Page Final best
Which of the following is not a key decision when considering ERP system? I. Business complexity and size II. System costs and available resources III. Requirement of the firm's process
I, II, and III
Mean error of a forecast provides information concerning the forecast's a. trend b. bias c. accuracy d. average
b
The "functional silo" problem refers to a. The tendency for products to be grouped according to process b. The tendency for decisions to be made without considering other functional areas c. The practice of storing materials according to usage area. d. Assigning employees to work in specific areas.
b
The operations plan is a form of demand forecast. True/False.
False
In an exponential smoothing forecast, a higher level of alpha will place more emphasis on recent history. True/False
True
Many key sales and operations planning linkages are outside the manufacturing planning and control (MPC) system. True/False.
True
If average demand for a quarter is 1,000 and demand in the fourth quarter is 750, what is the seasonal factor for quarter IV?
0.75
What is the correct formula to calculate days of sales invested in accounts receivable (ARd)? AR = accounts receivable, S = sales of d days
ARd = (AR + d)/ S
Compared to a moving-average forecast, an exponential smoothing forecast places more emphasis on recent history. True/False/Both/Can't determine
Can't determine
Enterprise resource planning (ERP) systems coordinate multiple databases used to gather and maintain the firm's essential data. True/False
False
In an engineer-to-order environment, the forecasting process is not necessary. True/False.
False
In regression analysis, the dependent variable could be time. True/False.
False
To make an exponential smoothing forecast more reactive to trends, a lower value of alpha should be used. True/False
False
ERP systems perform which of the following tasks? I. Support decisions II. Make decisions III. Evaluate decisions
I
Which of the following is typically not a component of ERP systems? I. E-mail management II. Finance module III. Human resource module
I
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
Evaluating forecast accuracy requires an understanding of I. Mean absolute deviation (MAD) II. Mean error (bias) III. Forecast costs
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 actions would be likely to increase the cash-to-cycle time for a firm? I. Increasing the cost, but not the price, of a product II. Taking advantage of "early pay" discounts with suppliers III. Revaluing inventory to reflect reductions in purchasing prices
I and II
Which of the following are true? I. The sales and operations planning plan is usually states in aggregate units II. The master production schedule 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
Demand management include which of the following? I. Forecasting II. Product shipping II. Entering customer orders
I and III
Manufacturing Planning and control (MPC) includes which of the following activities? I. Material Management II. Product Marketing III. Coordinating Suppliers
I and III
Sale and operations planning 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 III
Which of the following are aspects of enterprise resource planning 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 III
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 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
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
Uprating 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
What of the following are possible components of time series demand? I. Seasonal Variation II. Cyclical variation III. Trend
I, II, and III
The least squares method of linear regression minimizes I. The error of the slope II. The squared distance between each point and the line III. The error of the intercept
II
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
Which of the following are examples of dependent demand? I. Customer orders II. Using finished goods tock to build preloaded store displays III. Raw material usage
II and III
Which of the following decisions would be most likely to be made using a highly aggregated estimate of general business tends? I. Individual product plans II. Product line development III. Constructing a new plant
III
Which of the following is an example of a casual model? I. Product sales increasing over time II. Lawn mower sales decreasing in the winter III. Increasing appliance sales when housing construction increases
III
A moving-average forecast is often superior to a simple average because it considers only recent data. True/False.
True
Capacity planning occurs during the supply planning phase of sales and operations. True/False.
True
One of the most important ways to reflect special events (promotions, product changes, etc.) is to directly modify the product forecast. True/False
True
One role of sales and operations planning is to provide early warning when demand a supply become unbalanced. True/False.
True
Seasonal variations are generally associated with the seasons of the year, while cyclical variations refer to other annual patterns. True. False.
True
The exponential smoothing forecast considers all past data. True/False.
True
The master production schedule disaggregates the operations plan. True/False.
True
With additive seasonal variation, the seasonal change is constant regardless of trends. True/ False.
