Master Scheduling (MPR)

The MPS in a make to order company has a short promise lead time and long manufacturing lead times. Which of the following would be true of such a system?

• An MPS derived from a forecast on the long term horizon

• A mix of actual demand and forecast would generate requirements in the mid-term horizon

• Actual customer demand would provide the requirements in the short-term

• All of the choices are correct

Answer explanation

Because customer orders are not far enough into the future to plan capacity needs, some forecast of demand would be required.

Which of the following is not a change that can be made to the Master Schedule for the time horizon beyond the cumulative lead time?

• All changes caused by poor quality

• Any change caused by poor inventory accuracy

• Any change having a major impact on capacity

• All changes caused by bill of material changes

Answer explanation

The only problem to the MPS beyond cumulative lead time of a product is an impact on capacity. The master scheduler would require notification if large orders were booked which caused any major capacity constraints.

In a make-to-stock company, which of the following situations would not occur?

• Customer orders pulled from finished goods inventory

• Products exist in inventory, waiting for purchase

• An MPS stated in end items

• Products made to customer order

Answer explanation

Products are pulled from finished goods inventory in a make-to-stock company instead of being produced to customer order. As such, end item is the statement format for the MPS.

Which of the following is a negative aspect of the chase strategy in production planning?

• Capacity utilization will fluctuate

• Production levels will fluctuate with sales

• Resource usage will remain stable

• Inventory will remain stable

Answer explanation

When the production levels fluctuate, labor, capacity usage, equipment usage, and other resource usage will fluctuate as well. Positively however, inventory will remain stable.

The Final Assembly Schedule is best defined as which of the following?

• It is the same as the Master Production Schedule

• It is an anticipated build schedule

• It is the same as available to promise

• It is the actual build schedule

Answer explanation

Subject to change, the MPS is the anticipated build schedule while the FAS is the actual build schedule and is committed to as late as possible.

Which of the following is not an effect of the level strategy of production planning?

• Production occurs at exactly the same rate as the sales forecast for each period

• Inventory will generally build

• The capacity usage remains stable

• The labor force remains stable

Answer explanation

When the level strategy is applied, the production rate is stable and fluctuations in demand are absorbed by inventory.

Which of the following effects are results of a company having an overloaded master schedule?

• Two effects will occur, delivery performance erosion and the decrease of cost per unit due to high utilization

• Two effects will occur, delivery performance will erode as well as work-in-process growing

• A single effect of delivery performance eroding will occur

• A single effect of cost per unit decreasing due to high utilization will occur

Answer explanation

While the cost per unit produced may decrease in a cost accounting sense, the actual costs will reduce the profit due to inefficiency of work-in- process, longer lead times, and possibly lost business.

In determining the detail required for capacity planning, which considerations should be reviewed by management?

• Quality of the information versus the cost of acquiring it

• Training period for new employees

• Length of time to change capacity

• All of these choices are viable considerations

Answer explanation

When determining whether to use a rough-cut capacity plan or a detailed capacity plan, all of these choices are viable considerations.

What is a bill of resources?

• Based on released orders, a display of past capacity requirements resources needed to manufacture one unit

• A list of the cumulative standard hours per unit

• A chart of the final assembly completions and planned order completions by date

• A listing of required capacity and key resources needed to manufacture one unit

Answer explanation

Displaying required capacity and key resources needed to manufacture, a bill of resources deals with one unit of a product or family.

A just-in-time environment requires a Master Production Schedule stated in which way?

• End items, units per month

• End items; units bi-weekly

• End items; units per week

• End items; units per day

Answer explanation

A just-in-time environment needs a MPS stated in a rate as units per day.