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Exam: CPIM

Title :Certified in Production and Inventory Management


Exam A
QUESTION 1
Operations management works in a complex environment affected by many factors.
Among the most important are:
A. Government regulation
B. the economy and competition
C. Customer expectations and quality
D. all of these
Answer: D
QUESTION 2
Government regulations majorly apply to areas as:
A. Environment and taxation
B. Product liability and safety
C. Population growth
D. All of these
Answer: AB
QUESTION 3
Shifts in the age of the population needs of ethnic groups, low population growth, freer trade between countries
and increased global competition all contributes to:
A. Government
B. changes in the marketplace
C. Business decisions
D. customer expectations
Answer: B
QUESTION 4
Some of the characteristics customers expect when they buy products are all of the following EXCEPT:
A. A fair price with higher quality products and services
B. Delivery lead time
C. Presale services better than after sale services
D. Product and volume flexibility
Answer: C
QUESTION 5
Customer requirements may be based on price, quality, delivery and so forth are called:
A. Order qualifiers
B. Order prerequisites
C. Order basis
D. None of these
Answer: A
QUESTION 6
For example, the price for a certain type of product must full within a range for the suppliers to be considered .
but being considered does not mean winning the order. so win orders a supplier must have characteristics that
encourage customers to choose its products and services over competitors. Those competitive characteristics,
or combination of characteristics are called
A. Order takers
B. Order achievers
C. Order winners
D. Order credentials
Answer: C
QUESTION 7
Order winning characteristics are defined primarily from:
A. Competition
B. customer needs
C. Business sector
D. Both A & B
Answer: D
QUESTION 8
It is virtually impossible to be the best in every dimension of competition. Firms should in general:
A. Strive to provide at least minimum level of acceptance for each of the order qualifiers
B. Should try to be the best in the market for the order winners.
C. Should keep in mind the pace of change
D. A & B
Answer: D
QUESTION 9
It should be recognized that order winners and qualifiers for any product market combination are not static. not
only will customers change perspectives as competitors jokey for position but the order winners and qualifiers
will often change based on the concepts of:
A. Product life cycle
B. Economic changes
C. Government regulation
D. Market needs
Answer: A
QUESTION 10
Quality and delivery factor of products tend to have increased importance during:
A. Maturity phase
B. Growth phase
C. Introduction phase
D. Decline phase
Answer: B
QUESTION 11
Life cycle approach for identifying order winners and qualifiers is complicated in that:
A. The duration of life cycle will be very different for different products.
B. Customer needs change work frequently
C. Life cycle phase are difficult to understand
D. Not a single requirement applies to all these of life cycle
Answer: A
QUESTION 12
Which one of the following is a basic strategy to achieve the level of shortest lead time?
A. Engineer-to-order
B. Assemble-to-order
C. Make-to-stock
D. None of these
Answer: D
QUESTION 13
This is the situation of lead time strategy in case of:
A. Engineer-to-order
B. Make-to-stock
C. Make-to-order
D. None of these
Answer: A
QUESTION 14
Which one of following is not an important factor in supply chain?
A. The supply chain includes all activities and processes to supply a product or service to a final customer
B. Any number of companies can be linked in the supply chain
C. product or services usually flow from customer to supplier and design and demand information usually
flows from customer to supplier. Rarely is this not so.
D. A customer can be a supplier to another customer so the total chain can have a number of supplier
customer relationships.
Answer: C
QUESTION 15
With the explosive growth in just-in-time (J IT) concepts, the supplier-customer partnership concept grew as a
result many changes in their relationships came including:
A. Mutual analysis for cost reduction
B. Mutual product design
C. Need for rapid delivery
D. Speed of accurate information flow
Answer: D
QUESTION 16
As 1980 gave way to the 1990 the world continued to change, forcing additional changes in supply-chain
concepts. All of the following statements depict those changes EXCEPT:
A. Explosive growth in computer capability applications as ERP.
B. Large growth in global competition
C. growth in the technological capabilities for product and processes
D. Growth in J IT
Answer: D
QUESTION 17
To result in optimal performance for customer service and cost, it is felt that the supply chain of activities as an
extension of partnership. This implies many issues, but critical one/s include/includes:
A. Flow of material
B. Flow of information and sharing of information, mostly through the internet
C. Fund transfers
D. All of these
Answer: D
QUESTION 18
Take as an example the supply chain of organizations that represent the flow from raw silicon used to make
computer chips to the delivery and disposal of the computer itself:
What is illustrated here is but one chain of a set of different component chains that represent a network of
suppliers and distributors for a product to manage a supply chain one must:
A. Try of efficiently plan material and information flows along each chain to maximize cost efficiency,
effectiveness, delivery and flexibility.
B. Understand the network of suppliers and customers
C. Rapid flows of accurate information and increased organizational flexibility
D. All of these
Answer: D
QUESTION 19
What was/were the conflict/s in traditional system before the growth of supply chain concept?
A. Supply, production and distribution system were organized into separate functions that reported to different
departments of a company.
B. Often departmental objectives were maximized without considering the effect they would have on other
parts of the system.
C. Costly distribution systems were these
D. Strategy of high inventory pile up was following
Answer: AB
QUESTION 20
To get most profit, a company must have:
A. Best customers service
B. Lowest production and inventory costs
C. Lowest distribution costs
D. All of these
Answer: D
QUESTION 21
Which of the following help to achieve marketing objectives?
A. Maintain high inventories to goods are always available for the customers
B. Interrupt production runs so that a non-inventoried item can be manufactured quickly
C. Create an extensive and costly distribution system so good can be shipped to the customer rapidly
D. All of these
Answer: D
QUESTION 22
All of the following are ways to achieve financial objectives EXCEPT:
A. Reduce inventory so inventory investment is at a minimum level
B. Decrease the number of plants and warehouses
C. Extensive distributions system
D. Manufacture only to customer order
Answer: C
QUESTION 23
Production must keep its operating cost as low as possible this can be done in the following way/ways:
A. Make long production runs of relatively few production runs of relatively few products. Fewer Changeovers
will be needed and specialized equipment can be used thus reducing the cost of making the product
B. Maintain high inventories of raw materials and work-in-process so production is not disrupted by shortages.
C. Manufacture only to customer order
D. Provide lowest distribution costs
Answer: AB
QUESTION 24
The Question mark represents:
A. Inventories
B. Payables
C. Cost of goods solved
D. None of these
Answer: A
QUESTION 25
Important way to resolve conflicting objective is:
A. To provide close coordination of the supply, production and distribution functions.
B. Balance conflicting objectives to minimize the total of all costs involved
C. Integrated materials management or logistics organization
D. All statements related ones.
Answer: D
QUESTION 26
An income statement of a company is as follows:
Dollars Percent of sales
Revenue $1,00,000 100
(Sales)
Cost of Goods $500,000 50
Sold
Direct material $200,000 20
Direct Labor $200,000 20
Factory $200,000
Overhead
$900,000 90
Gross Profit $100,000 10
If through a well-organized materials management department direct materials can be reduced by 10% and
direct labor by 5% the improvements in profits would be:
A. 5%
B. 6%
C. 7%
D. 4%
Answer: B
QUESTION 27
An income statement of a company is as follows:
Dollars Percent of sales
Revenue $1,00,000 100
(Sales)
Cost of Goods $500,000 50
Sold
Direct material $200,000 20
Direct Labor $200,000 20
Factory $200,000
Overhead
$900,000 90
Gross Profit $100,000 10
Profit has been increased by 60% to get the in profit by 600,000 by increasing revenue; sales would have to
increase to 1.2 million. What will happen with CGS?
A. Decrease by 3%
B. Increase by 4%
C. Decrease by 4%
D. Will remain same
Answer: A
QUESTION 28
If the cost of direct material is 60%, direct labor is 10%, and overhead is 25%of sales what will be the
improvement in profit if direct material is reduced to 55%?
A. 5%
B. 3%
C. 4%
D. No improvement
Answer: A
QUESTION 29
If the cost of direct material is 60%, direct labor is 10%,and overhead is 25%of sales. How much to give the
same increase in profit? (Remember overhead cost is constant)
A. 19%
B. 18%
C. 17%
D. 13%
Answer: C
QUESTION 30
On the overage a company has 12week of work-in-process (WIP) inventory and annual cost of goods sold of
36$ million. Assuming the company works 50 weeks per year.
What is the dollar value of the WIP?
A. $4, 32,000
B. $423,000
C. $4, 33,000
D. $4, 22,000
Answer: A
QUESTION 31
On the overage a company has 12week of work-in-process (WIP) inventory and annual cost of goods sold of
36$ million. Assuming the company works 50 weeks per year. If the WIP could be reduced to 5week, and the
annual cost of inventory value what would be annual savings?
A. $50,000
B. $500,400
C. $504,000
D. None of these
Answer: C
QUESTION 32
Production planning includes;
A. Forecasting
B. Master planning
C. Material Requirement planning and capacity planning
D. All of these
Answer: D
QUESTION 33
Production activity control activities in manufacturing planning and control may also be called:
A. Shop-floor control
B. Capacity planning
C. Master planning
D. Material Requirement planning
Answer: A
QUESTION 34
Inventories are part of planning process and provide buffer against:
A. Demand rates
B. Production rates
C. Differences in demand and production rates
D. None of these
Answer: C
QUESTION 35
Which one of the following is Not out of five basic inputs to the manufacturing planning and control system?
A. Product Description and process specifications
B. Customized Design
C. Time needed to perform operations
D. Available facilities and quantities required
Answer: B
QUESTION 36
Engineering drawings and specifications and bill of material are the methods of:
A. Product Description
B. Process specifications
C. Quantities required
D. None of these
Answer: A
QUESTION 37
As used in material management, bill of material:
A. Describes the components used to make the product
B. Describes the subassemblies at various stages of manufacture.
C. Both of these
D. None of these
Answer: C
QUESTION 38
Process specifications are step-by-step set of instructions describing how the product is made this information
is usually recorded an:
A. A route sheet
B. A Routing file
C. Process sheet
D. Both A& B are the same
Answer: D
QUESTION 39
Route sheet or a routing file gives information in the manufacturing of a product such as:
A. Operations required making the product
B. Sequence of operations
C. Equipment and accessories required
D. All of these
Answer: D
QUESTION 40
The time needed to perform operation is an important input factor to the manufacturing planning and control
system. It is needed to schedule work through the plans,
A. Load the plant
B. Make delivery promises
C. And cost the product
D. All of these
Answer: D
QUESTION 41
The information for quantities required in manufacturing, planning and control system will come from all of
these EXCEPT:
A. Forecasts and material Requirement plan
B. Customer orders
C. Orders to replace finished-goods inventory
D. Sequence of operations
Answer: D
QUESTION 42
Transportation
Distribution inventory
Warehousing
Packaging
Material handling
Order Entry
These are the activities of:
A. physical supply Distribution system
B. Virtual supply and distribution system
C. Distribution details
D. None of these
Answer: A
QUESTION 43
Metrics give us:
A. Control by supervisors
B. Reporting of data to supers and external description
C. Product description
D. Process specification
Answer: AB
QUESTION 44
Metrics:
A. Communicate expectations and motivate people
B. Identify problems
C. Direct a course of action
D. All o0f these
Answer: D
QUESTION 45
Today production control works in a demanding environment shaped by six major challenges. Which one of the
following is not of those challenges?
A. Customer that are never satisfied
B. A supply chain that is large and must be manage
C. A product life cycle that is getting shorter and shorter
D. None of these
Answer: D
QUESTION 46
There is difference between measurement and standards, because:
A. Performance standards set the goal
B. Performance measures say how close you came
C. Performance measures set and measure the goals
D. Standards are for market analysis
Answer: AB
QUESTION 47
The old saying "What you do not measure, you cannot control", is as valid today as it was when first stated.
The necessary step/s in implementing a successful performance measurement program is/are:
A. Establish company goals and objectives
B. Define performance
C. State the measurement to be used, set performance standards, educate the user and make sure the
program is consistently applied
D. All of these
Answer: D
QUESTION 48
Continuous improvement does not focus on a "one-shot" improvement out on such things
as:
A. Rate on improvement in quality
B. Cost and cost
C. Reliability, innovation, effectiveness and productivity
D. All of these
Answer: D
QUESTION 49
If the cost of manufacturing (direct material and direct labor) is 60% of sales and profit is 10% of sales ,what
would be the improvement in profit if, through better planning and control, the cost of manufacturing was
reduced from 60%of sales to 50%of sales?
A. 100%
B. 70%
C. 50%
D. 10%
Answer: A
QUESTION 50
Considering the above question how much would sales have to increase in profits?
A. 50%
B. 25%
C. 20%
D. 10%
Answer: B
QUESTION 51
On the average a firm has 10 weeks of work-in-process and annual cost of goods sold is $15 million. Assuming
that, the company works 50 weeks a year. What is the dollar value of the work-in-process?
A. 1,000,000
B. 1,000,500
C. 1,500,000
D. None of these
Answer: C
QUESTION 52
In the above question, if the work-in-process could be reduced to 7 weeks and the annual cost of carrying
inventory was 20% of the inventory value, what would be annual saving?
A. $ 80,000
B. $ 70,000
C. $ 90,000
D. $ 60,000
Answer: C
QUESTION 53
Which of the following is/are included in five major levels in the manufacturing planning and control system?
A. Strategic business plan
B. Production plan
C. Master production schedule
D. All of these
Answer: D
QUESTION 54
Each level of MPC (Manufacturing planning and control) differs in the following:
Purpose of the plan
Planning Horizon
Level of detail
Planning Cycle
Since each level is:
A. For different time span
B. Responsible for satisfying market demand
C. For different purposes
D. Both A and C
Answer: D
QUESTION 55
1) What are the priorities-How much of what is to be produced and when?
2) What is available capacity-What resources do we have?
3) How can differences between priorities and capacity be resolved? These questions must be answered:
A. During material resource planning
B. During priority planning
C. At each level of MCP
D. During capacity planning
Answer: C
QUESTION 56
Strategic business plans are usually reviewed
A. After each quarter
B. Every six months to a year
C. After five years
D. Both A and B
Answer: B
QUESTION 57
The level of detail in strategic business plan is:
A. Not so high
B. Concerned with general market and production requirements
C. Both of these
D. None of these
Answer: C
QUESTION 58
Production management is concerned with:
A. The quantities of each production group that must be produced in each period \
B. The desired inventory levels
C. The resources of equipment, labor, and material needed in each period, and the availability of the
resources needed
D. All of these
Answer: D
QUESTION 59
For effective planning:
A. There must be a balance between priority and capacity
B. Priority should be given more importance than capacity
C. Capacity should be given more importance than priority
D. None of these
Answer: A
QUESTION 60
The planning horizon is usually _______ and is reviewed perhaps _______ .
A. 8-12 months, each month
B. 5-8 months, each quarter
C. 6-8 months, each month or quarter
D. None of these
Answer: C
QUESTION 61
Which one of the following is NOT an input to master production schedule (MPS)?
A. Forecasts for individual end items
B. Sales orders
C. Inventories and existing capacity
D. Bill of materials
Answer: D
QUESTION 62
For master production schedule planning horizon usually extends from:
A. 3-18 months
B. 6-18 months
C. 9-18 months
D. None of these
Answer: A
QUESTION 63
In MPS, plans are reviewed and changed:
A. Weekly
B. Quarterly
C. Weekly or Monthly
D. Monthly
Answer: C
QUESTION 64
____________shows the quantities needed and when manufacturing intends to make use or use them.
A. MPS
B. Production plan
C. Purchasing and production activity control
D. Material Requirement Plan
Answer: D
QUESTION 65
Purchasing and production activity control:
A. is very short, perhaps from a day to month
B. the level of detail is high since it is concerned with individual components, workstations and ordered
C. Plans are reviewed and revised daily
D. All of these
Answer: D
QUESTION 66
Which one of the following is NOT the part of sales and operations planning benefits?
