Quiz 2 Study Guide

Fixed and variable costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs. True False

True

The main purpose of the aggregate production plan is to specify the optimal combination of workforce level and inventory on hand. True False

True

The sales and operations planning process consists of a series of meetings. True False

True

Which of the following is the net requirement using an MRP program if the gross requirement is 1,250 and the inventory on hand is 50? A. 1,200 B. 1,300 C. 1,150 D. 2,450 E. None of the above

A. 1,200

Which of the following is an input file necessary to run an MRP system? A. Bill of materials (BOM) file B. Quality management report C. Exception reports D. Planned-order schedules E. Purchasing contracts

A. Bill of materials (BOM) file

Which following queue discipline is discussed in the textbook? A. Emergencies first B. Garner-Whitten formula C. Newest customer first D. Patient customers last E. None of the above

A. Emergencies first

A product tree can do which of the following? A. Help to compute component usage B. Reduce product scrap C. Reduce labor overtime D. Reduce regular time labor E. Locate raw material supplies

A. Help to compute component usage

A BOM file is also called which of the following? A. Product tree B. Stocking plan C. Inventory usage record D. Production parts plan E. Time bucket schedule

A. Product tree

Which of the following is a characteristic that can be used to guide the design of service systems? A. Services cannot be inventoried B. Services are all similar C. Quality work means quality service D. Services businesses are inherently entrepreneurial E. Even service businesses have internal services

A. Services cannot be inventoried

A roller coaster ride in an amusement park employs which type of queuing system line structure? A. Single channel, single phase B. Single channel, multiphase C. Multichannel, single phase D. Multichannel, multiphase E. None of the above

A. Single channel, single phase

Which of the following is most closely related to the reason a firm might implement MRP? A. So they can order the right parts B. So they can order parts sufficient for immediate use C. So they can insure that parts to arrive prior to when they are needed D. To assure appropriate quality levels E. To keep process costs between the LCL and the UCL

A. So they can order the right parts

Which of the following is considered a secondary report in an MRP system? A. Planned order schedule B. Exceptions reports C. Inventory record D. Firm orders from known customers E. Engineering change reports

B. Exceptions reports

Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we would expect which of the following? A. A consistent lag of supply behind demand B. Minimized carrying costs C. Minimized set-up costs D. A just in time management philosophy E. Minimized quality problems

B. Minimized carrying costs

Which of the following is considered a "pure" production planning strategy? A. Variable workforce, stable work hours B. Lag demand C. Level playing field D. Stable workforce, variable work hours E. Product warehouse

D. Stable workforce, variable work hours

Which of the following are the three major components of a queuing system? A. The source population, how customers exit the system and the queuing discipline B. The number of servers, the service speed and the waiting line C. The source population, how the customer exits the system and the servicing system. D. The source population and the way customers arrive at the system, the serving systems, and how customers exit the system. E. The service speed, the queue discipline and the waiting line

D. The source population and the way customers arrive at the system, the serving systems, and how customers exit the system.

In an overview of the major operations planning activities in a typical logistics organization, which of the following activities most immediately follows aggregate sales and operations planning? A. Process planning B. Strategic capacity planning C. Vehicle dispatching D. Vehicle capacity planning E. Warehouse receipt planning

D. Vehicle capacity planning

Which of the following is not a production activity report generated by MRP? A. Exception report B. Planning report C. Performance control report D. Planned-order schedules E. Bill of materials report

E. Bill of materials report

Which of the following methods discussed in the text requires generating several alternative aggregate plans? A. Trial and error B. Production smoothing C. Graphing and charting D. Aggregate plan simulation E. Cut and try

E. Cut and try

From an operational perspective yield management is least effective under which of the following circumstances? A. Demand can be segmented by customer B. The product can be sold in advance C. Demand is highly variable D. Fixed costs are high and variable costs are low E. Demand is stable and close to capacity

E. Demand is stable and close to capacity

Which of the following is an input to the master production schedule? A. Prototype products from product development B. Aggregate component schedule C. Peg reports D. Exception reports E. Forecasts of random demand from customers

E. Forecasts of random demand from customers

In a typical inventory status record which of the following would you not expect to see? A. Scrap allowance B. Order quantity C. Gross requirements D. Planned-order releases E. Lost items

E. Lost items

Aggregation in sales and operations planning is by groups of customers on the supply side and by product families on the demand side of the firm's supply chain. True False

False

Because a level production strategy does not require adjustment in the short-to-medium term, aggregate sales and operations planning is not required. True False

False

Foregone profit margins are considered as relevant aggregate operations planning costs. True False

False

One of the conditions that makes yield management effective is when inventory is easily stored and held for a time when demand is stronger. True False

False

Subcontracting is viewed as a risky strategy because the firm may lose control of product design and pricing. True False

False

The aggregate operations plan is developed from the master schedule and the strategic capacity plan. True False

