CSCA EXAM QUESTIONS AND
ANSWERS 100% VERIFIED
Aggregate Production Plan - ANSWER--Aggregate plan for the production process.
Measures what quantity of materials and other resources are to be procured and when.
Time frame (at least one year usually rolled forward by 3 months every quarter)
Master Production Schedule - ANSWER--A detailed dis aggregation of the APP, listing
the exact end items to be produced in a specific period. More detailed than APP (shows
all items produced). Time frame (shorter planning horizon, but longer the lead time to
produce an item)
Materials requirement Plan - ANSWER--Computer based, calculates exact quantities,
need dates, and planned order releases for sub assemblies & materials required to
manufacture a final product. Requires independent demand information, parent-
component relationships from the BOM, LFL-order what you need.
Chase strategy - ANSWER--Adjust capacity to match demand. (Adv) works well for
make to-order-firms. Finished goods inventory is constant. (Dis) Hire and layoff workers
(time and money to train).
Level strategy - ANSWER--Constant output rate, regardless of demand. (Adv) works
well for make-to-stock firms. Constant output, don't need to hire/lay off. (Dis) Finished
goods inventory and backlog vary. Relies on how accurate the forecast is.
Mixed Strategy - ANSWER--Combination of both chase and level strategies. (Adv)
maintain a stable, core workforce. (Dis) Use short-term means: overtime, contractors,
temps to manage short-term demand costs money.
Time Fence MPS - ANSWER--necessary because of system nervousness -small
changes in the upper-level production plan cause major changes in the lower-level
production plan. Firms use a time fence to deal with nervousness by separating the the
planning horizon.
Independant Demand - ANSWER--Forecast demand for final products affected by
trends, seasonal patterns, general market conditions (computers, pizza, bicycles)
Dependent Demand - ANSWER--the internal demand for parts based on independent
demand of the final product in which the parts are used (sub-assemblies) (microchips
for computers, cheese on pizza, wheels on bicycle). Relationship comes from BOM.
Bill of Materials (BOM) - ANSWER--document that shows a listing of all component
parts and assemblies making up the final product. Determines the dependent demand
, for components. Planning factor, how many components do you need? What materials
go into the final product?
Purpose of MRP - ANSWER--integrates data from production schedules with that form
of inventory and the BOM to calculate purchasing and shipping schedules for the parts
or components.
Purpose of ERP System - ANSWER--An information system that connects all functional
areas and operations of an organization (and in some cases, suppliers and customers)
via common software infrastructure and database.
Raw materials - ANSWER--unprocessed purchase inputs ) sheet metal, plastic pellets).
Work in process inventory (WIP) - ANSWER--partially processed materials not yet
ready for sales (partially finished product, bike).
Finished Goods - ANSWER--products ready for shipment (box of cereal, cans of soup).
Maintenance, Repair & Operating (MRO) - ANSWER--materials used when producing
(cleaners, brooms, office paper).
Why large inventories? - ANSWER--customer service, high ordering cost, labor and
equipment utilization, transportation cost (economies of scale), not have a stock out.
Quantity Discount Model - ANSWER--Relaxes the constant price assumption by
allowing purchase quantity discounts (lower price when you buy more).
Vendor Managed Inventory - ANSWER--The supplier and its customer agree on which
products are to be managed using in the customer's distribution centers. An agreement
is made on reorder points and economic order quantities for each of these products.
Lean - ANSWER--waste reduction, small batch scheduling, inventory and setup time
reduction, lean layouts, lean supply chain relationships, continuous improvement,
workforce empowerment.
-adds value to supply chain process
Six Sigma - ANSWER--eliminating defects in any process from manufacturing to
transactions to product and service industries.
Why small inventories? - ANSWER--high holding cost, cost of capital, taxes, insurance,
shrinkage losses.
Why avoid inventory? - ANSWER--Requires storage space, opportunity cost of capital
(your money is tied up), spoilage and shrink, obsolescence, insurance, taxes, keeping
track of it all, carrying and holding costs.
