MonthJanFebMarAprMayJunJulAug
Unit Sales12,00026,00026,00021,00020,00020,00015,00020,000
Production20,00020,00020,00020,00020,00020,00020,00020,000
The supply management department learns that one of its retailers is planning a promotional event on August
1st that it expects will require an additional 19,000 units. There are 5,000 units in stock for the beginning of
January, and maximum inventory holding is 15,000 units.
How many units per month should production increase in order to meet the requirements of its retailer and
minimize overall inventory levels?
Over the past 90 days, a buying company's manufacturing engineers have reported an increase in the number
of defective parts received from a key supplier. The engineers report that there are three different types of
defects occurring, and that they are all being discovered during production. The supplier states that it does not
have enough resources to assess the root cause of the three types of defects all at one time. Which of the
following should the buying firm do in this instance?
Which of the following is TRUE’
An ERP purchasing module indicates a gross requirement of 100 units for part number A123. There is an open
purchase order for 55 units. The item master for this supplier shows an order lot size of 30 units each. In this
situation, how many units of this part will the exception report indicate should be ordered7
A firm needs to provide raw materials to accommodate a recent increase in manufacturing production. The
supply manager uses the material forecast from the material requirements planning (MRP) software and the
storage capacity from the warehouse management system (WMS) to forecast the firm's requirements. Which
of the following will impact this forecast MOST significantly?
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