Exam 2 Key

Which ordering procedure evaluates tries to equate the costs of placing orders and the cost of carrying inventory? A. Economic Order Quantities. B. Q, R system. C. Periodic Order Quantities. D. Part Period Balancing. E. Wagner Whitin.

Part Period Balancing

In MRP, which one of these would not generally be a factor in determining the net requirements of a component? A. Gross Requirements. B. Scheduled Receipts. C. Projected Available Balance. D. Planned Order Releases. E. All of the above determine the net requirement.

Planned Order Releases.

The gross requirements of a given component part in an MRP system are determined from: A. net requirements + on-hand. B. net requirements of end item. C. gross requirements of the immediate part. D. planned order releases of the end item. E. planned order releases of the immediate parents.

planned order releases of the immediate parents

The control files needed for Production Activity Control are: A. Shop order master file and shop order detail file. B. Item master file and product structure file. C. Routing file and work-center master file. D. B and C. E. All of the above.

Shop order master file and shop order detail file

Which priority sequencing rule minimizes work-in-process inventory? A. Shortest process time. B. Critical-Ratio. C. Earliest job due date. D. First-come/first-served. E. Least setup.

Shortest process time

Why do waiting lines form even if average capacity exceeds average demand? A. Temporary fluctuations in demand relative to capacity. B. Long-run imbalances between demand and capacity. C. Short-run fluctuations in the size of the calling population. D. Lack of variation in the size of the queuing area. E. The number of potential customers is unlimited.

Temporary fluctuations in demand relative to capacity.

What inspired Taiichi Ohno to implement the kanban pull system? A. Deming's method of quality control. B. The American automotive industry in general. C. Ford's mass production. D. Japanese cultural, geographic, and economic history. E. The American supermarket.

The American supermarket

Which of the following is true about Production Activity Control (PAC)? A. PAC actions take place mainly in the back-end of the MPC system. B. A key element of an effective PAC system is feedback on shop and suppliers' performance against plans. C. The primary PAC objective is to reduce work-in-process inventories and lead-times. D. A and B. E. A and C.

A and B

___________ employs advanced math model and algorithms to develop optimal or nearly optimal plans A. Closed-Loop MRP. B. Manufacturing Resources Planning (MRP II). C. Enterprise Resources Planning. D. Advanced Planning and Scheduling (APS). E. Customer

Advanced Planning and Scheduling (APS).

In this warehouse replenishment system, the order is placed on a fix schedule and the ordering quantity equals the actual usage in the previous period A. ROP/EOQ. B. Base Stock. C. DRP. D. Q, R system. E. DDLT.

Base Stock

Which capacity planning technique has to be used in conjunction with the time-phased material plan information produced by MRP system? A. Capacity Planning using Overall Factors (CPOF). B. Capacity Bills. C. Resource Profiles. D. Capacity Requirement Planning. E. None of the above.

Capacity Requirement Planning

Which of the following is true? A. Capacity Requirements Planning (CRP) calculates only capacity needs and does not make adjustments for infeasibility. B. Capacity Requirements Planning (CRP) ignores current finished goods and WIP inventory. C. Finite loading does not solve the under-capacity problem. D. A and C. E. A and B.

Capacity Requirements Planning (CRP) calculates only capacity needs and does not make adjustments for infeasibility. and Finite loading does not solve the under-capacity problem.

Which capacity planning activities are considered short-range plans? A. Resource Planning and Rough-Cut Capacity Planning. B. Capacity Requirement Planning. C. Finite loading and Input/Output Analysis. D. A and B are the correct answers. E. B and C are the correct answers.

Finite loading and Input/Output Analysis.

Which of the following most closely describes net material requirements? A. Gross Requirements - Planned Order Receipts. B. Gross Requirements - On-Hand - Planned Order Receipts. C. Gross Requirements - On-Hand - Scheduled Receipts. D. Gross Requirements - Planned Order Releases. E. None of the above.

Gross Requirements - On-Hand - Scheduled Receipts.

Which of the following statement is not true for "whole person" concept in Just In Time? A. Hire the person with muscle. B. Workers on the shop floor have to power to stop the production line as required. C. Workers are invited to think about the process and its improvement. D. Continual learning and improvement to enhance worker performance. E. None of the above.

Hire the person with muscle

Gathering information from a number of distribution locations and aggregating it at the manufacturing facility is called A. Implosion. B. Explosion. C. Break-bulk. D. Inventory rebalancing. E. Risk-pooling.

Implosion

Which one is correct about Economic Ordering Quantity model? A. It is basic logic behind the ABC inventory classification system. B. One of the assumptions for EOQ is that the usage is fairly uniform. C. It is most suitable for items with "lumpy" demand. D. All of the above. E. None of the above.

One of the assumptions for EOQ is that the usage is fairly uniform.

