DOWNLOAD INTRODUCTION TO MATERIALS MANAGEMENT 7TH EDITION ARNOLD introduction to materials management pdf provide leaders and team members of projects, committees or task forces with advanced techniques. Introduction to Materials Management covers all the basics of supply chain management, manufacturing planning and control systems, purchasing, physical distribution and quality management. The material, examples, questions, and problems lead the student logically through the text. Document for Introduction To Materials Management 7th Edition is available in various format such as PDF, DOC and ePUB which you can directly download and save in in to your device. Introduction to Materials Management, Seventh Edition covers all the essentials of modern supply chain management, manufacturing planning and control systems, purchasing, and physical distribution. Clearly written and exceptionally user-friendly, its content, examples, questions, and problems lead students step-by-step to mastery.
[MzX.eBook] Introduction to Materials Management (8th Edition) By Steve Chapman, Tony K. Arnold, Ann K. Gatewood, Lloyd Clive
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Introduction To Management Pdf Textbook
9
Introduction to Materials Management 8th Edition Chapman SOLUTIONS MANUAL Full download: https://testbanklive.com/download/introduction-to-materials-management-8th-editionchapman-solutions-manual/ Introduction to Materials Management 8th Edition Chapman TEST BANK Full download: http://testbanklive.com/download/introduction-to-materials-management-8th-editionchapman-test-bank/
PRODUCTION PLANNING SYSTEM CHAPTER 2
ANSWERS TO PROBLEMS opening inventory + production – demand 400 + 700 – 900 = 200 units
2.1
Ending inventory = =
2.2
Total working days = 19 + 20 + 21 = Average daily production = 480 60 =
60 8 units
2.3
Total working days = 22 + 21 + 20 Average daily production = 25,000 63
= 63 = 396.8 units
2.4
Month 1 production Month 2 production Month 3 production
= = =
19 20 21
8.3 8.3 8.3
= = =
157.7 units 166 units 1174.3 units
2.5
Month 1 production Month 2 production Month 3 production
= = =
22 21 20
396.8 = 396.8 = 396.8 =
8729.6 units 8332.8 units 7936 units
2.6 Period
1
2
3
4
5
6
Forecast
750
800
1050
1600
1000
850
1000 1000
1000
1000
1000
1000
850 1050
1000
400
400
550
Planned production Planned 600 inventory
2.7 Period
1
2
3
4
5
6
Total
10
Forecast demand Planned production Planned inventory
100
Total production = Period production =
100
120
125
130
115
110
700
125
125
125
125
125
125
750
125
130
130
125
135
150
700 + 100 – 150 = 750 6 =
750 units 125 units
11
2.8 1
Period Forecast demand Planned production Planned inventory
2
1300 1200
550
875
875
125
200
3
4
5
6
Total
800
600
800
900
5600
875
875
875
875
125 150
225
200
5600 + 200 –550 = 5250 units 5250 6 = 875 units
Total production = Period production = 2.9 Period
1
Forecast demand Planned production Planned inventory
9
5
9
9
32
8
8
8
8
32
1
2
1
0
0
2
3
4
Total
a. 8 units b. period 1, minus 1 c. 9 units, ending inventory = 4 units 2.10
a. There is a stockout of 1 unit in period one. The cost will be: Stockout cost: 1 $500 = $500 Carrying cost: 3 $50 = 150 Total cost: = $650 c. Total period inventory = 0 + 5 + 3 + 4 = 12 units The cost will be = $50 12 = $600 Since there are no stockouts this will be the total cost of the plan.
5250
12
2.11
a. b. c. d.
Total production = 530 + 130 – 100 = 560 Daily production = 560/70 = 8 units The monthly production for May = 168 units The ending inventory for May = 153 units May
Month Working days Forecast demand Planned production Planned inventory
100
Jun
Jul
Aug
Total
21
19
20
10
70
115
125
140
150
530
168
152
160
80
560
153
180
200
130
2.12 Jan
Month Working days Forecast demand Planned production Planned inventory
500
Feb
Mar
Apr
May
Jun
Total
20
22
20
20
18
19
119
1300
1200
800
700
700
900
5600
899
989
899
899
810
854
5350
99
112
-13
186
296
250
Total production = 5600 + 250 – 500 = 5350 Daily production = 5350 119 = 44.95 units per day There will be a stockout of 112 units in February and 13 units in March.
