ is inventory carried into a week but too small to prevent a shortage.

Q: ________ is a lot-sizing rule under which the lot size ordered covers the gross requirements of a single week.

Q: Waiting time and process time are two components of ________.

Q: ________ are orders that have been placed but not yet completed.

Q: ________ are the total demand derived from all parent production plans.

Q: One thing that an MRP II system has that an MRP system does not is ________.

Q: A(n) ________ is a record that divides the future into time periods called time buckets.

Q: The sums of the quantities in the master production schedule must equal those in the ________.

Q: ________ is the degree to which a component has more than one immediate parent.

Q: A(n) ________ is an intermediate item that is assembled from one or more components.

Q: Among the four core processes of an organization that link activities within and across firms in a supply chain, the ________ interacts with all of them either through its inputs or outputs.

Q: The L4L rule is a special case of the ________.

Q: A(n ) ________ item has one or more parents but no components.

Q: The ________ is a record of all components of an item, the parent-component relationships, and usage quantities derived from engineering and process design.

Q: MRP ________ is a process that converts the requirements of various final products into a material requirements plan that specifies the replenishment schedule of all the subassemblies, components, and raw materials needed by the final products.

Q: Which best defines the gross requirements for a component item? A) the forecasted customer demand for the component B) the amount of safety stock needed to buffer against uncertainties C) the sum of gross requirements for all parents of the component D) the total demand for the component derived from all immediate parents

Q: Which of the following is not one of the uses of MRP in promoting a healthy environment? A) An MRP system can track waste in a bill of materials as a component of an item. B) When the master production schedule is developed for a product, reports can be generated that project the quantity of waste. C) When the master production schedule is developed for a product, reports can be generated that project the timing of waste. D) The MRP system can be used to communicate directly with the International Organization for Standardization to file ISO 9000 documentation.

Q: A technique used for projecting time-phased capacity requirements for workstations is called: A) capacity requirements planning. B) time-adjusted output control. C) input-output control. D) work center planning.

Q: Scenario 11.3 Use this bill of materials and inventory records to answer the questions. Item Amount Item Amount D 2 F 11 P 12 N 12 E 8 Use Scenario 11.3 to answer this question. How many additional units of E are required to produce 33 end items? A) 1,112 B) 2,046 C) 928 D) 1,180

Q: A computer-generated memo used by inventory planners to make decisions about releasing new orders and adjusting due dates of scheduled receipts is an: A) enterprise report. B) infinite capacity. C) action notice. D) input-output report.

Q: Which of the following is not used to derive an item's gross requirements? A) the MPS for immediate parents that are end items B) the planned order releases for immediate parents below the MPS level C) the MPS components that are not purchased items D) any other requirements not originating in the MPS, such as the demand for replacement parts

Q: Scenario 11.2 Item Amount Item Amount Item Amount O 17 F 15 D 30 P 25 U 11 E 93 C 13 N 34 Inventory amounts indicated in the table are available to produce the end item indicated in this bill of materials. Use Scenario 11.2 to answer this question. How many additional units of F are needed to produce twelve end items? A) 174 B) 192 C) 182 D) 160

Q: Use the information in Scenario 11.1. If item C has a manufacturing lead time of two weeks, and a planned receipt of 65 units is needed in week 4, which of the following statements is true? A) The planned order release in week 2 for item C is 130 units. B) The gross requirements for item B in week 4 is 65 units. C) The gross requirements for item B in week 2 is 130 units. D) The gross requirements for item B in week 2 is 65 units.

Q: Use the information in Scenario 11.1. Which of the following sequences is an acceptable way to process the inventory records for components A, B, C, and D? A) A, B, C, D B) D, A, B, C C) B, A, D, C D) C, B, D, A

Q: Management wishes to use an FOQ lot-sizing rule for an item based on the economic order quantity. If the annual demand is 1,200 units, the holding cost is $10 per unit per year, and the setup cost is $50 per lot, which one of the following fixed-order quantities is most appropriate? A) 90 units B) 110 units C) 130 units D) 150 units

Q: Job Arrival Date Process Time Due Date Hepner 0 17 12 Cheng 2 15 10 Allison 1 2 14 Miller 3 8 13 Dickson 4 13 17 Noel 5 12 9 Bahouth 6 16 8 Use the information in the preceding table and sequence the seven jobs using first come, first served (FCFS) and earliest due date (EDD). Calculate the average flow time and average past due. It is now time eight.

