DSP Sample Test

1. Which of the following activities can be included in contract management for suppliers ? . Periodic status report. . Gantt chart. . First article inspection. . Status review meetings. A. C. , , , , B. D. , , , , ,

2. Which of the following BEST explain the characteristics of strategic partnership ? . Strategic alliance - business level. . Technical and commercial partnership - product level. . Operational partnering - part level. A. , B. , C. , D. , ,

3 - 5. The information is the routing for component A.
W/C 111 121 136 142 Description Drill Lather Milling Grinder Setup 1.0 2.0 0.0 1.0 Run/piece 0.2 0.1 0.3 0.1 Avg. Capacity 100 100 100 100

3. What is the required capacity for W/C 121 when lot size of component A is 100 units ? A. 10 B. 12 C. 100 D. 210

DSP : Capacity Requirement Planning.

4. At the end of work of W/C 136, 100 units of component A are all scrapped. How many the hours should be required additionally ? A. 30 B. 63 C. 75 D. 160

5. Bottleneck work center is A. W/C 111 B. W/C 121 C. W/C 136 D. W/C 142

6. Which documents are (is) regarded as the payment for supplier's goods ? . Bill of lading. . Packing list. . Arrival notice. . Invoice. A. B. C. , D. , ,

7. Lot size should be considered when calculating : A. Gross requirement. C. Planned order receipt. B. Net requirement. D. Planned order release.

8. Which of the following is the MOST effective practice for the supplier relationship ? A. Providing demand forecasting for end item. B. Providing scheduled receipts for suppliers' item. C. Providing firm planned orders for suppliers' item. D. Providing planned order receipts for suppliers' item.

2 1. D. 560 units 10.5 0.9 0. Operation Sequence 10 A 20 30 B 10 20 10 C 20 30 40 W/C 100 201 112 112 202 101 201 300 112 Setup time 1 2 1 1 2 1 2 1 1 Run Time/piece 0. C. 250 hours B. 280 hours D. Calculate the EOQ using the following information. Pilot group. Carrying costs = $ 2 / unit Unit costs = $8 A. 63 units B. 265 hours C. Accurate MRP output.7 0. 250 units D. Which of the following is required for the successful implementation of JIT ? A. The table are routing information for order A. 125 units C. B. Annual Demand = 2500 units.9 0. Ordering costs = $ 25. Returnable container.0 0. What is the required capacity for order C ? (Lot size = 100 units) Order No. .9 A. Lag strategy.2 0. B.5 0. 300 hours 11. and C.9.

It is possible for MRP system regenerated to the overall transaction during some periods. 432 units . D. 72 units C. it is only the cost factor. 15. of machines = 6 No. of work days per week = 5 days A. In a transfer line. 345. Tracking signal. 12. B. 518. It is appropriate for the stable demand business environment. 14. C. 200 units D.4 hours D. Efficiency = 80% No. 720 hours 13. Engineering change directly affect : A. It is capable of planning MRP system at the accurate time point. B. Low-level code. Structure of single level BOM.DSP : Capacity Requirement Planning. Bucketless MRP system are generally evaluated more effective than typical MRP system because : A. C. 4 units B. of shifts = 3 Work hours per day = 8 hours No. D.6 hours B. Never. How many inventory are carried for customer delivery ? (Projected delivery lead time is 2 hours) A. 480 hours C. What is the rated capacity of W/C 112 when break down of two machines occur ? Utilization = 90%. Final assemble schedule. cycle time of the end item is 36 seconds.

D. C. Orders generated by MRP system. What is the important element for JIT supplier ? A. Orders frozen in terms of lead time and order quantities. Financial stability. C. There must exist a schedule for preventive maintenance. It is reasonable when the machine has just finished its work. B. B. . Delivery reliability. C. Firm planned orders are : A. 18. 17. Open orders. Cost effectiveness. D. D. One of hedging stocks for reducing system nervousness. Statistical process control for quality. Which of the following is TRUE regarding the timing of preventive maintenance activity ? A. B.16. When the problem occur in the work center. It is reasonable when operators of the machine have just finished their work.

Work center data. 19. Backlog. B. Earliest start date. Period 4 for 50 . All of the following may increase the complexity of capacity planning EXCEPT ? A. D. Input of CRP is NOT : A. Order Mix Variability. Bottleneck 21. Based on the below time phased record. D. On-hand = 50 units. Period 1 for 50 . Period 3 for 50 50 .DSP : Capacity Requirement Planning. . Period 3 for D. Latest due date. Which of the following calculates throughout backward scheduling ? A. Period 4 for 50 50 20. C. Period 3 for 100 . Gross Requirement Scheduled Receipt Projected Available Balance Net Requirements Planned Order Receipts Planned Order Release 50 Order quantity = L4L Allocation = 0 1 2 100 50 3 50 50 Safety stock = 0 4 400 5 100 50 6 50 A. Period 2 for 350 . Inventory data. B. Period 2 for 400 . Period 3 for 350 . Lot size. Period 4 for 50 B. Period 4 for C. Period 2 for 400 . Manufacturing order data. D. C. Earliest due date. Latest start date. B. Routing data. which of the following is TRUE ? Lead time = 2 weeks. C. 22.

