When actual demand is lower than forecast, leading to excess planned inventory, the correct action is to adjust the MPS within the planning time fence. This involves rescheduling or canceling planned orders to align supply with the updated demand picture, preventing unnecessary inventory buildup. This is a core MPS management activity. Overtime (A) would worsen the problem, releasing the schedule (B) would commit to unneeded materials, and changing safety stock (D) is a longer-term policy change, not an immediate corrective action.

Planned order receipts are a key output of the MRP calculation. They are proposed, time-phased quantities that the system generates to cover net requirements. They are not yet firm or released; they are recommendations that planners can convert into firm planned orders or release as purchase/manufacturing orders. Options A, B, and D describe orders that have already been released or executed.

An uneven load pattern stemming from the MPS is best addressed at the planning level. Rough-cut capacity planning (RCCP) is the technique used to evaluate the feasibility of the MPS against key resource constraints. By adjusting the MPS based on RCCP feedback, the planner can smooth out the load profile before detailed MRP and capacity requirements planning (CRP) are run. Expediting (A) is a reactive shop-floor tactic. Adding a machine (B) changes rated capacity but doesn’t address the planning source of the imbalance. Shifting orders with PAC (C) deals with released orders, but the problem is identified at the future planning horizon.

The reorder point (ROP) formula is: ROP = (Average Daily Usage * Lead Time) + Safety Stock. Therefore, ROP = (50 units/day * 10 days) + 150 units = 500 units + 150 units = 650 units. The ROP is the inventory level that triggers a new order, covering expected demand during lead time plus a buffer for variability.

The sales and operations planning (S&OP) process culminates in an executive-approved, integrated business plan. The production plan is the component of this overall plan that expresses the manufacturing output strategy in aggregate terms (e.g., units per product family per period). The scenario describes reconciling sales desires with operational constraints to arrive at this aggregate production plan. The sales plan (B) is the initial input. The financial plan (C) translates the production plan into monetary terms. The master production schedule (D) is the disaggregated version of the production plan for specific end items.

Accurate on-hand inventory balances are a fundamental input to MRP. The MRP logic calculates net requirements by subtracting available inventory (on-hand and scheduled receipts) from gross requirements. Without an accurate starting point for inventory, the entire netting process and subsequent planned order generation will be flawed. While supplier lead time data is important, variability (A) is often accounted for in safety stock, not the core MRP calculation. Financial budgets (C) and labor schedules (D) are not direct inputs to the MRP explosion process.

This question tests the core concept of dependent vs. independent demand. Item X has dependent demand, which is calculated (not forecasted) via MRP based on the demand for its parent item. Item Y has independent demand, which must be forecasted using statistical models, market intelligence, or actual customer orders. Using MRP for independent demand (B) is incorrect. Using the same model (C) ignores this fundamental difference. Both dependent and independent demand items can require safety stock (D) to buffer against variability in supply or demand/lead time.

Planned orders generated by MRP are recommendations. To act on them, a planner must ‘firm’ them, converting them into firm planned orders or directly releasing them as purchase/manufacturing orders. This firming process typically occurs within the planning time fence, where the schedule is fixed to ensure stability. Checking dock capacity (A) is too detailed and occurs later. Asking sales for a forecast (C) is unrelated to executing an MRP output. RCCP (D) is for evaluating the MPS, not a specific component order.

Capacity Requirements Planning (CRP) calculates the detailed load on work centers based on released and planned orders. Available Capacity = Rated Capacity – Load. A negative available capacity means the Load is greater than the Rated Capacity, indicating an overload condition. It is a projected future issue, not a current breakdown (A). It signifies less idle time, not more (B). While low efficiency (D) can affect output, the negative figure is a direct result of the load vs. capacity calculation.

When actual demand is lower than forecast, leading to excess planned inventory, the correct action is to adjust the MPS within the planning time fence. This involves rescheduling or canceling planned orders to align supply with the updated demand picture, preventing unnecessary inventory buildup. This is a core MPS management activity. Overtime (A) would worsen the problem, releasing the schedule (B) would commit to unneeded materials, and changing safety stock (D) is a longer-term policy change, not an immediate corrective action.0