The Distribution Requirement Planning's greatest payoff to Master Production Scheduling is ____. A. Sending the inventories from the central warehouse to those distribution centers where they are most needed. B. Providing information to the master scheduler in a format consistent with MRP. C. Providing data for vehicle capacity planning and to determine vehicle loads, dispatch vehicles, and plan the resources necessary to receive the goods at the warehouse. D. Providing a link between demand (order releases, customer orders, etc.) and the gross requirements for parts. E. None of the above.

Providing information to the master scheduler in a format consistent with MRP.

Which of the following would you not expect to see in a Just In Time system? A. Quality inspector at the end of the assembly line. B. Very few work-in-process inventory. C. Direct workers doing equipment maintenance during non-peak production time. D. Paperless, visual shop floor control. E. Cross training/job rotation on the shop floor.

Quality inspector at the end of the assembly line.

Which is true about scheduled receipts? A. They are orders previously placed, and not yet completed or received. B. They must be less than the net requirements in any period. C. They are included in planned order receipts. D. They are included in planned order releases. E. They are added to gross requirements to get net requirements.

They are orders previously placed, and not yet completed or received.

One technique for stabilizing the information flow to the Master Scheduler and to the Shop Floor is firm planned orders (shipments) logic. What is firm planned orders (shipments) logic? A. To release the purchase orders to the suppliers. B. To confirm shipment date to the customer. C. To convert the Planned Order Release in MRP records to Scheduled Receipts. D. To convert the Planned Shipments in DRP records to In Transit. E. To allow the scheduler to review the implication of not changing the planned orders (shipments).

To allow the scheduler to review the implication of not changing the planned orders (shipments).

The objectives of scheduling include(s): A. to meet the due dates and to make best use of manufacturing resources. B. to minimize finish good inventories. C. to use the Internet to enhance the speed and efficiency of information exchange. D. A and B. E. All of the above.

To meet the due dates and to make best use of manufacturing resources

In planning service capacity, the most important factor(s) is (are): The need to be near customers. The inability to store services. The degree of volatility of the demand. A. The need to be near customers. B. The inability to store services. C. The degree of volatility of the demand. D. A and B. E. All of the above.

all of the above

Which one of these is the primary input in capacity planning? A. Overall cost estimates. B. Public opinion. C. Competitors' strengths. D. Past successes or failures E. Demand forecasts.

demand forecasts

A stockout occurs when demand during lead time is __________ the __________. A. less than, order quantity. B. greater than, reorder point. C. greater than, safety stock. D. less than, lead time. E. greater than, reorder point + safety stock.

greater than, reorder point

From the dice game in Goldratt's novel, The Goal, we learn that ___________: A. we should balance the capacity, not the flow. B. it is impossible to balance capacity to demand because of the combination of "dependent events" and "statistical fluctuations". C. the goal is to make money. D. we should elevate the system constraint to the highest priority. E. if there is no bottleneck, then excess capacity exists and the system should be changed to create a bottleneck..

it is impossible to balance capacity to demand because of the combination of "dependent events" and "statistical fluctuations".

If lot-for-lot ordering is used, then planned order releases will be equal to: A. the total planned usage for the part. B. gross requirements. C. gross requirements less safety stock. D. net requirements less safety stock. E. net requirements

net requirements

Which of the following is not true about "phantom" bill of materials? A. It will reduce the Balancing Transactions of the Hidden Factory. B. "Phantom" item does not require MRP planning and control. C. "Phantom" item is not usually stocked as inventory item. D. Inventory of "phantom" item will be used up first before making more. E. None of the above.

none of the above

Which of the following statement is not true? A. Studies have shown that providing entertainment to customers waiting in line may increase customer satisfaction. B. A direct relationship exists between the cost of providing a service and the cost of making a customer wait. C. Waiting lines often form because of variability in both arrival times and in service patterns. D. Reneging is when the customer arrives, views the situation, joins the waiting line, and then after sometime, departs. E. None of the above.

none of the above

Material Requirements Planning (MRP) Regeneration is: A. updating component inventory balances when finished items are received into stock. B. processing all MRP records in a single computer run. C. processing only those MRP records that are affected by the new or changed information. D. the process of multiplying the requirements by usage quantity and recording the appropriate requirements throughout the product tree of the bill of materials. E. gathering information from a number of manufacturing locations and aggregating it at the central manufacturing facility.

processing all MRP records in a single computer run.

Capacity Planning using Overall Factors (CPOF), Capacity Bills, and Resource Profiles are the techniques to estimate capacity requirement in A. resource planning. B. rough-cut capacity planning. C. capacity requirement planning. D. finite loading. E. input/output analysis.

rough-cut capacity planning

The term "queue discipline" refers to: A. the willingness of customers to wait in line. B. customers staying in one line, not switching to another line. C. the order in which customers are processed. D. one server can only serve one customer at a time. E. All of the above.

the order in which customers are processed.

1. In Material Requirements Planning (MRP) system, the requirements are stated on a unique period-by-period basis rather than aggregated or averaged. This is called: A. time fencing. B. time bucket. C. time-phased. D. time series. E. rolling horizon.

time-phased