4362 TEST 3

Which of the following is an assumption commonly made in using MRP Lot-sizing procedures?

All of the options are assumptions commonly made in using MRP lot-sizing procedures

Which of the following is an assumption commonly made in using MRP lot-sizing procedures?

All of the options are assumptions commonly made in using MRP lot-sizing procedures.

Which of the following statement(s) is (are) correct?

All options are true

The Theory of Constraints (TOC) approach is also referred to as

Drum - Buffer - Rope

for a certain item, it was observed that the holding cost per annum per unit was equal to the setup cost per order. What can we say about the EOQ in this case?

EOQ =Sqrt (2A) , where A is the annual demand

Buffers (inventory or time) serve which purpose according to the Theory of Constraints?

Exploit the bottleneck(s)

An implicit enumeration technique, like branch and bound, is a heuristic method as it does not evaluate all the possible enumerations of the combinatorial problem.

False

At any time, if a set of n jobs is to be scheduled on m machines, there are (n*m) ways to schedule the jobs.

False

In a single machine job shop, the makespan depends on the rule used for scheduling.

False

KBB will provide the minimum total cost only if the net requirements in MRP are lumpy

False

Non-bottleneck resources are the focus of theory of constraints

False

POQ with T > 1 will minimize inventories

False

TOC stands for theory of operating controls

False

The Critical Ratio rule uses the information about the processing time of the job in the current work center only.

False

The EOQ is based on the assumption of lumpy demand

False

The average inventory level is inversely related to order size

False

The economic order quantity (EOQ) lot-sizing technique uses the "square root formula" to balance setup cost, carrying cost, and cost of stockouts.

False

There is no cure for reducing MRP nervousness.

False

Which of the following three strategies can be useful in reducing MRP system nervousness? I- Using Time fences II- Using Firm Planned Orders III- Careful use of Lot-Sizing procedures

I, II, and III

Priority Sequencing rules detemine which of the following? I- Allocation of goods to customers II- Which machine to service next? III- Which job to work on at the work center?

III only

Which of the following statement(s) is (are) TRUE?

In a one machine system, the EDD rule for sequencing the order of jobs will result in minimizing average lateness

which of the below lot-sizing procedures provide an optimal solution in MRP lot-sizing?

KBB

Which one of the following lot sizing rules guarantees an optimal solution when demand is constant?

KBB & EOQ

the total time to process an entire set of jobs at a work center is referred to as

Make-span

Which one of the following statements about lot sizing rules is correct?

None of the statements is correct

Summing the setup times and run times for all remaining operations, and subtracting this from the time remaining until the due date is referred to as

Order Slack (ST) rule

Practical application of the Theory of Constraints involves the implementation of all of the following steps except

Reduce the capacity at the bottleneck (s)

In the basic EOQ model, if lead time increases from five to 10 days, the EOQ will

Remain the same

what type of stock provides protection against irregularities or uncertainties in an item's demand?

Safety Stock

Which one of the following would not be a factor in determining the reorder point?

The EOQ

Which one of the following is implied by a lead time service level of 95 percent?

The probability is 0.95 that demand during lead time will not exceed the amount on hand at the beginning of lead time

A negative SPO (Slack per remaining operations) of a job implies that the job is already late

True

Both safety stock and safety lead time approaches produce an increase in inventory levels to provide a buffer against uncertainty.

True

Interest, insurance, and opportunity costs are all associated with holding costs

True

Johnson's sequencing rule for two machines will minimize the makespan

True

POQ and LFL will be the same if TBO = period

True

The average time in the system is directly related to work-in-process inventory and average number of jobs in the system.

True

The primary PAC objective is managing the materials flow to meet MPC plans

True

The primary connection between PAC and the rest of the MPC systems comes from material requirements plans.

True

The primary reason for keeping inventories low is that inventory represents a temporary monetary investment in goods on which a firm must pay interest

True

The rate of demand is an important factor in determining the ROP

True

The routing specifies each operation to be performed to make the part and which work center will perform the operation

True

Using the EOQ model, the higher an item's carrying costs, the more frequently it will be ordered.

True

Which one of the following statements concerning the economic order quantity (EOQ) model is correct?

a decrease in holding cost will increase the EOQ value

which one of the following statements concerning the economic order quantity (EOQ) model is correct?

a decrease in holding costs will increase the EOQ value

When several jobs arrive at a work center, there is a need for

a system of scheduling and prioritizing

Safety stock and safety lead time are mechanisms to cope with

all the options are valid

The general objective of all MRP lot-sizing procedures is to

balance inventory-related costs to achieve low total cost requirement schedule

According to Theory of Constraints, buffers should

be actively managed

In Theory of Constraints, which of the following is represented by "drum"?

bottleneck resource

In Theory of Constraints, "exploit the bottleneck(s)," suggests

creation of a schedule that maximizes the throughput of the bottlenecks.

If no variations in demand or lead time exist, the rop will equal

demand during lead time

Dispatching involves the use of logic that guides the prioritizing of jobs at a workstation. These rules are referred to as a lot-sizing rules

fALSE

EOQ inventory models are basically concerned with the timing of orders

false

Everything else remaining the same, if Lead Time (LT) increases, ROP will decrease

false

In a TOC system, inventory buffers before bottleneck resources are eliminated

false

In the A-B-C approach, C items typically represent about 15 percent of the number of items, but 60 percent of the dollar usage.

false

Short term capacity planning should be driven by identification and management of non-bottlenecks

false

Short term capacity planning should be driven by identification and management of non-bottlenecks.

false

Using the theory of Constraints scheduling logic in simulation mode can help

negotiate achievable delivery dates and meet customer service goals

Which of the following statements is correct about implicit enumeration?

only promising alternatives are judiciously selected & evaluated

Theory of Constraints scheduling combines data in which of the following pairs?

the bill of materials (BOM) file with data in the routing file

Sequencing rules are used to establish

the priorities for the jobs in queue waiting to be processed at a work center

The stock-out probability is

the probability that inventory will not be sufficient

The stock-out probability is

the probability that inventory will not be sufficient to meet demand during the cycle

In TOC, bottleneck work centers are scheduled using finite loading techniques.

true

Sequencing rules simply prioritize jobs at work centers to full capacity by using finite scheduling

true

The Theory of Constraints scheduling loads work centers to full capacity by using finite scheduling.

true

The process with the least capacity is called a bottleneck

true