MAR 3203 EXAM 2 QUESTIONS
AND VERIFIED ANSWERS
Resource Planning - ANSWER the process of determining the production
capacity required to meet demand
Operations Planning - ANSWER planning that efficiently balances production
plans with capacity and production is planned to meet customer demands
-is usually hierarchical, divided into three broad categories;
1)Long-range
2)Intermediate or Medium Range
3)Short-range planning horizons
Long-range plans - ANSWER usually cover a year or more, tend to be more
general, and specify resources and outputs in terms of aggregate hours and
units.
-usually established first to guide the medium-range, which then guides the
short-range plans
-usually involve major strategic decisions in capacity ex. construction of new
facility
Medium(intermediate)-range plans - ANSWER normally span six to eighteen
months
-usually include small changes in capacity ex. changes in employment levels
Short-range plans - ANSWER usually span of a few days to a few weeks
depending upon the firm
,-usually most detailed and specify the exact end items and quantities to make on
weekly, daily, or hourly basis.
Manufacturing Resource Planning - ANSWER-aggregate production plan
-master production schedule
-material requirements plan
-capacity requirements plan
Aggregate Production Plan - ANSWER hierarchical long-range materials
planning process that translates annual business plans into production plan for
all products
-capacity is usually considered fixed during planning horizon
hierarchical planning - ANSWER process that translates annual business plans,
marketing plans, and demand forecasts into a production plan for a product
family in a plant or facility leading to the aggregate production plan
Three basic production strategies for Aggregate Production Plan: - ANSWER
1)Chase production strategy
2)Level production strategy
3)Mixed production strategy
Chase Production Strategy - ANSWER -adjusts capacity to match the demand
pattern;firm hires and lays off workers to match its production rate to demand.
-works well with make-to-order manufacturing firms
Advantages: investment in inventory is low and labor utilization is high
Disadvantages: expense of changing output rates and/or workforce levels, low
employee moral
, Level Production Strategy - ANSWER -is based on unvarying output rate and
capacity while changing levels of inventory and backlog to meet the fluctuating
demand pattern
- maintains workforce levels constant and more applicable for firms requiring
highly skilled labor
Advantages: stable output rates and workforce
Disadvantages:higher inventory costs, higher overtime and idle time, resource
utilizations vary over time
Mixed Production Strategy - ANSWER -seeks stable workforce while using
other short-term means such as overtime, subcontracting, or hiring part time and
temporary workers during periods of fluctuating demand
Master Production Schedule (MPS)- The heart of production planning and
control, it determines the quantity needed to meet demand from all sources
-time phased, detailed disaggregation of the aggregate production plan, listing
the exact end items to be produced by a specific period
-may be the "appointment log" where capacity is balanced with demand
-planning horizon is shorter than APP but longer than lead time to produce the
item
Master Production Scheduling - ANSWER Inputs: beginning inventory,
forecast, customer orders
Outputs: projected inventory, master production schedule, uncommitted
inventory
Available-to-promise (ATP) quantity - ANSWER the difference between
confirmed customer orders and the quantity the firm planned to produce
AND VERIFIED ANSWERS
Resource Planning - ANSWER the process of determining the production
capacity required to meet demand
Operations Planning - ANSWER planning that efficiently balances production
plans with capacity and production is planned to meet customer demands
-is usually hierarchical, divided into three broad categories;
1)Long-range
2)Intermediate or Medium Range
3)Short-range planning horizons
Long-range plans - ANSWER usually cover a year or more, tend to be more
general, and specify resources and outputs in terms of aggregate hours and
units.
-usually established first to guide the medium-range, which then guides the
short-range plans
-usually involve major strategic decisions in capacity ex. construction of new
facility
Medium(intermediate)-range plans - ANSWER normally span six to eighteen
months
-usually include small changes in capacity ex. changes in employment levels
Short-range plans - ANSWER usually span of a few days to a few weeks
depending upon the firm
,-usually most detailed and specify the exact end items and quantities to make on
weekly, daily, or hourly basis.
Manufacturing Resource Planning - ANSWER-aggregate production plan
-master production schedule
-material requirements plan
-capacity requirements plan
Aggregate Production Plan - ANSWER hierarchical long-range materials
planning process that translates annual business plans into production plan for
all products
-capacity is usually considered fixed during planning horizon
hierarchical planning - ANSWER process that translates annual business plans,
marketing plans, and demand forecasts into a production plan for a product
family in a plant or facility leading to the aggregate production plan
Three basic production strategies for Aggregate Production Plan: - ANSWER
1)Chase production strategy
2)Level production strategy
3)Mixed production strategy
Chase Production Strategy - ANSWER -adjusts capacity to match the demand
pattern;firm hires and lays off workers to match its production rate to demand.
-works well with make-to-order manufacturing firms
Advantages: investment in inventory is low and labor utilization is high
Disadvantages: expense of changing output rates and/or workforce levels, low
employee moral
, Level Production Strategy - ANSWER -is based on unvarying output rate and
capacity while changing levels of inventory and backlog to meet the fluctuating
demand pattern
- maintains workforce levels constant and more applicable for firms requiring
highly skilled labor
Advantages: stable output rates and workforce
Disadvantages:higher inventory costs, higher overtime and idle time, resource
utilizations vary over time
Mixed Production Strategy - ANSWER -seeks stable workforce while using
other short-term means such as overtime, subcontracting, or hiring part time and
temporary workers during periods of fluctuating demand
Master Production Schedule (MPS)- The heart of production planning and
control, it determines the quantity needed to meet demand from all sources
-time phased, detailed disaggregation of the aggregate production plan, listing
the exact end items to be produced by a specific period
-may be the "appointment log" where capacity is balanced with demand
-planning horizon is shorter than APP but longer than lead time to produce the
item
Master Production Scheduling - ANSWER Inputs: beginning inventory,
forecast, customer orders
Outputs: projected inventory, master production schedule, uncommitted
inventory
Available-to-promise (ATP) quantity - ANSWER the difference between
confirmed customer orders and the quantity the firm planned to produce
