Material Mangement

Before making plans, an estimate must be made of what conditions will exist over some future period.

• Forecast

• MRP

• MPS

• SnOP

Factor that may influence the forecast

• Competitive factors

• Market trends such as changing demand

• Economic conditions

• all is true

Forecasts are more accurate for families or groups (end products)

• False

• True

Forecasts are usually wrong

• False

• True

Bill of Material (BOM) is an input for ...

• Forecast

• MPS

• MRP

• SnOP

The role of MPS in MRP

• To determine what to order.

• Represents the volume of production that must be manufactured, not the quantity that can be produced.

• To determine how much to order.

• Must be able to reorganize priorities to keep plans current

Capacity available is the capacity of a system or resource needed to produce a desired output in a given time period.

• True

• False

Capacity available is the capacity of a system or resource to produce a quantity of output in a given time period.

• True

• False

Production plan needs long-range capacity

• True

• False

MPS is a rough-cut capacity plan

• True

• False