APICS Certified in Production and Inventory Management Flashcards

What is the primary output of the Material Requirements Planning (MRP) process?

Answer: Planned order releases and action messages

MRP produces planned order releases and exception action messages to direct purchasing and production.

A company experiences high variability in customer demand. Which inventory replenishment policy best adapts to this variability?

Answer: Min-max system

A min-max (reorder point) system triggers replenishment when stock drops below a minimum level, adapting to demand variability.

Which master scheduling input directly converts customer orders and forecasts into specific end-item production quantities?

Answer: Demand management process

Demand management consolidates forecasts and customer orders into the demand signal used to build the MPS.

Under the Economic Order Quantity (EOQ) model, what happens to the optimal order quantity if annual demand doubles?

Answer: It increases by approximately 41%

EOQ is proportional to the square root of demand, so doubling demand increases EOQ by √2 ≈ 1.41.

Which scheduling rule gives priority to the job with the least amount of time remaining until its due date?

Answer: Earliest due date (EDD)

Earliest due date prioritizes jobs by their due date, minimizing the number of late jobs.

What does 'available-to-promise' (ATP) tell a sales representative?

Answer: The uncommitted supply that can be allocated to new customer orders

ATP is the quantity of supply not yet committed to customer orders, enabling accurate delivery promises.

Which type of production environment is best suited for a repetitive manufacturing process with a continuous flow?

Answer: Flow shop (line)

Flow shops arrange resources in a fixed sequence matching the product's routing, ideal for repetitive high-volume production.