True
A forecast used for master production scheduling and control is likely to cover a period of a. several days to a few weeks b. several weeks to a month c. several months to a year d. several years
a
A manufacturer of jet airplanes would most likely be what type of firm? a. make to order b. assemble to order c. engineer to order d. make to stock
a
According to the Supply Chain Council, which of the following most accurately describe inventory days of supply benchmarks for large industrial products? a. Average, 85 days; best in class, 55 days b. Average, 80 days; best in class, 60 days c. average, 90 days; best in class, 45 days d. Average, 55 days; best in class, 85 days
a
As forecasts are extended further in the future, the prediction interval is the most likely to a. increase b. decrease c. stay the same d. all possibilities (a-c) are equally likely
a
In the MPC process, detailed scheduling decisions are most likely to occur in which time horizon? a. short b. intermediate c. long d. immediate
a
Sales and operations planning (SOP) and demand management are a part of which MPC phase? a. direction setting b. detailed planning c. execution d. all of the above
a
Sales and operations planning balances supply and demand at the _____ level a. volume level b. mix level c. both volume and mix levels d. neither volume now mix level
a
Which of the following MPC components is primarily responsible for coordinating the planning efforts of marketing, finance, operations, and human resources? a. SOP b. Materials management c. Quality management d. Production planning and control
a
Which of the following supply chain metrics is most useful for measuring customers satisfaction in a make-to-stock system? a. fill rate by line item b. order fulfillment lead time c. inventory days of supply d. asset turns
a
A local coffee house restaurant would most likely be what type of firm? a. make to order b. assemble to order c. engineer to order d. make to stock
b
Assuming that forecasts errors are normally distributed, what is the relationship between mean absolute deviation and standard deviation? a. MAD > SD b. SD > MAD c. MAD = SD d. Cannot be determined
b
For a firm with average daily sales of $200,000, current inventory (Id) of $1,000,000, and costs of sales (CS) of 50 percent, what is the average days of inventory (Id)? a. 5 days b. 10 days c. 15 days d. 20 days
b
In a make-to-stock environment, the most likely point where customers order decoupling would take place is a. raw materials b. finished goods c. suppliers d. work in process parts and components
b
In a time series analysis, time is the a. Dependent variable b. independent variable c. either dependent or independent d. neither dependent nor independent
b
In pyramid forecasting, the "roll-up" process involves a. adding together family forecasts to establish the significance of each family b. adding together family forecasts to determine the aggregate forecast c. allocating aggregate forecast changes to individual products d. allocating aggregate forecast changes to product families
b
In which environment is defining the customer order in terms of components and options the key focus of demand management a. make to order b. assemble to order c. engineer to order d. make to stock
b
Master production scheduling (MPS) and resource planning are a part of which MPC phase? a. direction setting b. detailed planning c. execution d. all of the above
b
Mean absolute deviation (MAD) measures a. forecast trend b. magnitude of forecast errors c. bias of forecast errors d. forecast accuracy
b
To support data analysis without burdening the operational ERP system, many firms employ which of the following? a. mirror data site b. data warehouse c. consulting services d. legacy systems
b
Which of the following MPC components is primarily responsible for tasks such as purchasing, vendor management, and inventory control? a. S&OP b. Materials management c. Quality management d. Production planning and control
b
Which of the following supply chain metrics is most useful for measuring customers satisfaction in a make-to-order system? a. fill rate by line item b. order fulfillment lead time c. inventory days of supply d. asset turns
b
A forecast used for sales and operations planning to likely to cover a period of a. several days to a few weeks b. several weeks to a month c. several months to a year d. several years
c
According to the Supply Chain Council, which of the following most accurately describe delivery performance benchmarks for large industrial products? a. Average, 75%; best in class, 85% b. average, 80%; best in class, 95% c. average, 70; best in class, 95% d. average, 65%; best in class, 99%
c
Collaborative planning, forecasting, and replenishment (CPFR) has been defined by the Voluntary Interindustry Commerce Standards Association as a process involving how many steps? a. 5 b. 7 c. 9 d. 11
c
Decisions concerning the balance of supply and demand are made in the ____ phase of sales and operations planning. a. demand planning phase b. supply planning phase c. pre-S&OP meeting d. executive S&OP meeting
c
Demand management is the firm's connection to what entity? a. suppliers b. employees c. marketplace d. S&OP
c
In an assemble-to-order environment, how many different product combinations are possible if the product is made from 12 components, each of which has three different options? a. 36 b. 1.728 c. 531, 441 d. 36
c
In an engineer-to-order environment, the most likely point where customers order decoupling would take place is a. raw materials b. finished goods c. suppliers d. work in process parts and components
c
In the MPC process, capacity decisions (equipment, facilities, suppliers, etc.) are most likely to occur in which time horizon? a. short b. intermediate c. long d. immediate
c
In the least square regression analysis, if the value of a has been calculated as 10 and b has been found to be 100, what is the equation of the line? a. Y = 100 +10x b. Y = 100 - 10x c. Y = 10 + 100x d. X = 10 +100
c
Products that are part of a continuous production process (e.g., petroleum products) would most likely use which form of MPC? a. mrp b. just in time c. flow d. repetitive e. project
c
Purchasing, vendor evaluation, and invoice management are typically covered in which module of an ERP system? a. quality management b. plant maintenance c. materials management d. production planning and control
c
Regression analysis where the relationship between variables is a straight line is called a. Linear modeling b. Linear programming c. Linear regression d. Regression modeling
c
Shop-floor systems are part of which MPC phase? a. direction setting b. detailed planning c. execution d. all of the above
c
Sources of demand that are part of demand management include all of the following except? a. Customer orders b. Service parts c. Scrap products d. Promotional inventory
c
The customer order decoupling point is best described as a. The point where the customer takes responsibility for shipping costs b. the point in the supply chain where the customer's order is received c. the point in the supply chain where demand changes from dependent to independent d. the point where customer payments are received.