A. It provides a mean of updating the strategic business plan as conditions change
B. It provides a mean of managing change. Rather than reacting to changes in market conditions or the
economy after they happen
C. Planning ensures the various department plans are realistic, coordinated and support the business plan
D. It provides a vague plan that can achieve company objectives
Answer: D
QUESTION 67
This figure is a true representation of:
A. MRP II
B. MPS
C. Production Plan
D. None of these
Answer: A
QUESTION 68
"Framework of organizing, defining and standardizing the business processes necessary to effectively plan and
control an organization so the organization can use its internal knowledge to seek external advantage" This is
the definition of:
A. MRP II
B. ERP
C. MPS
D. MRP
Answer: B
QUESTION 69
ERP systems:
A. Having large scope allows the tracking of orders and other important planning and control information
throughout the entire company from procurement to ultimate customer delivery
B. Capable of allowing managers to share data between firms
C. Both of these
D. None of these
Answer: C
QUESTION 70
At the production planning level, where little detail is needed, this requires identifying product groups or
families of individual product groups or families of individual products based on:
A. Similarity of manufacturing process
B. Difference in manufacturing processes of different product lines
C. Similarities of processes in manufacturing of same product line items
D. None of these
Answer: A
QUESTION 71
Over the time span of the production plan, large changes in capacity are usually not possible. Additions or
subtractions in plant and equipment are impossible or very difficult to accomplish in this period. However,
some changes can be done. Which of the following are out of those variations?
A. People can be hired and laid off, overtime and short-time can be worked, and shifts can be added or
removed.
B. Inventory can be built up in slack periods and sold or used in periods of high demand.
C. Work can be subcontracted or extra equipment leased
D. All of these
Answer: D
QUESTION 72
Production planning problem typically has the following characteristics EXCEPT:
A. A time horizon of 12 months is used, with periodic updating perhaps every month or quarter
B. Production demand consists of one or a few product families or common units
C. Demand is rarely fluctuating
D. Plant and equipment are fixed within the time horizon
Answer: C
QUESTION 73
Basic strategies that can be used in a production plan may be:
A. Chase strategy
B. Production leveling strategy
C. Subcontracting
D. Any one of these
Answer: D
QUESTION 74
A company wants to produce 10, 000 units of an item over the next three months at a level rate. The first
month has 20 working days; the second, 21 working days; and the third, 12 working days because of an annual
shutdown. On the average, how much should the company produce each day to level production?
A. 118.8 units
B. 188.7 units
C. 189.7 units
D. 180.00 units
Answer: B
QUESTION 75
The advantage/s of production leveling is/are:
A. It results in smooth level off operation that avoids the costs of changing production levels.
B. Firms do not need to have excess capacity to meet peak demand
C. Firms do not need to hire and train workers and lay them off in slack periods
D. All of these
Answer: D
QUESTION 76
Which of the following results in inventory build ups in low-demand periods?
A. Production leveling strategy
B. Chase strategy
C. Hybrid strategy
D. None of these
Answer: A
QUESTION 77
In some industries, _____________ is the only strategy that can be followed. Farmers, for instance, must
produce in the growing season. The post office must process mail over the Christmas rush and in slack
seasons. Restaurants have to serve meals when the customers want them. These industries cannot stockpile
or inventory their products or services and must be capable of meeting demands as it occurs.
A. Subcontracting
B. Resource Planning
C. Chase strategy
D. Production leveling strategy
Answer: C
QUESTION 78
Total the forecast demand for the planning horizon. Determine the opening inventory and the desired ending
inventory Calculate the total production required as follows:
Total Production =total forecast +back orders
+ending inventory ?opening inventory
Calculate the production required each period by dividing the total production by the number of periods.
Calculate the ending inventory for each period.
Above is the general procedure
A. for developing a level production
B. to forecast capacity requirements to meet demand
C. To identify the production gaps
D. All of these
Answer: A
QUESTION 79
The information needed to make a production plan is:
A. Forecast by period for the planning horizon
B. Opening inventory and desired ending inventory
C. Any past-due customer orders. These are orders that are late for delivery and are sometimes back orders.
D. All of these
Answer: D
QUESTION 80
With reference to the above example; how much should be produced each period?
A. 120 cases
B. 116 cases
C. 122 cases
D. None of these
Answer: B
QUESTION 81
With reference to the above example; considering 116 cases produced during the period what is the ending
inventory for each period?
A. 102 cases
B. 107 cases
C. 110 cases
D. 106 cases
Answer: A
QUESTION 82
With reference to the above example; if the cost of carrying inventory is $5 per case based on ending
inventory, what is the total cost of carrying inventory?
A. $2900
B. $2300
C. $2200
D. $3000
Answer: B
QUESTION 83
Generally, firms make-to-order when:
A. Goods are produced to customer specifications
B. The customer is willing to wait while the order is being made
C. The product is expensive to make and to store and several product options are offered
D. All of these
Answer: D
QUESTION 84
Assemble- to-order is a subset of make-to-order. Which of the following is needed to make a production plan
for make-to-order products?
A. Forecasts by period for the planning horizon
B. Opening backlogs of customer orders
C. Desired ending backlog
D. All of these
Answer: D
QUESTION 85
Once the preliminary production plan is established, it must be compared to the existing resources of the
company. This step is called ______________. Two questions must be answered:
Are the resources available to meet the production plans? If not, how will the difference be reconciled?
A. Resource requirement planning
B. MPS
C. MRP II
D. None of these
Answer: D
QUESTION 86
If the opening inventory is 400 units, demand is 900 units, and production is 800 units, what will be the ending
inventory?
A. 400 units
B. 200 units
C. 300 units
D. 350 units
Answer: C
QUESTION 87
A company wants to produce 500 units over the next 3 months at a level rate. The months have 19, 20 and 21
working days, respectively. On the average, how much should the company produce each day to level
productions?
A. 8.3 units
B. 88.8 units
C. 8.9 units
D. None of these
Answer: A
QUESTION 88
Because of its labor contracts, a company must hire enough labor for 100 units of production per week on one
shift or 200 units per week on two shifts, it cannot hire, layoff, or assign overtime. During the fourth week,
workers will be available from another department to work part or all of an extra shift (up to 100 units). There is
a planned shutdown for maintenance in the second week, which will cut production to half. Develop a
production plan. The opening inventory is 200 units, and the desired ending inventory is 300 units.
Week 1 2 3 4 5 6 Total
Forecast 120 160 240 240 160 160
Demand
Planned
production
Planned
Inventory
If the opening backlog is 500 units, forecast demand is 700 units. And production is 800 units, what will be the
ending backlog?
A. 400 units
B. 500 units
C. 600 units
D. All of these
Answer: A
QUESTION 89
The major advantage of subcontracting is:
A. Costs associated with excess capacity are avoided, and because production is leveled, there are no costs
associated with changing production levels.
B. Cost of purchasing (item cost, purchasing, and transportation and inspection costs) may be greater than if
the item were made in the plant.
C. Inventories can be kept to a minimum
D. No need to hire and train workers.
Answer: A
QUESTION 90
The information needed to develop an MPS is provided by:
A. The production plan
B. Forecasts for individual end items
C. Actual orders received from customers and for stock replenishment
D. All of these
Answer: D
QUESTION 91
The MPS is a plan for manufacturing; it reflects the needs of the marketplace and the capacity of
manufacturing and forms a priority plan for manufacturing to follows: The MPS forms a vital link between sales
and production as follows:
A. It makes possible valid order promises. The MPS is a plan of what is to be produced and when. As such, it
tells sales and manufacturing when goods will be available for delivery.
B. It is contract between marketing and manufacturing. It is an agreed- upon plan
C. Both of these
D. None of these
Answer: C
QUESTION 92
To maintain the desired level of customer service by maintaining finished-goods inventory levels or by
scheduling to meet customer delivery requirements.
1. To make the best use of material, labor and equipment.
2. To maintain inventory investment at the required levels.
These are the objectives of:
A. MRP
B. MPR II
C. MPS
D. Production plan
Answer: C
QUESTION 93
The step for preparing MPS is/are:
A. Develop a preliminary MPS
B. Check the preliminary MPS against available capacity
C. Resolve differences between the preliminary MPS and capacity availability
D. All of these
Answer: D
QUESTION 94
Which of the following criteria is used to judge MPS?
A. Resource use
B. Customer service
C. Cost
D. All of these
Answer: D
QUESTION 95
Suppose company manufactures paint from a base color and adds tints to arrive at the final color. Suppose
there are 10 tints and a final color is made by mixing any three of them with the base. There are 70 possible
colors (10*9*8=720). Forecasting and planning production for 720 items is a difficult task. It is much easier if:
A. Production is planned at the level of the base color and the 10 tints. There are then only10 items with which
to deal: the base color and each of the 10 tints.
B. Once a customer's order is received, the base color and the required tints can be combined (assembled)
according to the order
C. MPS is done at the component level
D. None of these
Answer: AB
QUESTION 96
The planning horizon is the time span for which plans are made. It must cover a period at least equal to the
time required to accomplish the plan. For Mater production scheduling, the minimum planning horizon is:
A. The longest cumulative or end-t-end lead time (LT)
B. The shortest lead time
C. The difference between the productions of two different batches
D. None of these
Answer: A
QUESTION 97
_______________ and ________________ uncouples the sales forecast from manufacturing by establishing a
manufacturing plan
A. Production plan, MPS
B. MRP and production plan
C. MPS and chase strategy
D. MRP and MRP II
Answer: A
QUESTION 98
Which of the following strategic option/s is/ are used as success criteria for a corporate strategy?
A. Suitability (would it work?)
B. Feasibility (can it be made to work?)
C. Acceptability (will they work it?)
D. All of these
Answer: D
QUESTION 99
Which of the following is generally a function of the physical distribution system?
A. Production activity control
B. Production planning
C. packaging
D. bill of material
Answer: C
QUESTION 100
A forecast is typically more accurate for:
A. groups of items rather than for individual items
B. daily rather than monthly periods of time
C. physical units rather than monetary units
D. far out in the future rather than nearer time periods
Answer: A
QUESTION 101
The removal of outliers from demand data to provide a reasonable historical base from which to forecast is
called:
A. regression
B. time series decomposition
C. filtering
D. smoothing
Answer: C
QUESTION 102
Which of the following is used to convert the master production schedule into detail requirements?
A. production planning
B. rough-cut capacity planning
C. production activity control
D. material requirements planning
Answer: D
QUESTION 103
End-of-line inspection often fails to improve quality for which of the following reasons?
A. It requires extensive personnel.
B. It lacks source accountability.
C. It excludes quality circles.
D. Its costs are significant
Answer: B
QUESTION 104
Materials should be moved from point of manufacture to point of use when:
A. production is completed at point of manufacture
B. the materials are needed at point of use
C. material handling equipment is available
D. material at point of use is zero
Answer: B
QUESTION 105
Which of the following would be manufactured in a continuous-production process?
A. combines
B. clothing
C. vitamins
D. gasoline
Answer: D
QUESTION 106
Which of the following statements is true about obtaining a high level of accuracy for inventory records?
A. It would usually lead to a reduction of inventory levels.
B. It is not necessary to achieve because of safety stocks and safety lead time.
C. It would result in savings that are likely to be small and difficult to determine.
D. It is probably impossible to achieve and will be costly to obtain.
Answer: A
QUESTION 107
When a company is pursuing a program to achieve manufacturing excellence, which of the following objectives
should receive the highest priority?
A. delivery reliability
B. quality improvement
C. cost reduction
D. volume flexibility
Answer: B
QUESTION 108
Which of the following is most likely to be the order winner in the early stages of a product's life cycle?
A. Quality
B. Design
C. support
D. price
Answer: B
QUESTION 109
A manufacturer's decision to extend the degree of forward integration should be influenced by its desire to do
which of the following?
A. Reduce the uncertainty of demand
II. Erect barriers to potential competitors
III. Reduce the number of processes to be controlled
B. I only
C. III only
D. I and II only
E. I, II, and III
Answer: C
QUESTION 110
Analyzing capital investments by estimating future cash flows and translating them into equivalent amounts in
today's terms is called:
A. Average return on investment analysis
B. payback analysis
C. internal rate of return analysis
D. discounted cash flow analysis
Answer: D
QUESTION 111
Which of the following is the most important consideration when designing an information system to control
shop floor operations?
A. Supporting differentiation between functional areas and production operations
B. Providing staff specialists with the information needed to control production operations
C. Allowing factory personnel to manage their own production operations
D. Encouraging users to operate independently with a minimal amount of training
Answer: C
QUESTION 112
All of the following are requirements for a successful employee involvement (EI) program EXCEPT
A. Common understanding of the employee's role in achieving the plant's strategy
B. Management clearly identifying and defining the problems to be solved
C. Providing the EI teams with authority to change work processes
D. Developing intrinsic and extrinsic reward to recognize jobs done well
Answer: B
QUESTION 113
Companies that produce a narrow range of high-volume products will most likely choose which of the following
processes?
A. Project
B. J obbing
C. Batch
D. Line
Answer: D
QUESTION 114
FLY Manufacturing is an aircraft manufacturer. They produce executive jets on an Engineer-to-order basis.
Which of the following MRPII processes would most likely NOT be required at FLY?
A. Business Planning
B. Sales & operations Planning
C. materials requirements planning
D. Distribution Requirements Planning
Answer: D
QUESTION 115
Which of the following best describes J IT?
A. The continuous elimination of inventory
B. The continual reduction of lead-times
C. The elimination of value-adding activities
D. The continuous elimination of waste
Answer: D
QUESTION 116
Which of the following is an advantage of VMI?
A. Suppliers can leverage better information to reduce inventory levels.
B. The customer can usually force additional concessions from the VMI supplier
C. Lead-times are increased
D. MRP system operating costs decrease
Answer: A
QUESTION 117
Acme Chemical Company has a price order winner, which actions are consistent with this advantage?
A. chase production strategy, freight consolidation, and kaizan teams
B. level production strategy,freight consolidation, and SPC
C. level production strategy, LTL transport, and incoming inspection
D. combination production strategy, freight consolidation, and incoming inspection
Answer: B
QUESTION 118
ABC Corporation has chosen three projects for implementation this year. They are increased usage of common
components, implementation of safety capacity, and integration of ATP logic within customer processes. These
actions are most supportive of which order winner?
A. Innovation
B. Price/Cost
C. Delivery Reliability
D. Image
Answer: C
QUESTION 119
XYZ Company is pursuing improved quality levels. Which of the following actions would produce the best
results for XYZ?
A. Hire additional inspectors
B. tighten tolerances
C. adopt a quality first slogan
D. reduce process variability
Answer: D
QUESTION 120
ABC Company has decided to implement point of use replenishment with a key supplier.
Which action is consistent with this decision?
A. Establishing a physical area close to the operations that utilize the supplies
B. Determining the reorder point level for supplies
C. Establishing ASN notification with the supplier
D. Agreeing on consignment rules.
Answer: A
QUESTION 121
Which of the following strategies is most likely to produce the shortest delivery lead- time?
A. Make-to-order
B. Assemble-to-order
C. Make-to-stock
D. Make-to-assemble
Answer: C
QUESTION 122
Sales 100 100 100 100 100 100
Production 200 200 200 100 100 100
Starting Inventory =100
The production plan shown above is an example of which production strategy?
A. Chase
B. Level
C. Least Squares
D. Combination
Answer: D
QUESTION 123
A planned order receipt is generated by MRP when:
A. Net requirements are greater than zero
B. Gross requirements are greater than zero
C. Projected available balance is above zero
D. Forecasted demand is less than planned supply
Answer: A
QUESTION 124
According to the Theory of Constraints, which of the following statements is true?
A. A buffer of inventory should always be maintained after the bottleneck.
B. Constraints always exist in a factory
C. Work centers feeding bottlenecks should operate at peak utilization to ensure WIP availability at all times.
D. Use of Drum-Buffer-Rope includes communication from the bottleneck to the Gateway workcenter
Answer: D
QUESTION 125
Planned input 30 30 20 20 20 20
Planned output 20 20 20 20 20 20
Planned backlog
Actual backlog 50
The planned backlog at the end of period 6 is?
