Question

1. Concerning the Master Production Schedule (MPS), which of the following statements are true?

Select all correct answers.

A. A Level Production Strategy minimizes the need for extra capacity and allows for smooth labor operations.

B. The MPS is the tie between production and sales.

C. A drawback about applying a Chase Demand Strategy is that it may lead to high levels of inventory when demand is low.

D. The MPS allows sales to know the Availability to Promise (ATP) of a product.

E. None of the above.

2. Concerning Distribution Channels, which of the following statements are true?

Select all correct answers.

A. If a retailer adds a Mixing Center that receives shipments from multiple vendors and consolidates them into mixed full truckload deliveries to its DCs, then this will tend to decrease the economic lot size quantity for individual products.

B. The four major types of players in a distribution channel are manufacturers, wholesalers/distributors, retailers, and consumers.

C. A company can only operate in a single distribution channel at any one time.

D. When suppliers use Direct to Store Delivery (DSD), this reduces the volume of product flowing through a retailer's DCs.

E. None of the above.

3. Concerning Material Requirements Planning (MRP) systems, which of the following statements are true?

Select all correct answers.

A. The output of an MRP system is a detailed Bill of Material for complex products.

B. The MPS and the BOM are inputs to the MRP system.

C. Solving an MRP for a supplier and a manufacturer simultaneously will never produce a solution that costs more for either the supplier or manufacturer individually than solving them sequentially.

D. Solving an MRP for a supplier and a manufacturer simultaneously will never produce a total (supplier and manufacturer) solution that costs more than solving them sequentially.

E. None of the above.

4. Concerning planning operations, which of the following statements are true?

Select all correct answers.

A. Aggregate planning models are typically deterministic.

B. Aggregate planning typically takes forecasted demand over 3-18 months as the primary input.

C. Aggregate planning is best suited for short term (<12 weeks) tactical planning.

D. In the Aggregate planning process, if outsourcing is not allowed and the work rules prohibit firing of workers, then the solution will tend to grow the overall workforce and use more overtime hours.

E. None of the above.

Answer 1

1. Concerning the Master Production Schedule (MPS), which of the following statements are true?

A Level Production Strategy minimizes the need for extra capacity and allows for smooth labor operations.

D. The MPS allows sales to know the Availability to Promise (ATP) of a product.

Explanation:

In chase strategy production will be done to meet the demand by varying workforce by Hiring or Firlng.Hence there will be no chance of builiding up of inventory ( wrong answer)