Introduction To Materials Management Exam Questions Answered Correctly Latest Update 2024
(Already Passed)
Channel master - Answers Individual or company that takes the initiative to integrate both the upstream
and downstream supply chain, getting members to work cooperatively to lower total costs and achieve
greater efficiency.
Configure to Order (CTO) - Answers - customer is allowed to configure a product based on various
features and options.
- delivery lead time is reduced because there is no design time required and the different features and
options may already be available.
Engineer to Order (ETO) - Answers - unique engineered design or significant customizations.
- customer is highly involved, inventory will not normally be purchased until needed by manufacturing,
delivery time is long because it includes not only purchase lead time but also design lead time.
Assemble to Order (ATO) - Answers - product is made from standard components or options that the
manufactuer can inventory and assemble.
- delivery lead time is reduced further because there is no design time needed and inventory is held
already for assembly.
Make to Order (MTO) - Answers - manufacturing does not start making the product until an order is
received. the final product is usually made from standard items but may include custom-designed
components as well.
- delivery lead time is reduced because there is little design time required and inventory is held in raw
material
Make to Stock (MTS) - Answers - supplier manufactures the goods and sells from a finished goods
inventory.
- delivery lead time is shortest as manufacturing and assembly have already been completed. customer
has little direct involvement in the product design
Reverse Logistics - Answers The area of logistics that involves bringing goods back to the manufacturer
because of defects or for recycling materials.
Advanced Planning and Scheduling (APS) - Answers approach has often included the suppliers and
customers in the planning, thereby attempting to optimize the performance of the entire supply chain.
Capacity - Answers the quantity of work that labour and equipment can preform in a given period.
Production Activity Control (PAC) - Answers implementation and control phase of the production
planning and control system. responsible for planning and controlling the flow of work through the
, factory. the planning horizon is very short, perhaps from a day to a month. level of detail is high since it
is concerned with individual components, workstations, and orders. plans are reviewed and revised daily
Resource Bill - Answers shows the quantity of critical resources (materials, labor, and bottleneck
operations) needed to make one average unit of the product group
Sales and Operations Planning (S&OP) - Answers a process for continually revising the strategic business
plan and coordinating plans of the various departments.
- places it in a better position to plan changes.
- better management of production, inventory, and backlog
-manages change rather than reacting to changes in market conditions or the economy after they
happen
Define capacity and priority. Why are they important in production planning? - Answers finding
compromise where production runs as long as possible but priority (demand) is satisfied.
Describe each of the following plans in terms of their purpose, planning horizon, level of detail, and
planning cycle:
a. strategic plan
b. business plan
c. production plan
d. master production schedule
e. materials requirement plan
f. production activity control - Answers a. statement of the major goals and objectives the company
expects to achieve over the next 2-10 years. the plan gives general direction about how the company
hopes to achieve these objectives. responsibility of the senior management
b. each department produces its own plans to achieve the objectives set by the strategic business plan.
usually reviewed every 6 months to a year. level of detail is not high.
c. quantities of each product group that must be produced in each period, desired inventory levels,
resources of equipment, labour, and materials needed in each period, the availability of the resources
needed. the level of detail is not high also known as aggregate production plan.
what are 4 questions a good planning system must answer? - Answers 1. what are we going to make or
provide to customers?
2. what does it take to make it?
(Already Passed)
Channel master - Answers Individual or company that takes the initiative to integrate both the upstream
and downstream supply chain, getting members to work cooperatively to lower total costs and achieve
greater efficiency.
Configure to Order (CTO) - Answers - customer is allowed to configure a product based on various
features and options.
- delivery lead time is reduced because there is no design time required and the different features and
options may already be available.
Engineer to Order (ETO) - Answers - unique engineered design or significant customizations.
- customer is highly involved, inventory will not normally be purchased until needed by manufacturing,
delivery time is long because it includes not only purchase lead time but also design lead time.
Assemble to Order (ATO) - Answers - product is made from standard components or options that the
manufactuer can inventory and assemble.
- delivery lead time is reduced further because there is no design time needed and inventory is held
already for assembly.
Make to Order (MTO) - Answers - manufacturing does not start making the product until an order is
received. the final product is usually made from standard items but may include custom-designed
components as well.
- delivery lead time is reduced because there is little design time required and inventory is held in raw
material
Make to Stock (MTS) - Answers - supplier manufactures the goods and sells from a finished goods
inventory.
- delivery lead time is shortest as manufacturing and assembly have already been completed. customer
has little direct involvement in the product design
Reverse Logistics - Answers The area of logistics that involves bringing goods back to the manufacturer
because of defects or for recycling materials.
Advanced Planning and Scheduling (APS) - Answers approach has often included the suppliers and
customers in the planning, thereby attempting to optimize the performance of the entire supply chain.
Capacity - Answers the quantity of work that labour and equipment can preform in a given period.
Production Activity Control (PAC) - Answers implementation and control phase of the production
planning and control system. responsible for planning and controlling the flow of work through the
, factory. the planning horizon is very short, perhaps from a day to a month. level of detail is high since it
is concerned with individual components, workstations, and orders. plans are reviewed and revised daily
Resource Bill - Answers shows the quantity of critical resources (materials, labor, and bottleneck
operations) needed to make one average unit of the product group
Sales and Operations Planning (S&OP) - Answers a process for continually revising the strategic business
plan and coordinating plans of the various departments.
- places it in a better position to plan changes.
- better management of production, inventory, and backlog
-manages change rather than reacting to changes in market conditions or the economy after they
happen
Define capacity and priority. Why are they important in production planning? - Answers finding
compromise where production runs as long as possible but priority (demand) is satisfied.
Describe each of the following plans in terms of their purpose, planning horizon, level of detail, and
planning cycle:
a. strategic plan
b. business plan
c. production plan
d. master production schedule
e. materials requirement plan
f. production activity control - Answers a. statement of the major goals and objectives the company
expects to achieve over the next 2-10 years. the plan gives general direction about how the company
hopes to achieve these objectives. responsibility of the senior management
b. each department produces its own plans to achieve the objectives set by the strategic business plan.
usually reviewed every 6 months to a year. level of detail is not high.
c. quantities of each product group that must be produced in each period, desired inventory levels,
resources of equipment, labour, and materials needed in each period, the availability of the resources
needed. the level of detail is not high also known as aggregate production plan.
what are 4 questions a good planning system must answer? - Answers 1. what are we going to make or
provide to customers?
2. what does it take to make it?
