Question

In: Operations Management

Q.1 The BOM is influenced by A. The demand plan B. ERP calculations C. Engineering and...

Q.1

The BOM is influenced by

A.

The demand plan

B.

ERP calculations

C.

Engineering and design

D.

Production activity

Q.2

  1. Based on the production plan below, how much ending inventory is there at the end of December if the ending inventory of MTS goods in September was 10?

October

November

December

Demand

25

21

38

Production

20

20

37

Inventory

13

3

4

14

Solutions

Expert Solution

Q1) Answer is C - Engineering and Design.

BOM or Bill of Material is a list of the materials and their quantities required to produce one unit of a product, or end item. It is an extensive list of raw materials, components and assemblies required to contruct or repair a product or service. It is basically a centralised source of information used to manufacture a product. It is an engineering term that refers to design of a product.

A - Demand Plan is not the answer as BOM refers to items required to manufacture a product. It has nothing to do with demand plan.

B - ERP calculations is not the answer as BOM is basically an input for designing ERP (Enterprise Resource Planning) and MRP (Materials Requirement Planning)

D - Production activity is not the answer. Accurate BOM is vital in production, because correct parts should be available when items are manufactured. This means production activity is influenced by BOM, but BOM is not influenced by production activity.

Q2) Answer is 3 as calculated in the below table, image is uploaded


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