Aggregate planners attempt to balance: Which one of the following is not a basic option for altering demand? One option for altering the availability of capacity is: The output of MRP is: The MRP input listing the assemblies, sub assembles, parts, and raw materials needed to produce one unit of finished product is the: Which phrase or term is most clearly associated with the acronym BOM?
The correct answer and explanation is:
1. Aggregate planners attempt to balance:
- Answer: Demand and capacity.
Explanation: Aggregate planning focuses on balancing supply and demand over a specific time horizon, typically ranging from 2 to 18 months. This involves ensuring that the resources (like labor, equipment, and materials) are sufficient to meet expected customer demand while minimizing costs and maintaining operational efficiency. Aggregate planners use various strategies, including adjusting production rates, workforce levels, and inventory levels, to address fluctuations in demand. The goal is to align production capacity with demand patterns to avoid overproduction, underutilization, or stockouts.
2. Which one of the following is not a basic option for altering demand?
- Answer: Subcontracting.
Explanation: Basic options for altering demand typically include pricing strategies, advertising or promotional activities, backordering, and developing new demand sources. Subcontracting, on the other hand, is a strategy for adjusting capacity rather than demand. It involves outsourcing production to external providers when internal capacity is insufficient to meet demand. While it can help balance supply and demand, subcontracting does not directly alter demand levels; instead, it adjusts the availability of capacity.
3. One option for altering the availability of capacity is:
- Answer: Overtime.
Explanation: To match production capacity with demand, businesses can adjust the availability of capacity through measures like overtime, hiring or laying off workers, subcontracting, and adjusting inventory levels. Overtime is a commonly used strategy to increase capacity temporarily by extending working hours for existing employees. This approach is often more cost-effective and quicker to implement than hiring new workers but can lead to employee fatigue if used excessively.
4. The output of MRP is:
- Answer: Planned orders.
Explanation: Material Requirements Planning (MRP) systems generate planned orders, which indicate the quantity and timing of materials or components required for production. These planned orders help ensure that materials are available when needed while avoiding overstocking or shortages. MRP outputs also include order releases, rescheduling notices, and inventory status updates, aiding in efficient production scheduling and inventory management.
5. The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the:
- Answer: Bill of Materials (BOM).
Explanation: The Bill of Materials (BOM) is a hierarchical list detailing all components, subassemblies, and raw materials required to manufacture a finished product. It serves as a blueprint for production, ensuring that all necessary elements are identified and available. The BOM is essential for accurate MRP calculations, as it determines the quantities and relationships between components and final products.
6. Which phrase or term is most clearly associated with the acronym BOM?
- Answer: Product structure tree.
Explanation: A product structure tree visually represents the Bill of Materials (BOM), showing the hierarchical relationship between the finished product and its components. This graphical representation helps planners and engineers understand the assembly process and interdependencies within the product structure, enabling efficient material planning and resource allocation.