B. D.13% B. Daily sales quantities are 10 units. A. Execution of each workstation. C. . Capacity analysis. 266 B. 466 D. Process flexibility. D. 25. What is the probability of sales quantities less than 16 units ? A. Which of the following is the MOST important factor of JIT to the customer ? A. B. 566 26. 97. On time delivery. D. Price. Manufacturing system efficiency.23. Repetitive manufacturing frequently require MRP systems for : A. Planning of throughput rates. 366 C. None 27. C.87% D. The objective of CRP is : A. 99. standard deviation for sales is 3 units. Customer service lever = 99% Standard deviation = 200 units. B. What is the minimum inventory level when the information of a item is as following ? Demand during lead time = 100 units. Quality. Work center load profiling. C. 24. 84. Routing analysis.72% C. Short lead time. Balancing between load and capacity.

. Delivery speed. C. . B. Inventory level. Information of full pegging provide the planner with which information of the following ? A. Eliminating absolute number of BOM. Which of the following information would be used as the input of MRP and CRP ? A. . .DSP : Capacity Requirement Planning. and D. D. 28. C. 30. and D. Product's part number. . and 31. . Inventory data. A. Purchasing cost reduced. Bill of Materials C. Manufacturing orders B. . and . Segregation common parent from unique parts. Parent's order. D. Independence source. . B. Which is TRUE about modular BOM ? . Work center data. A. Which of the following is(are) appropriate as performance measures for MRP system ? . B. Parent's part number. and C. Inventory turnover. 29. Simplifying BOM structure.

620 units D. What is the actual capacity of W/C ? Outputs for 4 weeks = 610 units. 600 units. 298 units B. Actual labor cost. All of the following information would be directly included in the MRP system EXCEPT ? A. 826 units . 640 units Utilization = 80 % Efficiency = 60 % Production standard hours = 42 hr / week Calculated capacity = 44 hr /week A. Planned lead time increasing.32. MRP accuracy increasing. 640 units 33. Replanning frequency increasing. D. 307 units C. Lead time for a item = 16 weeks MAD = 100 units Forecasting interval = 4 weeks Customer service level = 95% Safety stock level of the item is : A. 34. Expediting/de-expedite increasing. Order release date. B. C. Which of the following is TRUE when increasing MRP planning frequency ? A. B. 413 units C. 630 units. On-hand inventory. 330 units B. Order due date. . 660 units D. D. C. 35.

What is the planned order receipt in period 5 ? A. 20 D. 20 38. Dispatching. . 10 B. 25 39. B. All of the following would be included in the activities of capacity management EXCEPT ? A. What is the planned order release in period 4 ? A. = 1000 units . C. Lead time = 1 weeks On-hand = 7 units Safety stock = 0 Gross Requirement Scheduled Receipt Projected Available Balance Net Requirements Planned Order Receipts Planned Order Release Order quantity = L4L Allocation = 0 Planned scrap rate = 10% 1 10 25 2 25 20 3 20 10 4 10 10 5 20 0 37. + 700 units D. Calculate net requirements using the below data. 15 C. Scheduled receipts Planned order receipts A.700 units B.500 units = 2300 units. + 500 units Based on the below time phased record. 13 D. Resource requirement planning. .DSP : Capacity Requirement Planning. 7 B. RCCP. 10 C. CRP.= 800 units = 1200 units C. D. . Gross requirements On-hand . 36.

D. B. of operators during the first = 4 No. 605 hrs D. Assemble to order. Assemble time per piece = 30 minutes Utilization = 80% Efficiency = 90% How many operators should be required when producing 800 units per 40 hours ? A. D.40. of working days = 5 days Scrap rate = 8% What is the rated capacity per week ? A. 41. 43. B.. 12 B. Management notice that a vendor have the chronic problem for on-time delivery. Which of the following practice is appropriate corresponding to the vendor ? A. 345 hrs B. 14 D. 547 hrs C. MRP. Which of the following environment would be the MOST useful for full pegging technique ? A. Make to stock.. No. of machines per operator = 3 Operation hours per shift = 8 hours No. of machines = 12 No. Engineer to order.. 15 42. 13 C. of operators during the second = 3 No. 617 hrs . C. of shifts = 2 Utilization = 90% Efficiency = 80% No. Make to order. C. Safety stock. Reorder point. Safety lead time.

