Question 1: Theoretical questions (5 x 4 p)

a. What is a resource bill? At what level in the planning hierarchy is it used?

b. What would happen if the planning horizon for the master schedule were too short? Why?

c. What is measured or demonstrated capacity? How is it different from rated capacity?

d. What are the relevant costs to be considered when deciding whether to take a quantity discount? On what basis should the decision be made?

e. Describe how changes in demand will affect the order quantity when using the periodic review system.

Question 2: Production plan (10 p)

Make a level production plan for the following make-to-order situation.

Beware: the backlog must be diminished to 9,900 units in December.

Month	August	September	October	November	December	Total
Working days	22	21	14	23	20
Demand forecast	21,200	30,800	24,100	36,200	25,600
Planned production
Backlog 12,000					9,900	-

Question 3: Master Production Schedule (10 p)

Finish the following table. The demand time fence is until the end of week 3 and

the order quantity is 400 units.

Week	0	1	2	3	4	5	6
Demand forecast	-	220	208	206	244	216	232
Customer orders	-	212	224	232	214	220	190
Projected available	280
MPS	-
ATP	-

Question 4: Scheduling (6 p)

Back schedule the following work order. Time is in days. Move time between

operations is always 1 day. Consider this as lead time in between two work

centers. The order must be available in the warehouse on day 49.

Operation	Work center	Arrival date	Queue time	Operation time	Wait time	Finish date
10	A		2	2	1
20	B		3	5	1
30	C		1	2	1
40	Warehouse	49	-	-	-	-