13
2.13
Total production = 300 + 1080 – 200 = 1180 units Number of weeks available for production = 5.5 Average weekly level production = 1180 = 214.5 units 5.5 The nearest quantity that can be produced is 200 units on two shifts. In the second week there is a shutdown so production in that week that will be only 100 units. Total production so far = 5 200 + 100 = 1100 units The balance of 80 units can be made in week four when extra help is available. Opening inventory = 200 units Week Forecast demand Planned production Planned inventory
200
1
2
3
4
5
6
Total
120
160
240
240
160
160
1080
200
100
200
280
200
200
1180
280
220
180
220
260
300
2.14
Ending backlog = demand + opening backlog – production = 700 + 450 800 = 350 units
2.15
Total production
= demand + opening backlog – ending backlog = 3800 + 900 – 200 = 4500 units Weekly production = 4500 6 = 750 units Week Forecast demand Planned production Planned backlog
800
1
2
3
4
5
6
Total
750
700
550
700
600
500
3800
750
750
750
750
750
750
4500
800
750
550
500
350
100
14
2.16 Desired ending backlog = 1200 Note: All weekly production amounts determined using standard rounding rules. Total production = demand + opening backlog – ending backlog = 6800 + 1100 – 1200 = 6700 units Weekly production = 6700 6 = 1117 units Week Forecast demand Planned production Planned backlog
2.17
1100
1
2
3
4
5
6
Total
1200
1100
1200
1200
1100
1000
7300
1117
1117
1117
1117
1117
1117
7200
1183
1166
1249
1332
1315
1198
Total production = 112,500 + 9000 – 11,250 = 110,250 units Daily production = 110,000 75 = 1470 units Number of workers required = 1470/15 = 98 Actual daily production = 98 15 = 1470 units
1
Month Working days Forecast demand Planned production Planned inventory
11250
2
3
4
Total
20
24
12
19
28000
27500
28500
28500 112500
29400
35280
17640
27930 110250
12650
20430
9750
9180
75
15
2.18
Total production = 17900 + 800 – 1000 = 17700 Daily production = 17700/117 = 151.28 units Number of workers required = 151.28/9 = 16.81 Actual daily production = 17 9 = 153 units 1
Month Working days Forecast demand Planned production Planned inventory
1000
2
3
17 workers
4
5
6 19
Total
20
24
12
22
20
117
2800
3000
2700
3300
2900
3200 17900
3060
3672
1836
3366
3060
2907 17901
1260
1932
1068
1134
1294
1001
It is not possible to meet the ending inventory target because of the extra fraction of a worker needed. The only way to do it would be to reduce the number of workers to 16 at some point.
16
MULTIPLE CHOICE QUESTIONS 1.
The ability of manufacturing to produce goods and services is called: a. scheduling b. production planning c. capacity d. routing e. none of the above
2.
Priority in production planning relates to: a. routing b. how much of what is needed and when c. capacity d. an objective of the firm e. none of the above
3.
Which of the following is an input to the production plan? a. strategic business plan b. financial plan c. market plan d. engineering plan e. all of the above are inputs
4.
Which of the following plans has the longest planning horizon and the least level of detail? a. strategic business plan b. production plan c. master production schedule d. all of the above have the same level of detail e. none of the above
5.
In terms of INCREASING level of detail, which is the best sequence of activities? I. Material requirements planning. II. Master production scheduling. III. Production planning. a. I, II and III b. I, III, and II c. II, III, and I d. II, I, and III e. III, II, and I
17
6.
Over the time span of the production plan, which of the following can usually be varied to change capacity? a. work force b. inventories c. plant and equipment d. all of the above e. a and b above
7.
Which of the following is a characteristic of a production plan? a. time horizons are five years b. the production plan is for individual items c. the only objective is to have an efficient plant d. all of the above are characteristics of a production plan e. none of the above is characteristic of a production plan
8.
Determining the need for labor, machines, physical resources to meet the production objectives of the firm is called: a. production control b. production planning c. capacity planning d. all of the above e. none of the above
9.