A. 70
B. 65
C. 60
D. 50
Answer: A
QUESTION 126
Each of the following actions would reduce safety stock levels EXCEPT:
A. reduce forecast error
B. increase lead times
C. reduce the customer service target
D. adopt a make-to-order strategy
Answer: B
QUESTION 127
Forecasted Actual
Period Demand Demand
1 100 70
2 100 60
3 100 85
4 100 90
5 100 95
6 100 100
7 100 55
8 100 70
9 100 80
10 100 85
This forecast performance is best described as:
A. biased
B. Random Error
C. Efficient
D. Naive
Answer: A
QUESTION 128
Planned order receipt is generated by MRP when:
A. net requirements are greater than zero
B. gross requirements are greater than zero
C. projected available balance is above zero
D. forecasted demand is less than planned supply
Answer: A
QUESTION 129
Each of the following actions would reduce safety stock levels EXCEPT:
A. Reduce forecast error
B. Increase lead times
C. Reduce the customer service target
D. Adopt a make-to-order strategy
Answer: B
QUESTION 130
Which tactic would successfully reduce cycle stock?
A. Increase annual usage of an item
B. Reduce ordering costs
C. Reduce carrying costs
D. Increase setup costs
Answer: B
QUESTION 131
What is the demonstrated weekly capacity of a line based upon the following data? Efficiency =80%,
Utilization =100%, Available weekly hours =1,000. Last 5 weeks output (in standard hours), 1000, 1,100,
1,200, 900, 1,300
A. 800
B. 1,000
C. 1,100
D. 1,500
Answer: C
QUESTION 132
What will be the impact on inventory turns if average inventory levels are cut in half and all other operating
conditions remain the same?
A. Turns will double
B. Turns will remain constant
C. Turns will be cut in half
D. Turns will increase by the square root of 2
Answer: A
QUESTION 133
Which of the following best describes sole sourcing?
A. Multiple potential suppliers, one is chosen to be the only supplier for an organization
B. Multiple potential suppliers, 2-3 are chosen to be the only suppliers for an organization
C. One supplier exists and is utilized
D. One supplier exists, but is not utilized
Answer: C
QUESTION 134
Using non-cumulative methods, what is the ATP in period 1?
A. 88
B. 100
C. 261
D. 300
Answer: A
QUESTION 135
What is the updated forecast, utilizing exponential smoothing, given the following data? Old Forecast =100,
actual demand =80, alpha =0.2, tracking signal =0.9
A. 80
B. 96
C. 100
D. 104
Answer: B
QUESTION 136
A distributor has decided to implement push replenishment throughout its network. Which action is most
consistent with this decision?
A. establishing double order points
B. establishing a bill of distribution
C. establishing safety stocks
D. establishing lead times
Answer: B
QUESTION 137
Which business process is concerned with the replenishment of items and usually occurs on a weekly basis?
A. RCCP
B. S&OP
C. MPS
D. Business Planning
Answer: C
QUESTION 138
Which combination of business processes is accurate?
A. MRP, rough-cut capacity
B. S&OP, CRP
C. MPS, rough cut capacity
D. DRP, CRP
Answer: C
QUESTION 139
Which forecast performance measure detects bias?
A. tracking signal
B. MAPE
C. standard deviation
D. MAD
Answer: A
QUESTION 140
The following four jobs, A-D, have critical ratios of 1.6, 1.2, 0.3, and 0.4 respectively. When this rule is utilizing
for dispatching, what is the sequence of job execution?
A. D, A, B, C
B. C, D, B, A
C. A, B, C, D
D. D, C, B, A
Answer: C
QUESTION 141
Which statement is best as it relates to PROTECTIVE CAPACITY?
A. The capabilities of a system constraint
B. extra capacity used to protect against fluctuations in demand from the system constraint.
C. the capabilities of the gateway workcenter
D. capacity that should always be utilized
Answer: B
QUESTION 142
Suitability deals with the overall rationale of the strategy. The key point to consider is whether the strategy
would address the key strategic issues underlined by the organization's strategic position. For instance:
A. Does it make economic sense?
B. Would the organization obtain economies of scale, economies of scope or experience economy?
C. Would it be suitable in terms of environment and capabilities?
D. All of these
Answer: D
QUESTION 143
Which one of the following tools that cannot be used to evaluate feasibility of a strategy?
A. Cash flow analysis and forecasting
B. Break-Even analysis
C. Resource deployment analysis
D. None of these
Answer: D
QUESTION 144
Order quantity is 1000 units and safety stock is 300 units. What is the average inventory?
A. 800 units
B. 900 units
C. 890 units
D. 980 units
Answer: A
QUESTION 145
In terms of structure and function, the construction supply chain is characterized by the following element/s:
A. It is a converging supply chain directing all materials to the construction site where the object is assembled
from incoming materials. The ?construction factory ?is set up around the single product, in contrast to
manufacturing systems where multiple products pass through the factory, and are distributed to many
customers.
B. It is, apart from rare exceptions, a temporary supply chain producing one-of construction projects through
repeated reconfiguration of project organizations. As a result, the construction supply chain is typified by
instability, fragmentation, and especially by the separation between the design and the construction of the
built object.
C. It is a typical make-to-order supply chain, with every project creating a new product or prototype.
There is little repetition, again with minor exceptions. The process can be very similar, however, for
projects of a particular kind.
D. All of these
Answer:
QUESTION 146
An SKU costing $10 is ordered in quantities of 500 units, annual demand is 5200 units, carrying costs are 20%,
and the cost of placing an order is $50. Calculate annual inventory carrying cost
A. $500
B. $550
C. $450
D. $400
Answer: A
QUESTION 147
Physical distribution contributes to:
A. Creating demand
B. Prompt delivery
C. Product availability and accurate order filling
D. All of these
Answer: D
QUESTION 148
___________ is responsible for producing a set of specifications that manufacturing can use to make the
product. Products must be designed to be:
?Functional
?Capable of low-cost processing
A. Product Design
B. Production Plan
C. Marketing mix
D. All of these
Answer: A
QUESTION 149
Much evidence is available that this ideal information system integration is not evolving within industry supply
chains, since:
A. Manual data entry is widespread, even when machine sources are available; critical information is often
manually re-entered at many points in the chain
B. Interventions from purchasing clerks, order processors, and expediters are required to maintain supply-
chain information flows
C. The use of translators to convert data from one format to another is almost universal, even between
systems that are nominally compliant with established protocols
D. All of these
Answer: D
QUESTION 150
Which of the following is NOT categorized modeling approaches in SCM?
A. Supply Chain Network Design Method:
B. MIP Optimization Modeling:
C. Heuristic Methods:
D. None of these
Answer: D
QUESTION 151
Poor product design can add cost to processing in the following ways EXCEPT:
A. the product and its components may not be designed to be made using the most economical methods
impossible.
B. Parts may be designed so excessive material has to be removed
C. Parts may be designed so operations are difficult
D. None of these
Answer: D
QUESTION 152
Currently, there is a trend towards more specialization in manufacturing whereby a factory specializes in a
narrow product mix for a niche market. Generally, focused factories are thought to be more effectively and
economically than more complex factories, the reason being that:
A. repetition and concentration in one area allow the workforce and management to gain the advantages of
specialization.
B. The focused factory may be a "factory within a factory," an area in an existing factory set aside to
specialize in a narrow product mix
C. specialization has the disadvantage of inflexibility
D. All of these
Answer: A
QUESTION 153
Advantage/s of concurrent engineering is/are:
A. Time to market is reduced
B. Cost is reduced
C. Better quality and lower total system cost
D. All of these
Answer: D
QUESTION 154
A manufacturer has the alternative of making parts in-house or of buying them from an outside supplier.
Reason/s to make In-house may be:
A. Can produce for less cost than a supplier
B. Uses specialized expertise of suppliers
C. Provides known and competitive prices
D. To utilize existing equipment to fullest extent
Answer: AD
QUESTION 155
Benefit/s of supply chain simulation is/are:
A. To help understand the overall supply chain processes and characteristics by graphics/animation
B. To be able to capture system dynamics: using probability distribution, user can model unexpected events in
certain areas and understand the impact of these events on the supply chain
C. To minimize the risk of changes in planning process: by what-if simulation, user can test various
alternatives before changing plan.
D. All of these
Answer: D
QUESTION 156
A manufacturer has the alternative of making parts in-house or of buying them from an outside supplier.
Reason/s to buy out may be:
A. Requires less capital investment
B. Uses specialized expertise of suppliers
C. Allows the firm to concentrate on its own areas of specialization
D. All of these
Answer: D
QUESTION 157
The CPI system is based on the scientific methods. This general method is used to solve many kinds of
problems. Which of the following is NOT the out of six steps continuous improvement process?
A. Select the process to be studied
B. Record the existing method to collect the necessary data in a useful form
C. Bottlenecks
D. Analyze the recorded data to generate alternatives improved methods
Answer: C
QUESTION 158
Pareto analysis can be used:
A. to select problems with the greatest economic impact
B. to identify process bottleneck
C. To manage excessive overtime
D. To locate employee grievances with true assignable causes
Answer: A
QUESTION 159
A process costs $200 to set up. The run time is 5 minutes per piece and the run cost is $30 per hour.
Determine the fixed cost?
A. $250.00
B. $200.00
C. $340.00
D. $300.00
Answer: B
QUESTION 160
A process costs $200 to set up. The run time is 5 minutes per piece and the run cost is $30 per hour.
Determine total cost and unit cost for a lot of 500.
A. Total Cost: $1450.00 & Unit cost: $2.90
B. Total Cost: $1400.00 & Unit cost: $2.80
C. Total Cost: $1455.00 & Unit cost: $2.90
D. Total Cost: $1440.00 & Unit cost: $2.60
Answer: A
QUESTION 161
If the range and variety of product are large:
A. Production runs will be short
B. Machines must be changed over frequently
C. Little opportunity to use the specialized machinery and fixtures
D. All of these
Answer: D
QUESTION 162
Toyota has designed seven important sources of waste in manufacturing. The first four relate to the design of
the manufacturing system and the last there to the operation and management of the system. Which one of the
following is NOT out of those sources of waste?
A. Overproductions
B. Bottlenecks
C. Movement
D. Product Defects
Answer: B
QUESTION 163
Poke-Yoke (Fail Safe) tries to change either the process or its resources, thus eliminating the need to rely on
human experience and knowledge. Examples include:
A. Use color-coded parts
B. Put a template over an assembled component to show operators where specific parts go
C. Both of these
D. None of these
Answer: C
QUESTION 164
Basic concepts in TQM:
A. A committed and involved management
B. Focus on the customer
C. Involvement of the total workforce
D. All of these
Answer: D
QUESTION 165
?High quality level
?High flexibility to change such things as volume, specifications, and delivery ?High service level
?Short lead times
?Low variability in meeting targets
?Low cost
These are general requirements of:
A. Suppliers
B. Customers
C. All the supply chain agents
D. Sub-contractors
Answer: A
QUESTION 166
?Pareto charts
?Check sheets
?Process flowcharts
?Sactterplots
?Cause and effect diagram
These are the:
A. Quality control tools
B. Control charts
C. demand measurements
D. None of these
Answer: D
QUESTION 167
There are following reasons of using sample inspections:
A. Testing the product is destructive
B. There is not enough to give 100% inspection to a batch of product
C. It is too expensive to test the entire batch and human errors is to be estimated as high as 20%
D. All of these
Answer: D
QUESTION 168
A 100% inspection means:
A. Testing every unit in the lot
B. Appropriate when the cost of inspection is less than the cost of any loss resulting from failure of the parts
C. Both of these
D. None of these
Answer: C
QUESTION 169
Benchmarking includes the following steps:
A. Select the process to benchmark
B. Identify an organization that is in best class
C. Study the benchmarked organizations
D. All of these
Answer: D
QUESTION 170
For a particular commodity, the line-haul cost is $2.50 per mile. For a trip of 500 miles and a shipment of 600
cwt., what is the cost of shipping cwt.? If this shipment is increased to 1000 cwt., what is the saving in cost per
cwt.?
A. $ 1.25 and $0.85
B. $ 1.25 and $0.83
C. $ 1.29 and $0.80
D. $ $ 1.27 and $0.90
Answer: B
QUESTION 171
A company ships barbecues fully assembled. The average line-haul cost per shipment is $12.50 per mile, and
the truck carries 100 assembled barbecues. The company decides to ship the barbecues unassembled and
figures it can ship barbecues in a truck. Calculate the line-haul cost per barbecue assembled and
unassembled. If the average trip is 300 miles, calculate the saving per barbecue?
A. $0.126, $0.125 and $30.00
B. $0.127, $0.124 and $30.00
C. $0.125, $0.125 and $30.00
D. $0.125, $0.125 and $30.00
Answer: A
QUESTION 172
The art charged by a carrier will also vary with the commodity shipped and will depend upon the following:
A. Value
B. Density
C. Perishability
D. All of these
Answer: D
QUESTION 173
A company normally ships to a customer by rail at a cost of $500 per load. The transit time is fourteen days.
The goods can be shipped by truck for $700 per load and transit time of four day. If transit inventory cost is $35
per day, what does it cost to ship each way?
A. Rail: $990 and Truck: $ 840
B. Rail: $900 and Truck: $ 890
C. Rail: $970 and Truck: $ 870
D. Rail: $980 and Truck: $ 880
Answer: A
QUESTION 174
A company ships a particular product to a market located 1000 miles from the plant at a cost of $4 per mile.
Normally it ships 500 units at a time. If the company can ship the units unassembled, it can ship 800 units in a
truck. What is the line-haul cost per unit now?
A. $4
B. $5
C. $8
D. $10
Answer: B
QUESTION 175
The planning horizon is usually longer for several reasons e.g.:
A. The longer the horizon, the greater the "visibility"
B. The longer the horizon, the better management's ability to avoid future problems
C. The longer the horizon, the better the management's ability to take advantage of special circumstances.
D. All of these
Answer: D
QUESTION 176
MPS is meant to be:
A. Rigid
B. Flexible
C. Depends on situation
D. cyclic
Answer: B
QUESTION 177
____________________ is that portion of firm's inventory and planned production that is not already
committed and is available to the customer.
A. Available to promise
B. Available to produce
C. Safety stock
D. None of these
Answer: A
QUESTION 178
A scheduled receipt is an order that has been issued:
A. To manufacturing
B. To supplier
C. Either to manufacturing or to supplier
D. It depends on situation
Answer: C
QUESTION 179
If the beginning projected available balance is 100 units, the forecast is 40 units, and customer orders are 50
units, the ending projected available balance is:
A. 60
B. 50
C. 40
D. 30
Answer: B
QUESTION 180
_____________________ is the number of periods 1, in which changes are not expected due to excessive cost
caused by schedule disruption.
A. Projected available balance
B. Demand time fence
C. Scheduled receipt
D. ATP (available o promise)
Answer: B
QUESTION 181
Checking _____________ is a two step process. First the order must be scheduled to see when the capacity is
needed, and second, the load on work centers must be checked in that period.
A. Capacity availability
B. Capacity utilized
C. Capacity required
D. None of these
Answer: A
QUESTION 182
Projected available balance is calculated in which one of the following ways?
A. PAB=prior period PAB or on-hand balance +MPS ?customer orders
B. PAB=prior period PAB +MPS ?greater of customer orders or forecast
C. Both of these depending on whether the period is before or after the period is before or after the demand
time fence
D. None of these
Answer: C
QUESTION 183
A company wants to minimize the cost of manufacture and also be flexible enough to adapt to changing needs.
Changes to production schedules can result in the following EXCEPT:
A. Cost increases due to rerouting, rescheduling, extra setups, expediting, and buildup of work-in-process
inventory
B. Decreased customer service. A change in quantity of delivery can disrupt the schedule of other orders
C. Loss of credibility for the MPS and the planning process
D. Process create more scraps than needed than needed
Answer: D
QUESTION 184
Frozen zone, slushy zone and liquid zone are the part of
A. MPS
B. Planning time fence
C. Projected available balance
D. Scheduled receipts
Answer: B
QUESTION 185
Any changes can be made to the MPS as long as it is within the limits set by the production plan. Changes are
routine and are often made by the computer program.
This is the scenario in zone of time fence.
A. Slushy Zone
B. Frozen Zone
C. Liquid Zone
D. None of these
Answer: C
QUESTION 186
1. Wrong product or specification
2. Wrong amount (too little or too much)
3. Wrong shipping date (too early or too late)
These are common errors in ______ that occur all the time and require constant attention.
