SCMN EXAM 1 QUESTIONS AND
CORRECT ANSWERS (ALREADY
PASSED)
Why is capacity relevant to SCM? - Answer-Impacts ability to meet demand, influences
operating costs, and affects competitiveness
Key capacity issues - Answer-long term vs. short term and managing bottlenecks
Three step process for capacity planning decisions - Answer-determine capacity
requirements, identify capacity alternatives, and evaluate capacity alternatives
Capacity planning strategies - Answer-proactive, concurrent, and lagging
Key forecasting requirements - Answer-demand driven, based on facts and market
realities, promotes accuracy, mix of expertise and technology, and requires
collaboration, barriers to be overcome
Examples of barriers to be overcome - Answer-conflicting goals, commitment phobia,
data scarcity, and lack of experience
Forecasting process - Answer-define purpose, establish time horizon, select tools,
analyze data, create forecast, and monitor accuracy
Being proactive builds - Answer-capabilities, capacity, and control in advance of needs
Short term bottleneck solutions - Answer-better use of human resources, increase
facility capacity
Concurrent - Answer-shift based on demand and is challenging
Conservative (lagging) - Answer-waiting until demand is needed and so you have unmet
demand
Risks in forecasting - Answer-conflicting goals, commitment phobia, limited or flawed
data, inexperience
How does hurricane Harvey affect supply chains and supply chains planning? - Answer-
Capacity is stretched thin, forecasts are highly inaccurate, schedules are disrupted,
, network may be inoperable, inventory disappears quickly, and difficult to replenish
shelves
Scheduling - Answer-allocation of resources to activities over time so that demands are
met in a timely and cost-effective manner
Sequencing - Answer-order of occurrence; process of following a specific order to
ensure quality
What must be considered in production planning? - Answer-The end item being created,
the component parts used to make the item, how much is required at a time, when the
quantities are required to meet demand, and shelf life of stored materials
Independent demand - Answer-end item
Dependent demand - Answer-component parts
What does product planning requires a focus on? - Answer-Inventory levels and lead
times
Materials requirement planning - Answer-a tool to deal with over/ under purchasing of
key input items (materials and subassemblies)
What does MRP answer? - Answer-What are we going to make? What have we got?
What does it take to make it? And what do we have to get and when?
What are the parts of an MRP system? - Answer-Authorized master production
schedule, inventory record file, bill of material file, and primary out
Primary output - Answer-schedule of replenishing orders (timing and quantity)
Gross requirements - Answer-total expected demand for end item or component in a
time period
Projected on- hand - Answer-amount of inventory that will be on hand at the beginning
of each time period
Projected on hand - Answer-amount of inventory that will be on hand at the beginning of
each tie period; on hand inventory + scheduled receipts
Net requirements - Answer-the actual amount that we need to purchase in each time
period; gross requirements - projected on hand
Planned- order release - Answer-planned amount to order in each time period; net
requirements offset by lead-time
CORRECT ANSWERS (ALREADY
PASSED)
Why is capacity relevant to SCM? - Answer-Impacts ability to meet demand, influences
operating costs, and affects competitiveness
Key capacity issues - Answer-long term vs. short term and managing bottlenecks
Three step process for capacity planning decisions - Answer-determine capacity
requirements, identify capacity alternatives, and evaluate capacity alternatives
Capacity planning strategies - Answer-proactive, concurrent, and lagging
Key forecasting requirements - Answer-demand driven, based on facts and market
realities, promotes accuracy, mix of expertise and technology, and requires
collaboration, barriers to be overcome
Examples of barriers to be overcome - Answer-conflicting goals, commitment phobia,
data scarcity, and lack of experience
Forecasting process - Answer-define purpose, establish time horizon, select tools,
analyze data, create forecast, and monitor accuracy
Being proactive builds - Answer-capabilities, capacity, and control in advance of needs
Short term bottleneck solutions - Answer-better use of human resources, increase
facility capacity
Concurrent - Answer-shift based on demand and is challenging
Conservative (lagging) - Answer-waiting until demand is needed and so you have unmet
demand
Risks in forecasting - Answer-conflicting goals, commitment phobia, limited or flawed
data, inexperience
How does hurricane Harvey affect supply chains and supply chains planning? - Answer-
Capacity is stretched thin, forecasts are highly inaccurate, schedules are disrupted,
, network may be inoperable, inventory disappears quickly, and difficult to replenish
shelves
Scheduling - Answer-allocation of resources to activities over time so that demands are
met in a timely and cost-effective manner
Sequencing - Answer-order of occurrence; process of following a specific order to
ensure quality
What must be considered in production planning? - Answer-The end item being created,
the component parts used to make the item, how much is required at a time, when the
quantities are required to meet demand, and shelf life of stored materials
Independent demand - Answer-end item
Dependent demand - Answer-component parts
What does product planning requires a focus on? - Answer-Inventory levels and lead
times
Materials requirement planning - Answer-a tool to deal with over/ under purchasing of
key input items (materials and subassemblies)
What does MRP answer? - Answer-What are we going to make? What have we got?
What does it take to make it? And what do we have to get and when?
What are the parts of an MRP system? - Answer-Authorized master production
schedule, inventory record file, bill of material file, and primary out
Primary output - Answer-schedule of replenishing orders (timing and quantity)
Gross requirements - Answer-total expected demand for end item or component in a
time period
Projected on- hand - Answer-amount of inventory that will be on hand at the beginning
of each time period
Projected on hand - Answer-amount of inventory that will be on hand at the beginning of
each tie period; on hand inventory + scheduled receipts
Net requirements - Answer-the actual amount that we need to purchase in each time
period; gross requirements - projected on hand
Planned- order release - Answer-planned amount to order in each time period; net
requirements offset by lead-time
