MGMT 339 EXAM 3 QUESTIONS AND ANSWERS
Forecast - CORRECT ANSWER✅✅a prediction of the future
Committed orders - CORRECT ANSWER✅✅customer offer to buy a specific # of units at a specific price
Projected on-hand inventory - CORRECT ANSWER✅✅the expected amount of inventory that will be on
hand at the beginning of each time period
Master production schedule (MPS) - CORRECT ANSWER✅✅the result of disaggregating the aggregate
plan showing the quantity & timing of specific end items for a scheduled horizon, which often covers
about 6-8 weeks ahead
*Duties of the master scheduler:
-evaluate the impact of new orders
-provide delivery dates for orders
-deal w/ problems (production delays, insufficient supplies or capacity, resolve conflicts)
*Inputs:
-beginning inventory
-forecast
-customer orders
*Outputs:
-projected inventory
-MPS
-uncommitted inventory (ATP)
Available-to-promise (ATP/Uncommitted) - CORRECT ANSWER✅✅uncommitted inventory
, Time fences - CORRECT ANSWER✅✅points in time that separate phases of a master schedule planning
horizon
Independent vs Dependent demand - CORRECT ANSWER✅✅Once the independent demand is known,
the dependent demand (demand for items that are subassemblies or component parts to be used in the
production of finished goods) can be calculated
Independent demand:
-required by a person
-finished goods
-spare parts
Dependent demand:
-required to produce a good
-components of finished products
Material requirements planning inputs - CORRECT ANSWER✅✅a computer-based information system
that converts master schedule requirements for end items into time-phased requirements for
subassemblies, components, and raw materials
*Inputs:
-master production schedule (MPS)
-bill of materials (BOM)
-inventory records
-planning data & rules
Cumulative lead-time - CORRECT ANSWER✅✅sum of the lead times that sequential phases of a process
require, from ordering of parts/raw materials to completion of final assembly
Forecast - CORRECT ANSWER✅✅a prediction of the future
Committed orders - CORRECT ANSWER✅✅customer offer to buy a specific # of units at a specific price
Projected on-hand inventory - CORRECT ANSWER✅✅the expected amount of inventory that will be on
hand at the beginning of each time period
Master production schedule (MPS) - CORRECT ANSWER✅✅the result of disaggregating the aggregate
plan showing the quantity & timing of specific end items for a scheduled horizon, which often covers
about 6-8 weeks ahead
*Duties of the master scheduler:
-evaluate the impact of new orders
-provide delivery dates for orders
-deal w/ problems (production delays, insufficient supplies or capacity, resolve conflicts)
*Inputs:
-beginning inventory
-forecast
-customer orders
*Outputs:
-projected inventory
-MPS
-uncommitted inventory (ATP)
Available-to-promise (ATP/Uncommitted) - CORRECT ANSWER✅✅uncommitted inventory
, Time fences - CORRECT ANSWER✅✅points in time that separate phases of a master schedule planning
horizon
Independent vs Dependent demand - CORRECT ANSWER✅✅Once the independent demand is known,
the dependent demand (demand for items that are subassemblies or component parts to be used in the
production of finished goods) can be calculated
Independent demand:
-required by a person
-finished goods
-spare parts
Dependent demand:
-required to produce a good
-components of finished products
Material requirements planning inputs - CORRECT ANSWER✅✅a computer-based information system
that converts master schedule requirements for end items into time-phased requirements for
subassemblies, components, and raw materials
*Inputs:
-master production schedule (MPS)
-bill of materials (BOM)
-inventory records
-planning data & rules
Cumulative lead-time - CORRECT ANSWER✅✅sum of the lead times that sequential phases of a process
require, from ordering of parts/raw materials to completion of final assembly