A. Customer Expectations
B. Customer orders
C. MPS
D. MRP
Answer: B
QUESTION 187
_________ is a rate of doing work, not the quantity of work done.
A. Capacity
B. Capacity Planning
C. Capacity Control
D. Capacity required
Answer: A
QUESTION 188
A term closely related to capacity required is ________. This is the amount of released and planned work
assigned to a facility for a par.
A. Capacity available
B. Target capacity
C. Load
D. Output
Answer: C
QUESTION 189
Capacity planning links the various production priority schedules to :
A. Manufacturing plans
B. Manufacturing resources
C. MRP
D. All of these
Answer: B
QUESTION 190
__________ is the process of monitoring production output, comparing it with capacity plans, and taking
corrective action when needed.
A. Capacity control
B. Capacity planning
C. Capacity required
D. Capacity management
Answer: A
QUESTION 191
"The function of establishing, measuring, monitoring and adjusting limits or levels of capacity in order to
execute all manufacturing schedules". This definition is related to:
A. Capacity planning
B. Capacity control
C. Capacity management
D. None of these
Answer: C
QUESTION 192
Which of the following steps is NOT included in capacity planning?
A. Determine the capacity available at each work center in each time period.
B. Determine the load at each work center in each time period
C. Resolve differences between available capacity to match the load. Otherwise, the priority plans must be
changed to match the available capacity
D. None of these
Answer: D
QUESTION 193
The capacity planning process occurs at each level in the priority planning process, varying only in:
A. The level of detail
B. The time spans involved
C. The level of detail and the time spans involved
D. Capacity requirements
Answer: C
QUESTION 194
Resource planning includes changes in all of the following EXCEPT:
A. Staffing
B. Capital equipment
C. Product design or other facilities
D. Factory premises
Answer: D
QUESTION 195
It takes capacity planning to the next level of detail .The master production schedule is the primary information
source. What is it?
A. Resource planning
B. Rough-out capacity planning
C. Capacity requirement planning
D. None of these
Answer: B
QUESTION 196
The purpose/s of rough-out capacity planning is /are:
A. to check the feasibility of the MPS
B. provide warnings of any bottlenecks
C. Ensure utilization of work centers and advice vendors of capacity requirements
D. All of these
Answer: D
QUESTION 197
Which one of the following statements is about capacity requirements planning?
A. It is directly liked to the material requirements plan
B. This type of planning focuses on components parts, grater detail is involved than in rough- cut capacity
planning.
C. Involves translating monthly, quarterly or annual product priorities from the production plan into some total
measure of capacity, such as gross labor house.
D. Both A&B
Answer: D
QUESTION 198
This figure shows that:
A. The upper levels of the priority planning are input to lower levels
B. The various capacity plans relate only to their levels in the priority plan not to subsequent capacity planning
levels
C. Both of these
D. None of these
Answer: C
QUESTION 199
The capacity requirements plan occurs at the level of:
A. MRP
B. MRPII
C. MPS
D. Both A&C
Answer: A
QUESTION 200
In considering open shop orders, capacity requirement planning account for:
A. Work already done on a shop order
B. Order requirements
C. Order lot size
D. Lead time
Answer: A
QUESTION 201
___________ is the most detailed, complete and accurate of the capacity planning techniques.
A. Capacity requirements planning
B. Resource planning
C. capacity requirements planning (CRP)
D. Capacity control
Answer: C
QUESTION 202
CRP inputs are all of the following EXCEPT:
A. Open shop orders and leads times
B. Planned order releases and work center capacities
C. Routings and time standards
D. None of these
Answer: D
QUESTION 203
The information for the CRP inputs can be obtained from:
A. Open order fie
B. MRP
C. Routing and work center file
D. All of these
Answer: D
QUESTION 204
An open order appears as a/an _____________ on the MRP.
A. Open order file
B. Scheduled receipt
C. Order releases
D. None of these
Answer: B
QUESTION 205
A routing file should contain the following information EXCEPT:
A. Operations to be performed
B. Sequence of operations
C. Work centers to be used
D. Priority plan
Answer: D
QUESTION 206
______________ is the sum of queue, setup, run, wait and move times at work center.
A. Work center times
B. Production times
C. Lead time
D. Order to delivery time
Answer: C
QUESTION 207
Following is an example of:
A. Wait time schedule
B. Lead time schedule
C. Shop calendar
D. Routing file
Answer: C
QUESTION 208
Which one of the following affects capacity available?
A. Product specifications
B. Product Mix
C. Plant and equipment and work effort
D. All of these
Answer: D
QUESTION 209
__________ and ____________ depends on the design of the product and the mix of the products made.
A. Product specification and product mix
B. Product specification and product quality
C. Product quality and product line
D. Product demand and ordered quantity
Answer: A
QUESTION 210
It provides a yard stick for measuring work content and unit for stating capacity. What is it?
A. Work effort
B. Standard time
C. Lead time
D. Move time
Answer: B
QUESTION 211
Capacity needs to be measured on following levels EXCEPT:
A. Machine or individual
B. Work center
C. Plant, which can be considered as a group of different work centers
D. None of these
Answer: D
QUESTION 212
There are two ways to determining the capacity available; out of which ________is figured from historical data
and _______ is based on available time, utilization and efficiency.
A. Demonstrated, calculated capacity
B. Measured, rated capacity
C. Both A and B are same
D. Measured, demonstrated capacity
Answer: C
QUESTION 213
A work center working one 8 hour shift for 5 days a week is available _____________ hours a week is available
A. 40 hours
B. 35 hours as lunch timings
C. 45 hours
D. 30 hours
Answer: A
QUESTION 214
A work center has 3 machines and is operated for 8 hours a day and 5 days a week. What is the available
time?
A. 100 hours per week
B. 80 hours per week
C. 90 hours per week
D. 120 hours per week
Answer: D
QUESTION 215
A work center is available 120 hours but actually produced goods for 100 hours. What is the utilization of the
work center?
A. 84.3%
B. 84%
C. 83.3%
D. 83.5%
Answer: C
QUESTION 216
Utilization can be determined from:
A. Historical records
B. Work sampling study
C. Efficiency
D. Both A And B
Answer: D
QUESTION 217
A work center produces 120 units in a shift. The standard for that item is units a shift. What is 100 the
efficiency of work center?
A. 120%
B. 20%
C. 100%
D. 80%
Answer: A
QUESTION 218
A work center consists of four machines and is operated 8 hours per day for 5 days a week. Historically, the
utilization has been 85% and the efficiency 110%.what is the rated capacity?
A. 150 standard hours
B. 149.6 standard hours
C. 180.5 standard hours
D. 160.9 standard hours
Answer: B
QUESTION 219
One way to find out the capacity of a work center is to examine the ________ and to use that information as
the available capacity of the work center.
A. Production records
B. Available inventory
C. Utilization
D. Efficiency
Answer: A
QUESTION 220
Over the previous four weeks, a work center produced 120, 130, 150,140 standard hours of work. What is the
demonstrated capacity of the work center?
A. 135 standard hours
B. 139 standard hours
C. 140 standard hours
D. 130 standard hours
Answer: A
QUESTION 221
Demonstrated capacity is:
A. Minimum output
B. Average Output
C. Maximum output
D. None of these
Answer: B
QUESTION 222
Over a 4-week period a work center produced 540 standard hours of work was available for 640 hours, and
actually worked 480 hours. Calculate the utilization and the efficiency of the work center.
A. 75%, 110%
B. 75%, 112.9%
C. 76%, 112.95%
D. 75%, 110%
Answer: B
QUESTION 223
____________ is a two-step process. First determine the time needed for each order at each order at each
work center. Then sum up the capacity required for individual orders.
A. Load
B. Capacity required
C. Available capacity
D. Both A and B are same
Answer: D
QUESTION 224
A work center is to process 150 units of gear shaft SG 123 on work order 333.the setup time is 1.5 hours, and
the run time is 0.2 hours per piece. What is the standard time needed or run the order?
A. 31.5 standard hours
B. 30 standard hours
C. 29.5 standard hours
D. 28 standard hours
Answer: A
QUESTION 225
In the previous problem how much actual time will be needed to run the order if the work center has an
efficiency of 120% and a utilization of 80%?
A. 38 hours
B. 38.2 hours
C. 32.8 hours
D. 32 hours
Answer: C
QUESTION 226
1. Determine the standard hours of operation time for each planned and released order for each work center by
time period.
2. Add all the standard hours together for each work center in each period. These are the steps of calculating:
A. load
B. Capacity required
C. Available capacity
D. None of these
Answer: AB
QUESTION 227
___________________ is a usual process to start with the due date and using find lead time, to work back to
operations?
A. Efficiency
B. Utilization
C. Back Scheduling
D. Capacity management
Answer: C
QUESTION 228
For back scheduling we need to know?
A. Quantity and due date
B. Sequence of operations and Work centers needed
C. Setup and run time for each operation
D. All of these
Answer: D
QUESTION 229
In back scheduling, Sequence of operation, Work centers needed setup time, and runtime are included in a/
an?
A. Order file
B. Work Center file
C. Route file
D. Load Sheet
Answer: C
QUESTION 230
Alter the load or the change the capacity awareness. These are the two ways of:
A. Balancing capacity
B. Balancing capacity required
C. Balancing capacity available
D. All of these
Answer: C
QUESTION 231
Altering the load in balancing capacity available means?
A. Shifting orders ahead
B. Shifting orders back
C. Shifting orders ahead or back
D. Rescheduling of load sheet
Answer: C
QUESTION 232
Changing the load may not de the preferred course of action. In short run, capacity can be adjusted. Some
ways that this may be done are as follows EXCEPT?
A. Schedule overtime or under time
B. Adjust the level of work force by hiring or laying off workers.
C. Shift work force from under loaded to overloaded work centers
D. None of These
Answer: D
QUESTION 233
Which one of the following should be the result of capacity requirements planning?
A. A detailed workable plan that meets the priority objectives and provides the capacity to do so.
B. Ideally it will satisfy the MRP and allow for adequate utilization of the work force machinery, and
equipment.
C. Both of these
D. none of these
Answer: C
QUESTION 234
MRP and CRP should form part of a/an?
A. Open system
B. Closed-loop system
C. Balanced system
D. Workable plan that meets the priority objectives
Answer: B
QUESTION 235
A work center consists of 4 machines each working a 16-hour day for 5 days a week. What is the weekly
available time?
A. 230 hours per week
B. 300 hours per week
C. 350 hours per week
D. 320 hours per week
Answer: D
QUESTION 236
If the efficiency of the work center in the above question is 115%. What is the rated capacity of the work
center?
A. 287 Standard hours per week
B. 276 Standard hours per week
C. 279 Standard hours per week
D. None of these
Answer: B
QUESTION 237
Over a period of 4 weeks, a work center produced 50, 45, 40, and standard house of work. What is the
demonstrated capacity of the work center?
A. 47.8
B. 47.5
C. 48
D. 49.5
Answer: A
QUESTION 238
In 1 week, a work center produces 85 standard hours of work. The hours scheduled are 80, and 75 hours are
actually worked. Calculate the utilization and efficiency of the work center.
A. 93.75% and 113.33%
B. 97.75% and 113.33%
C. 93.75% and 110.33%
D. None of the above
Answer: A
QUESTION 239
How many standard hours are needed to run an order of 200 pieces if the setup time is 1.3 hours and the run
time 0.3 hours per piece? How many actual hours are needed at the work center if the efficiency.130% and the
utilization is 70%?
A. 51.3 standard hours; 67.4 actual hours
B. 62 standard hours; 60.4 actual hours
C. 61.3 standard hours; 67.4 actual hours
D. 61.3 standard hours; 60.4 actual hours
Answer: C
QUESTION 240
Production activity control is responsible for executing the:
A. Production Schedule
B. MRP
C. Both of these
D. Capacity control
Answer: C
QUESTION 241
The material requirement plan authorizes production activity control (PAC):
A. To work orders to the shop for manufacturing
B. To take control of work orders and make sure they are completed on time
C. To manage day-to-day activity and provide the necessary support
D. All of these
Answer: D
QUESTION 242
The flow of work centers must be planned to meet delivery dates which means production activity control must
do the following:
A. Ensure that the required materials, tooling, personnel and information are available to manufacture the
components when needed.
B. Schedule start and completion dates for each shop order at each work center so the scheduled completion
date of the order can be met. This sill involves a planner in developing a load profile for the work centers.
C. Both of these
D. None of these
Answer: C
QUESTION 243
Gather the information needed by the shop floor to make the product. Release orders to the shop floor as
authorized by the material equipment plan. This is called dispatching. Production activity control will do such
things in:
A. Planning phase
B. Implementation phase
C. Control phase
D. Both A & B
Answer: B
QUESTION 244
This is a true representation
A. MRP
B. Capacity Control
C. PAC
D. MRP II
Answer: C
QUESTION 245
Which one of the following is NOT done by PAC in control phase?
A. Monitor and control work-in-process, lead times, and work center queues.
B. Report work center efficiency, operation times, order quantities and scrap.
C. Track the actual performance of work orders and compare it to planned schedules.
D. Ensure that required materials, tooling, personnel and information are available.
Answer: D
QUESTION 246
Manufacturing process can be conveniently organized into following categories EXCEPT:
A. Flow Manufacturing
B. Intermittent Manufacturing
C. Project Manufacturing
D. Work Center Manufacturing
Answer: D
QUESTION 247
Repetitive Manufacturing and continuous manufacturing are types of:
A. Flow Manufacturing
B. Intermittent Manufacturing
C. Project Manufacturing
D. None of these
Answer: A
QUESTION 248
Which of the following is/are the major characteristic/s to flow manufacturing?
A. Routing are fixed and work centers are arranged according to the routing.
B. Work centers are dedicated to producing a limited range of similar products.
C. Material flows from one workstation to another.
D. All of these
Answer: D
QUESTION 249
______________________is characterized by many variations in product design, process requirements and
order quantities.
A. Flow manufacturing
B. Project manufacturing
C. Intermittent manufacturing
D. None of these
Answer: C
QUESTION 250
1. Flow of work through the shop is varied and depends on the design of a particular product. As orders are
processed, they will take more time at once workstation than at another. Thus, the work flow is not balanced.
2. Machinery and workers must be flexible enough to do the variety of work. Machinery and work centers are
usually grouped according to the function they perform (e.g. all lathes in one department).
3. Throughput times are generally long. Scheduling work to arrive just when needed is difficult, the time taken
by an order at each work center varies, and work queues before work centers, causing long delays in
processing. Work-in-process inventory is often large.
4. The capacity required depends on the particular mix of products being built and is difficult to predict. These
are the characteristics of:
A. Flow manufacturing
B. Project manufacturing
C. Intermittent manufacturing
D. All of these
Answer: B
QUESTION 251
Production activity control in intermittent manufacturing is complex Because of:
A. The number of products made
B. The variety of routing
C. Scheduling problems
D. All of the above
Answer: D
QUESTION 252
To plan the processing of materials through manufacturing PAC must have the following information EXCEPT:
A. What and how much to produce
B. When parts are needed so the completion date can be met.
C. What are scheduled receipts for various orders
D. What the available capacities of various work centers are
Answer: C
QUESTION 253
Planning file/s needed for the production activity control is/are:
A. Item master file
B. Product structure file
C. Routing and work center master file.
D. All of these
Answer: D
QUESTION 254
The product structure file:
A. Contains a list of single-level components and quantities needed to assemble
B. Forms a basis fro a parent pick list.
C. Both of these
D. None of these
Answer: C
QUESTION 255
For each product _______________ contains a step by step set of instructions describing how the product is
made.
A. Routing file
B. Work-center master file
C. Control file
D. Shop-order master file
Answer: A
QUESTION 256
Operation number
Setup hours, planned and actual
Quantity reported complete at the operation
Quantity reported scrapped at that operation
Due date or lead time remaining
These are the components of ______________ related to each operation.
