P370 Final || Questions and 100% Verified Answers.
4 views 0 purchase
Course
P370
Institution
P370
aggregate production planning correct answers a managerial statement of time-phased production rates, work-force levels, and inventory investment, which takes into account customer requirements and capacity limitations
- helps us attain our goals in the best way possible
- Tactical Planning
- ...
P370 Final || Questions and 100% Verified Answers.
aggregate production planning correct answers a managerial statement of time-phased production
rates, work-force levels, and inventory investment, which takes into account customer
requirements and capacity limitations
- helps us attain our goals in the best way possible
- Tactical Planning
- helps us make decisions around our 3 capital intensive resources (production rates, workforce
levels, and inventory investment)
characteristics of APP correct answers 1. Aggregate: to combine
- classes of products
- labor or other inputs
- geographic location of production
- often fictitious (abstract)
2. Time Horizon: MEDIUM TERM
- APP is the plan with the longest time horizon
3. Time Buckets: divisions of horizons
4. The actual length of the horizon and the size of the time buckets it is divided into will vary
depending on the NATURE OF YOUR BUSINESS
- industry with rapid new product development/high variability will have SHORT HORIZON
with SHORT TIME BUCKETS
- industry with long lead times and stable products will have LONGER HORIZONS and/or
LARGER TIME BUCKETS
- typically one year with one month buckets
3. Executed on Rolling Horizon basis along with all other levels of plans
- working into the future; means that we do not wait for the entire plan to have been executed to
develop a new one
Lower Levels of Planning (after APP) correct answers Gets more specific as we go down:
1. Master Production Scheduling (MPS)—after APP
- 1st level of disaggregation of the aggregate plan
- begin to "break down" the "products" into more real end product items
- horizon and buckets are NO LARGER than APP (OFTEN SHORTER)
- typically implemented on rolling horizon
- typically formulated and evaluated at a lower organizational level than the APP
2. Material Requirements Planning (MRP)—after MPS
- Extreme detail, down to each nut and bolt
- no "fictitious, aggregated" products are used
, 3. Shop Floor Scheduling—after MRP
- detailed, actual production schedule
Three Pure "General" Aggregate Plans (uses labor, production rate, inventory) correct answers 1.
Chase
- Inventory constant
- production and labor fluctuate to perfectly match demand and thus maintain no inventory
- OPPOSITE OF LEVEL
- aka amount produced in any given period is equal to the minimum amount required to satisfy
demand for that period (EI in any given period is 0)
- hiring and firing workers
- use chase: when highly seasonal, when holding costs are high, unskilled labor, short product
life cycle, perishable goods, services
2. Level
- Inventory fluctuates
- Constant workforce/production level, allowing changes in inventory to buffer you from the
changes in demand level
3. Stable Workforce -- Variable Hours
- size of workforce is constant, but number of hours worked fluctuates
- allows variable working hours to buffer against variation
- allows production to vary from period to period, with the intent of keeping inventory as low as
possible (aka EI is 0); however, don't hire and fire workers, just alter the number of hours they
need to work
Types of Inventory correct answers 1. Raw material: inventory which has not yet undergone any
transformation by the company
- can be highly processed parts, just so long as all processing was performed outside of the
operational unit in question
- procurement agent: purchases raw materials; is the stakeholder
2. Work-in-process (WIP): inventory which has already undergone some transformation by the
operational unit, but is not yet completed
- Scheduling people run this and are the stakeholders
3. Finished good: inventory which has undergone all transformations to be performed at the
operational unit, and which is therefore ready to be passed onto the customer
- marketing is the stakeholder
Reasons for Holding Inventory correct answers 1. Safety stock: inventory which is being held to
buffer against some form of uncertainty
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R213,67. You're not tied to anything after your purchase.
