Manufacturing difficult questions
Which of the following is not a type of cost associated with inventory? I. Order preparation costs II. Inventory carrying costs III. Shortage and customer service costs
All are inventory costs
Which of the following actions would be likely to INCREASE the cash-to-cycle time for a firm? I. Increasing the cost, but not the price, of the product II. Taking advantage of "early pay" discounts with suppliers III. Revaluing inventory to reflect reductions in purchasing prices
I and II
Evaluating forecast accuracy requires an understanding of I. Mean absolute deviation (MAD) II. Mean error (bias) III. Forecast costs
I and II
In a just-in-time (JIT) system, the goal is to reduce which of the following? I. Setup times II. Defects III. Forecast errors
I and II
Which of the following actions would be likely to DECREASE the cash-to-cycle time for a firm? I. Automating a key production process (reducing labor content) II. Returning excess inventory to the supplier III. Granting longer payment terms to customers
I and II
Which of the following are sequencing rules used in practice? I. First come/first served (FCFS) II. Earliest due date (EDD) III. Least work remaining (LWR)
I, II, and III
Which of the following is NOT a key decision when considering enterprise resource planning (ERP) system? I. Business complexity and size II. System costs and available resources III. Requirements of the firm's processes
all are key decisions
Which of the following are examples of independent demand? I. Customer orders II. Shipping samples to the sales team III. Use of raw materials in production
I and II
Advantages of the sales and operations planning process include I. Visibility of the interaction between functional groups II. Identification of the trade-offs between functional groups III. The ability to overproduce the plan without the need for additional meetings
I and II only
Distribution requirements planning (DRP) accomplishes which of the following? I. Extends manufacturing planning and control (MPC) visibility II. Summarizes detailed field information III. Analyzes potential warehouse locations
I and II only
Exception codes are usually generated for which of the following reasons? I. Open order timing/amount not satisfactory II. Need for management intervention III. Generation of planning orders
I and II only
In most supply chains, raising customer service goals has which of the following consequences? I. Higher inventory levels II. Higher customer service levels III. Lower total costs
I and II only
In which of the following ways does capacity requirements planning (CRP) differ form rough-cut capacity planning techniques? I. CRP uses time-phased approach II. CRP considers service part demand III. CRP considers standard lot sizes
I and II only
Joint-firm just-in-time depends on I. A stable schedule II. Reducing the number of suppliers III. Electronic communication
I and II only
Manufacturing process design must directly consider which of the following? I. The manufacturing task II. Manufacturing planning and control system design III. The existing MPC system
I and II only
Material requirements planning (MRP) lot-sizing assumptions include which of the following? I. All requirements for a given period are available at the beginning of that period II. Ordering decision occur at regular time intervals III. Demand for future periods can be backordered
I and II only
Material requirements planning (MRP) system nervousness can be attributed to which of the following? I. Unplanned demand II. MRP parameter errors III. Firm planned orders
I and II only
Material requirements planning (MRP) systems perform which of these functions? I. Translating the overall production plan into detailed steps II. Providing information for capacity planning III. Providing information for staffing plans
I and II only
Sales and operations planning (SOP) provides which of the following benefits? I. Key communications links for top management II. A basis to focus production resources III. Detailed production plans
I and II only
The concept of poka-yoke refers to I. Making operations foolproof II. Designing processes to evaluate quality as production occurs III. Pull systems
I and II only
Top management roles in sales and operations planning include I. Commitment to the process II. Forcing resolution of trade-offs III. Designing tools used to conduct sales and operations planning
I and II only
When capacity does to match the plan, which of the following actions can be taken? I. Provide sufficient capacity II. Change the material plan III. Modify capacity calculations
I and II only
Which of the following are decisions made when managing independent-demand inventories? I. How much to order II. When to order III. Amount of scrap associated with production
I and II only
Which of the following are true? I. The sales and operations planning plan is usually stated in aggregate units II. The master productions scheduling is usually stated in end product units III. The sales and operations planning plan and the master production schedule should be stated in the same units
I and II only
Which of the following are useful measures of capacity? I. Machine hours II. Labor-hours III. Elapsed time
I and II only
Which of the following aspects of enterprise resource planning (ERP) systems? I. Multifunctional-able to provide data concerning many parts of the firm II. Modular-able to combine selected components into a single system III. Independent-each functional area has its own system and data and maintains control of that system and data
I and II only
Demand management (DM) includes which of the following activities? I. Forecasting II. Product shipping III. Entering customer orders
I and III
Manufacturing planning and control (MPC) includes which of the following activities? I. Materials management II. Product marketing III. Coordinating suppliers
I and III
In most supply chains, lowering inventory levels has which of the following consequences? I. Lower inventory levels II. Higher customer service levels III. Lower total costs
I and III only
In most supply chains, reducing labor cost goals has which of the following consequences? I. Higher inventor levels II. Higher customer service levels III. Lower total costs
I and III only
Supporting information for material requirements planning (MRP) systems includes which of the following? I. Bill of material II. Routing file III. Inventory status data
I and III only
TPM is an acronym for which of the following? I. Total preventive maintenance II. Total planned maintenance III. Total productive maintenance
I and III only
Warehouses offer which of the following benefits to customers? I. Faster deliveries II. Lower costs III. Better product availability
I and III only