The function of setting the limits or levels of manufacturing operations based on the market plan and resource availability is called: a. production planning b. production activity level c. capacity planning d. all of the above e. none of the above
10. A statement of a schedule of requirements for individual end items is called: a. a master production schedule b. a material requirements plan c. a production plan d. a capacity plan e. none of the above 11. Which of the following statements is most appropriate regarding production planning? a. a high level of detail is not needed b. a translation must be made from product demand to capacity demand c. product groups based on similarity of manufacturing process should be used in planning d. all of the above are true e. none of the above is true 12. Which of the following statements is best about sales and operations planning? a. it provides an means of updating the material requirements plan b. it includes only the marketing and production plans c. it is usually updated on a monthly basis d. it has no effect on inventory levels
18
13. Which of the following are characteristics of an MRPII system? I. It incorporates the plans of marketing, production and finance. II. It is a fully integrated planning and control system. III. It has feedback from the bottom up. a. I only b. II only c. III only d. I, II and III 14. For the purposes of production planning, product groups should be established on the basis of: a. market segments b. similarity of manufacturing process c. the availability of materials d. the availability of machinery e. all of the above 15. Which of the following is a basic strategy in developing a production plan? a. hybrid strategy b. production leveling c. chase strategy d. a and b above e. b and c above 16. A production planning strategy which turns away extra demand is called: a. production leveling b. demand matching c. hybrid strategy d. all of the above e. none of the above 17. Which basic production planning strategy will build inventory and avoid the costs of excess capacity? a. demand matching (chase) b. production leveling c. subcontracting d. all the above e. none of the above 18. Which basic production planning strategy avoids hiring and layoff costs and the costs of excess capacity? a. demand matching b. operation smoothing c. subcontracting d. all the above e. none of the above 19. If the opening inventory is 100 units, the sales are 500 units and the ending inventory is 200 units, then manufacturing must produce: a. 300 units
19
b. 400 units c. 500 units d. 600 units e. none of the above 20. Over a 10-week period the cumulative sales are forecast at 10,000 units, the opening inventory is 200 units and the closing inventory is to be 100 units. What should be the weekly planned production for level production? a. 990 b. 1000 c. 1010 d. 1030 e. none of the above 21. Firms will generally make-to-stock when: a. demand is unpredictable b. there are many product options c. delivery lead times are long d. all of the above e. none of the above 22. Firms will generally make-to-order when: a. products are produced to customer specifications b. there are many product options c. product is expensive to make and store d. all of the above e. none of the above 23. Which of the following information is needed to develop a make-to-stock production plan? I. Forecast by time period for the production plan. II. Opening inventory. III. Opening backlog of customer orders. IV. Desired ending inventory. a. I, II and III b. I, II and IV c. 1, III and IV d. II, III and IV e. none of the above 24. If the old backlog was 200 units, the forecast for the next period is 500 units, and production for the next period is 600 units, what will be the backlog at the end of the next period? a. 100 units b. 200 units c. 300 units d. 700 units e. 800 units
20
25. Which of the following is concerned with long-term planning of manufacturing activity? a. Sales and operations planning b. Master production scheduling c. MRP d. Production activity control e. Master planning 26. Which of the following is NOT a rule of Sales and Operations Planning? a. Product Groups need not be decided b. Planning units of measure need to be decided c. A planning horizon must include new product development time d. Performance review periods to be compared should be decided 27. Which of the following is a complete closed loop planning system that develops plans for all materials and operations? a. Capacity requirements planning b. Enterprise resource planning c. Supply chain management d. Material requirements planning 28. Which of the following represents the major reason for developing the production plan as part of Sales and Operations Planning? a. To decide how to best produce exactly what is in the sales plan b. To plan for resources required to produce to the agreed plan c. To plan a schedule for the production of individual products d. To plan the acquisition of new manufacturing facilities 29. Which of the following is true? I The strategic plan is stated in product terms II The strategic business plan is stated in financial terms III The strategic business plan is developed from the strategic plan a. I and II only b. I and III only c. II and III only d. I, II, and III e. None are correct 30. Which following best represents the concept of sustainability? a. The ability to make long production runs b. The ability to train labor effectively c. The ability to maintain the supplier base d. The ability to continue operation in the long term 31. When a company establishes a program to recycle or reuse products discarded or returned from customers it is typically called which of the following? a. Product return contract b. Reverse supply chain
21
c. d.
