Which process involves evaluating alternate strategies by analyzing the consequences of changes to forecasts, manufacturing plans, and inventory levels?

Which process involves evaluating alternate strategies by analyzing the consequences of changes to forecasts, manufacturing plans, and inventory levels?

• A. What-if analysis
• B. Where-used list
• C. Work cell
• D. Yield

Answer: (A)

This question is about what-if analysis, which uses a model of the production and inventory system to test different scenarios. You alter inputs such as forecasts, the master production schedule, and inventory settings, and then you observe how the outcomes—costs, service levels, stock levels, backorders—change. By comparing these results, you can choose among strategies under different conditions. The other terms don’t describe this process: a where-used list shows where a component is used in assemblies, a work cell relates to layout, and yield measures the amount of good product produced.

This question is about what-if analysis, which uses a model of the production and inventory system to test different scenarios. You alter inputs such as forecasts, the master production schedule, and inventory settings, and then you observe how the outcomes—costs, service levels, stock levels, backorders—change. By comparing these results, you can choose among strategies under different conditions. The other terms don’t describe this process: a where-used list shows where a component is used in assemblies, a work cell relates to layout, and yield measures the amount of good product produced.