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.
B.
C.
D.

Government regulation
the economy and competition
Customer expectations and quality
all of these

Answer: D

QUESTION 2
Government regulations majorly apply to areas as:
A.
B.
C.
D.

Environment and taxation

Product liability and safety
Population growth
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.
B.
C.
D.

Government
changes in the marketplace
Business decisions
customer expectations

Answer: B

QUESTION 4
Some of the characteristics customers expect when they buy products are all of the following EXCEPT:
A.
B.
C.
D.

A fair price with higher quality products and services

Delivery lead time
Presale services better than after sale services
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.
B.
C.
D.

Order takers
Order achievers
Order winners
Order credentials

Answer: C

QUESTION 7
Order winning characteristics are defined primarily from:
A.
B.
C.
D.

Competition
customer needs
Business sector
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.
B.
C.
D.

Strive to provide at least minimum level of acceptance for each of the order qualifiers
Should try to be the best in the market for the order winners.
Should keep in mind the pace of change
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.
B.
C.
D.

Product life cycle

Economic changes
Government regulation
Market needs

Answer: A

QUESTION 10
Quality and delivery factor of products tend to have increased importance during:
A.
B.
C.
D.

Maturity phase
Growth phase
Introduction phase
Decline phase

Answer: B

QUESTION 11
Life cycle approach for identifying order winners and qualifiers is complicated in that:
A.
B.
C.
D.

The duration of life cycle will be very different for different products.
Customer needs change work frequently
Life cycle phase are difficult to understand
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.
B.
C.
D.

Engineer-to-order
Assemble-to-order
Make-to-stock
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 (JIT) concepts, the supplier-customer partnership concept grew as a
result many changes in their relationships came including:
A.
B.
C.
D.

Mutual analysis for cost reduction

Mutual product design
Need for rapid delivery
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.
B.
C.
D.

Explosive growth in computer capability applications as ERP.

Large growth in global competition
growth in the technological capabilities for product and processes
Growth in JIT

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.
B.
C.
D.

Flow of material
Flow of information and sharing of information, mostly through the internet
Fund transfers
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.
B.
C.
D.

Maintain high inventories to goods are always available for the customers
Interrupt production runs so that a non-inventoried item can be manufactured quickly
Create an extensive and costly distribution system so good can be shipped to the customer rapidly
All of these

Answer: D

QUESTION 22
All of the following are ways to achieve financial objectives EXCEPT:
A.
B.
C.
D.

Reduce inventory so inventory investment is at a minimum level

Decrease the number of plants and warehouses
Extensive distributions system
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.
B.
C.
D.

Inventories
Payables
Cost of goods solved
None of these

Answer: A

QUESTION 25
Important way to resolve conflicting objective is:
A.
B.
C.
D.

To provide close coordination of the supply, production and distribution functions.

Balance conflicting objectives to minimize the total of all costs involved
Integrated materials management or logistics organization
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.
B.
C.
D.

5%
6%
7%
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.
B.
C.
D.

Decrease by 3%
Increase by 4%
Decrease by 4%
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.
B.
C.
D.

19%
18%
17%
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.
B.
C.
D.

$4, 32,000
$423,000
$4, 33,000
$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.
B.
C.
D.

$50,000
$500,400
$504,000
None of these

Answer: C

QUESTION 32
Production planning includes;
A.
B.
C.
D.

Forecasting
Master planning
Material Requirement planning and capacity planning
All of these

Answer: D

QUESTION 33
Production activity control activities in manufacturing planning and control may also be called:
A.
B.
C.
D.

Shop-floor control
Capacity planning
Master planning
Material Requirement planning

Answer: A

QUESTION 34
Inventories are part of planning process and provide buffer against:
A.
B.
C.
D.

Demand rates
Production rates
Differences in demand and production rates
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.
B.
C.
D.

Product Description and process specifications

Customized Design
Time needed to perform operations
Available facilities and quantities required

Answer: B

QUESTION 36
Engineering drawings and specifications and bill of material are the methods of:
A.
B.
C.
D.

Product Description
Process specifications
Quantities required
None of these

Answer: A

QUESTION 37
As used in material management, bill of material:
A.
B.
C.
D.

Describes the components used to make the product

Describes the subassemblies at various stages of manufacture.
Both of these
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.
B.
C.
D.

A route sheet
A Routing file
Process sheet
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.
B.
C.
D.

Operations required making the product

Sequence of operations
Equipment and accessories required
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.
B.
C.
D.

Load the plant

Make delivery promises
And cost the product
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.
B.
C.
D.

Forecasts and material Requirement plan

Customer orders
Orders to replace finished-goods inventory
Sequence of operations

Answer: D

QUESTION 42
Transportation

Distribution inventory
Warehousing
Packaging
Material handling
Order Entry
These are the activities of:
A.
B.
C.
D.

physical supply Distribution system

Virtual supply and distribution system
Distribution details
None of these

Answer: A

QUESTION 43
Metrics give us:
A.
B.
C.
D.

Control by supervisors
Reporting of data to supers and external description
Product description
Process specification

Answer: AB

QUESTION 44
Metrics:
A.
B.
C.
D.

Communicate expectations and motivate people

Identify problems
Direct a course of action
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.
B.
C.
D.

Customer that are never satisfied

A supply chain that is large and must be manage
A product life cycle that is getting shorter and shorter
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.
B.
C.
D.

Rate on improvement in quality

Cost and cost
Reliability, innovation, effectiveness and productivity
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.
B.
C.
D.

100%
70%
50%
10%

Answer: A

QUESTION 50
Considering the above question how much would sales have to increase in profits?
A.
B.
C.
D.

50%
25%
20%
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.
B.
C.
D.

1,000,000
1,000,500
1,500,000
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.
B.
C.
D.

