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Certified in Production and Inventory Management - Master Planning of Resources Questions 36–40 (page: 9)

Updated On: 10-Feb-2026

When the overall distribution requirements planning system is structured to achieve a high level of customer service, the outcome generally will be:

  1. lower inventory levels and lower total cost.
  2. higher inventory levels and higher total cost.
  3. lower inventory levels and higher total cost.
  4. higher inventory levels and lower total cost.

Answer(s): B



Production is being planned to emphasize the utilization of a critical and very expensive piece of capital equipment. Which of the following production planning strategies should be used?

  1. Chase
  2. Level
  3. Cost-based
  4. Combination

Answer(s): B



Which of the following items is required for making realistic customer promises?

  1. Feasible master schedules
  2. Procedures for managing abnormal demand
  3. Finished-goods safety stock
  4. A sales and operations planning process

Answer(s): A



In a capacity-constrained situation, which of the following actions is best to take if marketing wants to increase production of a master schedule item?

  1. Increase production of the item, but do not make any other changes.
  2. Increase production of the item, and decrease production of another item.
  3. Increase production of the item, and change the production plan.
  4. If the item is within the demand time fence, let the computer make the change automatically.

Answer(s): B



Which of the following issues is most likely to lead to the use of a short-term, rather than long-term, forecasting process?

  1. How to respond to a competitor's test marketing of a new product
  2. How to configure the supply chain to support a new market segment
  3. Whether to outsource a capital-intensive subassembly process
  4. Whether to take a price-leadership or a product-differentiation posture

Answer(s): A



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