Question

15. What is the production system that normally requires the most inventory of raw material items? A. Make-to-order B. Assemble-to-order C. Engineer-to-order D. Make-to-stock 16. Inside the demand time fence, which of the following is true? A. It is easy to change the master production schedule (MPS) B. Available-to-promise (ATP) calculations ignore customer orders and forecast C. New customer orders can only occasionally be accepted D. Marketing and logistics people could make any changes 17. The expected demand in October is 20,000 units, and there are 25 working days in October. The production rate is 10 units per day per employee. The initial inventory is 1,000 units, and the ending inventory target is 3,000 units. Following a chase strategy, how many employees would be needed in October? A. 16 B. 62 C. 88 D. 96

Answer 1

15. In assemble to order, the main inventory is of raw material which is assembled into the final products as desired by the customer, and there are few items in WIP or finished goods inventory.

B is correct.

16. C New customer orders can be occasionally accepted when there is some capacity available to promise.

17. Unites to be produced = demand -Inventory on hand + end inventory target

= 20000-1000 +3000 = 22000

Total units which can be produced by one worker in a month = 25x10 =250

Number of workers needed = 22000/25x10 =88

C is correct.