$ 80,000
$ 70,000
$ 90,000
$ 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.
B.
C.
D.

Strategic business plan

Production plan
Master production schedule
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.
B.
C.
D.

For different time span

Responsible for satisfying market demand
For different purposes
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.
B.
C.
D.

During material resource planning

During priority planning
At each level of MCP
During capacity planning

Answer: C

QUESTION 56
Strategic business plans are usually reviewed
A.
B.
C.
D.

After each quarter

Every six months to a year
After five years
Both A and B

Answer: B

QUESTION 57
The level of detail in strategic business plan is:
A.
B.
C.
D.

Not so high
Concerned with general market and production requirements
Both of these
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.
B.
C.
D.

8-12 months, each month

5-8 months, each quarter
6-8 months, each month or quarter
None of these

Answer: C

QUESTION 61
Which one of the following is NOT an input to master production schedule (MPS)?
A.
B.
C.
D.

Forecasts for individual end items

Sales orders
Inventories and existing capacity
Bill of materials

Answer: D

QUESTION 62
For master production schedule planning horizon usually extends from:
A.
B.
C.
D.

3-18 months
6-18 months
9-18 months
None of these

Answer: A

QUESTION 63
In MPS, plans are reviewed and changed:
A.
B.
C.
D.

Weekly
Quarterly
Weekly or Monthly
Monthly

Answer: C

QUESTION 64

____________shows the quantities needed and when manufacturing intends to make use or use them.
A.
B.
C.
D.

MPS
Production plan
Purchasing and production activity control
Material Requirement Plan

Answer: D

QUESTION 65
Purchasing and production activity control:
A.
B.
C.
D.

is very short, perhaps from a day to month

the level of detail is high since it is concerned with individual components, workstations and ordered
Plans are reviewed and revised daily
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.
B.
C.
D.

MRP II
MPS
Production Plan
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.
B.
C.
D.

MRP II
ERP
MPS
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.
B.
C.
D.

Similarity of manufacturing process

Difference in manufacturing processes of different product lines
Similarities of processes in manufacturing of same product line items
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.
B.
C.
D.

A time horizon of 12 months is used, with periodic updating perhaps every month or quarter
Production demand consists of one or a few product families or common units
Demand is rarely fluctuating
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.
B.
C.
D.

Chase strategy
Production leveling strategy
Subcontracting
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.
B.
C.
D.

118.8 units
188.7 units
189.7 units
180.00 units

Answer: B

QUESTION 75
The advantage/s of production leveling is/are:
A.
B.
C.
D.

It results in smooth level off operation that avoids the costs of changing production levels.
Firms do not need to have excess capacity to meet peak demand
Firms do not need to hire and train workers and lay them off in slack periods
All of these

Answer: D

QUESTION 76
Which of the following results in inventory build ups in low-demand periods?
A.
B.
C.
D.

Production leveling strategy

Chase strategy
Hybrid strategy
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.
B.
C.
D.

Subcontracting
Resource Planning
Chase strategy
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.
B.
C.
D.

for developing a level production

to forecast capacity requirements to meet demand
To identify the production gaps
All of these

Answer: A

QUESTION 79
The information needed to make a production plan is:
A.
B.
C.
D.

Forecast by period for the planning horizon

Opening inventory and desired ending inventory
Any past-due customer orders. These are orders that are late for delivery and are sometimes back orders.
All of these

Answer: D

QUESTION 80
With reference to the above example; how much should be produced each period?
A.
B.
C.
D.

120 cases
116 cases
122 cases
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.
B.
C.
D.

102 cases
107 cases
110 cases
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.
B.
C.
D.

$2900
$2300
$2200
$3000

Answer: B

QUESTION 83
Generally, firms make-to-order when:
A.
B.
C.
D.

Goods are produced to customer specifications

The customer is willing to wait while the order is being made
The product is expensive to make and to store and several product options are offered
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.
B.
C.
D.

Forecasts by period for the planning horizon

Opening backlogs of customer orders
Desired ending backlog
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.
B.
C.
D.

Resource requirement planning

MPS
MRP II
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.
B.
C.
D.

400 units
200 units
300 units
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.
B.
C.
D.

8.3 units
88.8 units
8.9 units
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.
B.
C.
D.

400 units
500 units
600 units
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.
B.
C.
D.

The production plan

Forecasts for individual end items
Actual orders received from customers and for stock replenishment
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.
B.
C.
D.

MRP
MPR II
MPS
Production plan

Answer: C

QUESTION 93
The step for preparing MPS is/are:
A.
B.
C.
D.

Develop a preliminary MPS

Check the preliminary MPS against available capacity
Resolve differences between the preliminary MPS and capacity availability
All of these

Answer: D

QUESTION 94
Which of the following criteria is used to judge MPS?
A.
B.
C.
D.

Resource use
Customer service
Cost
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.
B.
C.
D.

The longest cumulative or end-t-end lead time (LT)

The shortest lead time
The difference between the productions of two different batches
None of these

Answer: A

QUESTION 97
_______________ and ________________ uncouples the sales forecast from manufacturing by establishing a
manufacturing plan
A.
B.
C.
D.

Production plan, MPS

MRP and production plan
MPS and chase strategy
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.
B.
C.
D.

Suitability (would it work?)

Feasibility (can it be made to work?)
Acceptability (will they work it?)
All of these

Answer: D

QUESTION 99
Which of the following is generally a function of the physical distribution system?
A.
B.
C.
D.

Production activity control

Production planning
packaging
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.
B.
C.
D.

regression
time series decomposition
filtering
smoothing

Answer: C

QUESTION 102
Which of the following is used to convert the master production schedule into detail requirements?
A.
B.
C.
D.

production planning
rough-cut capacity planning
production activity control
material requirements planning

Answer: D

QUESTION 103
End-of-line inspection often fails to improve quality for which of the following reasons?
A.
B.
C.
D.

