CSCA EXAM QUESTIONS AND ANSWERS
Aggregate Production Plan - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT ANSWER✅✅-Forecast demand for final products affected by trends,
seasonal patterns, general market conditions (computers, pizza, bicycles)
, Dependent Demand - CORRECT 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) - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT ANSWER✅✅-unprocessed purchase inputs ) sheet metal, plastic pellets).
Work in process inventory (WIP) - CORRECT ANSWER✅✅-partially processed materials not yet ready
for sales (partially finished product, bike).
Finished Goods - CORRECT ANSWER✅✅-products ready for shipment (box of cereal, cans of soup).
Maintenance, Repair & Operating (MRO) - CORRECT ANSWER✅✅-materials used when producing
(cleaners, brooms, office paper).
Why large inventories? - CORRECT ANSWER✅✅-customer service, high ordering cost, labor and
equipment utilization, transportation cost (economies of scale), not have a stock out.
Why small inventories? - CORRECT ANSWER✅✅-high holding cost, cost of capital, taxes, insurance,
shrinkage losses.
Aggregate Production Plan - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT ANSWER✅✅-Forecast demand for final products affected by trends,
seasonal patterns, general market conditions (computers, pizza, bicycles)
, Dependent Demand - CORRECT 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) - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT ANSWER✅✅-unprocessed purchase inputs ) sheet metal, plastic pellets).
Work in process inventory (WIP) - CORRECT ANSWER✅✅-partially processed materials not yet ready
for sales (partially finished product, bike).
Finished Goods - CORRECT ANSWER✅✅-products ready for shipment (box of cereal, cans of soup).
Maintenance, Repair & Operating (MRO) - CORRECT ANSWER✅✅-materials used when producing
(cleaners, brooms, office paper).
Why large inventories? - CORRECT ANSWER✅✅-customer service, high ordering cost, labor and
equipment utilization, transportation cost (economies of scale), not have a stock out.
Why small inventories? - CORRECT ANSWER✅✅-high holding cost, cost of capital, taxes, insurance,
shrinkage losses.