A. Shop order master file
B. Work-center master file
C. Shop-order detail file
D. None of these
Answer: C
QUESTION 257
Material Requirements Planning (MRP) is:
A. The system used to provide available inventory
B. The system used to avoid missing parts.
C. A schedule establish for the production agenda
D. All of the above
Answer: B
QUESTION 258
A schedule (priority plan) that establishes to show the components required at each level of the assembly and
based on lead time, calculates the time when these component will be needed called:
A. Material Requirements Planning
B. Master Production Schedule
C. Inventory control Planning
D. B & C
Answer: A
QUESTION 259
How many types of demand are in Material Requirements planning?
A. Three
B. Four
C. Two
D. Seven
Answer: C
QUESTION 260
If a company makes wooden tables, the demand for the tables is called
A. Independent Demand
B. Dependent Demand
C. Both A & B
D. None of the above
Answer: A
QUESTION 261
Independent demand is:
A. Directly related to the demand for any other products or assemblies
B. Not related to the demand for any other products or assemblies
C. Calculated
D. A & C
Answer: B
QUESTION 262
Independent demand must be
A. Forecast
B. Calculated
C. Show the required quantity of each component
D. Dependent demand items
Answer: A
QUESTION 263
Dependency in MRP can be
A. Horizontal
B. Vertical
C. None of the above
D. Both A & B
Answer: D
QUESTION 264
Which of the following are the major objectives of Material Requirement Planning?
A. Determine requirements and keep priorities current.
B. Determine requirements and support production activities
C. Control and monitoring material demands
D. Control the performance of the order
Answer: A
QUESTION 265
A priority plan for the components needed to make the products in the Master production schedule (MPS) is
called:
A. Production Activity control (PAC)
B. Material Requirements planning (MRP)
C. Capacity Requirement planning
D. All of the above
Answer: B
QUESTION 266
The plan must be checked against available capacity when needed to make the components is called the
process of
A. Capacity Requirement planning
B. Material Requirements planning (MRP)
C. Production Activity control (PAC)
D. A & C
Answer: A
QUESTION 267
The computer software program that organizes and maintains the bills of material structures and their linkage
is called:
A. Inventory record
B. Purchasing record
C. Bills of material processor
D. Procurement of material and supplies
Answer: C
QUESTION 268
Master production schedule, inventory records and bills of material are three major inputs to
A. Material Requirements planning (MRP) System
B. Production activity Control
C. Manufacturing Planning and Control (MPC) Function
D. Capacity Requirements planning (CRP)
Answer: A
QUESTION 269
Master Production schedule:
A. A statement of which end items are to be produced, the quantity of each, and the dates they are to be
completed
B. Drives the MRP system by providing the initial input for the items needed
C. Both A & B
D. None of the above is true
Answer: C
QUESTION 270
Inventory Record is one of the major input to the
A. Capacity Requirements planning (CRP)
B. Material Requirements planning (MRP) System
C. Manufacturing Planning and Control (MPC) Function
D. Production activity Control
Answer: B
QUESTION 271
Inventory records data are maintained in:
A. Inventory record file
B. Part master file
C. Item master file
D. All of the above
Answer: D
QUESTION 272
When a calculation is made to find out how many are needed, the quantities available must be considered in:
A. Maintaining the bills of material structures
B. Linkage between manufacturing planning and control system
C. Inventory records
D. Both A & C
Answer: C
QUESTION 273
The bill of material shows
A. The components that go into making the parent
B. The steps or process used to make the parent or the components
C. Both A & B
D. None of the above
Answer: A
QUESTION 274
A convenient way to think about bills of material is through:
A. Product Tree
B. Dependent demand
C. Inventory record
D. All of the above
Answer: A
QUESTION 275
Which of the following points are related to bills of material?
A. The bill of material shows all the parts required to make one of the items
B. Each part or item has only one part number
C. A part is defined by its form, fit or function. if any of these changes , then it is not the same part and it must
have a different part number
D. All of the above
Answer: D
QUESTION 276
Multilevel bills are formed as:
A. Logical grouping of parts into subassemblies based on the way the product is assembled.
B. Overall design for the arrangements of bills
C. To make identification of the part absolute
D. Both A & B
Answer: A
QUESTION 277
What the following figure shows:
A. The parent omponent relationship
B. Quantity and parts relationship
C. Identification of the parts
D. None of the above
Answer: A
QUESTION 278
A bill is used when companies usually make more than one product and the same components are often used
in several products
A. Single-level bill
B. Multiple bill
C. Multilevel bill
D. Indented bill
Answer: B
QUESTION 279
Which of the following are the advantages to use single-level bills?
A. Duplication of records is avoided
B. The numbers of records and, in computer systems, the file size are reduced by avoiding duplication of
records.
C. Maintaining bills of material is simplified
D. All of the above
Answer: D
QUESTION 280
By using following product tree, how many Ks are needed to make 200Xs and 150 Ys?
A. 1900 Ks
B. 900 Ks
C. 2100 Ks
D. 800 Ks
Answer: A
QUESTION 281
A multilevel bill of material can shown as
A. Indented bill
B. Summarized parts list
C. Single-level bill
D. Planning bills
Answer: A
QUESTION 282
In bills of Material structure; Summarized parts list:
A. The lists of all the parts needed to make one complete assembly
B. Does not contain any information about the way the product is made or assembled
C. It's the list of comments are linked to their parents by listing them immediately below the parents
D. Both A & B
Answer: D
QUESTION 283
Which of the following is an artificial grouping of components for planning purposes?
A. Indented bill
B. Summarized parts list
C. Single-level bill
D. Planning bill
Answer: D
QUESTION 284
Planning bills are used to:
A. Simplify forecasting
B. Master production scheduling
C. Material requirements planning
D. All of the above
Answer: D
QUESTION 285
Planning bill does not represent
A. Buildable products
B. Average product
C. Product structure looks
D. None of the above
Answer: A
QUESTION 286
Where-used reports give information about
A. The parents for a component
B. Independent and dependent demand
C. Both A & B
D. None of the above
Answer: A
QUESTION 287
A listing of all the parents in which a component is used is called
A. Pegging report
B. Where-used report
C. Planning bill
D. Both A & B
Answer: B
QUESTION 288
A pegging report:
A. Similar to a where-used report
B. Shows only those parents for which there is an existing requirement
C. Shows the parents creating the demand for the components, the quantities needed , and when they are
needed
D. All of the above
Answer: D
QUESTION 289
Product design engineers sometimes change the design of a product and the components used. These
changes must be recorded and controlled. The bill provides the method for doing so is called
A. Engineering change control
B. Production change control
C. Demand change control
D. Both A & B
Answer: A
QUESTION 290
Following figure shows: (draw here figure 4.10) with out mentioning names)
A. Pegged requirement
B. Where-used reports
C. Production requirements
D. Summarized part lists
Answer: A
QUESTION 291
Which of the following defines what materials have to be scheduled to make the end products?
A. Bills of material
B. Master production schedule
C. Engineering change control bill
D. All of the Above
Answer: A
QUESTION 292
Which of the following are the purposes of material requirement planning so items in the master production
schedule are made on time?
A. To determine the components needed
B. To determine the quantities
C. To determine the due dates
D. All of the above
Answer: D
QUESTION 293
Exploding is the process of multiplying the requirements by:
A. The usage quantity
B. By recording the appropriate requirements throughout the product tress
C. Both A & B
D. None of the above
Answer: C
QUESTION 294
The process of placing the exploded requirements in their proper periods based on lead time is called
A. Offsetting
B. Exploding the equipments
C. Production plan
D. Where-used reports
Answer: A
QUESTION 295
If there are 20 as in stock, only 30 needs to be made, then the requirements for components parts would be:
A. Reduced accordingly
B. Increased accordingly
C. Added accordingly
D. Both B & C
Answer: A
QUESTION 296
Which of the following is the right calculation for obtaining the net requirements?
A. Gross Requirement - Available inventory
B. Gross Requirement x Available inventory
C. Gross Requirement / Available inventory
D. None of the above is true
Answer: A
QUESTION 297
The objective of the MRP is to have:
A. Material available when it is needed and not before
B. Orders for material should not be released until the planned order release date arrived
C. Order should not normally released until the planned order is in the current week
D. All of the above
Answer: D
QUESTION 298
Scheduled receipts shows:
A. The quantities ordered
B. When quantities ordered are expected to be completed
C. When quantities ordered are expected to be available
D. All of the Above
Answer: D
QUESTION 299
The immediate or most current period is called
A. Action bucket
B. Planning horizon
C. Time buckets
D. Both a & B
Answer: A
QUESTION 300
Planning horizon means
A. The number of periods in the record
B. The most current period in the record
C. The quantity of the records
D. None of the above
Answer: A
QUESTION 301
At the MRP planning level, the process of priority plans must be checked against available capacity is called
A. Master Production schedule (MPS)
B. Capacity Requirements planning (CRP)
C. Production activity control (PAC)
D. Manufacturing Planning and control function (MPC)
Answer: B
QUESTION 302
Which of the following details are true about time buckets EXCEPT:
A. These are often a week
B. Can be any length of time convenient to the company
C. Companies can move to daily time buckets
D. Needs to avoid future problems
Answer: D
QUESTION 303
The process of colleting the gross requirements and netting can be simplified by using
A. Low-level codes
B. Planning horizon
C. Time buckets
D. Action buckets
Answer: A
QUESTION 304
The material planner works with the type of orders
A. Four
B. Three
C. Seven
D. Two
Answer: B
QUESTION 305
The orders are automatically scheduled and controlled by the computer are the orders called:
A. Planned orders
B. Computer generated order
C. Firms planned order
D. All of the Above
Answer: A
QUESTION 306
Which of the following situation that will leads or generates Exception messages?
A. Components for which planned orders are in the action bucket and which should be considered for release
B. Open orders for which the timing or quantity of scheduled receipts does not satisfy the plan.
C. Situations in which the standard lead times will result in late delivery of a Zero-level part
D. All of the above
Answer: D
QUESTION 307
A good MRP system generates exception messages:
A. To advise the planner when some event needs attention
B. When the manufacturing process is under control
C. When there are problems that need the attention of the planner
D. Both A & C
Answer: D
QUESTION 308
The message in which the planner must tell the MRP software of all actions taken that will influence the MRP
records called
A. Exception messages
B. Transaction messages
C. Bottom-up re-planning
D. None of the above
Answer: B
QUESTION 309
Which of the following are three important factors must consider in managing the material requirements plan?
A. Priority, Bottom-up Replanning and reducing system nervousness
B. Planned orders, released orders and firm planned orders
C. Priority, Exception message and transaction message
D. None of the above is true
Answer: A
QUESTION 310
Which of the following one is the method of reducing system nervousness?
A. Firm's planned orders
B. Releases orders
C. Exception message
D. Transaction message
Answer: A
QUESTION 311
Every operation producing a product or service is a series of linked processes and each process has a specific
capacity to produce the given defined output for the operation, this is called:
A. Theory of constraints
B. Managing constraints
C. Drum-Buffer-Rope
D. Scheduling Bottlenecks
Answer: A
QUESTION 312
Find methods to maximize the utilization of the constraint toward productive throughput is called:
A. Utilize constraint
B. Manage constraint
C. Exploit constraint
D. None of the above
Answer: C
QUESTION 313
Means to find ways to increase the available hours of the constraint, including more of it is referred to as:
A. Elevate constraint
B. Subordinate constraint
C. Identify constraint
D. All of the above
Answer: A
QUESTION 314
What represents the master schedule for the operation, which is focused around the pace of throughput as
defined by the constraint?
A. Drum
B. Buffer
C. Rope
D. None of the above
Answer: A
QUESTION 315
Which four primary plant types are defined, and they are used to specify the flow of materials through a
production process?
A. I-plant, A-plant, B-plant, G-Plant
B. I-plant, A-plant, V-plant, T-Plant
C. C-plant, K-plant, B-plant, S-Plant
D. A-plant, D-plant, B-plant, F-Plant
Answer: B
QUESTION 316
Which of the following plant is used in the production process, where few raw materials can be made into
several end products?
A. I-plant
B. A-plant
C. V-plant
D. G-plant
Answer: C
QUESTION 317
What is a problem for manufacturing, but it can be attained by overtime or under-time, shifting workers, and so
forth?
A. Input/Output rate
B. Working center control
C. Risk disbursement
D. Capacity change
Answer: D
QUESTION 318
________________ is difference between the total planned for a given period and the actual total for that
period.
A. Increasing rate
B. Cumulative variance
C. Collective concern
D. Total control rate
Answer: B
QUESTION 319
___________ is the same as queue and expresses the work to be done in hours.
A. Backlog
B. Cumulative variance
C. Capacity per period
D. Output rate
Answer: A
QUESTION 320
The formula for the planned backlog for period 1 is calculated as:
A. Planned backlog for period 1 =Planed backlog +previous input ?planned output
B. Planned backlog for period 1 =Planed backlog +previous output ?planned output
C. Planned backlog for period 1 =Previous backlog +planned input ?planned output
D. Planned backlog for period 1 =Actual backlog +planned input ?actual output
Answer: C
QUESTION 321
The ranking of jobs for the dispatch list is created through the application of which of the following priority rule?
A. First come, first served
B. Earliest operation due date
C. Shortest process time
D. All of the above
Answer: D
QUESTION 322
The function of selecting and sequencing available jobs to be run at individual work centers is known as:
A. Sequencing
B. Decentralization
C. Dispatching
D. Devolution
Answer: C
QUESTION 323
An index of the relative priority of an order to other orders at a work center is referred to
as:
A. Aspect ratio
B. Critical ratio
C. Priority ratio
D. Schedule ratio
Answer: B
QUESTION 324
What is responsible for establishing the flow of materials into the firm, following up with the supplier, and
expediting delivery?
A. Scheduling
B. Follow-up procedure
C. Purchasing
D. Sales procedure
Answer: C
QUESTION 325
____________________ are concerned with the end use of the item and what the item is expected to do.
A. Functional specifications
B. Price requirements
C. Quality assurance
D. Performance requisition
Answer: A
QUESTION 326
What must decide the market segment to be served, the product features and quality level expected by that
market, the price, and the expected sales volume?
A. Product design
B. Product planning
C. Product manufacturing
D. Product quality
Answer: B
QUESTION 327
The systematic use of techniques that identify a required function, establish a value for that function, and
finally provide that function at the lowest overall cost, is known as:
A. Functional analysis
B. Specification analysis
C. Quality analysis
D. Value analysis
Answer: D
QUESTION 328
Functional specification can be described by a combination of:
A. Brand
B. Engineering drawings
C. Miscellaneous
D. All of the above
Answer: D
QUESTION 329
Which of the following are the two sources of specifications?
A. Seller specification & Standard specification
B. Buyer specification & Buyer specification
C. Buyer specification & Standard specification
D. Standard specification & Engineering specification
Answer: C
QUESTION 330
Which of the following are the types of sourcing?
A. Sole, multiple, single
B. Multiple, single
C. Group, multiple, single
D. Sole, Group
Answer: A
QUESTION 331
A planned decision by the organization to select one supplier for an item when several sources are available is
called:
A. single sourcing
B. sole sourcing
C. singular sourcing
D. unique sourcing
Answer: A
QUESTION 332
Buyers in which environment need suppliers who value their new relationship, working in partnership to remove
waste from the system?
A. After-sales service
B. J ust-in-time capabilities
C. Manufacturing capabilities
D. Supplier technical ability
Answer: B
QUESTION 333
A price that is competitive, gives the seller a profit, and allows the buyer ultimately to sell at a profit is known
as:
A. Actual price
B. Fair price
C. Impartial price
D. Average price
Answer: B
QUESTION 334
The costs those directly associated with the amount produced or sold are called:
A. Fixed cost
B. Variable cost
C. Total cost
D. Average cost
Answer: B
QUESTION 335
What includes the functions of establishing specifications, selecting suppliers, price determination, and
negotiation?
A. Supplier scheduling
B. Competitive follow-up
C. Procurement
D. None of the above
Answer: C
QUESTION 336
_____________ ensures suppliers a given amount of business and commits them to allocating that amount of
their capacity to the customer.
A. Contract buying
B. Developing schedules
C. Supplier flexibility
D. Business responsiveness
Answer: A
QUESTION 337
Electric data interchange enables customers and suppliers to electromagnetically exchange transaction
information.
