A Customer Requests a New Order in a Period Where

question 16

Multiple Choice

A customer requests a new order in a period where there is inadequate material available in the available-to-promise (ATP) for that period, and the period is within the planning time fence. Which of the following is the best first course of action to take in such a situation?

• A) Increase the master schedule quantity for that period by enough to cover the order
• B) Shift the planning time fence inward
• C) Tell the customer they cannot have the order in that period
• D) Look for additional material in an earlier ATP quantity

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Definitions:

Project Life

The duration from the initiation to the conclusion of a project, encompassing all stages of development and execution.

OTC Market

Over-the-counter market, where securities are traded directly between parties without the supervision of an exchange.

Auction Markets

Markets where buyers and sellers enter competitive bids at the same time; the price is determined through an auction process.

Primary Markets

Markets where new securities are issued directly by the corporation to investors, facilitating capital raising.