It is responsible for analyzing the marketplace and deciding the firm’s response: the markets to be served, the products supplied, desired levels of customer service, pricing, promotion strategies, and so on.

It must satisfy the demands of the marketplace. It does so by using plants, machinery, equipment, labor, and materials as efficiently as possible.

It is responsible for the research, development, and design of new products or modifications to existing ones.

This involves determining the resources needed to meet market demand, comparing the results to the resources available, and devising a plan to balance requirements and availability.

It is a plan for the production of individual end items. It breaks down the production plan to show, for each period, the quantity of each end item to be made.

It is a plan for the production and purchase of the components used in making the items in the master production schedule.

It is responsible for planning and controlling the flow of work through the factory.

It is the basic process of calculating the capacity needed to manufacture the priority plan and of finding methods to make that capacity available.

It is a cross-functional business plan that involves sales and marketing, product development, operations, and senior management.

In this system, the whole enterprise is taken into account. It is defined as a Framework for organizing, defining, and standardizing the business processes necessary to effectively plan and control an organization.

It is the ability to produce goods and services. It means having the resources available to satisfy demand.

It means producing the amounts demanded at any given time. Inventory levels remain stable while production varies to meet demand.

It is continually producing an amount equal to the average demand.

It means always producing at the level of minimum demand and meeting any additional demand.

The objective of developing a production plan is to maximize the costs of carrying inventory, changing production levels, and stocking-out.

Examples of this kind of manufacture are custom-tailored clothing, machinery, or any product made to customer specification.

Once the preliminary production plan is established, it must be compared to the existing resources of the company. This step is called ______.

In this environment, the product is designed before manufacturing based on the customer’s very special needs.

Televisions and other consumer products are examples of this production.

Manufacturing firms make to stock when:

1. There are more product options.

2. Product has a long shelf life.

3. Demand is fairly constant and predictable.

4. Resources are limited.

A company wants to produce 10,000 units of an item over the next three months at a level rate. The first month has 20 working days; the second, 21 working days; and the third, 12 working days because of an annual shutdown. On average, how much should the company produce each day to level production?

Why do you think Master Production Schedule (MPS) is a vital link in the production planning system?

1. It forms the link between production planning and what manufacturing will actually build.

2. It forms the basis for calculating the capacity and resources needed.

3. It keeps priorities valid.

4. It supports the needs of the Inventory dept. for their material requests.

The information needed to develop a Master Production Schedule is provided by:

a. The production plan.

b. Cost of materials purchased.

c. Actual orders received from customers and for stock replenishment.

d. Inventory levels for individual end items.

e. Forecasts for individual end items.

A company wants to minimize the cost of manufacture and also be flexible enough to adapt to changing needs. Changes to production schedules can result in which of the following:

1. Increased deliveries of finished goods.

2. Decreased customer service.

3. Loss of credibility.

4. Cost increases due to rerouting, and rescheduling

Changes to the master production schedule will occur when:

a. Customers cancel or change orders.

b. Machines break down or new machines are added, changing capacity.

c. Marketing department encountered problems.

d. Suppliers have problems and miss delivery dates.

e. Processes create more finished goods than expected.