c
The first step in the collaborative planning, forecasting, replenishment (CPFR) process is a. create a sales forecast b. create an order forecast c. establish a collaborative relationship d. create a joint business plan
c
The four fundamentals issues in sales and operations planning are? a. demand, supply, marketing, and sales b. marketing, sales, manufacturing, and distribution c. volume, mix, demand, and supply d. volume, mix, new products, and finance
c
The lifetime of a customer order (the time from receiving the order until order fulfillment) is longest in which environment? a. make to order b. assemble to order c. engineer to order d. make to stock
c
The main goal of a CPFR process is to a. increase retail margins b. increase product stock at retail outlets c. reduce the variance between supply and demand d. increase manufacturer margins
c
The recommended number of product groups for S&OP is ______ a. 3-6 b. 6-9 c. 6-12 d. 12-18
c
What is the cash-to-cycle time for a firm with the following financial parameters? S = $10,000,000, d = 60, I = $1,000,000, AR = $750,000, CS = 60%, AP = $250,000? a. 15 days b. 16 days c. 17 days d. 18 days
c
What is the demand management function's contribution to sales and operations planning? a. a detailed forecast b. long-range facilitate planning c. ensuring that the operation plan considers all aspects of demand d. measurement of forecast accuracy
c
What is the order of planning decisions in order from highest to lowest aggregation level? Strategic Business unit, master production scheduling, and sales and operations planning a. SBU, MPS, and S&OP b. S&OP, SBU, and MPS c. SBU, S&OP, and MPS d. MPS, SBU, S&OP
c
What us the proper rank of different environments from lowest to highest need to communicate with the customer? a. make to order, assemble, engineer b. engineer, make to order, assemble c. assemble, make to order, engineer d. assemble, engineer, make to order
c
Which of the following supply chain metrics is most useful for measuring the firm's management of inventory levels? a. Fill rate by line item b. order fulfillment lead time c. inventory days of supply d. asset turns
c
A manufacturer of printer paper would most likely be what type of firm? a. make to order b. assemble to order c. engineer to order d. make to stock
d
Capacity leveling, material requirement planning (MRP), and a bill of materials processing are typically covered in which module of an ERP system? a. quality management b. plant maintenance c. materials management d. production planning and control
d
In a make-to-stock environment, what is the key problem? a. determining accurate customer forecasts b. maintaining sufficient stock of raw materials c. physically shipping products d. balancing inventory levels with customer service requirements
d
In an assemble-to-order environment, the most likely point where customers order decoupling would take place is a. raw materials b. finished goods c. suppliers d. work in process parts and components
d
In pyramid forecasting, the "force-down" process involves a. adding together family forecasts to establish the significance of each family b. adding together family forecasts to determine the aggregate forecast c. allocating aggregate forecast changes to individual products d. allocating aggregate forecast changes to product families
d
In which environment is the demand management function least likely to provide customers with promise dates? a. make to order b. assemble to order c. engineer to order d. make to stock
d
Measuring and control are a part of which MPC phase? a. direction setting b. detailed planning c. execution d. all of the above
d
Products that are part of a one-time production process (e.g., bridges or aircraft carriers) would most likely use which form of MPC? a. just in time b. flow c. repetitive d. project
d
The lifetime of a customer order (the time from receiving the order until order fulfillment) is shortest in which environment? a. make to order b. assemble to order c. engineer to order d. make to stock
d
What is the order of planning decisions in order from lowest to highest data processing cost? a. SBU, MPS, S&OP b. S&OP, SBU, MPS c. SBU, S&OP, mps d. MPS, S7OP, SBU
d
Which of the following MPC components is primarily responsible for supporting and managing manufacturing activities? a. S&OP b. material management c. quality management d. production planning and control
d
Which value indicates the better forecast? a. Mean error of 10% b. Forecast error of 100 units c. Both are equal d. Cannot be determined
d