ANSWERS 100% VERIFIED
Aggregate Production Plan - ANSWER--Aggregate plan for the production process.
Measures what quantity of materials and other resources are to be procured and when.
Time frame (at least one year usually rolled forward by 3 months every quarter)
Master Production Schedule - ANSWER--A detailed dis aggregation of the APP, listing
the exact end items to be produced in a specific period. More detailed than APP (shows
all items produced). Time frame (shorter planning horizon, but longer the lead time to
produce an item)
Materials requirement Plan - ANSWER--Computer based, calculates exact quantities,
need dates, and planned order releases for sub assemblies & materials required to
manufacture a final product. Requires independent demand information, parent-
component relationships from the BOM, LFL-order what you need.
Chase strategy - ANSWER--Adjust capacity to match demand. (Adv) works well for
make to-order-firms. Finished goods inventory is constant. (Dis) Hire and layoff workers
(time and money to train).
Level strategy - ANSWER--Constant output rate, regardless of demand. (Adv) works
well for make-to-stock firms. Constant output, don't need to hire/lay off. (Dis) Finished
goods inventory and backlog vary. Relies on how accurate the forecast is.
Mixed Strategy - ANSWER--Combination of both chase and level strategies. (Adv)
maintain a stable, core workforce. (Dis) Use short-term means: overtime, contractors,
temps to manage short-term demand costs money.
Time Fence MPS - ANSWER--necessary because of system nervousness -small
changes in the upper-level production plan cause major changes in the lower-level
production plan. Firms use a time fence to deal with nervousness by separating the the
planning horizon.
Independant Demand - ANSWER--Forecast demand for final products affected by
trends, seasonal patterns, general market conditions (computers, pizza, bicycles)
Dependent Demand - ANSWER--the internal demand for parts based on independent
demand of the final product in which the parts are used (sub-assemblies) (microchips
for computers, cheese on pizza, wheels on bicycle). Relationship comes from BOM.
Bill of Materials (BOM) - ANSWER--document that shows a listing of all component
parts and assemblies making up the final product. Determines the dependent demand
, for components. Planning factor, how many components do you need? What materials
go into the final product?
Purpose of MRP - ANSWER--integrates data from production schedules with that form
of inventory and the BOM to calculate purchasing and shipping schedules for the parts
or components.
Purpose of ERP System - ANSWER--An information system that connects all functional
areas and operations of an organization (and in some cases, suppliers and customers)
via common software infrastructure and database.
Raw materials - ANSWER--unprocessed purchase inputs ) sheet metal, plastic pellets).
Work in process inventory (WIP) - ANSWER--partially processed materials not yet
ready for sales (partially finished product, bike).
Finished Goods - ANSWER--products ready for shipment (box of cereal, cans of soup).
Maintenance, Repair & Operating (MRO) - ANSWER--materials used when producing
(cleaners, brooms, office paper).
Why large inventories? - ANSWER--customer service, high ordering cost, labor and
equipment utilization, transportation cost (economies of scale), not have a stock out.
Quantity Discount Model - ANSWER--Relaxes the constant price assumption by
allowing purchase quantity discounts (lower price when you buy more).
Vendor Managed Inventory - ANSWER--The supplier and its customer agree on which
products are to be managed using in the customer's distribution centers. An agreement
is made on reorder points and economic order quantities for each of these products.
Lean - ANSWER--waste reduction, small batch scheduling, inventory and setup time
reduction, lean layouts, lean supply chain relationships, continuous improvement,
workforce empowerment.
-adds value to supply chain process
Six Sigma - ANSWER--eliminating defects in any process from manufacturing to
transactions to product and service industries.
Why small inventories? - ANSWER--high holding cost, cost of capital, taxes, insurance,
shrinkage losses.
Why avoid inventory? - ANSWER--Requires storage space, opportunity cost of capital
(your money is tied up), spoilage and shrink, obsolescence, insurance, taxes, keeping
track of it all, carrying and holding costs.