Customer servicing Resupply planning
32. Which of the following is most true about Sales and Operations Planning a. It usually is produced only once a year b. It usually includes only sales and manufacturing people c. It is typically done in financial terms d. It usually includes all functions at the executive level Answers. 1 10 19 28
c a d b
2 11 20 29
b d a c
3 12 21 31
e c e b
4 13 22 32
a d d d
5 e 14 b 23 b
6 e 15 e 24 a
7 e 16 e 25 a
8 c 17 b 26 a
9 a 18 c 27 b
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PRODUCTION PLANNING SYSTEM CHAPTER 2
ANSWERS TO PROBLEMS opening inventory + production – demand 400 + 700 – 900 = 200 units
2.1
Ending inventory = =
2.2
Total working days = 19 + 20 + 21 = Average daily production = 480 60 =
60 8 units
2.3
Total working days = 22 + 21 + 20 Average daily production = 25,000 63
= 63 = 396.8 units
2.4
Month 1 production Month 2 production Month 3 production
= = =
19 20 21
8.3 8.3 8.3
= = =
157.7 units 166 units 1174.3 units
2.5
Month 1 production Month 2 production Month 3 production
= = =
22 21 20
396.8 = 396.8 = 396.8 =
8729.6 units 8332.8 units 7936 units
2.6 Period
1
2
3
4
5
6
Forecast
750
800
1050
1600
1000
850
1000 1000
1000
1000
1000
1000
850 1050
1000
400
400
550
Planned production Planned 600 inventory
2.7 Period
1
2
3
4
5
6
Total
10
Forecast demand Planned production Planned inventory
100
Total production = Period production =
100
120
125
130
115
110
700
125
125
125
125
125
125
750
125
130
130
125
135
150
700 + 100 – 150 = 750 6 =
750 units 125 units
11
2.8 1
Period Forecast demand Planned production Planned inventory
2
1300 1200
550
875
875
125
200
3
4
5
6
Total
800
600
800
900
5600
875
875
875
875
125 150
225
200
5600 + 200 –550 = 5250 units 5250 6 = 875 units
Total production = Period production = 2.9 Period
1
Forecast demand Planned production Planned inventory
9
5
9
9
32
8
8
8
8
32
1
2
1
0
0
2
3
4
Total
a. 8 units b. period 1, minus 1 c. 9 units, ending inventory = 4 units 2.10
a. There is a stockout of 1 unit in period one. The cost will be: Stockout cost: 1 $500 = $500 Carrying cost: 3 $50 = 150 Total cost: = $650 c. Total period inventory = 0 + 5 + 3 + 4 = 12 units The cost will be = $50 12 = $600 Since there are no stockouts this will be the total cost of the plan.
5250
12
2.11
a. b. c. d.
Total production = 530 + 130 – 100 = 560 Daily production = 560/70 = 8 units The monthly production for May = 168 units The ending inventory for May = 153 units May
Month Working days Forecast demand Planned production Planned inventory
100
Jun
Jul
Aug
Total
21
19
20
10
70
115
125
140
150
530
168
152
160
80
560
153
180
200
130
2.12 Jan
Month Working days Forecast demand Planned production Planned inventory
500
Feb
Mar
Apr
May
Jun
Total
20
22
20
20
18
19
119
1300
1200
800
700
700
900
5600
899
989
899
899
810
854
5350
99
112
-13
186
296
250
Total production = 5600 + 250 – 500 = 5350 Daily production = 5350 119 = 44.95 units per day There will be a stockout of 112 units in February and 13 units in March.