A. True
B. False
Answer: B
QUESTION 338
When a supplier maintains an inventory of certain items in the customer's facility, this approach is known as:
A. Supply managed procedure
B. Product scheduling
C. Supply-chain management
D. Vendor-managed inventory
Answer: D
QUESTION 339
___________ is an internal net that is normally used within the boundaries of a company.
A. Internet
B. Intranet
C. Intra-vagrant net
D. Mini-net spot
Answer: D
QUESTION 340
Extranet is an internet shared by two or more companies.
A. True
B. False
Answer: B
QUESTION 341
When there is uncertainty in the supply chain based on the use of forecasts, and that uncertainty is then
exaggerated by lead-time effects and differences in lot sizes as material moves through the supply chain, this
is called:
A. Bullwhip effect
B. Anticipatory effect
C. Bull ship effect
D. None of the above
Answer: A
QUESTION 342
What is needed for items and is associated with master production scheduling?
A. Chain management
B. Demand management
C. Product management
D. Supply management
Answer: B
QUESTION 343
Which of the following is the activity of Demand management?
A. Forecasting
B. Order processing
C. Interfacing
D. All of the above
Answer: D
QUESTION 344
The purpose _____________ is to provide time to plan for those things that take long to change.
A. Strategic business plan
B. Scheduling plan
C. Change management plan
D. Production plan
Answer: A
QUESTION 345
Which scheduling is concerned with production activity from the present to a few months ahead?
A. Later production
B. Early production
C. Master production
D. Small Production
Answer: C
QUESTION 346
The demand pattern varies from period o period, and which of the following is the reason for this:
A. Trend
B. Seasonality
C. Random variation
D. All of the above
Answer: D
QUESTION 347
What can affect the trend, seasonality, or randomness of the actual demand?
A. Static changes
B. Dynamic changes
C. Random changes
D. Planned changes
Answer: B
QUESTION 348
Forecasts are more accurate for larger groups of items than for individual items in a group?
A. True
B. False
Answer: A
QUESTION 349
Which of the following is NOT the method of forecasting?
A. qualitative
B. quantitative
C. intrinsic
D. extrinsic
Answer: B
QUESTION 350
A systematic, formal, and conscious procedure for testing to determine customer opinion or intention is called:
A. Forecasting procedure
B. Record customer group
C. Market research
D. None of the above
Answer: C
QUESTION 351
What is based on a comparative analysis of the introduction and growth of similar products in the hope that the
new product behaves in a similar fashion?
A. Forecasting analogy
B. Estimated analogy
C. Future analogy
D. Historical analogy
Answer: D
QUESTION 352
Which technique is based on the assumption that what happened in the past will happen in the future?
A. Intrinsic Forecasting
B. Extrinsic Forecasting
C. Average demand Forecasting
D. Quantitative Forecasting
Answer: A
QUESTION 353
_____________ are best used for forecasting products with stable demand where there is little trend or
seasonality.
A. Demand averages
B. Estimated calculations
C. Moving averages
D. None of the above
Answer: C
QUESTION 354
Providing a routine method for regularly updating item forecasts is known as:
A. Regular smoothing
B. Exponential smoothing
C. Steady smoothing
D. Stable trend smoothing
Answer: B
QUESTION 355
Exponential smoothing gives the same results as a moving average but without the need to retain as much
data and with easier calculations.
A. True
B. False
Answer: A
QUESTION 356
Qualitative techniques are productions based on judgment, intuition, and informed opinions.
A. True
B. False
Answer: A
QUESTION 357
The formula for the seasonal demand is:
A. Seasonal demand =(seasonal index) +(seasonalized demand)
B. Seasonal demand =(seasonal index) - (deseasonalized demand)
C. Seasonal demand =(seasonal index) * (deseasonalized demand)
D. Seasonal demand =(seasonal index) / (deseasonalized demand)
Answer: C
QUESTION 358
What is the rule for forecasting with seasonality?
A. Only use deseasonalized data to forecast.
B. Forecast deseasonalized demand, not seasonal demand
C. Calculate the seasonal forecast by applying the seasonal index to the base forecast.
D. All of the above
Answer: D
QUESTION 359
_______ exists when the cumulative actual demand varies from the cumulative forecast.
A. Bias
B. seasonal index
C. Actual forecast
D. Stable demand
Answer: A
QUESTION 360
When in a given period, actual demand will vary about the average demand, this is called:
A. Fixed variation
B. Forecast variation
C. Random variation
D. Possible average variation
Answer: C
QUESTION 361
The formula to calculate the Mean Absolute Deviation (MAD) is:
A. MAD =(sum of mean deviations / number of facts)
B. MAD =(sum of absolute deviations / number of observations)
C. MAD =(sum of random deviations / number of average observations)
D. MAD =(sum of absolute deviations / number of average forecasts)
Answer: B
QUESTION 362
A graph of the number of times (frequency) actual demand is of a particular value produces a bell-shaped
curve, this distribution is called:
A. Normal distribution
B. Bell-shaped distribution
C. U-shaped distribution
D. Abnormal distribution
Answer: A
QUESTION 363
A tracking signal can be used to monitor the quality of forecast.
A. True
B. False
Answer: A
QUESTION 364
The tracking signal can be calculated as:
A. Tracking signal =cumulative sum of forecast errors +MAD
B. Tracking signal =algebraic sum of forecast orders / MAD
C. Tracking signal =cumulative sum of forecast errors * MAD
D. Tracking signal =algebraic sum of forecast errors / MAD where MAD =Mean Absolute Deviation
Answer: D
QUESTION 365
What are purchased items received that have not entered the production process?
A. Raw materials
B. Untreated materials
C. Basic stuff
D. Synthetic materials
Answer: A
QUESTION 366
Raw materials that have entered the manufacturing process and are being worked on or waiting to be worked
on, are:
A. Waiting-process
B. Work-in-process
C. Coming up-process
D. Future-process
Answer: B
QUESTION 367
_________________ is held to cover random unpredictable variations in supply and demand or lead time.
A. Safety stock
B. Variant stock
C. Anticipatory change inventory
D. Random contemporary stock
Answer: A
QUESTION 368
If demand or lead time is greater than forecast, then what will occur?
A. Invaluable stock
B. Unpredictable stock
C. Stockout
D. Vulnerable stock
Answer: C
QUESTION 369
Items purchased or manufactured in quantities greater than needed immediately create _____________.
A. bulk-size inventories
B. massive-size inventories
C. lion's share inventories
D. lot-size inventories
Answer: D
QUESTION 370
What exist because of the time needed to move goods from one location to another such as from a plant to a
distribution center or a customer?
A. Stable inventories
B. Operating inventories
C. Pipeline inventories
D. Cyclic inventories
Answer: C
QUESTION 371
Inventory investment can be balanced with:
A. Customer service
B. Costs associated with changing production levels
C. Cost of placing orders
D. All of the above
Answer: D
QUESTION 372
All expenses incurred by the firm because of the volume of inventory accepted will fall
in:
A. Carrying costs
B. Changing costs
C. Distributed costs
D. All of the above
Answer: A
QUESTION 373
Carrying can be broken down into which of the following three categories?
A. Capital costs, storage costs, risk costs
B. Training costs, storage costs, risk costs
C. Capital costs, ordering costs, risk costs
D. Item costs, transit costs, storage costs
Answer: B
QUESTION 374
Which cost would be the interest lost by not investing the money at the prevailing interest rate, and it may be
much higher depending on investment opportunities for the firm?
A. Capital cost
B. Investment cost
C. Minimum cost
D. Capacity-associated cost
Answer: C
QUESTION 375
What may vary depending upon the interest rates, the credit rating of the firm, and the opportunities the firm
may have for investment?
A. Capital cost
B. Inventory cost
C. Normal cost
D. Item cost
Answer: A
QUESTION 376
The carrying cost is usually defined as a percentage of the dollar value of inventory per unit of time.
A. True
B. False
Answer: A
QUESTION 377
The annual cost and effort expended in ______________ depends on the number of orders placed, not on the
quantity ordered.
A. Capacity control
B. Production control
C. Purchase order cost
D. Set-up control
Answer: B
QUESTION 378
Which costs can be avoided by leveling production, that is, by producing items in slack periods for sale in peak
periods?
A. Capacity-associated control
B. Production cost
C. Purchase order cost
D. Stock-out cost
Answer: A
QUESTION 379
Something that has value and is expected to benefit the future operation of the business is known as:
A. Revenues
B. Business Plan
C. Asset
D. Sales
Answer: C
QUESTION 380
Owner's equity is:
A. Difference between revenues and expenses
B. Difference between expenses and liabilities
C. Difference between assets and revenues
D. Difference between assets and liabilities
Answer: D
QUESTION 381
The formula to calculate the Inventory turns is:
A. Inventory turns =average cost of goods sold / annual inventory in dollars
B. Inventory turns =annual cost of goods purchased / average financial measures in dollars
C. Inventory turns =annual cost of goods sold / average inventory in dollars
D. Inventory turns =annual cost of goods sold * average inventory in dollars
Answer: C
QUESTION 382
Which of the following is NOT the method accounting use to cost inventory?
A. First in first out
B. Last in first out
C. Average cost
D. Analysis cost
Answer: D
QUESTION 383
What uses cost determined before production begins?
A. Standard cost
B. Cost of quality
C. Average cost
D. Analysis cost
Answer: A
QUESTION 384
When a small number of items often dominate the results achieved in any situation, this is called:
A. Standard law
B. Recessive Act
C. Pareto's law
D. Petite Act
Answer: C
QUESTION 385
As applied to inventories, it is usually found that the relationship between the percentage of items and the
percentage of annual dollar usage follows a pattern in which three groups can be defined:
Group A About 50 % of the items account for about 5 % of the dollar usage Group B About 20 % of the items
account for about 80 % of the dollar usage Group C About 30 % of the items account for about 15 % of the
dollar usage
A. True
B. False
Answer: B
QUESTION 386
Control is exercised through individual items in a particular inventory, this is called:
A. Inventory element
B. Stock-keeping units
C. Stock entity
D. Inventory corps
Answer: B
QUESTION 387
To order exactly what is needed, no more, no less, this rule is called:
A. lot-for-lot
B. Fixed-order quantity
C. Permanent lot
D. Rigid-order rule
Answer: A
QUESTION 388
Annual cost of pacing orders and annual cost of carrying inventory, together forms:
A. Annual cost
B. Determined cost
C. Permanent cost
D. Relevant cost
Answer: D
QUESTION 389
What occurs when the cost of ordering equals the cost of carrying?
A. Exact-order completeness
B. Predetermined carrying cost
C. Economic-order quantity
D. Ordering cost quantity
Answer: C
QUESTION 390
The Economic-order quantity will increase as the annual demand and the cost of ordering decrease, and it will
decrease as the cost of carrying inventory and the unit cost increase.
A. True
B. False
Answer: B
QUESTION 391
The purchase cost of the stock-keeping units or the cost of manufacturing the item is called:
A. Unit cost
B. Key cost
C. Economic cost
D. Elementary cost
Answer: A
QUESTION 392
________________ uses the economic-order-quantity formula to calculate an economic time between orders.
A. production-order quantity
B. period-order quantity
C. inventory-carrying-order quantity
D. All of the above
Answer: B
QUESTION 393
The formula to calculate the period-order quantity is:
A. Period-order quantity =EOQ / average yearly usage
B. Period-order quantity =EOQ / average monthly usage
C. Period-order quantity =EOQ * average monthly usage
D. Period-order quantity =EOQ / average weekly usage Where EOQ is Economic-Order- Quantity
Answer: D
QUESTION 394
A full load costs more per ton to ship than a part load
A. True
B. False
Answer: B
QUESTION 395
When the quantity of an item on hand in inventory falls to a predetermined level called:
A. Demand point
B. Lead level
C. Order point
D. None of the above
Answer: C
QUESTION 396
A calculated extra amount of stock carried and is generally used to protect against quantity uncertainty in
known as:
A. Safety stock
B. Average stock
C. Secure stock
D. All of the above
Answer: A
QUESTION 397
______________ is used to protect against timing uncertainty by planning order releases and order receipts
earlier than required.
A. Fast order release
B. Safety lead time
C. Direct release
D. Lead command
Answer: B
QUESTION 398
The safety stock required depends on which of the following:
A. Variability of demand during the lead time
B. Frequency of reorder
C. Service level desired
D. All of the above
Answer: D
QUESTION 399
What have most of the values clustered near a central point with progressively fewer results occurring away
from the cluster?
A. Normal distribution
B. Frequent distribution
C. Average distribution
D. Relevant distribution
Answer: A
QUESTION 400
_____________ of actual demands about the average refers to how closely the individual values cluster
around the mean or average.
A. distribution
B. disbursement
C. dispersion
D. deviation
Answer: C
QUESTION 401
A statistical value that measures how closely the individual values cluster about the average is called:
A. Mean value
B. Standard deviation
C. Sigma valuation
D. Order point
Answer: B
QUESTION 402
The service level is directly related to the number of standard deviations provided as safety stock and is
usually called:
A. safety value
B. safety factor
C. secure level
D. secure stockout
Answer: B
QUESTION 403
Stockout cost money for which of the following reason?
A. Back-order costs
B. Lost costs
C. Lost customers
D. All of the above
Answer: D
QUESTION 404
When a quantity of an item equal to the order point quantity is set aside and not touched until all the main
stock is used up, this strategy is called:
A. Two-bin system
B. Dual system
C. Two-fold system
D. Wait-for-next strategy
Answer: A
QUESTION 405
A simple system that signals the need for more products is known as:
A. Lot-for-more system
B. Kanban system
C. Manifesto system
D. Demanding system
Answer: B
QUESTION 406
A continual account of inventory transactions as they occur and at any instant, it holds an up-to-date record of
transaction is called:
A. Advanced inventory record
B. state-of-the-art record
C. Perpetual inventory record
D. All of the above
Answer: C
QUESTION 407
Using the _____________, the quantity on hand of a particular item is determined at specified, fixed-time
intervals and an order is placed.
A. Walkthroughs
B. Formal technical reviews
C. Periodic review system
D. Quality control
Answer: C
QUESTION 408
The quantity on hand plus the quantity ordered must equal the sum of the demand during the lead time plus
the demand during the review period plus safety stock.
A. True
B. False
Answer: A
QUESTION 409
The quantity equal to the demand during the lead time plus the demand during the review period plus safety
stock id called:
A. Target value
B. Demand value
C. Review process value
D. All of the above
Answer: A
QUESTION 410
The formula to calculate the Target value is:
A. T =D (R +L) +SS
B. T =D (R +L) * SS
C. T =D (R -L) +SS
D. T =D (R -) / SS
Where T =target level, D =demand pr unit of time, lead-time duration, R =review- period duration, SS =
safety stock
Answer: A
QUESTION 411
To provide the required level customer service, to minimize the costs of transportation and handling, and to be
able to interact with the factory to minimize the scheduling problems are all objectives of:
A. Central supply management
B. Order completeness management
C. Distribution inventory management
D. None of the above
Answer: C
QUESTION 412
Each distribution center first determines what it needs and when, and then places orders in central supply, in:
A. Decentralized system
B. Competency system
C. Advancements system
D. Demand ordering system
Answer: A
QUESTION 413
A system that forecasts when the various demands will be made by the system on central supply is known as:
A. Anticipated centralized system
B. Predictive central system
C. Distribution requirements planning
D. Conjecture supply planning
Answer: C
QUESTION 414
Which of the following are those of space and materials handling equipment?
A. Capital costs
B. Material costs
C. Variance costs
D. Equipment costs
Answer: A
QUESTION 415
When items required from stock must be selected from storage and brought to a marshalling area, this activity
is called:
A. Collect goods
B. Accept goods
C. Select goods
D. Pick goods
Answer: D
QUESTION 416
Goods making up a single order are brought together and checked for omissions or errors, this is known as:
A. Dispatch shipment
B. Marshal the shipment
C. Operate the shipment
D. Receive the shipment
Answer: B
QUESTION 417
Which factor influence effective use of warehouses?
A. Cube utilization and accessibility
B. Stock location
C. Packaging
D. All of the above
Answer: D
QUESTION 418
Which is the basic system used for locating stock?