False

The increasing complexity of modern operations management has made simple cut-and-try charting and graphical methods formerly used to develop aggregate operations plans impractical and obsolete. True False

False

In conducting aggregate operations planning there are a number of required inputs. Which of the following are inputs considered external to the firm? A. Inventory levels and market demand B. Raw material availability and competitor's behavior C. Current workforce and economic conditions D. Current physical capacity and market demand E. Subcontractor capacity and inventory levels

B. Raw material availability and competitor's behavior

In a college registration process, several department heads have to approve an individual student's semester course load. What is the queuing system line structure? A. Single channel, single phase B. Single channel, multiphase C. Multichannel, single phase D. Multichannel, multiphase E. None of the above

B. Single channel, multiphase

Which of the following is an example of a finite population in a queuing system? A. People waiting to place their order at a fast food restaurant B. The departmental faculty in line at the copy machine. C. People waiting in line at an ATM. D. Patients seeking help in a hospital emergency room E. Taxpayers calling for assistance from the IRS

B. The departmental faculty in line at the copy machine.

Which of the following is one of the main purposes of a MRP system? A. Educate personnel in basic work rules B. To determine the amount of materials needed to produce each end item. C. Stimulate the work force D. Decrease labor requirements E. Increase inventory accuracy

B. To determine the amount of materials needed to produce each

For an infinite queuing situation, if the arrival rate for loading trucks is 5 trucks per hour, what is the mean time between arrivals? A. 5 hours B. 2.5 hours C. 0.2 hours D. 0.1 hours E. None of the above

C. 0.2 hours

Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product. If the beginning inventory is 100 units, the demand forecast is 1,200, and the necessary safety stock is 20% of the demand forecast, which of the following is the production requirement? A. 1,200 B. 1,300 C. 1,340 D. 1,500 E. 1,540

C. 1,340 1200*.2=240, 1200+240=1440, 1440-100=1340

Which of the following is the planned-order release using an MRP program if the gross requirement is 5,000, inventory on hand is 1,200 and planned receipts are 800? A. 7,000 B. 4,200 C. 3,000 D. 2,000 E. 1,200

C. 3,000

Which of the following industry types have high expected benefits from the application of MRP? A. Fabricate-to-order B. Hospitals C. Assemble-to-order D. Aircraft manufacturers E. Oil refineries

C. Assemble-to-order

In conducting aggregate operations planning there are a number of required inputs. Which of the following are considered inputs internal to the firm? A. Inventory levels and economic conditions B. Market demand and subcontractor capacity C. Current physical capacity and current workforce D. Competitor behavior and current workforce E. Current physical capacity and raw material availability

C. Current physical capacity and current workforce

Which of the following is not a suggestion for managing queues presented in the textbook? A. Train your servers to be friendly B. Segment the customers C. Determine an acceptable waiting time for your customers D. Inform your customers of what to expect E. Encourage customers to come during slack periods

C. Determine an acceptable waiting time for your customers

Which of the following can be used for lot sizing in an MRP system? A. Low-level coding B. Time bucket size C. Least unit cost D. Inventory record file E. Peg inventory

C. Least unit cost

Maintaining a stable workforce working at a constant output rate while shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs and allowing lost sales is which of the following production planning strategies? A. Stable workforce, variable work hours B. Chase C. Level D. Full employment E. Skill maintenance

C. Level

Buying food at a large food store with multiple checkout counters features which type of queuing system line structure? A. Single channel, single phase B. Single channel, multiphase C. Multichannel, single phase D. Multichannel, multiphase E. None of the above

C. Multichannel, single phase

Machine breakdown and repair in a twelve machine factory having three repair mechanics would develop which type of queuing system line structure concerning machine breakdowns? A. Single channel, single phase B. Single channel, multiphase C. Multichannel, single phase D. Multichannel, multiphase E. None of the above

C. Multichannel, single phase

From an operational perspective yield management is least effective under which of the following circumstances? A. Demand can be segmented by customer B. The product can be sold in advance C. The product can be kept to be sold when demand is stronger D. Fixed costs are high and variable costs are low E. Demand is highly variable

C. The product can be kept to be sold when demand is stronger

In an overview of the major operations planning activities in a typical logistics organization, which of the following activities follows aggregate sales and operations planning? A. Process planning B. Workforce scheduling C. Vehicle loading D. Materials requirements planning E. Order scheduling

C. Vehicle loading

Which of the following files allows us to retrace a material requirement upward in the product structure through each level, identifying each parent item that created the demand? A. Planning bill of materials file B. Modular bill of materials file C. Super bill of materials file D. Exception report file E. Peg record file

E. Peg record file

Which of the following is not a suggestion for managing queues presented in the textbook? A. Try to divert your customer's attention when waiting B. Segment the customers C. Encourage customers to come during a slack period D. Train your servers to be friendly E. Periodically close the service channel to temporarily disperse the line

E. Periodically close the service channel to temporarily disperse the line