D. Run time = 0. . . D. . . C.DSP : Capacity Requirement Planning. B. How much loads are left in the W/C 100 ? A. 6 hrs.2 hrs / piece Order quantity = 100 pieces If thirty quantities of order are complete. . 10 hrs. Revise MPS. . B. Which of the following element is (are) included in item master file (item record) ? . Development. D. C. C. 14 hrs. Production. Part structure. . Reschedule purchased order. B. MRP/CRP are concurrently affected by which of the following transaction ? . Manufacturing cost. and and B. . . . Accuracy of MRP system is responsible for the function of A. 44. . 18 hrs. Open order cancel. A. 45. Routing file is as follows for a order in W/C 100 : Setup time = 4 hrs. . . Part number. A. . C. Material. and and 46. Lead time. D. Engineering. 47. . Reschedule planned order.

a MRP planner first should : A. C. 120 bottleneck. D. C. C. In JIT environment. W/C 110. 50. D. D. The below work center file is for product group A and B. Expedite the order. Which of the following is TRUE regarding bottleneck work centers ? A. B. W/C 140 130 120 110 Group A 30 hr/100 50 hr/100 80 hr/100 70 hr/100 Group B 50 hr/100 30 hr/100 40 hr/100 30 hr/100 Regular Capacity 2. 49.000 units.000 units Group B : 2. 120. Single supplier of product family. 140 bottleneck. Group A : 2. Replan MRP.000 2.The revised production plan. Calculate loads for re-balancing.000 . . 130 bottleneck. Communicate with the customer. W/C 110. W/C 120. No bottleneck W/C. .48. B.500 units Group B : 2. Multiple supplier of each product. When the due date of a item is unexpectedly delayed.500 units. Single supplier of each product.000 2. Multiple supplier of product family.The initial production plan. which of the following practice is generally considered as cost effective for the supplier ? A. Group A : 2.000 2. B.

Supplier audit program. Highest quality product. The trend today is toward fewer but higher quality suppliers. FOB at the suppliers dock. B. . Lowest cost product. One solution to minimize costs when getting small frequent deliveries from suppliers would be to utilize backhauling. Lowest total cost product. Supplier certification program. This is called : A. D. C. Product which can be delivered fastest. 51. this mission includes identifying sources regardless of their location. 53. Supplier reliability program. 54. D. B. Global sourcing. D. C. D. purchasing managers believed that having many suppliers for the same parts would allow them to play one supplier against another. Utilizing your trucks to pick up product at suppliers on the way back to your facility. The purpose of purchasing is to buy the : A. C. Quality inspection program. B. Localized sourcing. Traditionally. B. B. 52. Leveled sourcing. Many times.DSP : Capacity Requirement Planning. Using Kanban to signal suppliers for delivery. The mission of the purchasing department is to identify and qualify adequate sources of competitively priced supply to manufacture the products required by the marketplace. Which of the following BEST defines backhauling ? A. Faceted sourcing. One way to identify the high quality suppliers is through a A. Using a full truck outbound and an LTL load inbound.

The purchasing manager of a company received the following quote for some raw materials: Less than 500 units . I.$40/unit. which of the following factors need to be in place ? . To create an effective customer-supplier partnership.$50/unit. The schedule needs to have some stability. II. . II. . D. $2200 57. Evaluate the suppliers based on price and then send the purchase order. . Establish stability in schedules that enable suppliers to react within their lead time. I. I. $1414 C. II.55. Single source suppliers need to be used. $2000 B. and IV 56. A. III. C. we need to A. Establish a delivery schedule with a corresponding purchase order and send them to the suppliers. what is the annual cost of the least-cost order quantity ? A. In order for JIT purchasing to be truly effective. The supplier base needs to be reduced. III. B. 500 units or more . annual volume is 2500 units and the carrying cost of inventory is 20%. The supplier must be willing to hold the inventory. . and IV C. If the ordering cost equals $40. Establish a previous maintenance program a avoid quality problems due to machine troubles. $4000 D. and IV D. and III B.

D. Capacity is not finite. Inventory value would be higher. 60. Which of the following would describe a problem with finite loading ? A. cost of goods sold higher. Finite loading has been viewed as a sophisticated technique to ensure promised delivery dates to the customer are met. CRP will then include it in its calculations. Inventory value would be higher. B. However. which of the following statements would be true if the LIFO method of inventory valuation is used ? A. Which of the following describes the best way to handle the rework. so as to be able to calculate the required capacity including the rework ? A. D. capacity is not predictable. Planned orders cannot be planned accurately. C. there are some problems with it. C. therefore. There are occasions when the quality of a product will not meet specifications without rework. Efficiency is not predictable. 59. When this occurs. Keep the rework order separate and add it to the work centers after the CRP run is completed. Do not generate a rework order as it will duplicate erroneously the load on the plant.DSP : Capacity Requirement Planning. the product will go back through some of the same operations and maybe some new ones as well. 58. Send the rework to a separate area in the plant and keep it out of the normal routings. During inflationary periods. It assumes predictability of job arrival. cost of goods sold higher. B. . cost of goods sold lower. D. Inventory value would be lower. C. B. Generate a rework order with the routing steps on it. None of the above.

