The core issue described is a misalignment between demand plans and production/supply plans, leading to both excess and shortage problems. Implementing a robust S&OP process is the foundational step to create a single, agreed-upon plan that balances demand, supply, and financial goals. This alignment at the aggregate level is a prerequisite for effective execution via MPS, MRP, and CRP. The other options address symptoms (like stockouts) or are tactical solutions that may not solve the root cause of misalignment.

Queue time is a component of manufacturing lead time that represents the time a job spends waiting at a work center before the setup or run operations begin. It is non-value-added time but is a critical factor in lead time planning. The 3-day lead time is the total cumulative lead time. The 2 hours of machining is run time. The time to move the part is move time.

The ROP is calculated as (Average Demand during Lead Time) + Safety Stock. With a lead time increase from 2 to 3 weeks, the demand during lead time has effectively increased by 100 units (1 extra week of average demand). The existing safety stock is designed for variability *within* the normal 2-week lead time. The most prudent and immediate action is to proactively order to cover the known, specific risk of the extended lead time for this cycle. Recalculating the ROP (option B) is a good systemic change but doesn’t address the imminent risk for the order already in the pipeline.

A heijunka box is a physical scheduling tool used to level production. It helps sequence different product types (mix leveling) and smooth out the total quantity produced (volume leveling) over time (e.g., a day or shift). This prevents batching and creates a steady, predictable flow, which is a cornerstone of lean systems. It directly addresses the waste of unevenness (mura).

Total Cost of Ownership (TCO) is a comprehensive assessment of all costs associated with acquiring, using, and maintaining a good or service from a particular supplier. It moves beyond the purchase price to include factors like quality costs (scrap, rework), delivery reliability (expediting, downtime), administrative costs, and service costs. The scenario describes evaluating these broader cost drivers. Strategic sourcing (B) is the overall process, and SRM (D) is the ongoing management; TCO is a key analytical tool used within both.

In capacity management, losses are categorized. Performance loss refers to speed losses—when equipment runs slower than its ideal or rated speed. This includes minor stoppages, idling, and reduced speed operation, which aligns with the ‘frequent, short adjustments’ causing the machine to not run at its optimal pace. Utilization loss is about the machine not being available to run (e.g., breakdowns). Efficiency loss is a broader term often synonymous with performance loss in some models, but the APICS framework often distinguishes performance as the speed component.

The five focusing steps of the Theory of Constraints (TOC) are: 1) IDENTIFY the system’s constraint(s). 2) Decide how to EXPLOIT the constraint(s) (get the most out of it). 3) SUBORDINATE everything else to the above decision (align the rest of the system to support the constraint). 4) ELEVATE the constraint(s) (increase its capacity). 5) If the constraint is broken in the previous step, go back to step 1 (REPEAT), and do not let inertia become the new constraint.

MRP logic is driven by time-phased explosion. The planned order release date for a parent item becomes the source of demand for its components. This demand appears in the component’s MRP record as **gross requirements** in the time period corresponding to the parent’s order release date. Scheduled receipts are open orders, projected on-hand is a calculated field, and firm planned orders are a type of controlled order.

The Pareto principle (80/20 rule) applied to inventory suggests that ‘A’ items, having the highest financial impact, deserve the most management attention. This translates to frequent review (often perpetual inventory systems), detailed record accuracy, tight control over lot sizes and safety stock, and possibly more sophisticated forecasting methods. The goal is to minimize the capital tied up in these high-value items while ensuring high service levels.

The core issue described is a misalignment between demand plans and production/supply plans, leading to both excess and shortage problems. Implementing a robust S&OP process is the foundational step to create a single, agreed-upon plan that balances demand, supply, and financial goals. This alignment at the aggregate level is a prerequisite for effective execution via MPS, MRP, and CRP. The other options address symptoms (like stockouts) or are tactical solutions that may not solve the root cause of misalignment.0