BSOP 334 Planning, Capacity Resource Planning DQ and Final Exam

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BSOP 334 Resource Planning & Capacity Resource Planning

Week 1

Week 1 DQ 1

What is the role of master production scheduling in manufacturing planning and control? What other areas interface with it?


Week 1 DQ 2

What is aggregate planning? Why might it be important to the master production scheduler?



Week 2

Week 2 DQ 1

Is inventory an asset or a liability? How do we determine if it is an asset or a liability? Might the determination be different for different people in the same organization? Please discuss, providing specific examples.


Week 2 DQ 2

Why is reorder timing so important to a business? Is it more important than when we decide to refill our cars with gas, or the refrigerator with food? Why?


Week 3

Week 3 DQ 1

Discuss the inputs required for the MRP process and the role played by the bill of materials.


Week 3 DQ 2

How the bill of materials is structured, and why is low-level coding used?


Week 4

Week 4 DQ 1

How does MRP fit in the overall master planning system? Where does it fit with the other parts of the system?


Week 4 DQ 2

How does MRP reflect the changing conditions of the shop floor? Why is it important that these transactions be processed properly?


Week 5

Week 5 DQ 1

How does an MRP-II system or an ERP system help a company be more successful in managing its business and achieving its strategic objectives? Relate this to actual situations of companies you are familiar with.


Week 5 DQ 2

It is said that successful supply chain management will help the various organizations that are part of the same supply chain operate like a flock of birds, which can suddenly turn in unison as the lead birds change direction! Please elaborate on this saying, and explain why is this good for those organizations, the end user, and the industry at large? How does it work?


Week 6

Week 6 DQ 1

Compare and contrast rough-cut capacity planning with CRP.


Week 6 DQ 2

How does CRP relate to the MPS? How does a nervous MPS affect CRP?



Week 7

Week 7 DQ 1

What are the three basic principles of lean systems, and how do they support each other in achieving lean-system goals?


Week 7 DQ 2

It is said that the U.S. economy is turning into a service economy, as opposed to service and manufacturing. Much of U.S. manufacturing has been outsourced to cheap labor markets, which also operate at higher productivity levels than U.S. manufacturing. Is this a lost battle, or can we regain our advantage? Suggest some strategies and tactics that may make this possible.



Week 8 Final Exam

1. (TCO 1) Which of the following functions involves budgeting, analysis of investment proposals, and provision of funds? (Points : 5)

Question 2. 2. (TCO 1) Transformation includes all of the following, except (Points : 5)

Question 3. 3. (TCO 1) Which of the following is providing new opportunities for productivity improvements? (Points : 5)

Question 4. 4. (TCOs 3 & 6) In an effort to reduce inventory, which of the following interactions with vendors would potentially be helpful? (Points : 5)

Question 5. 5. (TCOs 3 & 6) Which of the following costs related to order size is nonlinear? (Points : 5)

Question 6. 6. (TCO 2) Which of the following is a computer-based information system designed to handle ordering and scheduling of dependent-demand inventories? (Points : 5)

Question 7. 7. (TCO 2) Net material requirements can be described as (Points : 5)

Question 8. 8. (TCO 2) When an MRP system is periodically updated to account for all changes that have occurred within a given time interval, the process is called (Points : 5)

Question 9. 9. (TCOs 4, 5, & 6) How does a net-change system work? (Points : 5)

Question 10. 10. (TCOs 4, 5, & 6) The MRP approach that is used for components or subassemblies to compensate for variations in lead times is called (Points : 5)

Question 11. 11. (TCOs 4, 5, & 6) A lead time service level of 90 percent implies which of the following? (Points : 5)

Question 12. 12. (TCOs 5, 7, & 9) The dynamic store of information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size), which is an input to the MRP, is the (Points : 5)

Question 13. 13. (TCOs 5, 7, & 9) What will be the quantity of the first planned receipt if net requirements for component J are as follows: 60 units in Week 2, 40 units in Week 3, and 60 units in Week 5? A fixed-period, two-period lot-sizing method is used. (Points : 5)

Question 14. 14. (TCO 11, 12, 13, & 14) Given a product mix, scheduling difficulties, quality factors, and so on, the maximum expected output is (Points : 5)

Question 15. 15. (TCOs 11, 12, 13, & 14) Given the following information, calculate the efficiency.

Effective capacity = 50 units per day

Design capacity = 100 units per day

Actual output = 30 units per day (Points : 5)


Question 16. 16. (TCOs 10, 15, & 16) In an assignment method problem, it takes Abe 3 hours to build a birdhouse and 4 hours for a doghouse, while Betty takes 4 hours for a birdhouse and 3 hours for a doghouse. What is the reduced cost (in hours) of assigning Abe to build the doghouse? (Points : 5)

Question 17. 17. (TCOs 10, 15, & 16) The matrix below shows relative costs for various job-machine combinations. Which set of pairs constitutes the minimum cost solution using the assignment method?

1. (TCO 1) A company has found that introducing one additional worker enables a process improvement that reduces processing time for each unit so that output is increased by 25% with less material. Under the old process, five workers could produce 60 units per hour. Labor costs are $12/hour, and material input was previously $16/unit. For the new process, material is now $10/unit. Overhead is charged at 1.6 times direct labor cost. Finished units sell for $31 each. What increase in productivity is associated with the process improvement? (Points : 30)

2. (TCOs 3 & 6) If instantaneous replenishment is assumed when given the same demand, setup/ordering costs, and carrying costs, then the EOQ calculated using incremental replenishment will be _____.

Illustrate using a numeric example. (Points : 30)

4. (TCOs 4, 5, & 6) Given the tree below, develop a material requirements plan for end-item P and its components. Assume that all lead times are one week and that lot-for-lot ordering is used, except for Item F, which is ordered in multiples of 400 units.


6. (TCOs 11, 12, 13, & 14) A small business owner is contemplating the addition of another product line. Capacity increases, and equipment will result in an increase in annual fixed costs of $50,000. Variable costs will be $25 per unit. What unit selling price must the owner obtain to break even on a volume of 2,500 units a year?

5. (TCOs 5, 7, & 9) Explain the advantages and disadvantages of frequent deliveries of small shipments. (Points : 25)

7. (TCOs 10, 15,& 16) Compare and contrast kanban and CONWIP. (Points : 20)


8. (TCOs 8 & 9) MPS planners use what is referred to as time fences? What are they, and why are they used? (Points : 20)




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