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Certified in Production and Inventory Management Questions 181–185 (page: 38)

Updated On: 9-Feb-2026

Checking ______________ is a two step process. First the order must be scheduled to see when the capacity is needed, and second, the load on work centers must be checked in that period.

  1. Capacity availability
  2. Capacity utilized
  3. Capacity required
  4. None of these

Answer(s): A



Projected available balance is calculated in which one of the following ways?

  1. PAB=prior period PAB or on-hand balance + MPS ­ customer orders
  2. PAB=prior period PAB + MPS ­ greater of customer orders or forecast
  3. Both of these depending on whether the period is before or after the period is before or after the demand time fence
  4. None of these

Answer(s): C



A company wants to minimize the cost of manufacture and also be flexible enough to adapt to changing needs. Changes to production schedules can result in the following EXCEPT:

  1. Cost increases due to rerouting, rescheduling, extra setups, expediting, and buildup of work-in-process inventory
  2. Decreased customer service. A change in quantity of delivery can disrupt the schedule of other orders
  3. Loss of credibility for the MPS and the planning process
  4. Process create more scraps than needed than needed

Answer(s): D



Frozen zone, slushy zone and liquid zone are the part of

  1. MPS
  2. Planning time fence
  3. Projected available balance
  4. Scheduled receipts

Answer(s): B



Any changes can be made to the MPS as long as it is within the limits set by the production plan. Changes are routine and are often made by the computer program.
This is the scenario in zone of time fence.

  1. Slushy Zone
  2. Frozen Zone
  3. Liquid Zone
  4. None of these

Answer(s): C



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