CSCA EXAM 2025/2026 WITH 100% ACCURATE ANSWERS
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.
, CSCA EXAM 2025/2026 WITH 100% ACCURATE ANSWERS
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.
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.
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.
, CSCA EXAM 2025/2026 WITH 100% ACCURATE ANSWERS
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.
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.
