Introduction to Operations and Supply Chain Management, 4e (Bozarth/Handfield)
Chapter 12 Managing Production across the Supply Chain
Learning Objective 12-1
1) Material requirements planning is performed at greater level of detail than master scheduling.
2) Since the booked orders figure represents actual customer demand in a master schedule, that
value is always less than or equal to forecasted demand.
3) From a revenue standpoint, a producer would rather have higher forecasted demand than
booked orders.
4) A unit that has not been sold or otherwise committed to any other customer should be
considered available to promise.
5) 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.
6) Available to promise inventory is always zero for the first week in the master production
schedule.
7) The longer the production and supplier lead times, the longer the master scheduling record’s
planning horizon needs to be.
8) Which step comes first in sales and operations planning?
A) master scheduling
B) material requirements planning
C) production activity control
D) vendor order management
9) Which of the following statements regarding master production scheduling calculations is
BEST?
A) Forecasted demand always exceeds booked orders.
B) Booked orders always exceed forecasted demand.
C) If booked orders are greater than forecasted orders, there must be a master production
schedule for that period.
D) If ending inventory is greater than or equal to zero, there is no master production schedule
quantity for that period.
10) Given the forecast and booked orders shown in the table, and a beginning inventory of 25,
what is the master production schedule quantity for period 4?
Period
1
2
3
4
Forecasted Demand
70
65
60
55
Booked Orders
80
50
30
10
Projected ending inventory
Master production schedule
55
Available to Promise
0
A) 35
B) 40
C) 55
D) 70
11) 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
200
220
240
200
Booked Orders
190
80
30
10
Projected ending inventory
Master production schedule
Available to Promise
A) 0
B) 10
C) 20
D) 40
12) Given the forecast and booked orders shown in the table, and a beginning inventory of 0,
what is the available to promise inventory for 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
A) 0
B) 12
C) 24
D) 36
13) Given the forecast and booked orders shown in the table, and a beginning inventory of 75,
what is the available to promise inventory for period 4? The company operates with a lot size of
50.
Period
1
2
3
4
Forecasted Demand
500
450
400
600
Booked Orders
520
400
325
450
Projected ending inventory
Master production schedule
Available to Promise
A) 150
B) 145
C) 155
D) 140
14) Given the forecast and booked orders shown in the table, and a beginning inventory of 120,
what is the MPS for period 4? The company operates with a lot size of 144.
Period
1
2
3
4
Forecasted Demand
500
450
400
600
Booked Orders
520
400
325
450
Projected ending inventory
Master production schedule
Available to Promise
A) 432
B) 576
C) 288
D) 144
15) Given the forecast and booked orders shown in the table, and a beginning inventory of 120,
what is the ATP for period 4? The company operates with a lot size of 144.
Period
1
2
3
4
Forecasted Demand
500
450
400
600
Booked Orders
520
400
325
450
Projected ending inventory
Master production schedule
Available to Promise
A) 92
B) 108
C) 126
D) 144
16) Given the forecast and booked orders shown in the table, and a beginning inventory of 120,
what is the projected ending inventory for period 4? The company operates with a lot size of 144.
Period
1
2
3
4
Forecasted Demand
500
450
400
600
Booked Orders
520
400
325
450
Projected ending inventory
Master production schedule
Available to Promise
A) 34
B) 38
C) 46
D) 22
17) ________ translates the master schedule for final products into detailed requirements.
18) Confirmed demand for products is called ________ in master scheduling.
19) The estimated inventory level of an end item at the end of each planning period, whether the
period is a week or a month is the ________.
20) The longer the production and supplier lead times, the ________ the MRP record’s ________
should be.
21) Describe the scope, inputs, and outputs of sales and operations planning, master scheduling,
and MRP.
22) Explain all of the information that is provided by a master schedule.
23) A manufacturing company enters 2016 with a forecast and customer orders as shown in the
table. They have a beginning inventory of 25 units and a batch size of 25 units (all MPS
quantities must be in multiples of 25). Complete the rest of the master production schedule by
filling in the projected ending inventory, master production schedule quantity, and available to
promise rows.