It requires extensive personnel.

It lacks source accountability.
It excludes quality circles.
Its costs are significant

Answer: B

QUESTION 104
Materials should be moved from point of manufacture to point of use when:
A.
B.
C.
D.

production is completed at point of manufacture

the materials are needed at point of use
material handling equipment is available
material at point of use is zero

Answer: B

QUESTION 105
Which of the following would be manufactured in a continuous-production process?
A.
B.
C.
D.

combines
clothing
vitamins
gasoline

Answer: D

QUESTION 106
Which of the following statements is true about obtaining a high level of accuracy for inventory records?
A.
B.
C.
D.

It would usually lead to a reduction of inventory levels.

It is not necessary to achieve because of safety stocks and safety lead time.
It would result in savings that are likely to be small and difficult to determine.
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.
B.
C.
D.

delivery reliability
quality improvement
cost reduction
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.
B.
C.
D.

Quality
Design
support
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.
C.
D.
E.

I only
III only
I and II only
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.
B.
C.
D.

Average return on investment analysis

payback analysis
internal rate of return analysis
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.
B.
C.
D.

Supporting differentiation between functional areas and production operations

Providing staff specialists with the information needed to control production operations
Allowing factory personnel to manage their own production operations
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.
B.
C.
D.

Common understanding of the employee's role in achieving the plant's strategy

Management clearly identifying and defining the problems to be solved
Providing the EI teams with authority to change work processes
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.
B.
C.
D.

Project
Jobbing
Batch
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.
B.
C.
D.

Business Planning
Sales & operations Planning
materials requirements planning
Distribution Requirements Planning

Answer: D

QUESTION 115
Which of the following best describes JIT?
A.
B.
C.
D.

The continuous elimination of inventory

The continual reduction of lead-times
The elimination of value-adding activities
The continuous elimination of waste

Answer: D

QUESTION 116
Which of the following is an advantage of VMI?
A.
B.
C.
D.

Suppliers can leverage better information to reduce inventory levels.

The customer can usually force additional concessions from the VMI supplier
Lead-times are increased
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.
B.
C.
D.

chase production strategy, freight consolidation, and kaizan teams

level production strategy,freight consolidation, and SPC
level production strategy, LTL transport, and incoming inspection
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.
B.
C.
D.

Innovation
Price/Cost
Delivery Reliability
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.
B.
C.
D.

Hire additional inspectors

tighten tolerances
adopt a quality first slogan
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.
B.
C.
D.

Establishing a physical area close to the operations that utilize the supplies
Determining the reorder point level for supplies
Establishing ASN notification with the supplier
Agreeing on consignment rules.

Answer: A

QUESTION 121
Which of the following strategies is most likely to produce the shortest delivery lead- time?
A.
B.
C.
D.

Make-to-order
Assemble-to-order
Make-to-stock
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.
B.
C.
D.

Net requirements are greater than zero

Gross requirements are greater than zero
Projected available balance is above zero
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.
B.
C.
D.

A buffer of inventory should always be maintained after the bottleneck.

Constraints always exist in a factory
Work centers feeding bottlenecks should operate at peak utilization to ensure WIP availability at all times.
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.
B.
C.
D.

70
65
60
50

Answer: A

QUESTION 126
Each of the following actions would reduce safety stock levels EXCEPT:
A.
B.
C.
D.

reduce forecast error

increase lead times
reduce the customer service target
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.
B.
C.
D.

biased
Random Error
Efficient
Naive

Answer: A

QUESTION 128
Planned order receipt is generated by MRP when:
A.
B.
C.
D.

net requirements are greater than zero

gross requirements are greater than zero
projected available balance is above zero
forecasted demand is less than planned supply

Answer: A

QUESTION 129
Each of the following actions would reduce safety stock levels EXCEPT:
A.
B.
C.
D.

Reduce forecast error

Increase lead times
Reduce the customer service target
Adopt a make-to-order strategy

Answer: B

QUESTION 130
Which tactic would successfully reduce cycle stock?
A.
B.
C.
D.

Increase annual usage of an item

Reduce ordering costs
Reduce carrying costs
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.
B.
C.
D.

800
1,000
1,100
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.
B.
C.
D.

Turns will
Turns will
Turns will
Turns will

double
remain constant
be cut in half
increase by the square root of 2

Answer: A

QUESTION 133
Which of the following best describes sole sourcing?
A.
B.
C.
D.

Multiple potential suppliers, one is chosen to be the only supplier for an organization
Multiple potential suppliers, 2-3 are chosen to be the only suppliers for an organization
One supplier exists and is utilized
One supplier exists, but is not utilized

Answer: C

QUESTION 134

Using non-cumulative methods, what is the ATP in period 1?

A.
B.
C.
D.

88
100
261
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.
B.
C.
D.

80
96
100
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.
B.
C.
D.

establishing double order points

establishing a bill of distribution
establishing safety stocks
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.
B.
C.
D.

RCCP
S&OP
MPS
Business Planning

Answer: C

QUESTION 138
Which combination of business processes is accurate?
A.
B.
C.
D.

MRP, rough-cut capacity

S&OP, CRP
MPS, rough cut capacity
DRP, CRP

Answer: C

QUESTION 139
Which forecast performance measure detects bias?
A.
B.
C.
D.

tracking signal
MAPE
standard deviation
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.
B.
C.
D.

D, A, B, C
C, D, B, A
A, B, C, 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.
B.
C.
D.

Does it make economic sense?

