1

Identify the incorrect option from the following in context of functions of production planning and control.
Production planning and control function instructs Production function what to make
Production planning and control function instructs Production function when to make
Production planning and control function instructs Production function how to make
Production planning and control function instructs Production function where to make
2
Identify from the following which is not a production control function
Dispatching
Forecasting
Progressing
Expediting
3
Select from the following the production planning and control function related to the time table of activities
Routing
Scheduling
Dispatching
Expediting
4
Select from following which is not the function of Produciton, Planning &Control(PPC)?
Routing
Scheduling
Integration of processes
Expediting
5
Identify correct sequence of operations in production planning and control
Routing-Scheduling-Dispatching-Follow up
Scheduling-Routing- Dispatching-Follow up
Dispatching-Routing-Scheduling- Follow up
 Routing-Scheduling-Follow up-Dispatching
6
Identify from the following which forecasting technique makes use of pooling of expert opinion
statistical correlation
delphi technique
moving average method
exponential smoothing method
7
Choose from the following Which is not an attribute of moving average method of forecasting
It require large storage of demand data
it is easy to install
it gives unequal weight to demand in each of the most recent periods
it is not capable of taking into account trend and seasonality
8
Identify from the following non qualitative method of forecasting
executive opinions
sales force composites
the Delphi method
moving average
9
Identify the best statement about sales and operations planning (S&OP)
S&OP indicates how the organization will use its tactical capacity resources to meet expected customer demand.
S&OP should be expressed in sets of terms that hold meaning only for the individual departments of an organization.
S&OP is not performed in the short term.
S&OP should be conducted independently by each member of the supply chain.
10
Choose from the following the correct sequence of sales and operations planning
Demand Planning-Sales Forecasting-Supply Planning
Sales forecasting-Demand Planning-Supply Planning
 Supply Planning-Demand Planning-Supply forecasting
Demand Planning-Supply Planning-Sales Forecasting
11
Choose from the following the benefit of S&OP
Multiple forecasts
Function to function hand offs
Holistic approach with integration
Disconnected views
12
Identify the correct reason for managers' not using sophisticated planning models for aggregate planning because
research has demonstrated that such models seldom work well
the time periods addressed by such models are too long.
these models do not provide information pertinent to the decision at hand.
they view these models as overly complex and do not fully understand them.
13
Select from the following which is not an objective of aggegate planning
Minimize total cost over the planning horizon
Maximize customer service
Maximize utilization of plant and equipment
Maximizing sales forecast accuracy
14
Choose the correct planning horizon in terms of time period for aggregate plan
29 to 24 months
0 to 1 month
3 to 18 months
27 to 33 months
15
The economic order quantity model is compatible with JIT
True
False
16
A JIT production system would not include an emphasis on the quantity of individual output.
True
False
17
If the operation selects a sequencing approach which will appear fair to its customers it may choose Due date.
True
False
18
The ______ is(are) the MRP input detailing which end items are to be produced, when they are needed, and in what quantities.
master production schedule
gross requirements
inventory records
assembly time chart
19
A phantom bill of material is used ____________
when due dates have not been calculated
for sub-assemblies that are immediately consumed in the next stage of production
when the product is manufactured in major sub-assemblies
to group small, loose parts together

20
Margie's customer tells her that she needs a quilt for the customer's granddaughter's wedding in six months. In this case, it is best for Margie to
use _____ scheduling.
 backward
forward
net requirement
bill of materials

Assignment: 2

Instructions:

 Assignment 2 is based on the following text/paragraph of case study/situational exercise etc. You first need to read this text and
then answer the following MCMR i.e. Multiple choice multiple response questions.
 Number of Questions: 5
 Each question carries 2 Mark
 All Five Questions are Mandatory.
 Attempts: 1