Q: Job Days Since Arrival Process Time Due Date Hepner 0 7 1 Cheng 4 2 3 Allison 1 8 10 Miller 2 8 10 Dickson 4 12 11 Noel 5 16 2 Bahouth 4 16 3 Use the information in the preceding table and sequence the seven jobs using first come, first served (FCFS) and earliest due date (EDD). Calculate the average flow time and average past due. It is now time 5.

Q: What does an advanced planning system do and what are the functions of the major components?

Q: Imagine you are the owner/operator of a custom printing business. One morning you arrive at work and discover you have five customer orders that have different requirements and different total processing times. You ponder the sequence for a while and then decide to run the printing jobs in first-come, first-served order. What are some measures you could apply to your performance to measure whether you have done a good job? How is each measure calculated?

Q: What is a Gantt chart? What does Gantt stand for?

Q: How do Gantt charts assist schedulers in arriving at feasible schedules?

Q: A(n) ________ seeks to optimize resources across the supply chain and align daily operations with strategic goals.

Q: A hospital must have a skeleton crew on hand during the undesirable work period from midnight to 8 o'clock. One way to make sure that all employees have the opportunity to work this shift is by adopting a(n) ________.

Q: A(n) ________ graphically displays the load on a productive resource of interest, i.e., when it is busy and when it is idle.

Q: ________ is the amount of time by which a job missed its due date.

Q: ________ is the amount of time a job spends in the service or manufacturing system.

Q: Table 10.10 A work center has the following six jobs waiting to be processed (all times are shown in days): Job Time Since Arrival Process Time Due Date A 10 8 24 B 7 2 11 C 5 6 31 D 3 12 25 E 1 7 8 Use the information in Table 10.10. What is the average flow time (in days) using the EDD rule? A) fewer than or equal to 10 days B) greater than 10 days but fewer than or equal to 20 days C) greater than 20 days but fewer than or equal to 30 days D) greater than 30 days

Q: Table 10.8 Suppose that the following eight jobs must be scheduled through a car repair facility (repair times are shown in days): Car Repair Time Due Date A 3 11 B 10 9 C 7 10 D 12 8 E 4 17 F 15 35 G 8 13 H 9 23 Use the information in Table 10.8 to answer this question. Which job retains the same position in both an EDD and an SPT sequence? A) A B) B C) C D) G

Q: Table 10.7 The framing department has six jobs waiting to be processed. It is now time zero and all jobs are ready to begin. Each has only one operation remaining. All jobs arrived at the same time, and FCFS begins with job A, then B, etc. Job Processing Time Due Date A 5 12 B 7 18 C 8 6 D 3 10 E 9 22 F 12 17 Using the information in Table 10.7 and the earliest due date (EDD) rule, what is the average days past due? A) fewer than or equal to 5 days B) greater than 5 days but fewer than or equal to 9 days C) greater than 9 days but fewer than or equal to 13 days D) greater than 13 days

Q: Table 10.6 Bluebird University provides tutoring services for undergraduate students seven days a week. The daily requirements for tutors are: Day M T W TH F S SU Requirement 5 4 7 3 6 3 3 Each tutor works five days a week and must have two consecutive days off, according to the contract. Use the information in Table 10.6. How many days will have slack capacity? A) fewer than three B) three C) four D) greater than four

Q: Table 10.5 The daily requirements for highway patrol officers at Park City over the week are: Day M T W TH F S SU Requirement 11 9 6 7 5 3 2 Each officer works five days a week and must have two consecutive days off. Use the information in Table 10.5. How much total slack is generated from the schedule? A) fewer than 9 days B) 10 days C) 11 days D) greater than 11 days

Q: Table 10.4 Gable Express Co. provides delivery service seven days a week. The daily requirements (in workers) are estimated as follows: Day M T W TH F S SU Requirement 8 4 5 3 7 3 3 Each worker is required to work five days per week, and each must have two consecutive days off. Use the information in Table 10.4. How much total slack will be generated from the schedule? A) fewer than six days B) six days C) seven days D) greater than seven days

Q: The purpose of a rotating schedule is to: A) assign each employee to work the same days and hours each week. B) assign senior employees more opportunity to have weekends off. C) deal with certain undesirable aspects of several individual workforce schedules. D) make sure the legal constraints imposed on workforce schedules are satisfied.

