MSC exam 3 ACTUAL Questions and
Correct answers
reasons for safety stock - CORRECT ANSWER✅✅✅demand can vary; lead time can vary
master production schedule - CORRECT ANSWER✅✅✅Schedule showing which products
will be produced, when production will take place, and what resources will be used.
3 things about master production schedule - CORRECT ANSWER✅✅✅evaluating the
impact of new orders; providing delivery dates for orders; and dealing with problems
bill of materials - CORRECT ANSWER✅✅✅contains a listing of all of the assemblies,
subassemblies, parts, part costs, and raw materials needed to produce one unit of a finished
product. each finished product has its own bill of materials; shows the quantity of each item
needed to complete one unit of its parent item
fundamental decisions of inventory - CORRECT ANSWER✅✅✅when to order and how
much to order
true or false: a retail store carries 2x as much inventory, whether it will provide 2x the customer
service level - CORRECT ANSWER✅✅✅false
aggregate planning - CORRECT ANSWER✅✅✅achieved production plan that will
effectively utilize an organization resources to satisfy demand
level capacity strategy - CORRECT ANSWER✅✅✅maintaining a steady rate of regular-
time output while meeting variations in demand by a combination of options
chase demand strategy - CORRECT ANSWER✅✅✅matching capacity to demand; the
planned output for a period is set at the expected demand for that period
, inputs of aggregate planning - CORRECT ANSWER✅✅✅resources, demand forecast,
policies, costs
outputs of aggregate planning - CORRECT ANSWER✅✅✅total cost of a plan & projected
levels of (inventory, output, employment, subcontracting, and back ordering)
different strategies of aggregate planning - CORRECT ANSWER✅✅✅proactive, reactive,
and mixed
proactive - CORRECT ANSWER✅✅✅alter demand to match capacity
reactive - CORRECT ANSWER✅✅✅alter capacity to match demand
mixed - CORRECT ANSWER✅✅✅some of both
MRP (materials requirement planning) - CORRECT ANSWER✅✅✅methodology used for
planning the production of assembled products such as smartphones, automobiles, kitchen tables,
and a whole host of other products that are assembled
outputs of MRP - CORRECT ANSWER✅✅✅planned-order schedules, order releases,
changes, performance-controls reports, planning reports, and exception reports
inputs of MRP - CORRECT ANSWER✅✅✅bill of materials, a master schedule, and
inventory records file
objective of inventory management - CORRECT ANSWER✅✅✅achieve satisfactory levels
of customer service, while keeping inventory costs within reasonable bonds
Correct answers
reasons for safety stock - CORRECT ANSWER✅✅✅demand can vary; lead time can vary
master production schedule - CORRECT ANSWER✅✅✅Schedule showing which products
will be produced, when production will take place, and what resources will be used.
3 things about master production schedule - CORRECT ANSWER✅✅✅evaluating the
impact of new orders; providing delivery dates for orders; and dealing with problems
bill of materials - CORRECT ANSWER✅✅✅contains a listing of all of the assemblies,
subassemblies, parts, part costs, and raw materials needed to produce one unit of a finished
product. each finished product has its own bill of materials; shows the quantity of each item
needed to complete one unit of its parent item
fundamental decisions of inventory - CORRECT ANSWER✅✅✅when to order and how
much to order
true or false: a retail store carries 2x as much inventory, whether it will provide 2x the customer
service level - CORRECT ANSWER✅✅✅false
aggregate planning - CORRECT ANSWER✅✅✅achieved production plan that will
effectively utilize an organization resources to satisfy demand
level capacity strategy - CORRECT ANSWER✅✅✅maintaining a steady rate of regular-
time output while meeting variations in demand by a combination of options
chase demand strategy - CORRECT ANSWER✅✅✅matching capacity to demand; the
planned output for a period is set at the expected demand for that period
, inputs of aggregate planning - CORRECT ANSWER✅✅✅resources, demand forecast,
policies, costs
outputs of aggregate planning - CORRECT ANSWER✅✅✅total cost of a plan & projected
levels of (inventory, output, employment, subcontracting, and back ordering)
different strategies of aggregate planning - CORRECT ANSWER✅✅✅proactive, reactive,
and mixed
proactive - CORRECT ANSWER✅✅✅alter demand to match capacity
reactive - CORRECT ANSWER✅✅✅alter capacity to match demand
mixed - CORRECT ANSWER✅✅✅some of both
MRP (materials requirement planning) - CORRECT ANSWER✅✅✅methodology used for
planning the production of assembled products such as smartphones, automobiles, kitchen tables,
and a whole host of other products that are assembled
outputs of MRP - CORRECT ANSWER✅✅✅planned-order schedules, order releases,
changes, performance-controls reports, planning reports, and exception reports
inputs of MRP - CORRECT ANSWER✅✅✅bill of materials, a master schedule, and
inventory records file
objective of inventory management - CORRECT ANSWER✅✅✅achieve satisfactory levels
of customer service, while keeping inventory costs within reasonable bonds
