MKT Final

One type of cost considered when preparing a sales and operations plan is inventory holding cost. True/False?

True

Operations planning and scheduling is the process of making sure demand and supply plans are in balance. True/False?

True

What is a concept that results in material being produced only when requested and moved to where it is needed just as it is​ needed? A. procrastination system B. push system C. pull system D. requisition system

C. pull system

The gross material requirements plan combines A. a master production schedule and the​ time-phased schedule. B. the net requirements plan and the aggregate plan. C. a master production schedule and the net requirements plan. D. the net requirements plan and the​ time-phased schedule

A. a master production schedule and the​ time-phased schedule.

Lean systems maintain inventory in small lot sizes because small lot​ sizes: A. enable schedules to use machine capacities more efficiently. B. increase pipeline​ inventory, allowing the organization to buffer against demand uncertainties. C. increase the quality level of the product. D. increase manufacturing lead time because of the increase in waiting time.

A. enable schedules to use machine capacities more efficiently.

Continuous improvement with lean​ systems: A. entails systematically stressing the system and focusing on problem areas. B. involves navigating a ship over treacherous rocks. C. focuses exclusively on internal operations without addressing relationships with customers and suppliers. D. requires periodically increasing lot sizes or workforce levels to uncover problems

A. entails systematically stressing the system and focusing on problem areas.

Which of the following occurs first within a production planning​ system? A. aggregate planning B. detailed work schedules for people C. master production schedule D. priority scheduling for products

A. aggregate planning

The meaning of undertime​ is: A. employees​ don't have enough productive work for the number of hours that they normally work. B. employees work more than normal​ hours, but they are not compensated. C. the workweek of some employees is permanently reduced. D. employees work as​ usual, but they are paid at a lower rate.

A. employees​ don't have enough productive work for the number of hours that they normally work.

What is the​ lot-sizing technique that generates exactly what was required to meet the​ plan? A. lot-for-lot B. Wagner-Whitin C. economic order quantity D. periodic order quantity

A. lot-for-lot

Which of the following tools means tracing upward in the BOM from the component to the parent​ item? A. pegging B. bucketing C. time fencing D. system nervousness

A. pegging

Mistake-proofing is known by the​ term: A. poka-yoke. B. andon. C. jidoka. D. muda.

A. poka-yoke.

The 5Ss developed by the Japanese do NOT include A. safety. B. sort/segregate. C. standardize. D. simplify/straighten.

A. safety.

A method in which production of an item begins in advance of customer needs is​ called: A. the push method. B. the andon method. C. the jidoka method. D. the pull method

A. the push method.

Which of the following would likely result in the LEAST amount of​ inventory? A.chase strategy B.mixed strategy C.Inventory levels are unaffected by the aggregate plan. D.level strategy

A.chase strategy

Aggregate planning is concerned with determining the quantity and timing of production in the A.intermediate term. B.short term. C.long term. D.next term.

A.intermediate term.

Capacity decisions are most critical to which of the​ following? A.long-range plans B.​short-range plans C.intermediate plans D.sales and operations planning

A.long-range plans

Job assignments are a focused issue in which of the​ following? A.short-range plans B.intermediate plans C.sales and operations planning D.​long-range plans

A.short-range plans

Which one of the following statements about sales and operations planning is​ best? A. Operations and marketing are the only two functional areas that supply inputs for developing production and staffing plans. B. A production plan generally focuses on production rates and inventory​ holdings, whereas a staffing plan focuses on staffing and other labor-related factors. C. A level strategy stabilizes inventory levels by adjusting production rates or staff levels to match demand levels over the planning horizon. D. Supply options are actions that adjust demand patterns

B. A production plan generally focuses on production rates and inventory​ holdings, whereas a staffing plan focuses on staffing and other labor-related factors.