Would the organization obtain economies of scale, economies of scope or experience economy?
Would it be suitable in terms of environment and capabilities?
All of these

Answer: D

QUESTION 143
Which one of the following tools that cannot be used to evaluate feasibility of a strategy?
A.
B.
C.
D.

Cash flow analysis and forecasting

Break-Even analysis
Resource deployment analysis
None of these

Answer: D

QUESTION 144
Order quantity is 1000 units and safety stock is 300 units. What is the average inventory?
A.
B.
C.
D.

800 units
900 units
890 units
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.
B.
C.
D.

$500
$550
$450
$400

Answer: A

QUESTION 147
Physical distribution contributes to:
A.
B.
C.
D.

Creating demand
Prompt delivery
Product availability and accurate order filling
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.
B.
C.
D.

Product Design
Production Plan
Marketing mix
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 supplychain 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.
B.
C.
D.

Supply Chain Network Design Method:

MIP Optimization Modeling:
Heuristic Methods:
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.
B.
C.
D.

Time to market is reduced

Cost is reduced
Better quality and lower total system cost
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.
B.
C.
D.

Can produce for less cost than a supplier

Uses specialized expertise of suppliers
Provides known and competitive prices
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.
B.
C.
D.

Requires less capital investment

Uses specialized expertise of suppliers
Allows the firm to concentrate on its own areas of specialization
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.
B.
C.
D.

Select the process to be studied

Record the existing method to collect the necessary data in a useful form
Bottlenecks
Analyze the recorded data to generate alternatives improved methods

Answer: C

QUESTION 158

Pareto analysis can be used:

A.
B.
C.
D.

to select problems with the greatest economic impact

to identify process bottleneck
To manage excessive overtime
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.
B.
C.
D.

$250.00
$200.00
$340.00
$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.
B.
C.
D.

Total
Total
Total
Total

Cost: $1450.00 & Unit cost:

Cost: $1400.00 & Unit cost:
Cost: $1455.00 & Unit cost:
Cost: $1440.00 & Unit cost:

$2.90
$2.80
$2.90
$2.60

Answer: A

QUESTION 161
If the range and variety of product are large:
A.
B.
C.
D.

Production runs will be short

Machines must be changed over frequently
Little opportunity to use the specialized machinery and fixtures
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.
B.
C.
D.

Use color-coded parts

Put a template over an assembled component to show operators where specific parts go
Both of these
None of these

Answer: C

QUESTION 164
Basic concepts in TQM:
A.
B.
C.
D.

A committed and involved management

Focus on the customer
Involvement of the total workforce
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.
B.
C.
D.

Suppliers
Customers
All the supply chain agents
Sub-contractors

Answer: A

QUESTION 166
?Pareto charts
?Check sheets
?Process flowcharts
?Sactterplots
?Cause and effect diagram
These are the:

A.
B.
C.
D.

Quality control tools

Control charts
demand measurements
None of these

Answer: D

QUESTION 167
There are following reasons of using sample inspections:
A.
B.
C.
D.

Testing the product is destructive

There is not enough to give 100% inspection to a batch of product
It is too expensive to test the entire batch and human errors is to be estimated as high as 20%
All of these

Answer: D

QUESTION 168
A 100% inspection means:
A.
B.
C.
D.

Testing every unit in the lot

Appropriate when the cost of inspection is less than the cost of any loss resulting from failure of the parts
Both of these
None of these

Answer: C

QUESTION 169
Benchmarking includes the following steps:
A.
B.
C.
D.

Select the process to benchmark

Identify an organization that is in best class
Study the benchmarked organizations
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.
B.
C.
D.

$ 1.25 and $0.85

$ 1.25 and $0.83
$ 1.29 and $0.80
$ $ 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.
B.
C.
D.

$0.126, $0.125 and $30.00

$0.127, $0.124 and $30.00
$0.125, $0.125 and $30.00
$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.
B.
C.
D.

Value
Density
Perishability
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.
B.
C.
D.

Rail: $990 and Truck:

Rail: $900 and Truck:
Rail: $970 and Truck:
Rail: $980 and Truck:

$ 840
$ 890
$ 870
$ 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.
B.
C.
D.

$4
$5
$8
$10

Answer: B

QUESTION 175
The planning horizon is usually longer for several reasons e.g.:
A.
B.
C.
D.

The longer the horizon, the greater the "visibility"

The longer the horizon, the better management's ability to avoid future problems
The longer the horizon, the better the management's ability to take advantage of special circumstances.
All of these

Answer: D

QUESTION 176
MPS is meant to be:
A.
B.
C.
D.

Rigid
Flexible
Depends on situation
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.
B.
C.
D.

Available to promise
Available to produce
Safety stock
None of these

Answer: A

QUESTION 178
A scheduled receipt is an order that has been issued:
A.
B.
C.
D.

To manufacturing
To supplier
Either to manufacturing or to supplier
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.
B.
C.
D.

Projected available balance

Demand time fence
Scheduled receipt
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.
B.
C.
D.

Capacity availability
Capacity utilized
Capacity required
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.
B.
C.
D.

MPS
Planning time fence
Projected available balance
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.
B.
C.
D.

Slushy Zone
Frozen Zone
Liquid Zone
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.
B.
C.
D.

Customer Expectations
Customer orders
MPS
MRP

Answer: B

QUESTION 187
_________ is a rate of doing work, not the quantity of work done.
A.
B.
C.
D.

Capacity
Capacity Planning
Capacity Control
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.
B.
C.
D.

Capacity available
Target capacity
Load
Output

Answer: C

QUESTION 189
Capacity planning links the various production priority schedules to :
A.
B.
C.
D.

Manufacturing plans
Manufacturing resources
MRP
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.
B.
C.
D.

Capacity control
Capacity planning
Capacity required
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.
B.
C.
D.

Capacity planning
Capacity control
Capacity management
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.
B.
C.
D.