Q: Job flow time is defined as the: A) time of completion of a job plus the time it was available in a work station. B) processing time to complete a particular job. C) time of completion of the last job of a group minus the starting time of the first job. D) amount of time by which a group of jobs missed their due dates.

Q: Gantt charts can be used to: A) monitor the progress of jobs but cannot be used to sequence work on each machine. B) sequence work on each machine but cannot be used to monitor the progress of each job. C) monitor the progress of jobs and sequence work on each machine. D) monitor the average number of defective parts generated by a machine on each job.

Q: The workforce schedule: A) determines when employees work. B) determines how many workers are needed over an extended horizon. C) determines the daily worker requirements. D) specifies the specific task each worker is to do and when.

Q: Advanced planning and scheduling systems (APS) seek to optimize resources across the supply chain and align daily operations with strategic goals.

Q: Flow time is only the time a job spends being processed, and excludes any time waiting to be processed, equipment set up time and time spent moving between operations.

Q: Earliest due date (EDD) is a priority-sequencing rule that states the job requiring the shortest processing time is the next job to be processed.

Q: Jobs processed using the first-come-first-served priority rule still permits them to be expedited.

Q: A fixed schedule gives each employee the next employee's schedule the following week.

Q: A rotating schedule calls for each employee to work the same days and hours each week.

Q: The Gantt chart can be used as a tool for sequencing work on machines and monitoring its progress.

Q: Scheduling involves generating a work schedule for employees or sequences of jobs or customers at workstations.

Q: The demand forecast for the next four periods is 90, 100, 120, and 140 units respectively. The plant has a regular capacity of 100 units per period, an overtime capacity of 10 units per period, and a subcontractor capacity of 5 units per period. There is a $5 per unit charge for regular production, an $8 per unit charge for overtime production, and a $9 per unit charge for subcontracting. The holding cost is $3 per unit per period, no shortages are allowed and the company has 5 units in inventory at the start of the planning period. a. How many units should be produced using overtime? b. How many units should be produced using subcontracting? c. What is the total inventory holding cost? d. What is the lowest total plan cost? e. Fill out this table showing the number of units made by period using each type of production and the resulting inventory at the end of each period. Period 1 Period 2 Period 3 Period 4 Total Cost Forecast 90 100 120 140 Regular Overtime Subcontracting Ending Inventory

Q: A manufacturing firm uses a level utilization production-planning horizon of three months. They have developed a forecast for the coming three months that appears in the table. They can add no more than 10% of their production capacity as overtime and can order no more than 10% of a month's regular capacity via subcontractors. The company has a zero backorder policy but has space for a maximum of 150 items in their finished-goods inventory. If all extra costs are shown in the table, what is the minimum cost sales and operations plan? January February March Forecasted Demand 1,100 950 1,350 Regular Capacity 1,000 1,000 1,000 Workforce level Overtime ($40/unit) Subcontracting ($100/unit) Inventory holding ($10/unit) Total Cost

Q: Table 10.3 A large distribution center uses some part-time employees in its workforce. Each part-time employee works a maximum of 80 hours per month. The workforce requirements (expressed as the number of part-time employees working the maximum regular time of 80 hours per month) are given in the following table for the next six periods. The relevant costs are: Wages = $350/month/worker Hiring cost = $100/worker Layoff cost = $50/worker Overtime cost = 150% of regular-time rate The current workforce level is 60, and overtime cannot exceed 25% of regular-time capacity. Use the spreadsheet approach to answer the following questions. Use the information in Table 10.3. Use a chase strategy with hiring and layoffs but no overtime. How many workers will be hired in month 3? A) fewer than or equal to zero B) greater than zero but fewer than or equal to 10 C) greater than 10 but fewer than or equal to 20 D) greater than 20

