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Published by: Ashish Agarwal on Jan 22, 2013
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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.

and C. 560 units 10. 280 hours D. 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. 250 units D. Accurate MRP output. Lag strategy. Which of the following is required for the successful implementation of JIT ? A. 250 hours B. 125 units C. .2 1.9 A.7 0. B.9 0. Ordering costs = $ 25. D. 265 hours C. Calculate the EOQ using the following information.5 0. The table are routing information for order A.0 0.9. What is the required capacity for order C ? (Lot size = 100 units) Order No.2 0. C.5 0. Carrying costs = $ 2 / unit Unit costs = $8 A. B. 300 hours 11. Returnable container. 63 units B. Pilot group. Annual Demand = 2500 units.9 0.

C. Tracking signal. it is only the cost factor. B. What is the rated capacity of W/C 112 when break down of two machines occur ? Utilization = 90%. D.DSP : Capacity Requirement Planning. Never. 4 units B. Efficiency = 80% No. B. Engineering change directly affect : A. 720 hours 13.4 hours D. Structure of single level BOM. cycle time of the end item is 36 seconds. How many inventory are carried for customer delivery ? (Projected delivery lead time is 2 hours) A.6 hours B. 345. of machines = 6 No. 432 units . Bucketless MRP system are generally evaluated more effective than typical MRP system because : A. It is capable of planning MRP system at the accurate time point. 72 units C. Final assemble schedule. 12. of shifts = 3 Work hours per day = 8 hours No. 200 units D. of work days per week = 5 days A. 480 hours C. It is appropriate for the stable demand business environment. 14. C. It is possible for MRP system regenerated to the overall transaction during some periods. 15. In a transfer line. D. Low-level code. 518.

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

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

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

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

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

Gross requirements On-hand . . 13 D. + 500 units Based on the below time phased record. 25 39.= 800 units = 1200 units C. C. D. Scheduled receipts Planned order receipts A. 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. 10 C. RCCP. .DSP : Capacity Requirement Planning. What is the planned order receipt in period 5 ? A.500 units = 2300 units. 15 C. 7 B.700 units B. CRP. 10 B. 20 D. What is the planned order release in period 4 ? A. = 1000 units . Resource requirement planning. Calculate net requirements using the below data. + 700 units D. 20 38. Dispatching. All of the following would be included in the activities of capacity management EXCEPT ? A. . 36. B.

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

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

B. 49. Expedite the order. 130 bottleneck.000 . . . B. No bottleneck W/C. Single supplier of product family. Calculate loads for re-balancing. In JIT environment. Communicate with the customer. When the due date of a item is unexpectedly delayed.500 units Group B : 2. W/C 120.000 2. The below work center file is for product group A and B. B. 120.48. W/C 110. which of the following practice is generally considered as cost effective for the supplier ? A. Group A : 2.500 units.000 2. C. 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.The revised production plan.000 2. D. 120 bottleneck. 140 bottleneck. Which of the following is TRUE regarding bottleneck work centers ? A. Group A : 2. a MRP planner first should : A. 50. D. D. C.000 units Group B : 2. Multiple supplier of each product.000 units. Single supplier of each product. W/C 110. Replan MRP.The initial production plan. Multiple supplier of product family. C.

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

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

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

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

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

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

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

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

Solution : .DSP : Capacity Requirement Planning.

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