The level of detail

The time spans involved
The level of detail and the time spans involved
Capacity requirements

Answer: C

QUESTION 194
Resource planning includes changes in all of the following EXCEPT:
A.
B.
C.
D.

Staffing
Capital equipment
Product design or other facilities
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.
B.
C.
D.

Resource planning
Rough-out capacity planning
Capacity requirement planning
None of these

Answer: B

QUESTION 196
The purpose/s of rough-out capacity planning is /are:
A.
B.
C.
D.

to check the feasibility of the MPS

provide warnings of any bottlenecks
Ensure utilization of work centers and advice vendors of capacity requirements
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.
B.
C.
D.

MRP
MRPII
MPS
Both A&C

Answer: A

QUESTION 200
In considering open shop orders, capacity requirement planning account for:
A.
B.
C.
D.

Work already done on a shop order

Order requirements
Order lot size
Lead time

Answer: A

QUESTION 201
___________ is the most detailed, complete and accurate of the capacity planning techniques.
A.
B.
C.
D.

Capacity requirements planning

Resource planning
capacity requirements planning (CRP)
Capacity control

Answer: C

QUESTION 202
CRP inputs are all of the following EXCEPT:
A.
B.
C.
D.

Open shop orders and leads times

Planned order releases and work center capacities
Routings and time standards
None of these

Answer: D

QUESTION 203
The information for the CRP inputs can be obtained from:
A.
B.
C.
D.

Open order fie

MRP
Routing and work center file
All of these

Answer: D

QUESTION 204
An open order appears as a/an _____________ on the MRP.
A.
B.
C.
D.

Open order file

Scheduled receipt
Order releases
None of these

Answer: B

QUESTION 205
A routing file should contain the following information EXCEPT:
A.
B.
C.
D.

Operations to be performed
Sequence of operations
Work centers to be used
Priority plan

Answer: D

QUESTION 206
______________ is the sum of queue, setup, run, wait and move times at work center.
A.
B.
C.
D.

Work center times

Production times
Lead time
Order to delivery time

Answer: C

QUESTION 207
Following is an example of:

A.
B.
C.
D.

Wait time schedule

Lead time schedule
Shop calendar
Routing file

Answer: C

QUESTION 208
Which one of the following affects capacity available?
A.
B.
C.
D.

Product specifications
Product Mix
Plant and equipment and work effort
All of these

Answer: D

QUESTION 209
__________ and ____________ depends on the design of the product and the mix of the products made.
A.
B.
C.
D.

Product
Product
Product
Product

specification and product mix

specification and product quality
quality and product line
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.
B.
C.
D.

Work effort
Standard time
Lead time
Move time

Answer: B

QUESTION 211
Capacity needs to be measured on following levels EXCEPT:
A.
B.
C.
D.

Machine or individual
Work center
Plant, which can be considered as a group of different work centers
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.
B.
C.
D.

Demonstrated, calculated capacity

Measured, rated capacity
Both A and B are same
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.
B.
C.
D.

40 hours
35 hours as lunch timings
45 hours
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.
B.
C.
D.

100 hours per week

80 hours per week
90 hours per week
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.
B.
C.
D.

84.3%
84%
83.3%
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.
B.
C.
D.

120%
20%
100%
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.
B.
C.
D.

150 standard hours

149.6 standard hours
180.5 standard hours
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.
B.
C.
D.

Production records
Available inventory
Utilization
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.
B.
C.
D.

135 standard hours

139 standard hours
140 standard hours
130 standard hours

Answer: A

QUESTION 221
Demonstrated capacity is:
A.
B.
C.
D.

Minimum output
Average Output
Maximum output
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.
B.
C.
D.

75%, 110%
75%, 112.9%
76%, 112.95%
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.
B.
C.
D.

Load
Capacity required
Available capacity
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.
B.
C.
D.

31.5 standard hours

30 standard hours
29.5 standard hours
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.
B.
C.
D.

38 hours
38.2 hours
32.8 hours
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.
B.
C.
D.

load
Capacity required
Available capacity
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.
B.
C.
D.

Efficiency
Utilization
Back Scheduling
Capacity management

Answer: C

QUESTION 228
For back scheduling we need to know?
A.
B.
C.
D.

Quantity and due date

Sequence of operations and Work centers needed
Setup and run time for each operation
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.
B.
C.
D.

Balancing capacity
Balancing capacity required
Balancing capacity available
All of these

Answer: C

QUESTION 231
Altering the load in balancing capacity available means?
A.
B.
C.
D.

Shifting orders ahead

Shifting orders back
Shifting orders ahead or back
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.
B.
C.
D.

Schedule overtime or under time

Adjust the level of work force by hiring or laying off workers.
Shift work force from under loaded to overloaded work centers
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.
B.
C.
D.

Open system
Closed-loop system
Balanced system
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.
B.
C.
D.

230 hours per week

300 hours per week
350 hours per week
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.
B.
C.
D.

287 Standard hours per week

276 Standard hours per week
279 Standard hours per week
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.
B.
C.
D.

47.8
47.5
48
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.
B.
C.
D.

51.3 standard hours; 67.4 actual hours

62 standard hours; 60.4 actual hours
61.3 standard hours; 67.4 actual hours
61.3 standard hours; 60.4 actual hours

Answer: C

QUESTION 240
Production activity control is responsible for executing the:
A.
B.
C.
D.

Production Schedule
MRP
Both of these
Capacity control

Answer: C

QUESTION 241
The material requirement plan authorizes production activity control (PAC):
A.
B.
C.
D.

To work orders to the shop for manufacturing

To take control of work orders and make sure they are completed on time
To manage day-to-day activity and provide the necessary support
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.
B.
C.
D.