C. B. This process of overlapping activities in the product development cycle is called : A. I. B. This allows the product development activities to overlap each other. Supplier scheduler. companies will use cross-functional teams to develop new designs and get products to market. purchase orders are no longer necessary. D. Raw material cost reduction . and be delivered to the production line. II and III only D. Planners. Often. VMI location. Concurrent engineering.61. This delivery location on the production line is called a : A. Supplier partnerships. In a VMI system of inventory. D. I only B. II. whereby. Capacity utilization improvement A. Workforce stabilization . who is responsible for maintaining the inventory levels at the proper levels to ensure high customer service levels ? A. These cross-functional teams will very often include the appropriate suppliers in the design. Suppliers. Supplying vendors with projections of future orders provides support for which of the following vendor activities ? . 62. Design accountability. Buyers. 64. shortening the product development time. D. and III . When a supplier has been certified and has been reliably delivering products to a company. Consignment location. Point of use location. 63. Dock to stock location. bypass inspection and counting. The product will arrive at the dock. often times the company will develop a process. C. III only C. thereby. B. Design for quality. C.

Planner reports. Consolidates small repetitive buys over time. C. 66. Reduces control. C. Developing a consistent. B. D. 67. D. Phone calls. The MOST difficult part of establishing a supplier partnership is : A. Supplier partnership. A disciplined effort to compare the function performed by an item and its cost in an attempt to find a lower cost alternative is called : A. Re-engineering. Supplier schedules. 68. Is used for inexpensive supply item only. Item evaluation. FAXes. accurate form of communication. It is important to maintain a close relationship with certified supplier partners. . C. D.DSP : Capacity Requirement Planning. Establishing trust in the relationship. In today's manufacturing environment of eliminating waste. B. B. D. 65. Is used for MRO items. This is accomplished usually by replacing individual PO's with : A. C. Ensuring consistent meetings are occurring to build relationships across company boundaries. B. Value analysis. many companies are eliminating the purchase order because it does not add value for the customer. Training and educating the workforce. The greatest advantage of a blanket order is that it A.

Which two of the following functions are the responsibility of purchasing rather than inventory management ? . 71. . . D. Monitoring supplier performance and deciding when to switch from one supplier to another. Which of the following BEST describes an outbound stockpoint in a Kanban scheduling system ? A. D. . Firm planned orders. A. . Resource profiles. B. A location on the plant floor near the point of use where material is moved to be pulled to the next operation. B. . . D. Capacity bills. C. . B. An inventory location at the customer site. A field warehouse nearest a large market.69. When the MPS is infeasible to produce. A staging area for outbound shipments. C. Determining the appropriate order quantity when the supplier offers quantity discounts. Negotiating the price to be paid for purchased materials. C. Specifying delivery dates and quantities on blanket purchase orders. . Scheduled receipts. 70. which of the following techniques would be used to smooth the capacity requirements ? A.

72. The probable accuracy of the demand forecasts for the remainder of the season. and III . I and II B. Freezing the timing of a planned order release A.DSP : Capacity Requirement Planning. I. 74. which of the following factors should NOT be taken into account ? A. Which of the following reasons could be used to justify maintaining safety stock in an MRP system ? . III and IV only C. I. III. and IV only D. II. The cost of expediting production changes if the demand is greater than planned. Uncertain leadtimes for raw materials . Preventing the system from automatically rescheduling . II. A line of appliances is due for a design change at the end of the model year. II and III D. Creating a planned order that does not agree with the lot sizing rule for that item . I only B. I. I and III C. In planning the maximum reasonable production for the current design. The cost of making the design changes. The cost of carrying excess stock until it is consumed for spares. C. Items used for spare parts which are also used in assembly . Component items manufactured in-house have had inventory errors A. II. Preventing the explosion of requirements at lower levels . D. and IV 73. B. Firm planned orders are useful for doing which of the following ? .

75. II. I and III C. Planned orders have reached the leadtime for ordering . Scheduled receipts due dates are later than the need date . They generate messages to tell a planner when an out of limits condition is met. and III . II and III D. I and II B. For which of the following conditions would an exception message be generated ? . All MRP systems operate as exception systems. Standard leadtime for an end item will result in a late delivery A. I.

Solution : .DSP : Capacity Requirement Planning.