13
2.13
Total production = 300 + 1080 – 200 = 1180 units Number of weeks available for production = 5.5 Average weekly level production = 1180 = 214.5 units 5.5 The nearest quantity that can be produced is 200 units on two shifts. In the second week there is a shutdown so production in that week that will be only 100 units. Total production so far = 5 200 + 100 = 1100 units The balance of 80 units can be made in week four when extra help is available. Opening inventory = 200 units Week Forecast demand Planned production Planned inventory
200
1
2
3
4
5
6
Total
120
160
240
240
160
160
1080
200
100
200
280
200
200
1180
280
220
180
220
260
300
2.14
Ending backlog = demand + opening backlog – production = 700 + 450 800 = 350 units
2.15
Total production
= demand + opening backlog – ending backlog = 3800 + 900 – 200 = 4500 units Weekly production = 4500 6 = 750 units Week Forecast demand Planned production Planned backlog
800
1
2
3
4
5
6
Total
750
700
550
700
600
500
3800
750
750
750
750
750
750
4500
800
750
550
500
350
100
14
2.16 Desired ending backlog = 1200 Note: All weekly production amounts determined using standard rounding rules. Total production = demand + opening backlog – ending backlog = 6800 + 1100 – 1200 = 6700 units Weekly production = 6700 6 = 1117 units Week Forecast demand Planned production Planned backlog
2.17
1100
1
2
3
4
5
6
Total
1200
1100
1200
1200
1100
1000
7300
1117
1117
1117
1117
1117
1117
7200
1183
1166
1249
1332
1315
1198
Total production = 112,500 + 9000 – 11,250 = 110,250 units Daily production = 110,000 75 = 1470 units Number of workers required = 1470/15 = 98 Actual daily production = 98 15 = 1470 units
1
Month Working days Forecast demand Planned production Planned inventory
11250
2
3
4
Total
20
24
12
19
28000
27500
28500
28500 112500
29400
35280
17640
27930 110250
12650
20430
9750
9180
75
15
2.18
Total production = 17900 + 800 – 1000 = 17700 Daily production = 17700/117 = 151.28 units Number of workers required = 151.28/9 = 16.81 Actual daily production = 17 9 = 153 units 1
Month Working days Forecast demand Planned production Planned inventory
1000
2
3
17 workers
4
5
6 19
Total
20
24
12
22
20
117
2800
3000
2700
3300
2900
3200 17900
3060
3672
1836
3366
3060
2907 17901
1260
1932
1068
1134
1294
1001
It is not possible to meet the ending inventory target because of the extra fraction of a worker needed. The only way to do it would be to reduce the number of workers to 16 at some point.
16
MULTIPLE CHOICE QUESTIONS 1.
The ability of manufacturing to produce goods and services is called: a. scheduling b. production planning c. capacity d. routing e. none of the above
2.
Priority in production planning relates to: a. routing b. how much of what is needed and when c. capacity d. an objective of the firm e. none of the above
3.
Which of the following is an input to the production plan? a. strategic business plan b. financial plan c. market plan d. engineering plan e. all of the above are inputs
4.
Which of the following plans has the longest planning horizon and the least level of detail? a. strategic business plan b. production plan c. master production schedule d. all of the above have the same level of detail e. none of the above
5.
In terms of INCREASING level of detail, which is the best sequence of activities? I. Material requirements planning. II. Master production scheduling. III. Production planning. a. I, II and III b. I, III, and II c. II, III, and I d. II, I, and III e. III, II, and I
17
6.
Over the time span of the production plan, which of the following can usually be varied to change capacity? a. work force b. inventories c. plant and equipment d. all of the above e. a and b above
7.
Which of the following is a characteristic of a production plan? a. time horizons are five years b. the production plan is for individual items c. the only objective is to have an efficient plant d. all of the above are characteristics of a production plan e. none of the above is characteristic of a production plan
8.
Determining the need for labor, machines, physical resources to meet the production objectives of the firm is called: a. production control b. production planning c. capacity planning d. all of the above e. none of the above
9.