Planning phase
Implementation phase
Control phase
Both A & B

Answer: B

QUESTION 244

This is a true representation

A.
B.
C.
D.

MRP
Capacity Control
PAC
MRP II

Answer: C

QUESTION 245
Which one of the following is NOT done by PAC in control phase?
A.
B.
C.
D.

Monitor and control work-in-process, lead times, and work center queues.
Report work center efficiency, operation times, order quantities and scrap.
Track the actual performance of work orders and compare it to planned schedules.
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.
B.
C.
D.

Flow Manufacturing
Intermittent Manufacturing
Project Manufacturing
Work Center Manufacturing

Answer: D

QUESTION 247
Repetitive Manufacturing and continuous manufacturing are types of:
A.
B.
C.
D.

Flow Manufacturing
Intermittent Manufacturing
Project Manufacturing
None of these

Answer: A

QUESTION 248
Which of the following is/are the major characteristic/s to flow manufacturing?
A.
B.
C.
D.

Routing are fixed and work centers are arranged according to the routing.
Work centers are dedicated to producing a limited range of similar products.
Material flows from one workstation to another.
All of these

Answer: D

QUESTION 249
______________________is characterized by many variations in product design, process requirements and
order quantities.
A.
B.
C.
D.

Flow manufacturing
Project manufacturing
Intermittent manufacturing
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.
B.
C.
D.

Flow manufacturing
Project manufacturing
Intermittent manufacturing
All of these

Answer: B

QUESTION 251
Production activity control in intermittent manufacturing is complex Because of:
A.
B.
C.
D.

The number of products made

The variety of routing
Scheduling problems
All of the above

Answer: D

QUESTION 252
To plan the processing of materials through manufacturing PAC must have the following information EXCEPT:
A.
B.
C.
D.

What and how much to produce

When parts are needed so the completion date can be met.
What are scheduled receipts for various orders
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.
B.
C.
D.

Item master file

Product structure file
Routing and work center master file.
All of these

Answer: D

QUESTION 254
The product structure file:
A.
B.
C.
D.

Contains a list of single-level components and quantities needed to assemble

Forms a basis fro a parent pick list.
Both of these
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.
B.
C.
D.

Routing file
Work-center master file
Control file
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.
B.
C.
D.

Shop order master file

Work-center master file
Shop-order detail file
None of these

Answer: C

QUESTION 257
Material Requirements Planning (MRP) is:
A.
B.
C.
D.

The system used to provide available inventory

The system used to avoid missing parts.
A schedule establish for the production agenda
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.
B.
C.
D.

Material Requirements Planning

Master Production Schedule
Inventory control Planning
B&C

Answer: A

QUESTION 259
How many types of demand are in Material Requirements planning?
A.
B.
C.
D.

Three
Four
Two
Seven

Answer: C

QUESTION 260
If a company makes wooden tables, the demand for the tables is called
A.
B.
C.
D.

Independent Demand
Dependent Demand
Both A & B
None of the above

Answer: A

QUESTION 261
Independent demand is:
A.
B.
C.
D.

Directly related to the demand for any other products or assemblies

Not related to the demand for any other products or assemblies
Calculated
A&C

Answer: B

QUESTION 262
Independent demand must be
A.
B.
C.
D.

Forecast
Calculated
Show the required quantity of each component
Dependent demand items

Answer: A

QUESTION 263
Dependency in MRP can be
A.
B.
C.
D.

Horizontal
Vertical
None of the above
Both A & B

Answer: D

QUESTION 264
Which of the following are the major objectives of Material Requirement Planning?
A.
B.
C.
D.

Determine requirements and keep priorities current.

Determine requirements and support production activities
Control and monitoring material demands
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.
B.
C.
D.

Production Activity control (PAC)

Material Requirements planning (MRP)
Capacity Requirement planning
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.
B.
C.
D.

Capacity Requirement planning

Material Requirements planning (MRP)
Production Activity control (PAC)
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.
B.
C.
D.

Inventory record
Purchasing record
Bills of material processor
Procurement of material and supplies

Answer: C

QUESTION 268
Master production schedule, inventory records and bills of material are three major inputs to
A.
B.
C.
D.

Material Requirements planning (MRP) System

Production activity Control
Manufacturing Planning and Control (MPC) Function
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.
B.
C.
D.

Capacity Requirements planning (CRP)

Material Requirements planning (MRP) System
Manufacturing Planning and Control (MPC) Function
Production activity Control

Answer: B

QUESTION 271
Inventory records data are maintained in:
A.
B.
C.
D.

Inventory record file

Part master file
Item master file
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.
B.
C.
D.

Maintaining the bills of material structures

Linkage between manufacturing planning and control system
Inventory records
Both A & C

Answer: C

QUESTION 273
The bill of material shows
A.
B.
C.
D.

The components that go into making the parent

The steps or process used to make the parent or the components
Both A & B
None of the above

Answer: A

QUESTION 274
A convenient way to think about bills of material is through:
A.
B.
C.
D.

Product Tree
Dependent demand
Inventory record
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.
B.
C.
D.

Logical grouping of parts into subassemblies based on the way the product is assembled.
Overall design for the arrangements of bills
To make identification of the part absolute
Both A & B

Answer: A

QUESTION 277
What the following figure shows:

A.
B.
C.
D.

The parent omponent relationship

Quantity and parts relationship
Identification of the parts
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.
B.
C.
D.

1900 Ks
900 Ks
2100 Ks
800 Ks

Answer: A

QUESTION 281
A multilevel bill of material can shown as
A.
B.
C.
D.

Indented bill
Summarized parts list
Single-level bill
Planning bills

Answer: A

QUESTION 282
In bills of Material structure; Summarized parts list:
A.
B.
C.
D.