Month
1
2
4
5
6
Forecast
140
150
190
225
275
Booked Orders
145
120
50
0
0
Projected Ending
Inventory
Master Production
Schedule
Available to Promise
Month
1
2
3
4
5
6
Forecast
140
150
170
190
225
275
Booked Orders
145
120
95
50
0
0
Projected Ending
Inventory
Master Production
Schedule
Available to Promise
5
30
80
150
225
275
24) Given the forecast and booked orders shown in the table, and a beginning inventory of 120,
complete this master production schedule. The company operates with a lot size of 144.
Period
1
2
3
4
Forecasted Demand
500
450
400
600
Booked Orders
520
400
325
450
Projected ending inventory
Master production schedule
Available to Promise
Period
1
2
3
4
Forecasted Demand
500
450
400
600
Booked Orders
520
400
325
450
Projected ending inventory
Master production schedule
432
432
432
576
Available to Promise
107
126
25) Given the forecast and booked orders shown in the table, and a beginning inventory of 12,
complete this master production schedule. The company operates with a lot size of 144.
Period
1
3
4
5
Forecasted Demand
268
480
660
840
Booked Orders
520
325
450
420
Projected ending
inventory
Master production
schedule
Available to Promise
Period
1
3
4
5
Forecasted Demand
268
480
660
840
Booked Orders
520
325
450
420
Projected ending
inventory
112
136
Master production
schedule
576
432
720
864
Available to Promise
107
270
444
Learning Objective 12-2
1) Material requirements planning is used to manage independent demand inventory.
2) MRP uses backward scheduling.
3) Component J is ordered on February 1, is received, and is ready to use on February 8. Its
planning lead time is seven days.
4) Gross requirements in an MRP record can be met by inventory from previous weeks,
scheduled receipts, or planned receipts.
5) Company B has no inventory at any level and a structure tree as shown below. They will need
145 E’s to make 12 units of end item X.
6) In a bill of material, a parent may have many children but a child may have only one parent.
7) MRP nervousness refers to the notion that a small change at the top of a bill of material can
have drastic effects on items farther down the bill of material.
8) The planning technique that uses the master production schedule to monitor key resource
requirements is:
A) rough-cut capacity planning.
B) horizon planning.
C) resource planning.
D) handfield planning.
9) 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:
A) backward schedule.
B) bill of material.
C) rough-cut capacity plan.
D) planning horizon order sheet.
10) Consider the product structure tree shown below:
With a beginning inventory of zero for all components and finished items, how many assembly
A’s are needed to produce 25 product X’s?
A) 125
B) 250
C) 325
D) 400
11) Consider the product structure tree shown below:
With a beginning inventory of zero for all components and finished items, how many assembly
E’s are needed to produce 20 product X’s?
A) 900
B) 1000
C) 1200
D) 1500
12) Consider the product structure tree shown below:
With a beginning inventory of ten for all components on level one, five for all components on
level two, and zero for all components on level three and finished items, how many assembly E’s
are needed to produce 20 product X’s?
A) 1175
B) 1500
C) 1325
D) 1225
13) Consider the product structure tree shown below:
With a beginning inventory of twenty for all components on level one, five for all components
on level two, and zero for all components on level three and finished items, how many K’s are
needed to produce 25 product X’s?
A) 530
B) 540
C) 550
D) 560
14) Consider the product structure tree shown below:
With a beginning inventory of twenty for all components on level one, five for all components
on level two, and zero for all components on level three and finished items, how many more K’s
than F’s are needed to produce 25 product X’s?
A) 15
B) 10
C) 5
D) 0
15) With a beginning inventory of zero for all components and finished items, how many
assembly E’s are needed to produce 20 product X’s with the product structure tree as shown
below?
A) 180
B) 220
C) 260
D) 300
16) With an inventory as shown in the table, how many assembly E’s should be produced or
purchased to produce 15 product X’s with this product structure tree?
Item
X
A
B
C
D
E
Inventory
5
15
20
8
6
17
A) 91
B) 147
C) 193
D) 225