On the recommendation of the demand forecast, an organisation can finalise its business plans. Once business plans are ready, from the final sales
unit to raw materials required, an organisation can do backward work. Annual and quarterly plans are therefore broken down over a medium-
range period (6 months to 18 months) into requirements for labour, raw materials, working capital, etc. This process is called aggregate planning
to work out production requirements for a medium range. Factors Affecting Aggregate Planning As it seeks to balance long-term strategic
planning with short-term production success, aggregate planning is an operational activity critical to the organisation. Before an aggregate
planning process can begin, the following variables are essential; • Complete information concerning available production facilities and raw
materials is required. • A strong forecast of demand covering the medium-range period • Financial planning for manufacturing costs, including
raw materials, labour, inventory planning, etc. • A policy of the organisation regarding labour management, quality management, etc. • To be a
success in aggregate planning, the following inputs are required; • For the relevant period, an aggregate demand forecast • Assessment of all the
means available to manage capacity planning, such as subcontracting, outsourcing, etc. • Existing workforce operational status (number, skill set,
etc.), inventory level and efficiency in production Aggregate planning will ensure that, following its strategic goal and objective, the organisation
can plan for the workforce level, inventory level and production rate. Aggregate planning is an Operational Tool. Aggregate planning helps to
achieve a balance between the organisation's operating objective, financial objective, and overall strategic objective. • In a situation in which
demand does not match capacity, an organisation can attempt to balance both pricing, promotion, order management and the creation of new
demands. • It serves to manage capacity and demand planning as a platform. • In situations where capacity does not meet demand, an
organisation can attempt to balance the two with different alternatives. • Laying off / hiring excess / insufficient excess / insufficient surplus /
insufficient labour until demand decreases / increases • Inclusion of overtime by creating additional capacity as part of scheduling there • Hiring a
temporary workforce or outsourcing activities to a sub-contractor for a fixed period. Importance of Aggregate Planning Aggregate scheduling
plays an important role in achieving the organisation long-term goals. The planning of aggregates helps in: • By reducing overall variable costs
and improving the bottom line, achieving financial objectives • The maximum utilisation of the production facility available • Providing customer
pleasure by matching demand and reducing customer waiting time • Reduce investment in the stock-inventory storage. Capable of achieving
scheduling objectives thereby creating a happy and satisfied workforce Aggregate Planning Strategies There are three types of aggregate planning
strategies available for the organisation to choose from. They are as follows: Level Strategy As the name suggests, the Level strategy seeks to
maintain a steady rate of production and the level of employees. Organizations require a robust forecast of demand in this strategy to increase or
decrease production in anticipation of lower or higher customer demand. Steady work is the advantage of the level strategy. High inventory and
increased back-logs are a disadvantage of the level strategy. Chase Strategy As the name suggests, the chase strategy looks to match demand with
production dynamically. Lower inventory levels and back-logs are a benefit of the chase strategy. Lower productivity, quality and depressed
work-force are disadvantageous. Hybrid Strategy The hybrid strategy seeks to balance, as the name suggests, between level strategy and chase
strategy.

2 Identify the incorrect statements from the folllowing

Yield management is the process of allocating resources to customers at prices that will minimize costs.
Pure services that cannot use inventory as an option to meet uneven demand find a level strategy appropriate.
Changing inventory levels is a capacity option for generating an aggregate plan.
Aggregate planning normally looks at the intermediate future.

3 Choose the correct statements from the following

A master schedule and a master production schedule are similar, but not exactly the same.
Aggregate planning is long-range planning (2 years or more) for large products.
A "level" strategy involves matching demand and capacity in each period.
Keeping a constant level of production in every time division of a planning period (month, week, etc.) is usually the best way
to perform aggregate planning.

4 In order to effectively prepare aggregate plan, estimates of which of the following items are not important
 Demand Forecast
Pending orders
Inventory storage capacity
Inventory ordering and carrying cost

5 Which of the following are not closely associated with disaggegation of aggregate plan

Breaking down the planning horizon

6 Choose the correct statements from the following

The goal of the aggregate planning process is usually to minimize costs over the planning period.
One possible disadvantage of a subcontracting option in aggregate planning is the loss of future business.
Graphical aggregate planning is useful because it usually leads to optimal solutions.
A producer that makes counterseasonal products like furnaces and air conditioners is adopting a capacity option for aggregate planning.