The rack at my assembly station that holds rear view mirrors is​ empty, so a runner wheels it away and replaces it with a new​ rack, fully populated with rear view mirrors. This production factoid illustrates which of the following principles of the Toyota Production​ System? A. Any improvements to the system must be made in accordance with the scientific method. B. Every customer-supplier connection must be direct and unambiguous. C. The pathway for every service and product must be direct. D. All work must be specified as to content

B. Every customer-supplier connection must be direct and unambiguous.

The difference between a gross material requirements plan and a net requirements plan is that A. the gross MRP does not take taxes into​ account, whereas the net requirements plan includes the tax considerations. B. the net requirements plan includes consideration of the inventory on​ hand, whereas the gross MRP does not. C. the gross MRP includes consideration of the inventory on​ hand, whereas the net requirements plan does not. D. the gross MRP may not be​ computerized, but the net requirements plan must be computerized.

B. the net requirements plan includes consideration of the inventory on​ hand, whereas the gross MRP does not.

The production of 150 units during a 480-minute work shift results in a takt time​ of: A. 18.8 seconds. B. 192 seconds. C. 150 seconds. D. 120 seconds

B. 192 seconds.

The planning horizon for a sales and operations plan is​ typically: A. 0 - 3 months. B. 3 - 18 months. C. 18 - 36 months. D. 36 - 60 months

B. 3 - 18 months.

What is an information system for identifying and planning the​ enterprise-wide resources needed to​ take, make,​ ship, and account for customer​ orders? A. CIM B. ERP C. MRP D. BOM

B. ERP

Which of the following statements is NOT true regarding​ ERP? A. ERP usually provides financial and human resource management information. B. ERP promises​ slow, but​ accurate, information. C. ERP allows companies share a common database and business practices throughout the enterprise. D. The objective of an ERP system is to coordinate a​ firm's whole business

B. ERP promises​ slow, but​ accurate, information.

Which one of the following conditions favors a level strategy for manufacturing​ firms? A. High inventory-holding cost B. Highly automated equipment and a make-to-stock strategy C. Short shelf life of inventory D. High availability of workers

B. Highly automated equipment and a make-to-stock strategy

What is a list of quantities of​ components, ingredients, and materials required to make a​ product? A. master production schedule B. bill-of-material C. purchase order D. engineering change notice

B. bill-of-material

Inventory reduction via JIT is an effective tool for identifying A. holding costs. B. causes of variability. C. setup costs. D. inefficiencies in warehouse layout.

B. causes of variability.

The timing and size of production quantities for each product in the product family is specified by​ the: A. resource plan. B. master production schedule. C. scheduling plan. D. material requirements plan

B. master production schedule

The time that employees work that is longer than the regular workday or workweek for which they receive additional pay​ is: A. premium. B. overtime. C. slack time. D. the workweek.

B. overtime.

The takt time of a process is defined​ as: A. the lead time necessary to notify maintenance that a problem has occurred in an operation.. B. the cycle time needed to match the rate of production to the rate of consumption. C. the total time required to move an item through a process. D. the time required to change a machine to run a new model.

B. the cycle time needed to match the rate of production to the rate of consumption.

Which one of the following statements concerning sales and operations planning alternatives is​ best? A. Building anticipation inventory during the slack season is a demand management option a firm can follow to satisfy seasonal demand patterns. B. Adjusting workforce levels is an attractive reactive alternative when the cost of training and unemployment compensation is high. C. Using overtime is an undesirable option when the overtime wage premium is high and sustained levels of top worker productivity are important. D. Creating anticipation inventory has the advantage of increasing customization.

C. Using overtime is an undesirable option when the overtime wage premium is high and sustained levels of top worker productivity are important.

A takt time of 90 seconds generates a process output​ of: A. 90 units per hour. B. 4 units per hour. C. 40 units per hour. D. 30 units per hour.

