Purchasing and Materials Management

none of the above

A production planning strategy which turns away extra demand is called: a. production leveling b. demand matching c. hybrid strategy d. all of the above e. none of the above

a master production schedule

A statement of a schedule of requirements for individual end items is called: a. a master production schedule b. a material requirements plan c. a production plan d. a capacity plan e. none of the above

available to promise

Considering MPS, the portion of inventory or production not committed to customer orders is called: a. free stock b. available to promise c. excess production d. waste e. excess capacity

capacity planning

Determining the need for labor, machines, and physical resources to meet the production objectives of the firm is called: a. production control b. production planning c. capacity planning d. all of the above e. none of the above

all of the above

Firms will generally make-to-order when: a. products are produced to customer specifications b. there are many product options c. product is expensive to make and store d. all of the above

none of the above

Firms will generally make-to-stock when: a. demand is unpredictable b. there are many product options c. delivery lead times are long d. all of the above e. none of the above

similarity of manufacturing process

For the purposes of production planning, product groups should be established on the basis of: a. market segments b. similarity of manufacturing process c. the availability of materials d. the availability of machinery e. all of the above

the projected available in week 4 is 30

Given the following data, complete the table. There are 30 on hand. Order quantity is 60 units. Week 1234 Forecast 20 30 50 20 Projected available Scheduled receipts a. the projected available in week 3 is 40 b. the projected available in week 4 is 30 c. there is a scheduled receipt in week 4 d. a and b are true e. b and c are true

the ATP in week one is 5

Given the following table, calculate the ATP. There are 50 units on hand. Week 12345 Customer orders 20 20 Scheduled receipts ATP a. the ATP in week one is 10 b. the ATP in week one is 30 c. the ATP in week one is 5 d. the ATP in week two is 10 e. the ATP in week three is 35 15 30 10 50

100

If the old backlog was 200 units, the forecast for the next period is 500 units, and production for the next period is 600 units, what will be the backlog at the end of the next period? a. 100 units b. 200 units c. 300 units d. 700 units e. 800 units

600 units

If the opening inventory is 100 units, the sales are 500 units and the ending inventory is 200 units, then manufacturing must produce: a. 300 units b. 400 units c. 500 units d. 600 units e. none of the above

the greater of forecast demand and customer orders

If there are customer orders the projected available is based on: a. forecast demand b. customer orders c. the greater of forecast demand and customer orders d. the opinion of the planner

the component/subassembly level

In an assemble-to-order company, at which level should master scheduling take place? a. the component/subassembly level b. the end item level c. the raw material/component level d. it does not matter, any level will do e. none of the above levels

III, II, and I

In terms of INCREASING level of detail, which is the best sequence of activities? I. Material requirements planning. II. Master production scheduling. III. Production planning.

I and II

Materials management can be considered a balancing act because: I. There are trade-offs between customer service and the cost of providing the service. II. Priority and capacity must be balanced.

990

Over a 10-week period the cumulative sales are forecast at 10,000 units, the opening inventory is 200 units and the closing inventory is to be 100 units. What should be the weekly planned production for level production? a. 990 b. 1000 c. 1010 d. 1030 e. none of the above

a and b above

Over the time span of the production plan, which of the following can usually be varied to change capacity? a. work force b. inventories c. plant and equipment d. all of the above e. a and b above

how much of what is needed and when

Priority in production planning relates to: a. what should come first b. how much of what is needed and when c. capacity d. an objective of the firm e. none of the above

I, II, and III

The MPS is a vital link the production planning system because it: I. Keeps priorities valid. II. Forms the basis for determining the capacity needed. III. Is input to the material requirements plan. IV. Is input to the production plan. a. I, II, III and IV b. I, II and III c. I, II and IV d. II, IIII and IV e. 1, 3 and 4

all of the above

The MPS is constrained by: I. The availability of material. II. Available capacity. III. Inventory policies. IV. Production plan. a. all of the above b. I, II, III only c. I and II only d. II and III only e. none of the above

all of the above

The MPS: a. facilitates order promising b. works with individual end products c. is an agreed-upon plan between production and marketing d. all of the above e. none of the above

capacity

The ability of manufacturing to produce goods and services is called: a. scheduling b. production planning c. capacity d. routing e. none of the above

schedules customer orders as they are received based on components planned in the MPS

