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Certified in Production and Inventory Management - Master Planning of Resources Questions and Answers

Questions 1

A firm uses the level production planning approach to produce a product family to stock. Senior management has requested that the finished-goods inventory for the product family be reduced by 18% over the sales and operations planning horizon. Which of the following statements best describes the relationship between total demand and total production required for the product family over the planning horizon?

Options:

A.  

Total production required and demand will be equal.

B.  

Total production required will be less than total demand.

C.  

Total production required will be greater than total demand.

D.  

There is not sufficient data to determine the relationship.