1) Irregular production (select the correct statements. There is more than one correct statement) : a) is also called production on demand b) is also known as just in time c) It allows to manage the inventories as precisely as possible d) it forces the organization to adapt its production capacities e) it allows to minimize machine incidents f) it leads to high inventory costs 2) Regular production (select the correct statements. There is more than one correct statement)  a) provides approximately the same quantity of production every month b) forces the organization to build up inventory in advance c) does not present a risk of inventory depreciation d) does not generate storage costs e) facilitates management of men and machines 3) Choose the right statement: a) Before developing the production budget, it is important to know our inventory and inventory forecasts, as well as to check our production capacity in order to plan the production program. b) The production budget can be developed directly from the sales forecast without any further steps. c) The production budget is to be done first and then we decide whether to use subcontractors or not. 4) The quantity to be produced is calculated as follows (choose the right answer to complete the equality): Quantity to be produced = expected sales quantity + desired quantity in stock at year-end - a) quantity purchased b) average quantity over the year c) quantity in inventory at the beginning of the year 5) True or false: When an organization, after performing capacity tests, has to revise its production program or adjust its capacities, it is up to the production department to solve the problem. a) True b) False

4.3 The production budget

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