Production Planning Midterm

Front 1

T/F: Dependent Demand refers to demand that is not under the control of the company.

Back 1

false

Front 2

The roll-down of a Pyramid forecast refers to:

Back 2

the point where top management turns budgeted dollar sales into budgeted units of production

Front 3

T/F: The MPC system is unique to the company

Back 3

true

Front 4

The overall differences between the forecast and actual sales for a series of periods can be measured as:

Back 4

average mean error bias and average mean absolute deviation

Front 5

T/F: The Mean Error Bias does not cancel the effect of negative and positive difference between actual and forecast values.

Back 5

true

Front 6

T/F: Demand Management is a link with the suppliers.

Back 6

false

Front 7

T/F: If a routine SOP cycle exists at a manufacturing company, the MPS will have better quality forecasts.

Back 7

true

Front 8

T/F: In a "Chase" SOP the staffing level fluctuates.

Back 8

true

Front 9

the SOP and MPS are different in the following manner:

Back 9

SOP deals with dollar value and aggregate units and MPS with detailed units

Front 10

T/F: In a "Chase" SOP strategy, the cost of hiring and firing can be high.

Back 10

true

Front 11

The top-level of a Pyramid forecast represents production units in what form?

Back 11

dollar amounts

Front 12

T/F: In the MTS production environment, raw materials need to be customized for the client.

Back 12

false

Front 13

Managing MPS stability and fences refer to:

Back 13

considering MPS plans so that supplier, staffing and maintenance problems can be avoided

Front 14

If a company has an MPS system with fences at 10, 20, and 30 days what can be changed at 5 days?

Back 14

nothing, the MPS is frozen

Front 15

T/F: The SOP represents aggregate units (per month) and the MPS represents planning of detailed units (weeks).

Back 15

true

Front 16

In an ETO production environment the main production management activities are:

Back 16

managing engineering capacity

Front 17

T/F: Translating the top management dollar budgets into production units is part of Pyramid forecasting.

Back 17

true

Front 18

T/F: The Mean Absolute Deviation measure provides a weighting factor to all historical sales.

Back 18

false

Front 19

T/F: The Sales and Operations Plan is primarily interested in planning aggregate units of production.

Back 19

true

Front 20

Using a "Mixed" SOP strategy is characterized by:

Back 20

providing a balance between staffing fluctuations and excessive inventory