Transformation of Demand into Supply (BSCM)

Lot-for-lot ordering rules based on net requirements will:

• Order based on supplier preferences

• Order in fixed intervals

• Order only the amount needed

• Order net requirements plus safety stock

Answer explanation

Lot-for-lot ordering rules will order just the amount needed based on the net requirements.

Quick setup and changeover enhances customer satisfaction levels. All of the following are competitive advantages created by quick changeovers EXCEPT:

• Reduced work in process

• Improved quality

• Improved maintenance

• Reduced span times

Answer explanation

While improved maintenance is usually necessary for improved changeover, it is not created by quick setup. Improved flow, reduced lead and span times, and improved quality are all benefits of quick changeover and setup.

Which of the following is true in regards to priority?

• It involves maintaining the correct due dates on orders

• It involves the accuracy of the forecast to meet demand

• It refers to capacity requirements and production schedules

• It refers to vendor due dates of incoming materials

Answer explanation

Priority refers to the system’s ability to maintain the true due dates for orders. Planning systems constantly evaluate the true due dates for released orders and will expedite or reschedule out the orders.

Which of the following best describes the concept of capacity?

• The amount of standard hours earned

• The volume of inventory created

• The rate of doing work

• The quantity of work performed

Answer explanation

Capacity is concerned with the rate of doing work. The APICS dictionary defines capacity as the capability of a worker, machine, work center, plan, or organization to produce output per period of time.

A message to the planner regarding a problem that needs attention is known as a(n):

• Error indication

• Exception message

• Acceptance notification

• Order exception

Answer explanation

An exception message provides the planner with a notice that a problem needs attention. These exceptions could be late orders, orders not needed, order rescheduling, and several other factors.

Tags

CCSS.RI.2.5

CCSS.RI.3.5

CCSS.RI.4.5

CCSS.RI.5.3

CCSS.RI.5.5

A machining operation utilizes five machines working 14 hours a day, five days per week. What is the weekly available time?

• 350

• 400

• 300

• 250

Answer explanation

Available time is calculated by multiplying the number of machines (5) by the number of hours they are available each day (14) by the number of days each week (5). The result would be 14 x 5 x 5, or 350.

Tags

CCSS.8.EE.C.7B

A work cell has 275 hours per week of available time with a utilization rate of 80%. How many hours are actually being spent producing parts?

• 120

• 200

• 220

• 55

Answer explanation

Utilization rate measures the percentage of time the machines are actually producing parts. The hours actually worked can be calculated by multiplying the utilization percentage (80%) by the number of hours available (275), which equals 220 hours.

A work cell has 275 available hours, a utilizationrate of 80% and an efficiency rate of 90%. What is the rated capacity for this cell?

• 198

• 212

• 164

• 85

Answer explanation

Rated capacity is calculated by multiplying available hours (275) by the utilization rate (80%) by the efficiency rating of the work cell (90%). 275 x 80% x 90% = 198

Which characteristic best describes the frozen zone of a time fence?

• Costs for changing the production schedule are minimal

• Any change can be made to future orders

• Capacity and materials have been committed to specific orders

• Available capacity drives the ability to change the schedule

Answer explanation

The costs of making changes in the frozen zone are high and usually require senior-level authorization. The frozen time fence should have the least changes made because capacity and materials have already been committed to specific orders.

Which characteristic best describes the liquid zone of a time fence?

• Available capacity drives the ability to change the schedule

• Costly changes must be approved by upper management

• Capacity and materials have been committed to specific orders

• Any change can be made to the master production schedule within the production plan

Answer explanation

The liquid zone is characterized by mostly forecast orders and changes can readily be made without an impact to the bottom line. The master scheduler can make changes in this zone with little to no concern for schedule impacts.