Q: Table 10.2 Archie Toys is a retailer operating out of Wichita, Kansas. It experiences a seasonal demand pattern for its services. Labor requirements over a typical six-month period follow. The workforce requirements (expressed as number of employees) are given in the following table for the next six periods. Costs associated with operations are as follows: Wages = $800 per worker per month Hiring cost = $300 per worker Layoff cost = $200 per worker The current workforce level is nine workers, and the undertime is paid for. Use the spreadsheet approach and the preceding data to answer the following questions. Use the information in Table 10.2. Suppose that overtime is allowed up to 25% of the regular-time capacity, and that overtime wages are 150% of the regular-time rate. The total cost of the level strategy with overtime and undertime, which also minimizes undertime, is: A) less than or equal to $60,000. B) greater than $60,000 but less than or equal to $65,000. C) greater than $65,000 but less than or equal to $70,000. D) greater than $70,000.

Q: Table 10.1 Bart Incorporated manufactures rotary air fans and uses a production-planning horizon of one-half year. It allows for regular time, part time, overtime, and subcontracting production to meet the demand but no more than 12 units may be made by each of these methods. Both anticipation inventory and backorders are allowed. The beginning (or current) inventory is 20 units. Their first attempt at a sales and operations plan has resulted in the following. 1 2 3 4 5 6 Total Inputs Forecasted demand 100 125 120 80 75 70 570 Workforce Level 80 80 80 80 80 80 480 Part Time 12 12 12 12 12 12 72 Overtime 0 0 0 0 0 0 0 Subcontract 0 0 0 0 0 0 0 Derived Beginning inventory 20 12 0 0 0 0 Ending inventory 12 0 0 0 0 2 Backlog 0 21 49 37 20 0 127 Calculated Workforce level $5 400 400 400 400 400 400 $2,400 Part Time $6 72 72 72 72 72 72 $432 Overtime $7.5 0 0 0 0 0 0 $0 Subcontract $8 0 0 0 0 0 0 $0 Inventory holding $5 80 30 0 0 0 5 $115 Back orders $20 0 420 980 740 400 0 $2,540 Total $552 $922 $1,452 $1,212 $872 $477 $5,487 Use the information in Table 10.1. What would be the total plan cost if no more than five units each could be made each month by part-time, overtime, and subcontracted workers? A) $4,920 B) $4,822 C) $4,775 D) $4,550

Q: The spreadsheet approach to sales and operations planning for a services provider includes inventory costs as one factor to be considered.

Q: What is a mixed-strategy approach to sales and operations planning?

Q: What is the difference between a chase strategy and a level strategy in sales and operations planning?

Q: Choose any service and provide examples of how they can use a chase strategy for sales and operations planning.

Q: How is the sales and operations planning process similar to the forecasting process?

Q: A(n) ________ is a strategy that considers and implements a fuller range of supply options than a pure chase or level strategy.

Q: The level strategy maintains a constant ________ level or ________ level during the planning horizon.

Q: A(n) ________ strategy involves keeping the workforce constant and varying utilization.

Q: A(n) ________ strategy involves hiring and laying off employees to match the demand forecast over the planning horizon.

Q: A(n) ________ is an order that cannot be satisfied when demanded and causes the customer to go elsewhere.

Q: ________ is the accumulation of customer orders that have been promised for delivery at some future date.

Q: Pilferage, obsolescence, and insurance costs are all elements of this cost category. A) staffing B) backorder and stockout C) production D) inventory holding

Q: Which of the following is the best example of a physical constraint on the sales and operations plan? A) inventory storage space B) level of backorders C) use of overtime D) safety stock levels

Q: Backorders and stockouts are most likely to cause expenses for: A) advertising costs. B) lost productivity. C) cost of capital. D) lost sales.

Q: Which of these sales and operations planning levers is associated with interviews, training, and severance pay? A) backorders and stockouts B) hiring and layoffs C) use of overtime D) holding inventory

Q: Which one of the following statements about costs of sales and operations plans is best? A) Overtime wages are typically 50% of regular time wages, exclusive of fringe benefits. B) The cost of capital is not generally included in the inventory-holding cost. C) Fringe benefits, which are a part of regular-time costs, do not typically include health insurance and paid vacations. D) Hiring costs include the costs of advertising jobs, interviews, training programs for new employees, and initial paperwork.