The final assembly schedule (FAS): a. schedules customer orders as they are received based on components planned in the MPS b. is used with make-to-order products c. is used with make-to-stock products d. a and b above e. none of the above

production planning

The function of setting the limits or levels of manufacturing operations based on the market plan and resource availability is called: a. production planning b. production activity level c. capacity planning d. all of the above e. none of the above

II, III and not I

The functions of a master production schedule are to: I. Plan material components II. Plan capacity requirements III. Keep priorities valid a. I, II and III b. I, II and not III c. I, III and not II d. II, III and not I e. none of the above is a function of the MPS

all of the above

The information needed to develop a master production schedule will be got from: a. the production plan b. the forecast of individual end items c. inventory levels for individual end items d. all of the above e. none of the above

I and II

The objective of materials management is to: I. Provide the required level of customer service. II. Maximize the use of the firm's resources.

rough-cut capacity planning

The process of checking the MPS against available capacity is called: a. capacity planning b. shop-floor control c. rough-cut capacity planning d. capacity control e. process checking

I and II only

The purpose of the materials management concept is: I. To manage materials in a production operation. II. To have purchasing support the needs of production. III. To have production support the needs of purchasing.

production leveling

Which basic production planning strategy will build inventory and avoid the costs of excess capacity? a. demand matching (chase) b. production leveling c. subcontracting d. all the above e. none of the above

only I, II and IV are objectives

Which of the following are objectives of an MPS? I. Maintain the desired level of customer service. II. Keep the sales department happy. III. Make the best use of material, labor and equipment. IV. Maintain inventory investment as required. a. only I is an objective b. only I and II are objectives c. only I, II and III are objectives d. only I, III and IV are objectives e. only II, III and IV are objectives

I, II and IV

Which of the following information is needed to develop a make-to-stock production plan? I. Forecast by time period for the production plan. II. Opening inventory. III. Opening backlog of customer orders. IV. Desired ending inventory. a. I, II and III b. I, II and IV c. 1, III and IV d. II, III and IV e. none of the above

product groups need to be decided

Which of the following is NOT a rule of Sales and Operations Planning? a. Product Groups need not be decided b. Planning units of measure need to be decided c. A planning horizon must include new product development time d. Performance review periods to be compared should be decided

Factory inventory

Which of the following is NOT an activity of physical supply/distribution? a. transportation b. factory inventory c. warehousing d. packaging e. materials handling

final assembly schedule

Which of the following is NOT an input to the master production schedule? a. sales forecast for items b. current inventory status c. final assembly schedule d. customer orders e. production plan

b and c above

Which of the following is a basic strategy in developing a production plan? a. hybrid strategy b. production leveling c. chase strategy d. a and b above e. b and c above

none of the above is characteristic of production plan

Which of the following is a characteristic of a production plan? a. time horizons are five years b. the production plan is for individual items c. the only objective is to have an efficient plant d. all of the above are characteristics of a production plan e. none of the above is characteristic of a production plan

capacity requirements planning

Which of the following is a complete closed loop planning system that develops plans for all materials and operations? a. Capacity requirements planning b. Enterprise resource planning c. Supply chain management d. Material requirements planning

all of the above are inputs

Which of the following is an input to the production plan? a. strategic business plan b. financial plan c. market plan d. engineering plan e. all of the above are inputs

both I and II

Which of the following is normally a major activity of materials management? I. Manufacturing planning and control. II. Physical supply/distribution.

all of the above are primary activities

Which of the following is/are primary activities of manufacturing planning and control? I. Production planning. II. Implementation and control. III. Inventory management.

Strategic business plan

Which of the following plans has the longest planning horizon and the least level of detail? a. strategic business plan b. production plan c. master production schedule d. all of the above have the same level of detail e. none of the above

all of the above are true

Which of the following statements is best regarding the master production schedule? a. it is an agreed-upon plan between marketing and manufacturing b. if it is poorly done we can expect past-due schedules and unreliable delivery promises c. it is a plan for specific end items that manufacturing expects to make over some period in the future d. all of the above are true e. none of the above is true

all of the above are true

Which of the following statements is most appropriate regarding production planning? a. a high level of detail is not needed b. a translation must be made from product demand to capacity demand c. product groups based on similarity of manufacturing process should be used in planning d. all of the above are true e. none of the above is true

Make-to-stock

Which of the following strategies has the shortest delivery lead time and the least customer input? a. engineer-to-order b. make-to-order c. assemble-to-order d. make-to-stock

sales and operations planning

____________ is concerned with long-term planning of manufacturing activity: a. Sales and operations planning b. Master production scheduling c. MRP d. Production activity control e. Master planning