The lists of all the parts needed to make one complete assembly
Does not contain any information about the way the product is made or assembled
It's the list of comments are linked to their parents by listing them immediately below the parents
Both A & B

Answer: D

QUESTION 283
Which of the following is an artificial grouping of components for planning purposes?
A.
B.
C.
D.

Indented bill
Summarized parts list
Single-level bill
Planning bill

Answer: D

QUESTION 284
Planning bills are used to:
A.
B.
C.
D.

Simplify forecasting
Master production scheduling
Material requirements planning
All of the above

Answer: D

QUESTION 285
Planning bill does not represent
A.
B.
C.
D.

Buildable products
Average product
Product structure looks
None of the above

Answer: A

QUESTION 286
Where-used reports give information about
A.
B.
C.
D.

The parents for a component

Independent and dependent demand
Both A & B
None of the above

Answer: A

QUESTION 287
A listing of all the parents in which a component is used is called
A.
B.
C.
D.

Pegging report
Where-used report
Planning bill
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.
B.
C.
D.

Pegged requirement
Where-used reports
Production requirements
Summarized part lists

Answer: A

QUESTION 291
Which of the following defines what materials have to be scheduled to make the end products?
A.
B.
C.
D.

Bills of material
Master production schedule
Engineering change control bill
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.
B.
C.
D.

To determine the components needed

To determine the quantities
To determine the due dates
All of the above

Answer: D

QUESTION 293
Exploding is the process of multiplying the requirements by:
A.
B.
C.
D.

The usage quantity

By recording the appropriate requirements throughout the product tress
Both A & B
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.
B.
C.
D.

Offsetting
Exploding the equipments
Production plan
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.
B.
C.
D.

Reduced accordingly
Increased accordingly
Added accordingly
Both B & C

Answer: A

QUESTION 296
Which of the following is the right calculation for obtaining the net requirements?
A.
B.
C.
D.

Gross Requirement - Available inventory

Gross Requirement x Available inventory
Gross Requirement / Available inventory
None of the above is true

Answer: A

QUESTION 297
The objective of the MRP is to have:
A.
B.
C.
D.

Material available when it is needed and not before

Orders for material should not be released until the planned order release date arrived
Order should not normally released until the planned order is in the current week
All of the above

Answer: D

QUESTION 298
Scheduled receipts shows:
A.
B.
C.
D.

The quantities ordered

When quantities ordered are expected to be completed
When quantities ordered are expected to be available
All of the Above

Answer: D

QUESTION 299
The immediate or most current period is called
A.
B.
C.
D.

Action bucket
Planning horizon
Time buckets
Both a & B

Answer: A

QUESTION 300
Planning horizon means
A.
B.
C.
D.

The number of periods in the record

The most current period in the record
The quantity of the records
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.
B.
C.
D.

Master Production schedule (MPS)

Capacity Requirements planning (CRP)
Production activity control (PAC)
Manufacturing Planning and control function (MPC)

Answer: B

QUESTION 302
Which of the following details are true about time buckets EXCEPT:
A.
B.
C.
D.

These are often a week

Can be any length of time convenient to the company
Companies can move to daily time buckets
Needs to avoid future problems

Answer: D

QUESTION 303
The process of colleting the gross requirements and netting can be simplified by using
A.
B.
C.
D.

Low-level codes
Planning horizon
Time buckets
Action buckets

Answer: A

QUESTION 304
The material planner works with the type of orders
A.
B.
C.
D.

Four
Three
Seven
Two

Answer: B

QUESTION 305
The orders are automatically scheduled and controlled by the computer are the orders called:
A.
B.
C.
D.

Planned orders
Computer generated order
Firms planned order
All of the Above

Answer: A

QUESTION 306
Which of the following situation that will leads or generates Exception messages?
A.
B.
C.
D.

Components for which planned orders are in the action bucket and which should be considered for release
Open orders for which the timing or quantity of scheduled receipts does not satisfy the plan.
Situations in which the standard lead times will result in late delivery of a Zero-level part
All of the above

Answer: D

QUESTION 307
A good MRP system generates exception messages:
A.
B.
C.
D.

To advise the planner when some event needs attention

When the manufacturing process is under control
When there are problems that need the attention of the planner
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.
B.
C.
D.

Priority, Bottom-up Replanning and reducing system nervousness

Planned orders, released orders and firm planned orders
Priority, Exception message and transaction message
None of the above is true

Answer: A

QUESTION 310
Which of the following one is the method of reducing system nervousness?
A.
B.
C.
D.

Firm's planned orders

Releases orders
Exception message
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.
B.
C.
D.

Theory of constraints
Managing constraints
Drum-Buffer-Rope
Scheduling Bottlenecks

Answer: A

QUESTION 312
Find methods to maximize the utilization of the constraint toward productive throughput is called:
A.
B.
C.
D.

Utilize constraint
Manage constraint
Exploit constraint
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.
B.
C.
D.

Elevate constraint
Subordinate constraint
Identify constraint
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.
B.
C.
D.

Drum
Buffer
Rope
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.
B.
C.
D.

I-plant, A-plant, B-plant, G-Plant

I-plant, A-plant, V-plant, T-Plant
C-plant, K-plant, B-plant, S-Plant
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.
B.
C.
D.

I-plant
A-plant
V-plant
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.
B.
C.
D.

Increasing rate
Cumulative variance
Collective concern
Total control rate

Answer: B

QUESTION 319
___________ is the same as queue and expresses the work to be done in hours.
A.
B.
C.
D.

Backlog
Cumulative variance
Capacity per period
Output rate

Answer: A

QUESTION 320
The formula for the planned backlog for period 1 is calculated as:
A.
B.
C.
D.