Which of the following are prerequisites to implementing a master production scheduling system? I. Define master production schedule (MPS) unit II. Install an enterprise resource planning (ERP) system III. Train an employee in MPS concepts and techniques
I and III only
Which of the following are typical aspects of a just-in-time (JIT) program? I. Setup time reduction II. Push scheduling III. Continual improvement
I and III only
Which of the following is an objective for capacity planning? I. Building excess capacity for possible future use II. Estimating capacity requirements early enough to take action if necessary III. Execution of the plan to avoid surprises
I and III only
According to the theory of constraints (TOC), which of these conditions is most desirable? I. 100% utilization of bottleneck work centers II. 100% utilization of non-bottleneck work centers III. Less than 100% utilization of bottleneck work centers
I only
Distribution requirements planning (DRP) provides data used to prepare plans for which of the following? I. Manufacturing II. Logistics III. Sales and operations planning
I only
Enterprise resource planning (ERP) systems perform which of the following tasks? I. Support decisions II. Make decisions III. Evaluate decisions
I only
The economic order quantity (EOQ) calculation makes which of the following assumptions? I. Constant demand II. Non-zero lead time III. No quantity discounts
I only
Which of the following are used to support the integration of materials requirements planning (MRP) and just-in-time (JIT) systems? I. Phantom bills of materials II. Planning bills of materials III. Capacity bills
I only
Which of the following is typically NOT a component of enterprise resource planning (ERP) systems? I. E-mail management II. Finance module III. Human resources module
I only
A warehouse can perform which of the following activities? I. Finishing operations (e.g. packaging) II. Bulk break point for shipments to customers III. Mixing point fr shipments from multiple plants
I, II, and III
Sales and operations planning can be completed at which of the following levels? I. Product family II. Region III. Organizational unit
I, II, and III
The final assemble schedule (FAS) represents which of the following? I. The assembly plan when a planning bill-of-materials (BOM) is used II. The exact set of end products to be built in an assemble-to-order environment III. The plan for moving prefabricated components into completed products
I, II, and III
The master production schedule (MPS) differs from the forecast by considering I. Capacity limits II. Production costs III. The sales and operation plan (SOP)
I, II, and III
To ensure contra of the operations plan, which of the following are necessary? I. Accurate forecast II. A transparent planning process III. Clear communication of expectations
I, II, and III
Updating an old MPC system can include which of the following? I. Adding new modules or functionality II. Consideration of new decision criteria III. Removing unneeded/obsolete modules or functionality
I, II, and III
Which if the following are capacities that may need to be managed? I. Direct labor II. Inspection III. Engineering
I, II, and III
Which of the following are elements of lead time? I. Run time II. Setup time III. Queue time
I, II, and III
Which of the following are possible components of time series demand? I. Seasonal variation II. Cyclical variation III. Trend
I, II, and III
Which of the following is true? I. A key objective under material requirements planning (MRP) is to use each work center's capacity effectively II. A key objective under just-in-time (JIT) is to minimize flow times III. Just-in-time (JIT) systems are best suited to situations where demand is relatively constant
I, II, and III
Which of the following strategies can be useful in reducing material requirements planning (MRP) system nervousness? I. Introducing system stability through time fences II. Careful use of lot-sizing procedures III. Using firm planned orders
I, II, and III
Which types of data are captured and monitored by the demand management function? I. Detailed product mix II. Product pricing III. Overall market trends
I, II, and III
Which of the following are examples of dependent demand? I. Customer orders II. Using finished goods stock to build preloaded store displays III. Raw material usage
II and III
Advantages of hub inventories include which of the following? I. Lower costs dues to reduced damage to goods II. Increased visibility for both supplier and customer III. The supplier has knowledge of demand and usage patterns
II and III only
Mechanisms to ensure support for the sales and operations planning process can include I. Informal adjustments to the plan between SOP meetings II. Contracts between functional groups III. Senior executive involvement
II and III only
Which of the following are potential sources of uncertainty in a material requirements planning (MRP) system? I. Customer name II. Supply timing III. Demand quantity
II and III only
The "whole person" concept refers to I. Limiting the use of part-time workers II. Direct labor employees performing nontraditional tasks III. Having all workers physically producing products
II only
The least squares method of linear regression minimizes I. The error of the slop II. The squared distance between each point and the line III. The error of the intercept
II only
Which of the following are NOT a part of inventory carrying costs? I. Cost of capital II. Delivery charges III. Product obsolescence
II only
Which of the following are benefits of simultaneous planning of capacity and materials? I. Fewer computer resources required II. Better utilization of existing capacity III. Eliminates the need to expand capacity
II only
Which of the following is NOT true? I. Tim-phased planning is typically carried out with material requirements planning (MRP) II. Rate-based planning is likely to utilize large batch sizes III. Rate-based planning is common in just-in-time (JIT) systems
II only
Which of the following is not an action commonly taken by an MRP planner? I. Release orders II. Confirm inventory counts on incoming shipments III. Reconcile MRP errors
II only
Priority sequencing rules determine which of the following? I. Allocation of goods to customers II. Which machine(s) to service next III. Which job(s) to run at a work center
III only
Which of the following decisions would be most likely tot be made using a highly aggregated estimate of general business trends? I. Individual product plans II. Product line development III. Constructing a new plant
III only
Which of the following is an example of a casual model? I. Product dales increasing over time II. Lawn mower sales decreasing in the winter III. Increasing appliance sales when housing construction increases
III only
