APICS Certified in Production and Inventory Management Flashcards

In a capacity requirements planning (CRP) analysis, which factor converts planned order quantities into machine or labor hours?

Answer: Routing file

The routing file contains operation sequences, work centers, and standard hours per unit used to calculate load.

Which supplier evaluation criterion focuses on the percentage of deliveries that arrive on or before the requested date?

Answer: On-time delivery performance

On-time delivery (OTD) rate measures the supplier's reliability in meeting requested delivery dates.

What is the purpose of a 'fence' in master production scheduling?

Answer: To define time periods within which changes to the MPS are restricted or require approval

Demand and planning fences protect the schedule from disruptive short-term changes that would destabilize production.

A product has a raw material cost of $50, direct labor of $20, and overhead of $30. What is its total standard cost?

Answer: $100

Total standard cost = raw material ($50) + direct labor ($20) + overhead ($30) = $100.

Which type of waste in Lean manufacturing refers to producing more than customer demand requires?

Answer: Overproduction

Overproduction is considered the worst of the seven wastes because it masks other problems and consumes resources unnecessarily.

In aggregate planning, which strategy adjusts production rates while keeping the workforce constant?

Answer: Level strategy

A level strategy maintains a steady output rate and workforce, using inventory or backorders to absorb demand changes.

Which document provides a complete list of all components, subassemblies, and raw materials required to build one unit of a finished product?

Answer: Bill of materials (BOM)

The bill of materials (BOM) defines the parent-component relationships and quantities needed to produce the finished item.