A. Group functionally related items together
B. Group fast-moving items
C. Group physically similar items together
D. All of the above
Answer: D
QUESTION 419
Stock, from which withdrawals are made, can be located close to the marshalling and shipping area is referred
to as:
A. Active stock
B. Marshalling stock
C. Working stock
D. Withdrawal stock
Answer: C
QUESTION 420
The order picker circulates throughout the warehouse selecting the items on the order through:
A. Area system
B. Pick and choose system
C. Managing system
D. Zone system
Answer: A
QUESTION 421
The amount or permissible variation between an inventory record and a physical count is called:
A. Charity
B. Tolerance
C. Variable Charity
D. Common Fluctuation
Answer: B
QUESTION 422
To satisfy the financial auditors that the inventory records represent the value of the inventory, this is the
purpose of:
A. Evolutionary inventory
B. Functional inventory
C. Physical inventory
D. Periodic inventory
Answer: D
QUESTION 423
Which of the three factors are involved in good preparation of the physical inventory?
A. Tolerance, identification and training
B. Housekeeping, Inventory and production
C. Housekeeping, identification and training
D. Workforce, Physical control and security
Answer: C
QUESTION 424
Inventory must be sorted and the same parts collected together so they can easily be counted, this is called:
A. Housekeeping
B. Recordkeeping
C. Bookkeeping
D. Recording
Answer: A
QUESTION 425
A difference between the physical count and inventory dollars for the inventory records is called:
A. Accuracy
B. Resolution
C. Reconciliation
D. Provocation
Answer: C
QUESTION 426
The number of time an item is counted in a year is called its count frequency.
A. True
B. False
Answer: A
QUESTION 427
The movement and storage of goods from suppliers to manufacturing is known as:
A. Physical supply
B. Distribution
C. Goods Flow
D. Trading
Answer: A
QUESTION 428
The movement and storage of finished goods from end of production to the customer is called:
A. Physical supply
B. Physical distribution
C. Physical associate
D. Physical channel
Answer: B
QUESTION 429
If company uses other companies or individuals to distribute some or all of its products to the final consumer,
these companies or individuals are called:
A. Intermediaries
B. Mediums
C. Channel
D. Supply chain
Answer: A
QUESTION 430
What is concerned with the transfer of ownership and its function is to negotiate, sell, and contract?
A. Business channel
B. Distribution channel
C. Contracted channel
D. Transaction channel
Answer: D
QUESTION 431
The specific way in which materials move depends upon which of the following factor?
A. The channels of distribution that the firm is using
B. The types of markets served
C. The characteristics of the product
D. All of the above
Answer: D
QUESTION 432
In s distribution system, which activity affects customer service and the cost of providing it?
A. Distribution inventory
B. Warehouses
C. Order processing and communication
D. All of the above
Answer: D
QUESTION 433
To provide the required level of customer service at the least total system cost, is the objective of:
A. Distribution inventory
B. Distribution management
C. Process management
D. Management maintenance
Answer: B
QUESTION 434
The places where carriers load and unload goods to and from vehicles and make connections between local
pickup and delivery service and line-haul service are called:
A. Terminals
B. Mortals
C. Workstations
D. None of the above
Answer: A
QUESTION 435
Economic regulation has centered on which of the following areas?
A. Regulations of rates
B. Control of routes and service levels
C. Control of market entry and exit
D. All of the above
Answer: D
QUESTION 436
What haul only for those with whom they have a specific formal contract or service, not the general public?
A. Contract service
B. Contract carriers
C. Contract capability
D. Commodity contract
Answer: B
QUESTION 437
Which of the following is NOT the basic cost element in transportation?
A. Line haul
B. Pickup and delivery
C. Terminal handling
D. Consignee collection
Answer: D
QUESTION 438
The total line-haul cost varies with:
A. cost per mile
B. the distance moved
C. weight moved
D. Only A and B
Answer: D
QUESTION 439
If shippers want to reduce transportation cost, they should:
A. increase the weight shipped
B. maximize density
C. Both A and B
D. Neither A nor B
Answer: C
QUESTION 440
Which method influences the risk of damage and breakage?
A. value
B. density
C. Perishability
D. Packaging
Answer: D
QUESTION 441
The place where goods are stored for long periods and where the prime purpose is to protect goods until they
are needed id called
A. General warehouse
B. Distribution warehouse
C. Store house
D. Go-down
Answer: A
QUESTION 442
Which of the following is NOT the role that warehouses serve?
A. Transportation consolidation
B. Cubic space
C. Product mixing
D. Service
Answer: B
QUESTION 443
_______________ is the delivered cost of a product to a particular geographic point.
A. Delivery cost
B. Laid-down cost
C. Deteriorate cost
D. Service cost
Answer: B
QUESTION 444
The line between two or more supply sources where the laid-down cost is the same is known as:
A. Inventory line
B. Market boundary
C. Production boundary
D. Cost line
Answer: B
QUESTION 445
What serves as a means of identifying the product in a way not possible from its outward appearance?
A. Package
B. Boundary
C. Frontier
D. Container
Answer: A
QUESTION 446
The consolidation of several units into large units, called unit loads, so there is less handling, this is referred to
as:
A. Exclusiveness
B. Itemization
C. Unitization
D. Solitary
Answer: C
QUESTION 447
A load made up of a number of items or bulky material, arranged or constrained so the mass can be picked up
or moved as a single unit too large for manual handling in called:
A. Unit load
B. Contemporary load
C. Package load
D. Pallet load
Answer: A
QUESTION 448
The devices that move material (or people) horizontally or vertically between two fixed points are usually
known as:
A. Industrial trucks
B. Conveyors
C. Cranes
D. Hoists
Answer: B
QUESTION 449
Price competition is often severe and profits start to decline, in which phase of the life cycle of a product?
A. Introduction phase
B. Growth phase
C. Maturity phase
D. Decline phase
Answer: C
QUESTION 450
The needs of sales and the economics of production must be balanced, and this balance is usually obtained
with:
A. Product simplication
B. Product Standardization
C. Product Specialization
D. All of the above
Answer: D
QUESTION 451
In a product design, a ____________ is carefully established specification covering the product's material,
configuration, measurement, and so on.
A. Standard
B. Technique
C. Machinery
D. Routine of process
Answer: A
QUESTION 452
What uses standardization parts for flexibility and variety?
A. Manufacturing
B. Modularization
C. Specialization
D. All of the above
Answer: B
QUESTION 453
What can be based on characteristics such as customer grouping, demand characteristics, or degree of
customization?
A. Process focus
B. Focused factory
C. Functional focus
D. Product and market focus
Answer: D
QUESTION 454
To design products for low-cost manufacture requires close coordination between product design and process
design, which is called:
A. Product engineering
B. Low-cost engineering
C. Simultaneous engineering
D. Marketplace engineering
Answer: C
QUESTION 455
The group works together to develop the product design so it meets the needs of the customer and can be
made and delivered to the customer at low cost in a process called:
A. Workgroup engineering
B. Concurrent engineering
C. Manufactured engineering
D. Time-to-market engineering
Answer: B
QUESTION 456
Who is responsible for producing the products and services the customer wants, when wanted, with required
quality, at minimum cost and maximum effectiveness and productivity?
A. Operations management
B. Marketing management
C. Production management
D. Product-review management
Answer: A
QUESTION 457
___________are the means by which operations management reaches their desired objectives.
A. Products
B. Processes
C. People
D. Projects
Answer: B
QUESTION 458
Based on material flow, processes can be organized in which way?
A. Flow
B. Intermittent
C. Project
D. All of the above
Answer: D
QUESTION 459
What determines the basic processes needed to convert the raw materials and components into the finished
product?
A. Product's design
B. Product's manufacturing
C. Process development
D. All of the above
Answer: A
QUESTION 460
If the units are discrete, such as automobiles, flow manufacturing is called:
A. Continuous manufacturing
B. Fixed manufacturing
C. Repetitive manufacturing
D. None of the above
Answer: C
QUESTION 461
Intermittent process layout is sometimes called product layout because the system is set up for a limited range
of similar products.
A. True
B. False
Answer: B
QUESTION 462
Because of the flow system and the low work-in-process inventory,
A. machinery and tooling can be specialized
B. little build-up of work-in-process inventory
C. lead times are short
D. labor into routine tasks
Answer: C
QUESTION 463
Goods are not made continuously as in a flow system but are made at intervals in lots or batches in:
A. Fixed manufacturing
B. Intermittent manufacturing
C. Discrete manufacturing
D. Inflexible manufacturing
Answer: B
QUESTION 464
Knowing the quantity beyond which the cost of using method B becomes less than for method A enables us to
decide easily which process to use to minimize the total cost, this quantity is called:
A. cost of quantity point
B. total cost production
C. fixed cost projected point
D. cost equalization point
Answer: D
QUESTION 465
If the volume is greater than the cost equalization point, the method with the greater variable cost will cost less.
A. True
B. False
Answer: B
QUESTION 466
If the volume of manufactured components can be increased, then the unit cost of the components, and the
final product, will be reduced.
A. True
B. False
Answer: A
QUESTION 467
What is concerned with removing work content, not with spending money on better and faster machines?
A. Increasing volume
B. Improving productivity
C. Continuous process improvement
D. Continuous project improvement
Answer: C
QUESTION 468
Identify the problem, generate ideas about main causes of problem, brainstorm all possible causes for each
main cause and try to identify the most likely root cause are all the steps of:
A. Pareto diagram
B. Cause-and-effect diagram
C. Component diagram
D. Schematic of a process
Answer: B
QUESTION 469
Which of the following is NOT the possible root cause in generating some ideas about the main causes of the
problem?
A. Processes
B. Materials
C. Machines
D. Environment
Answer: A
QUESTION 470
The resources used in changing inputs to outputs are usually known as:
A. Processes
B. Decisions
C. Measurements
D. Components
Answer: D
QUESTION 471
Which of the following is NOT the class of activity?
A. Operation
B. Inspection
C. Storage
D. Environment
Answer: D
QUESTION 472
What record in sequence only the main operation and inspection and are useful; for preliminary investigation
and give a bird's-eye view of the process?
A. Operations process chart
B. Operations description chart
C. Operations inspection chart
D. Operations receiving chart
Answer: A
QUESTION 473
_______________ provides a picture, in the form of a diagram, of what actually happens when a product is
made or a service performed.
A. Functional chart
B. Process flow diagram
C. Performance flow chart
D. Pareto chart
Answer: B
QUESTION 474
In order to develop possible solutions, which approach to take to help develop a better method?
A. Eliminate all unnecessary work
B. Rearrange the sequence of operations for more effective results
C. Simplify whenever possible by making the necessary operations less complex
D. All of the above
Answer: D
QUESTION 475
An attempt to provide more satisfying meaningful jobs and to use the worker's mental and interpersonal skills is
called:
A. J ob assignment
B. J ob design
C. J ob enrichment
D. J ob accomplishment
Answer: B
QUESTION 476
When a job might be expanded to include a sequence of activities instead of only one activity, this is called
A. Horizontal enlargement
B. Vertical enlargement
C. Parallel expansion
D. Correspondence expansion
Answer: A
QUESTION 477
Over time, as the operator does the tasks repetitively, speed will increase and errors decrease, this process is
known as:
A. Maintenance
B. Preserving curve
C. Leaning curve
D. Protection
Answer: C
QUESTION 478
The elimination of all waste and continuous improvement of productivity is known as:
A. Up-gradation manufacturing
B. J ust-in-time manufacturing
C. Work-in-progress manufacturing
D. All of the above
Answer: B
QUESTION 479
What reduces the planning and control effort needed, the number of items required, and the inventory that has
to be carried?
A. Standardization
B. Value-added scheme
C. Periodic review
D. Design and specification
Answer: A
QUESTION 480
Which of eth following is NOT the source of waste in the design of the manufacturing system?
A. Process
B. Methods
C. Environment
D. Movement
Answer: C
QUESTION 481
Which of the following is NOT the source of waste in the operation and management of the manufacturing
system?
A. Waiting time
B. Overproduction
C. Inventory
D. Product defects
Answer: D
QUESTION 482
_____________ to the marketplace depends on being able to provide shorter lead times and better due date
performance.
A. Reliability
B. Responsiveness
C. Equivalence
D. Productivity
Answer: B
QUESTION 483
The concept of removing faults at the first instance and making a process or product "fool proof" is known as:
A. Poke-yoke
B. Scrap step
C. Statistical sole
D. None of the above
Answer: A
QUESTION 484
Errors will always be made, but defects can be removed.
A. True
B. False
Answer: A
QUESTION 485
What is done by individual worker who, instead of checking for defects, checks for errors that will cause
defects?
A. Successive check
B. Self-check
C. Source inspection
D. Source correction
Answer: C
QUESTION 486
The workstations required to make the product, or family of products, are located close together and in the
sequence needed to make the product is called:
A. Productive manufacturing
B. Repetitive manufacturing
C. Flow manufacturing
D. Process manufacturing
Answer: B
QUESTION 487
To achieve _______________, it often makes more sense to have two relatively inexpensive general-purpose
machines than one large, expensive special-purpose piece of equipment.
A. machine suppleness
B. machine softness
C. machine elasticity
D. machine flexibility
Answer: D
QUESTION 488
People should not only be trained in their own jobs but should also be cross-trained in other skills and in
problem solving techniques, in order to achieve:
A. compound progressiveness
B. operator flexibility
C. machine adaptability
D. Total quality management
Answer: B
QUESTION 489
What means doing it right the first time and, if something does go wrong, stopping the process and fixing it?
A. Quality at the source
B. Process balancing
C. Quality assurance
D. All of the above
Answer: A
QUESTION 490
Preventive maintenance plus continuing efforts to adapt, modify, and refine equipment to increase flexibility,
reduce material handling, and promote continuous flow, is called:
A. Source maintenance
B. Pull-up system
C. Total productive maintenance
D. valid schedule maintenance
Answer: C
QUESTION 491
Work done at each workstation should take about the same time, this is called:
A. Consistency planting
B. Homogeneous system
C. Identical point in time
D. Uniform plant loading
Answer: D
QUESTION 492
If demand shifts between models, the assembly line can respond daily, this is called:
A. miscellaneous scheduling
B. Shifting scheduling
C. mixed-model scheduling
D. variable-model scheduling
Answer: C
QUESTION 493
The emphasis in just-in-time is on achieving the plan, no more, no less, this is called:
A. modularity
B. linearity
C. consistency
D. uniformity
Answer: B
QUESTION 494
The absence of defects both in product and non-product categories and use of a good documentation system,
this is known as:
A. supplier certification
B. Maintainability
C. Official recognition
D. Sustainability
Answer: A
QUESTION 495
The major effect that just-in-time has on forecasting it's shortened,
A. lead time
B. test time
C. production time
D. design time
Answer: A
QUESTION 496
Master scheduling tries to level capacity and just-in-time tries to level the schedule based on capacity and
material flow.
A. True
B. False
Answer: A
QUESTION 497
Which function is to determine the need for labor, equipment, and material to meet the priority plans?
A. Frequency planning
B. Training level
C. Capacity planning
D. Work-in-progress planning
Answer: C
QUESTION 498
Raw materials are recorded into work-in-process, when work is completed and becomes finished goods; the
work-in-process inventory is relieved by multiplying the number of units completed by the number of parts in
the bill of material, in which system?
A. post-deduct system
B. leveling system
C. demand pattern system
D. Work-in-progress system
Answer: A
QUESTION 499
The concept in which to preplan and generate schedules but instead to react to the final customer order and
produce only what is needed to satisfy demand and then only when it is needed, is known as:
A. Put system
B. Buffer system
C. Pull system
D. Defensive system
Answer: C
QUESTION 500
What implies understanding and correctly implementing the major enterprise-wide changes required to truly
eliminate or significantly reduce waste in the system?
A. Enterprise production
B. Lead production
C. Control production
D. Command production
Answer: B
QUESTION 501
A tool to map and understand the flow of materials from supplier to customer, focusing on not only
understanding the current state of process and flow but also specifying the value-added and non-value-added
time of all process steps, is called ___________________.
A.
B.
C.
D.
Answer:
QUESTION 502
Which event usually focuses on a fairly small part of the overall producti0on process to improve that part of the
process?
