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Question 1.With the product structure tree shown and a beginning inventory of zero for all components and finished items, how many assembly As are needed to produce 25 product Xs?

  •   125
  •   250
  •   325
  •   400

Question 2.Which of these conditions is NOT necessary for the economic order quantity model to be valid?

  •   The item has a constant demand.
  •   The item has a constant lead time.
  •   The item has a constant price.
  •   The item has a constant safety stock.

Question 3.The inventory that companies hold to protect themselves against uncertainties in either demand or replenishment time is called:

  •   safety stock.
  •   anticipation inventory.
  •   hedge inventory.
  •   smoothing inventory.

Question 4.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 5.Sales and operations planning indicates how the organization will use its tactical capacity resources to meet expected customer demand.

  •   True
  • False

Question 6.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                                        12 3 4

Forecasted Demand             100  1009090

Booked Orders                     103875421

Projected ending inventory

Master production schedule

Available to Promise

  •   0
  •   12
  •   24
  •   36

Question 7.Detailed planning and control offers the greatest ability to adjust capacity.

  •   True
  • False

Question 8.If a manufacturer had no inventory of any kind but had orders for 10 finished units of their sole product, their buyer would know what parts to order if they were supplied with a:

  •   backward schedule.
  •   bill of material.
  •   rough-cut capacity plan.
  •   planning horizon order sheet.

Question 9.Sales and operations planning must consider:

  •   customer demand.
  •   capabilities of suppliers.
  •   capabilities of logistics service providers.
  •   All of these must be considered when performing S&OP.

Question 10.Given the forecast and booked orders shown in the table, and a beginning inventory of 20, what is the available to promise inventory for the first period? There are no LOT quantity constraints.

Period                                               1  2    3       4

Forecasted Demand                     200220  240    200

Booked Orders                             190 80     30      10

Projected ending inventory

Master production schedule

Available to Promise

  •   0
  •   10
  •   20
  •   40

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