The function of setting the limits or levels of manufacturing operations based on the market plan and resource availability is called: a. production planning b. production activity level c. capacity planning d. all of the above e. none of the above
10. A statement of a schedule of requirements for individual end items is called: a. a master production schedule b. a material requirements plan c. a production plan d. a capacity plan e. none of the above 11. Which of the following statements is most appropriate regarding production planning? a. a high level of detail is not needed b. a translation must be made from product demand to capacity demand c. product groups based on similarity of manufacturing process should be used in planning d. all of the above are true e. none of the above is true 12. Which of the following statements is best about sales and operations planning? a. it provides an means of updating the material requirements plan b. it includes only the marketing and production plans c. it is usually updated on a monthly basis d. it has no effect on inventory levels
18
13. Which of the following are characteristics of an MRPII system? I. It incorporates the plans of marketing, production and finance. II. It is a fully integrated planning and control system. III. It has feedback from the bottom up. a. I only b. II only c. III only d. I, II and III 14. For the purposes of production planning, product groups should be established on the basis of: a. market segments b. similarity of manufacturing process c. the availability of materials d. the availability of machinery e. all of the above 15. Which of the following is a basic strategy in developing a production plan? a. hybrid strategy b. production leveling c. chase strategy d. a and b above e. b and c above 16. A production planning strategy which turns away extra demand is called: a. production leveling b. demand matching c. hybrid strategy d. all of the above e. none of the above 17. Which basic production planning strategy will build inventory and avoid the costs of excess capacity? a. demand matching (chase) b. production leveling c. subcontracting d. all the above e. none of the above 18. Which basic production planning strategy avoids hiring and layoff costs and the costs of excess capacity? a. demand matching b. operation smoothing c. subcontracting d. all the above e. none of the above 19. If the opening inventory is 100 units, the sales are 500 units and the ending inventory is 200 units, then manufacturing must produce: a. 300 units
19
b. 400 units c. 500 units d. 600 units e. none of the above 20. Over a 10-week period the cumulative sales are forecast at 10,000 units, the opening inventory is 200 units and the closing inventory is to be 100 units. What should be the weekly planned production for level production? a. 990 b. 1000 c. 1010 d. 1030 e. none of the above 21. Firms will generally make-to-stock when: a. demand is unpredictable b. there are many product options c. delivery lead times are long d. all of the above e. none of the above 22. Firms will generally make-to-order when: a. products are produced to customer specifications b. there are many product options c. product is expensive to make and store d. all of the above e. none of the above 23. Which of the following information is needed to develop a make-to-stock production plan? I. Forecast by time period for the production plan. II. Opening inventory. III. Opening backlog of customer orders. IV. Desired ending inventory. a. I, II and III b. I, II and IV c. 1, III and IV d. II, III and IV e. none of the above 24. If the old backlog was 200 units, the forecast for the next period is 500 units, and production for the next period is 600 units, what will be the backlog at the end of the next period? a. 100 units b. 200 units c. 300 units d. 700 units e. 800 units
20
25. Which of the following is concerned with long-term planning of manufacturing activity? a. Sales and operations planning b. Master production scheduling c. MRP d. Production activity control e. Master planning 26. Which of the following is NOT a rule of Sales and Operations Planning? a. Product Groups need not be decided b. Planning units of measure need to be decided c. A planning horizon must include new product development time d. Performance review periods to be compared should be decided 27. Which of the following is a complete closed loop planning system that develops plans for all materials and operations? a. Capacity requirements planning b. Enterprise resource planning c. Supply chain management d. Material requirements planning 28. Which of the following represents the major reason for developing the production plan as part of Sales and Operations Planning? a. To decide how to best produce exactly what is in the sales plan b. To plan for resources required to produce to the agreed plan c. To plan a schedule for the production of individual products d. To plan the acquisition of new manufacturing facilities 29. Which of the following is true? I The strategic plan is stated in product terms II The strategic business plan is stated in financial terms III The strategic business plan is developed from the strategic plan a. I and II only b. I and III only c. II and III only d. I, II, and III e. None are correct 30. Which following best represents the concept of sustainability? a. The ability to make long production runs b. The ability to train labor effectively c. The ability to maintain the supplier base d. The ability to continue operation in the long term 31. When a company establishes a program to recycle or reuse products discarded or returned from customers it is typically called which of the following? a. Product return contract b. Reverse supply chain
21
c. d.
Customer servicing Resupply planning
32. Which of the following is most true about Sales and Operations Planning a. It usually is produced only once a year b. It usually includes only sales and manufacturing people c. It is typically done in financial terms d. It usually includes all functions at the executive level Answers. 1 10 19 28
c a d b
2 11 20 29
b d a c
3 12 21 31
e c e b
4 13 22 32
a d d d
5 e 14 b 23 b
6 e 15 e 24 a
7 e 16 e 25 a
8 c 17 b 26 a
9 a 18 c 27 b
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