A. Allen
B. Kaizen
C. Fair
D. Build
Answer: B
QUESTION 503
The rate of production that is synchronized with the rate of customer demand is known
as:
A. takt time
B. horizon time
C. stipulate
D. challenge
Answer: A
QUESTION 504
A structured approach to organize the operation for more effectiveness and less waste that is the overall goal
of a lean production system includes which 5S?
A. Species, straighten, shine, standardize, sustain
B. Sort, strong, shower, standardize, sustain
C. Sort, straighten, shine, standardize, sustain
D. Sort, straighten, shine, standardize, suspect
Answer: C
QUESTION 505
Goods or services satisfy the needs and expectations of the user, this refers to:
A. Stability
B. Quality
C. Reliability
D. Maintainability
Answer: B
QUESTION 506
Who is responsible for meeting the minimum specifications of the product design?
A. Policy
B. Scope
C. Manufacturing
D. Standardization
Answer: C
QUESTION 507
Establish the acceptable limits and are usually expressed as the amount of allowable variation about the
desired amount is called:
A. Tolerances
B. Acceptability
C. Charity Act
D. Minority
Answer: A
QUESTION 508
If the product or service is ready for the customer's use at the time of sale, this refers to:
A. Usability
B. Accomplishment
C. Implementation
D. Performance
Answer: D
QUESTION 509
Which three dimensions to performance are important?
A. Accessibility, durability and maintainability
B. reliability, durability and maintainability
C. reliability, security and maintainability
D. reliability, Portability and Extensibility
Answer: B
QUESTION 510
What is measured by the length of time a product can be used before it fails?
A. Reliability
B. Durability
C. Maintainability
D. Efficiency
Answer: B
QUESTION 511
Total customer satisfaction based on the complete experience with an organization, not just the product is
known as:
A. Total quality
B. Absolute quality
C. Perceived quality
D. Fool proof quality
Answer: C
QUESTION 512
The sum of the benefits the customer receives and can be more than the product itself is called:
A. value
B. price
C. quality
D. workforce
Answer: A
QUESTION 513
What is based on the participation of all members of an organization in improving processes, products,
services, and the culture they work in is called:
A. Continuous Process Management
B. Workflow Management
C. Total Quality Management
D. All of the above
Answer: C
QUESTION 514
_______________ describes the function of the organization.
A. Vision statement
B. Mission statement
C. Policy statement
D. Service statement
Answer: B
QUESTION 515
A guide for all in the organization about how products and services should be provided is known as:
A. Total workflow
B. Customer focus
C. Commitment
D. Quality policy statement
Answer: D
QUESTION 516
Giving people the authority to make decisions and take action in their work areas without getting prior approval
is called:
A. Empowerment
B. Dominance
C. Intensity
D. Entitlement
Answer: A
QUESTION 517
Which of the following basic characteristic that can be used to measure the performance of a particular
process or activity?
A. Quantity
B. Cost
C. Quality
D. All of the above
Answer: D
QUESTION 518
Which of the following is NOT the dimension to quality measurements?
A. Function
B. Aesthetic
C. Production
D. Accuracy
Answer: C
QUESTION 519
The costs of correcting problems after goods or services have been delivered to the customer are called
internal failure costs.
A. True
B. False
Answer: B
QUESTION 520
The cost of avoiding trouble by doing the job right in the first place is known as:
A. Prevention cost
B. Deterrence cost
C. Production cost
D. Anticipation cost
Answer: A
QUESTION 521
The cost associated with checking and auditing quality in the organization is called:
A. Assessment cost
B. Appraisal cost
C. Testing cost
D. Evaluation cost
Answer: B
QUESTION 522
To detect the presence of assignable causes of variation is the objective of:
A. Analytical cost assessment
B. Statistical process control
C. Critical process control
D. Frequency variation control
Answer: B
QUESTION 523
A tool may shift, a gauge may move, a machine may wear, or an operator may make a mistake, there is a
specific reason for these causes of variation, which is called:
A. Flexible variation
B. Convertible variation
C. Assignable variation
D. Transferable variation
Answer: C
QUESTION 524
The capability of the process is a measure of _____________ compared to the specifications limit.
A. Process center
B. Mean process
C. Process tolerance
D. Process spread
Answer: D
QUESTION 525
Processes can produce defects in which way?
A. having too big a spread
B. by a shift in the mean
C. Both A & B
D. Neither A nor B
Answer: C
QUESTION 526
The process capability index combines:
A. process spread and the tolerance into one index
B. process center and the statistical control into one index
C. process shape and the tolerance into one index
D. process value and the statistical control into one index
Answer: A
QUESTION 527
What attempts to prevent the production of defects by showing that when the standard deviation increases
there is an assignable cause for variation?
A. Process capability
B. Process variation
C. Process control
D. Process value
Answer: C
QUESTION 528
A control chart for averages and ranges tracks which critical characteristics of a frequency distribution?
A. center and spread
B. control and tolerance
C. specification limit and center
D. shape and spread
Answer: A
QUESTION 529
The charts that are merely histograms that are recognized in such a way as to show the highest bar first and all
others in descending order from high to low are known as:
A. Cause-and-effect charts
B. Process flowcharts
C. Scatter-plots
D. Pareto charts
Answer: D
QUESTION 530
What consists of taking a sample of a batch of product and using it to estimate the overall quality of the batch?
A. Acceptance sampling
B. Statistical sampling
C. Analytical sampling
D. Batch sampling
Answer: A
QUESTION 531
What is the reason for using the sample inspection?
A. testing the product is destructive
B. there is not enough time to give 100% inspection to a batch of product
C. human error is estimated to be as high as 20% when performing long-term repetitive testing
D. All of the above
Answer: D
QUESTION 532
The probability of rejecting a good lot is called the consumer's risk.
A. True
B. false
Answer: B
QUESTION 533
ISO does not provide the documentation but specifies generic requirements for management that are typically
grouped into which of the following levels:
A. plan, procedures, performance and proof
B. policies, procedures, practice and environment
C. policies, procedures, practice and proof
D. scope, procedures, practice and quality
Answer: C
QUESTION 534
Showing the scope of the quality management system is known as:
A. plan
B. policy
C. procedure
D. practice
Answer: B
QUESTION 535
A systematic method by which organizations can compare their performance in a particular process to that of a
"best in class" organization, finding out how that organization achieves those performance levels and applying
them to their own organization, is called:
A. Benchmarking
B. Analyzing
C. Standardization
D. Applicability
Answer: A
QUESTION 536
From a technical perspective, Six Sigma is achieved when the process capability is equal to at least 1.
A. True
B. False
Answer:
QUESTION 537
A methodology designed to ensure that all the major requirements of the customer are identified and
subsequently met or exceed through the resulting product design process is known as:
A. Target Quality Assurance
B. Competitive Quality Evaluation
C. Quality Function Deployment
D. Quality iterations
Answer: C
QUESTION 538
The needs of the customer are gathered using various survey methods or by comparing a company's own
products against the competitions, these wants are referred to as:
A. Customer will
B. Voice of customer
C. Customer liquidity
D. Customer satisfaction
Answer: B
QUESTION 539
__________ is the amount of work that can be done in a specified time period.
A. Size
B. Role
C. Capacity
D. Scope
Answer: C
QUESTION 540
Capacity is the quantity of work done and not the rate of doing work.
A. True
B. False
Answer: B
QUESTION 541
What is the capacity of a system or resource to produce a quantity of output in a given time period?
A. Capacity available
B. Capacity required
C. Capacity check
D. Capacity on hand
Answer: A
QUESTION 542
The amount of released and planned work assigned to a facility for a particular time period is called:
A. Assignment
B. Load
C. Agility
D. Management
Answer: B
QUESTION 543
Who is responsible for determining the capacity needed to achieve the priority plans as well as providing,
monitoring, and controlling that capacity so the priority plan can be met?
A. Capacity Running
B. Capacity Board
C. Capacity Organization
D. Capacity Management
Answer: D
QUESTION 544
The process of monitoring production output, comparing it with capacity plans and taking corrective action
when needed is known as:
A. Capacity Manipulation
B. Capacity Inspection
C. Capacity Control
D. Capacity Management
Answer: C
QUESTION 545
What are usually stated in units of product or some standard unit of output?
A. Priority plans
B. Capacity available
C. Capacity plans
D. None of the above
Answer: A
QUESTION 546
To check the feasibility of the master Production Planning, provide warnings to any bottlenecks; ensure
utilization of work centers and advice vendors of capacity requirements is the purpose of:
A. Realistic capacity planning
B. Expected capacity planning
C. Rough-cut capacity planning
D. Work-capacity planning
Answer: C
QUESTION 547
What involves long-range capacity resource requirements and is directly linked to production planning?
A. Resource acquisition
B. Resource planning
C. Resource capacity
D. Resource schedule
Answer: B
QUESTION 548
The process of determining in detail the amount of labor and machine resources needed to achieve the
required production id known as:
A. Resource Plan
B. Material Requirement Plan
C. Capacity Requirements Plan
D. Production Plan
Answer: C
QUESTION 549
The inputs needed for a capacity requirement plan are open shop orders, planned order releases, routings,
time standards and work center capacities, this all information can be obtained from:
A. Open order file
B. Material Requirements Plan
C. Routing file
D. All of the above
Answer: D
QUESTION 550
_______________ are determined by the computer's material requirement plan logic based upon the gross
requirements for a particular part.
A. Planned orders
B. Open order file
C. Operational plan
D. None of the above
Answer: A
QUESTION 551
A routing file should exist for every component manufactured and contain which of the following information?
A. Work centers to be used
B. Tooling needed at each operation
C. Standard times
D. All of the above
Answer: D
QUESTION 552
Which file contains information on the capacity and move, wait, and queue times associated with the center?
A. Work center
B. Run time
C. Routing
D. Calendar
Answer: A
QUESTION 553
The time a job waits at a work center before being handled is called:
A. Queue time
B. Wait time
C. Linger time
D. Interval time
Answer: A
QUESTION 554
The sum of queue, setup, run, wait and move times is known as:
A. Guide time
B. Direct time
C. Lead time
D. Principal time
Answer: C
QUESTION 555
Capacity needs to be measured on at which of the following level?
A. Machine or individual worker
B. Work center
C. Plant, which can be considered as a group of different work centers
D. All of the above
Answer: D
QUESTION 556
Calculated or rated capacity is based on:
A. finite time, recovery and production
B. available time, utilization and efficiency
C. available time, resources and efficiency
D. rated capacity time, utilization and production
Answer: B
QUESTION 557
The available time depends on the number of machines, number of workers and:
A. resource assistance
B. Work effort
C. hours of operation
D. Plant and equipment
Answer: C
QUESTION 558
The percentage of time that the work center is active compared to the available time is called:
A. Work center utilization
B. Work center availability
C. Work center efficiency
D. Work center production
Answer: A
QUESTION 559
What is calculated by taking into account the work center utilization and efficiency?
A. actual rate of production
B. Rated capacity
C. resource availability
D. None of the above
Answer: B
QUESTION 560
The formula to calculate the rated capacity is:
A. Rated capacity =actual time * utilization * efficiency
B. Rated capacity =available time * utilization * efficiency
C. Rated capacity =available time * performance * efficiency
D. Rated capacity =expected time * number of workers * efficiency
Answer: C
QUESTION 561
Demonstrated capacity is average, not maximum, output and depends on the utilization and efficiency of work
center.
A. True
B. False
Answer: A
QUESTION 562
The run time is equal to the run time per piece multiplied by the number of pieces in the order.
A. True
B. False
Answer: A
QUESTION 563
The usual process is to start with the due date and, using the lead times, to work back to find the start date for
each operation, this process is known as:
A. Back scheduling
B. Front scheduling
C. Liquidity scheduling
D. Fixed scheduling
Answer: A
QUESTION 564
What is responsible for executing the master production schedule and the material requirements plan?
A. Production activity control
B. Production requirement plan
C. Standard production
D. Master production plan
Answer: A
QUESTION 565
A particular type of production control system used varies from company to company, but all should perform
the preceding functions is called:
A. Mechanizing system
B. Developed system
C. Manufacturing system
D. Master system
Answer: C
QUESTION 566
Manufacturing processes can be conveniently organized into which of the following three categories?
A. Flow manufacturing, intermittent manufacturing, and project manufacturing
B. Material manufacturing, control manufacturing, and project manufacturing
C. Flow manufacturing, alternating manufacturing, and control manufacturing
D. Material manufacturing, Regular manufacturing, and project manufacturing
Answer: A
QUESTION 567
__________________ is concerned with the production of high-volume standard products.
A. Continuous manufacturing
B. Flow manufacturing
C. Repetitive manufacturing
D. None of the above
Answer: B
QUESTION 568
Which of the following is the characteristic to flow manufacturing?
A. Routings are variable
B. work centers are dedicated to produce a limited range of similar products
C. Materials flows from one workstation to another using some form of realistic transfer
D. Capacity is variable by the line
Answer: B
QUESTION 569
What is characterized by many variations in product design, process requirements and order quantities?
A. Intermittent manufacturing
B. process improvement
C. Streamline manufacturing
D. Periodic manufacturing
Answer: A
QUESTION 570
The capacity required depends on the particular mix of products being built and is difficult to predict is a
characteristic of:
A. Intermittent manufacturing
B. process improvement
C. Streamline manufacturing
D. Periodic manufacturing
Answer: A
QUESTION 571
The files contained in the database are of two types which are:
A. planning and control
B. planning and procedural
C. fixed and variable
D. absolute and relative
Answer: A
QUESTION 572
Which of the following is the file that fall in planning category?
A. master file
B. product structure file
C. routing file
D. All of the above
Answer: D
QUESTION 573
Which file contains a list of the single-level components and quantities needed to assemble a parent?
A. master file
B. product structure file
C. routing file
D. work center master file
Answer: B
QUESTION 574
What consist of a series of operations required to make the item?
A. routing
B. builds
C. procedures
D. All of the above
Answer: A
QUESTION 575
Each active manufacturing order has a record in which file?
A. work center master file
B. work center detail file
C. shop order master file
D. shop order detail file
Answer: C
QUESTION 576
The time normally required to produce an item in a typical lot quantity is known as:
A. Manufacturing load time
B. Manufacturing conduct time
C. Manufacturing control time
D. Manufacturing lead time
Answer: D
QUESTION 577
Which of the following is NOT the manufacturing lead time?
A. Queue time
B. Setup time
C. Run time
D. Load time
Answer: D
QUESTION 578
What must manage both the input of orders to the production process and the availability capacity to control
queue and work-in process?
A. Run time activity
B. Production activity control
C. Activity management
D. Work center manufacturing activity
Answer: B
QUESTION 579
The length of time from when material enters a production facility until it exists, this is known as:
A. throughput time
B. workforce time
C. creation time
D. assembly time
Answer: A
QUESTION 580
What is used to calculate how long it will take to complete a task?
A. Forward scheduling
B. Finite scheduling
C. Self-assured scheduling
D. Bold scheduling
Answer: A
QUESTION 581
When the last operation is on the routing is scheduled first and is scheduled for complete at the due date, this
is called:
A. Timid scheduling
B. Rearward scheduling
C. Self-assistant scheduling
D. Backward scheduling
Answer: D
QUESTION 582
Backward scheduling is used to determine when an order must be started.
A. True
B. False
Answer: A
QUESTION 583
If the run time per piece on operation B is shorter than that on A, the first batch must be larger enough to avoid
idle time on operation A.
A. True
B. False
Answer: B
QUESTION 584
Operational splitting is practical when:
A. setup time is low compared to run time
B. a suitable work center is idle
C. it is possible for an operator to run more than one machine at a time
D. All of the above
Answer: D
QUESTION 585
The time needed to unload and load must be shorter than _____________.
A. run time per piece
B. planning time
C. manufacturing time
D. resource utilization time
Answer: A
QUESTION 586
A facility, function, department, or resource whose capacity is equal to or less than the demand placed upon it
is known as:
A. timeframe
B. bottleneck
C. elapsed operation
D. none of the above
Answer: B
QUESTION 587
The operation that controls the work feeding the bottleneck and must operate at a rate equal to the output of
the bottleneck so the time buffer queue is maintained is known as:
A. gateway operation
B. bottleneck operation
C. task operation
D. Control buffer operation
Answer: A

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