C. 40 units per hour.

​"When in​ doubt, weed it​ out" describes which 5S​ element? A. Straighten B. Shine C. Sort D. Standardize

C. Sort

An aggressive advertising campaign was credited with K-Tel's inability to keep K-​Fed's latest CD on the shelves. K-Tel continued to accept orders and promised to ship as soon as they could burn new discs. Customers​ weren't happy, but were willing to wait. This unfortunate situation can be described as​ a: A. stockout. B. lost sale. C. backorder. D. backlog.

C. backorder.

What is a schedule that shows when an item must be ordered from suppliers or when the production of an item must be started to satisfy demand for the finished product by a particular​ date? A. master production schedule B. net requirements plan C. gross material requirements plan D. lead time

C. gross material requirements plan

Which of the following is NOT one of the benefits in​ MRP? A. improved utilization of facilities and labor B. faster response to market changes C. increased inventory levels D. better response to customer orders as the result of improved adherence to schedules

C. increased inventory levels

​Pilferage, obsolescence, and insurance costs are all elements of this cost category. A. production B. staffing C. inventory holding D. backorder and stockout

C. inventory holding

Which of the following words means continuous improvement in​ Japanese? A. sensei B. kanban C. kaizen D. poka-yoke

C. kaizen

Lean systems try​ to: A. produce a product in anticipation of demand. B. reduce the labor content in all processes. C. maximize the value added by of each of its activities. D. organize production in large lots to minimize the number of setups

C. maximize the value added by of each of its activities.

The objective of aggregate planning is usually to A. specify what is to be made and when. B. provide input to material requirements planning systems. C. meet forecast demand while minimizing cost over the planning period. D. to determine which plans are feasible in the coming months and which are not.

C. meet forecast demand while minimizing cost over the planning period.

Which one of the following statements regarding production and staffing plans is​ best? A. The production plan outlines time-phased production​ rates, workforce​ levels, and inventories without considering capacity limitations. B. A decision to vertically integrate is one of the possible demand options a firm may employ when operating under uneven demand conditions. C. An advantage of employing demand options is that creative pricing and promotional campaigns increase the contribution margin. D. A producer of greeting cards for all occasions can use a level strategy to good advantage because of the complementary nature of the products and the workforce to produce many varieties of cards.

D. A producer of greeting cards for all occasions can use a level strategy to good advantage because of the complementary nature of the products and the workforce to produce many varieties of cards.

The four bolts that hold the passenger seat in a pickup truck are tightened in a clockwise order beginning with the front right bolt in 24 seconds. This production factoid illustrates which of the following principles of the Toyota Production​ System? A. The pathway for every service and product must be direct. B. Every customer-supplier connection must be direct and unambiguous. C. Any improvements to the system must be made in accordance with the scientific method. D. All work must be specified as to content

D. All work must be specified as to content

Which of the following is NOT one of the principles for standard work practice at​ Toyota? A. Work is completely specified as to​ content, sequence,​ timing, and outcome. B. Material and service flows are to be simple and direct. C. Internal and external​ customer-supplier connections are​ direct, specifying​ personnel, methods,​ timing, and quantity. D. Improvements in the system must be made in accordance with the​ "scientific method," at the highest possible level in the organization.

D. Improvements in the system must be made in accordance with the​ "scientific method," at the highest possible level in the organization

Which one of the following statements concerning supply options is​ best? A. Adjusting workforce levels is preferred when the workforce is skilled and the labor pool is small. B. Creating anticipation inventory increases customization and is particularly favored in the service industry. C. Using overtime capacity usually improves worker hourly productivity. D. Subcontracting can help overcome short-term capacity shortages by offloading work on other producers.

