IDIS 2830 Final Exam Questions with
Complete Solutions6
List the production planning process steps in order, starting with the sales and operating plan
(SOP). - ANSWERS-S&OP > Production Plan > Create Master Production Schedule (MPS) > Run
Materials Requirement Plan (MRP)
What is the purpose of Sales and Operating Planning (S&OP)? - ANSWERS-To make sure that
customer demand can be met by the product, distribution and purchasing. It's keeping all
departments informed so that everyone knows what needs to be done.
What is the "output" of the S&OP - ANSWERS-Production plan
What is the purpose of the production plan - ANSWERS-Plan finished goods to allow for
managing capacity to build the inventory required.
Why do we build a production plan and not just use a forecast? - ANSWERS-The forecast is only
of expected demand during the time periods it covers. However, production may need to build
inventory ahead of sales.
What is a "master production schedule"? - ANSWERS-A plan for how much each finished goods
will be required and they date they must be complete
Is GBI using "Make to Stock" (MTS) and "Make to Order" (MTO)? - ANSWERS-Made to stock
What is the "output" created by MRP? - ANSWERS-I see students use this answer many times,
but the desired response is "production plan"
, What does "independent demand" mean? - ANSWERS-It is finished goods that come from
forecasts (expected demand) not just actual orders received.
What does "dependent demand" mean? - ANSWERS-Components required to produce
independent demand.
Is the forecast made up of independent or dependent demand? - ANSWERS-independent
demand
Does MRP plan independent or dependent demand - ANSWERS-Dependent demand
Explain what "target days' supply" means. - ANSWERS-It's the amount of finished goods
inventory you want to have in stock (on the shelf) to meet expected customer orders.
What is the difference between this and the prior screen capture - ANSWERS-This capture has
only the independent requirements, as the other capture has forecasting and demand.
What are the three major "inputs" needed by MRP to calculate an output? - ANSWERS-Master
production schedule. Structure records (BOM), inventory status. Records
Explain what a "Bill of Materials" (BOM) is - ANSWERS-List of the raw materials, sub-assemblies,
as well of quantities to manufacture a product
Which process created the "Planned Orders" - was it MPS or MRP? - ANSWERS-It's the MPS
since these are the "parent" finished goods.
Does the MD04 screen show the planned order start or completion date? - ANSWERS-Since they
are finished goods, it's the end date (completion).
Complete Solutions6
List the production planning process steps in order, starting with the sales and operating plan
(SOP). - ANSWERS-S&OP > Production Plan > Create Master Production Schedule (MPS) > Run
Materials Requirement Plan (MRP)
What is the purpose of Sales and Operating Planning (S&OP)? - ANSWERS-To make sure that
customer demand can be met by the product, distribution and purchasing. It's keeping all
departments informed so that everyone knows what needs to be done.
What is the "output" of the S&OP - ANSWERS-Production plan
What is the purpose of the production plan - ANSWERS-Plan finished goods to allow for
managing capacity to build the inventory required.
Why do we build a production plan and not just use a forecast? - ANSWERS-The forecast is only
of expected demand during the time periods it covers. However, production may need to build
inventory ahead of sales.
What is a "master production schedule"? - ANSWERS-A plan for how much each finished goods
will be required and they date they must be complete
Is GBI using "Make to Stock" (MTS) and "Make to Order" (MTO)? - ANSWERS-Made to stock
What is the "output" created by MRP? - ANSWERS-I see students use this answer many times,
but the desired response is "production plan"
, What does "independent demand" mean? - ANSWERS-It is finished goods that come from
forecasts (expected demand) not just actual orders received.
What does "dependent demand" mean? - ANSWERS-Components required to produce
independent demand.
Is the forecast made up of independent or dependent demand? - ANSWERS-independent
demand
Does MRP plan independent or dependent demand - ANSWERS-Dependent demand
Explain what "target days' supply" means. - ANSWERS-It's the amount of finished goods
inventory you want to have in stock (on the shelf) to meet expected customer orders.
What is the difference between this and the prior screen capture - ANSWERS-This capture has
only the independent requirements, as the other capture has forecasting and demand.
What are the three major "inputs" needed by MRP to calculate an output? - ANSWERS-Master
production schedule. Structure records (BOM), inventory status. Records
Explain what a "Bill of Materials" (BOM) is - ANSWERS-List of the raw materials, sub-assemblies,
as well of quantities to manufacture a product
Which process created the "Planned Orders" - was it MPS or MRP? - ANSWERS-It's the MPS
since these are the "parent" finished goods.
Does the MD04 screen show the planned order start or completion date? - ANSWERS-Since they
are finished goods, it's the end date (completion).
