Exam 1 Review Questions

11. One common Cause-and-Effect Forecasting Model is? a. multiple regression b. linear trend forecast c. moving average forecast d. mean absolute deviation

a. multiple regression

1. Material Requirement Planning (MRP) is used to a. determine what materials you need to make the finished product and when to order them b. look long term and determine what if you need a bigger factory c. identify if you need to purchase new equipment to make your product d. determine the exact end items (i.e., finished products) to be produced in a specific time frame

a. determine what materials you need to make the finished product and when to order them

19. To determine if it is possible to actually execute and complete the Master Production Schedule as planned, you would use which of the following? a. rough-cut capacity planning b. material requirement planning c. capacity requirement planning d. distribution requirement planning

a. rough-cut capacity planning

9. Which of the following is a Long Range supply chain plan? a. materials requirement plan b. master capacity plan c. aggregate production plan d. capacity requirements plan

c. aggregate production plan

7. Which of the following would most likely be considered a dependent demand item? a. lawnmower b. high definition television c. bicycle tire used to assemble a bicycle d. dining room table

c. bicycle tire used to assemble a bicycle

14. The impact of poor communication and inaccurate forecasts resonates along the supply chain and results in the? a. carbonaro effect b. delphi effect c. bullwhip effect d. doppler effect

c. bullwhip effect

8. Which one of the following statements is FALSE? a. time series forecasting is based on the assumption that the future is an extension of the past b. quantitative methods generally become less accurate as the forecast's time horizon increases c. cause-and-effect forecasting assumes that one or more factors can be used to predict future demand d. it is not generally recommended to use both quantitative and qualitative forecasting methods

d. it is not generally recommended to use both quantitative and qualitative forecasting methods

6. A certain supply chain is made up of the following companies: 1. Raw Materials Supplier 2. Intermediate Supplier (who converts the raw material into a semi-finished item) 3. Manufacturer 4. Wholesale/Distributor 5. Retailer Given the supply chain above, who is considered the second-tier supplier of the Manufacturer? a. Raw Materials Supplier b. Intermediate Supplier (who converts the raw material into a semi-finished item) c. Wholesale/Distributor d. Retailer

a. Raw Materials Supplier

10. Which of the following terms used in MRP represents the parts demanded by a parent? a. gross requirement b. component c. net requirement d. scheduled receipt

b. component

16. Companies hold a supply of inventory for all of the following reasons EXCEPT? a. decoupling (i.e., separating) supply from demand b. increasing production change/setup costs c. decoupling (i.e., separating) dependencies in the supply chain d. buffering against uncertainty in the marketplace

b. increasing production change/setup costs

18. The number or quantity of each component or material needed to produce a single unit of the parent item is known as? a. pegging b. planning factor c. lot size d. time bucket

b. planning factor

15. What technology stores information on a small electronic device which can be attached to an object and read from up to several feet away, without the need for direct line-of-site? a. debundling b. radio frequency identification c. 2D barcode d. synchronization

b. radio frequency identification

3. Why would a company want to use ABC analysis when managing their inventory? a. because it's the best way to determine the Economic Order Quantity (EOQ) b. so they can focus their limited resources on items that have the highest inventory value c. because it's the only technique that works d. because all ERP systems require it

b. so they can focus their limited resources on items that have the highest inventory value

2. When a supply chain planner talks about using the BOM to do an MRP Explosion, they are talking about: a. the demand for final products that are affected by trends, seasonal patterns, and general market conditions b. the process of converting a parent item's planned order releases into component gross requirements c. relating gross requirements for a component part to the planned order releases of the parent item d. when the supplier will use Value Analysis and disassemble the part to see how it's made e. none of the above

b. the process of converting a parent item's planned order releases into component gross requirements

4. Which one of the following would be considered an inventory holding or carrying cost? a. transportation costs b. receipt processing costs c. insurance costs d. material handling costs

c. insurance costs

12. Warehousing, Customer Relationship Management, and International Trade are all important functional areas that are most closely related to? a. supply management b. operations management c. logistics & transportation d. integration

c. logistics & transportation

5. Material Requirement Planning (MRP) requires all of the following EXCEPT? a. the independent demand information, i.e., finished product forecast b. the parent-component relationships from the Bill of Materials (BOM) c. the rough-cut Capacity Planning Information d. the inventory status of final product and each of the components and materials

c. the rough-cut Capacity Planning Information

17. ______________________, such as lubricants for machines, are used in the production process, but do not become a part of the final product. a. raw materials b. work-in-process c. finished goods d. maintenance, repair and operating supplies

d. maintenance, repair and operating supplies

13. Which of the following is not part of the supply chain planning hierarchy? a. materials requirement plan (MRP) b. aggregate production plan (APP) c. master production schedule (MPS) d. modified manufacturing plan (MNP)

d. modified manufacturing plan (MNP)

The following are ALL common qualitative forecasting models EXCEPT? a. sales force estimation b. delphi method c. jury of executive opinion d. naive forecasting

d. naive forecasting