D. Subcontracting can help overcome short-term capacity shortages by offloading work on other producers.

Which one of the following statements about sales and operations planning is​ best? A. When a firm wants to minimize its inventory​ investment, it should use a level production-planning strategy. B. A make-to-stock production plan that wants to emphasize plant utilization should adopt a chase production strategy. C. A make-to-stock production plan that wants to minimize changes in production rates should adopt a chase production-planning strategy. D. When a firm wants to emphasize stability in its​ workforce, it should adopt a level production-planning strategy

D. When a firm wants to emphasize stability in its​ workforce, it should adopt a level production-planning strategy

Companies using lean systems generally​ have: A. suppliers who are low-cost producers. B. many suppliers to ensure that material shortages never occur. C. suppliers that are willing to accept short-term contracts. D. suppliers that are located nearby to decrease delivery lead time.

D. suppliers that are located nearby to decrease delivery lead time.

The production of 240 units during a 480-minute work shift results in a takt time​ of: A. 24 seconds. B. 240 seconds. C. 30 seconds. D. 120 seconds

D. 120 seconds

Which of the following is NOT one of the features that an​ S&OP process needs to generate a useful aggregate​ plan? A. A model that combines forecasts and costs. B. A method to determine the relevant costs. C. A logical unit for measuring sales and output. D. A forecast of demand for a reasonable​ long-term planning period in aggregate terms.

D. A forecast of demand for a reasonable​ long-term planning period in aggregate terms.

A company is attempting to cope with seasonal demand patterns by managing its demand. Which one of the following will NOT help achieve this​ aim? A. Complementary products or services B. Creative pricing C. Promotional campaigns D. Adjusting workforce levels

D. Adjusting workforce levels

Which one of the following statements about managerial inputs to production and staffing plans is​ best? A. Marketing provides the schedule of sales associates.. B. Finance provides labor and machine standards. C. Materials provide the current staffing level. D. Human resources provide the training capacity and labor-market conditions

D. Human resources provide the training capacity and labor-market conditions

Which of the following is an advantage of​ ERP? A. Data fields do not have to be defined identically across the entire enterprise. B. It is very inexpensive to purchase. C. It is simple enough that companies have an easy time adjusting to it. D. It creates commonality of databases.

D. It creates commonality of databases.

What is a​ lot-sizing technique that orders the quantity needed during a predetermined time between​ orders? A. Wagner-Whitin B. part period balancing C. EOQ D. POQ

D. POQ

In lean​ systems, if a defective product is​ found, which of the following is generally NOT​ done? A. The production line is made aware of the problem without necessarily stopping the line. B. The production line is stopped. C. The defective unit is returned to the worker responsible for creating the defect. D. The defective unit is passed on to the next workstation

D. The defective unit is passed on to the next workstation

Weeding out unnecessary​ items, neatly arranging​ what's left, and cleaning the work area are components​ of: A. mixed-model assembly. B. a Kanban system. C. a constraint management system. D. a 5S program

D. a 5S program

Which of the following is NOT one of Taiichi​ Ohno's seven​ wastes? A. transportation B. queues C. motion D. energy

D. energy

The Japanese call the practice of stopping production when a defect occurs A. ​poka-yoke. B. kaizen. C. kanban. D. jidoka.

D. jidoka

Justin Thyme used to run one batch each of 500​ As, 300 Bs and 100 Cs every month but now he runs a batch of 5​ As, 3​ Bs, and 1 C every half day with the use​ of: A. andon lights. B. push method. C. single-digit setups. D. mixed-model assembly.

D. mixed-model assembly.

Items to be assembled that fit together only the proper way are an example​ of: A. andon. B. jidoka. C. muda. D. poka-yoke

D. poka-yoke

Using customer demand to activate production of an item or service is​ called: A. the jidoka method. B. the andon method. C. the push method. D. the pull method.

D. the pull method.

Which of the following allows a segment of the master schedule to be designated as​ "not to be​ rescheduled?" A. system nervousness B. freeze point C. pegging D. time fence

D. time fence

What is the process of breaking an aggregate plan into greater​ detail? A. decomposition B. aggregation C.​ S&OP D. disaggregation

D.disaggregation

A level strategy matches demand during the planning horizon by varying either the workforce level or the output rate. True/False?

False