Question 1. Available to promise inventory is always zero for the first week in the master schedule record.
True
False
Question 2. The reorder point increases as the service level falls.
True
False
Question 3. Planning numbers are somewhat aggregated (month by month) in:
strategic planning
operational planning.
tactical planning.
detailed planning and control.
Question 4. Given the forecast and booked orders shown in the table, and a beginning inventory of 0, what is the available to promise inventory for the period 3? There are no LOT quantity constraints.
|
Period
|
1
|
2
|
3
|
4
|
|
Forecasted Demand
|
100
|
100
|
90
|
90
|
|
Booked Orders
|
103
|
87
|
54
|
21
|
|
Projected ending inventory
|
|
|
|
|
|
Master production schedule
|
|
|
|
|
|
Available to Promise
|
|
|
|
|
0
12
24
36
Question 5. A company that orders at their economic order quantity has an annual ordering cost that is half of their total cost.
True
False
Question 6. Throughout every MRP record, ending inventory is equal to the ending inventory from the previous period, plus the master production schedule quantity, minus the orders booked for that period.
True
False
Question 7. Within the context of the planning cycle, the planning that takes place at the highest levels of the firm is called:
strategic planning.
operational planning.
tactical planning.
detailed planning and control.
Question 8. If demand increases by 100%, the average inventory held in a system governed by the EOQ model:
is increased 100%.
is decreased by 100%.
is decreased by 50%.
is increased by 40%.
Question 9. Which of the following statements regarding master production scheduling calculations is best?
Forecasted demand always exceeds booked orders.
Booked orders always exceed forecasted demand.
If booked orders are greater than forecasted orders, there must be a master production schedule for that period.
If ending inventory is greater than or equal to zero, there is no master production schedule quantity for that period.
Question 10. The beef jerky driver shows up every Monday to take orders from his convenience store customers. One fine Monday morning he stops in the Quik-E Mart and notes that there are only three sticks on the shelves. Consulting his route sheet, he discovers that the restock level is 40. The order quantity is therefore:
3 sticks.
37 sticks.
40 sticks.
Cannot be determined with the information given