Planned backlog for period 1 = Planed backlog + previous input ?planned output
Planned backlog for period 1 = Planed backlog + previous output ?planned output
Planned backlog for period 1 = Previous backlog + planned input ?planned output
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.
B.
C.
D.

First come, first served

Earliest operation due date
Shortest process time
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.
B.
C.
D.

Sequencing
Decentralization
Dispatching
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.
B.
C.
D.

Aspect ratio
Critical ratio
Priority ratio
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.
B.
C.
D.

Scheduling
Follow-up procedure
Purchasing
Sales procedure

Answer: C

QUESTION 325
____________________ are concerned with the end use of the item and what the item is expected to do.
A.
B.
C.
D.

Functional specifications
Price requirements
Quality assurance
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.
B.
C.
D.

Functional analysis
Specification analysis
Quality analysis
Value analysis

Answer: D

QUESTION 328
Functional specification can be described by a combination of:
A.
B.
C.
D.

Brand
Engineering drawings
Miscellaneous
All of the above

Answer: D

QUESTION 329
Which of the following are the two sources of specifications?
A.
B.
C.
D.

Seller specification & Standard specification

Buyer specification & Buyer specification
Buyer specification & Standard specification
Standard specification & Engineering specification

Answer: C

QUESTION 330
Which of the following are the types of sourcing?
A.
B.
C.
D.

Sole, multiple, single

Multiple, single
Group, multiple, single
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.
B.
C.
D.

single sourcing
sole sourcing
singular sourcing
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.
B.
C.
D.

After-sales service
Just-in-time capabilities
Manufacturing capabilities
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.
B.
C.
D.

Actual price
Fair price
Impartial price
Average price

Answer: B

QUESTION 334
The costs those directly associated with the amount produced or sold are called:
A.
B.
C.
D.

Fixed cost
Variable cost
Total cost
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.
B.
C.
D.

Contract buying
Developing schedules
Supplier flexibility
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.
B.
C.
D.

Supply managed procedure

Product scheduling
Supply-chain management
Vendor-managed inventory

Answer: D

QUESTION 339
___________ is an internal net that is normally used within the boundaries of a company.
A.
B.
C.
D.

Internet
Intranet
Intra-vagrant net
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.
B.
C.
D.

Bullwhip effect
Anticipatory effect
Bull ship effect
None of the above

Answer: A

QUESTION 342
What is needed for items and is associated with master production scheduling?
A.
B.
C.
D.

Chain management
Demand management
Product management
Supply management

Answer: B

QUESTION 343
Which of the following is the activity of Demand management?
A.
B.
C.
D.

Forecasting
Order processing
Interfacing
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.
B.
C.
D.

Strategic business plan

Scheduling plan
Change management plan
Production plan

Answer: A

QUESTION 345
Which scheduling is concerned with production activity from the present to a few months ahead?
A.
B.
C.
D.

Later production
Early production
Master production
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.
B.
C.
D.

Trend
Seasonality
Random variation
All of the above

Answer: D

QUESTION 347
What can affect the trend, seasonality, or randomness of the actual demand?
A.
B.
C.
D.

Static changes
Dynamic changes
Random changes
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.
B.
C.
D.

qualitative
quantitative
intrinsic
extrinsic

Answer: B

QUESTION 350
A systematic, formal, and conscious procedure for testing to determine customer opinion or intention is called:
A.
B.
C.
D.

Forecasting procedure
Record customer group
Market research
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.
B.
C.
D.

Forecasting analogy
Estimated analogy
Future analogy
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.
B.
C.
D.

Intrinsic Forecasting
Extrinsic Forecasting
Average demand Forecasting
Quantitative Forecasting

Answer: A

QUESTION 353
_____________ are best used for forecasting products with stable demand where there is little trend or
seasonality.
A.
B.
C.
D.

Demand averages
Estimated calculations
Moving averages
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.
B.
C.
D.

Seasonal demand = (seasonal

Seasonal demand = (seasonal
Seasonal demand = (seasonal
Seasonal demand = (seasonal

index) + (seasonalized demand)

index) - (deseasonalized demand)
index) * (deseasonalized demand)
index) / (deseasonalized demand)

Answer: C

QUESTION 358
What is the rule for forecasting with seasonality?
A.
B.
C.
D.

Only use deseasonalized data to forecast.

Forecast deseasonalized demand, not seasonal demand
Calculate the seasonal forecast by applying the seasonal index to the base forecast.
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.
B.
C.
D.

Fixed variation
Forecast variation
Random variation
Possible average variation

Answer: C

QUESTION 361
The formula to calculate the Mean Absolute Deviation (MAD) is:
A.
B.
C.
D.

MAD = (sum
MAD = (sum
MAD = (sum
MAD = (sum

of
of
of
of

mean deviations / number of facts)

absolute deviations / number of observations)
random deviations / number of average observations)
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.
B.
C.
D.

Normal distribution
Bell-shaped distribution
U-shaped distribution
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.
B.
C.
D.

Raw materials
Untreated materials
Basic stuff
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.
B.
C.
D.

Waiting-process
Work-in-process
Coming up-process
Future-process

Answer: B

QUESTION 367
_________________ is held to cover random unpredictable variations in supply and demand or lead time.
A.
B.
C.
D.

Safety stock
Variant stock
Anticipatory change inventory
Random contemporary stock

Answer: A

QUESTION 368
If demand or lead time is greater than forecast, then what will occur?
A.
B.
C.
D.

Invaluable stock
Unpredictable stock
Stockout
Vulnerable stock

Answer: C

QUESTION 369

Items purchased or manufactured in quantities greater than needed immediately create _____________.
A.
B.
C.
D.

bulk-size inventories
massive-size inventories
lion's share inventories
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.
B.
C.
D.

Stable inventories
Operating inventories
Pipeline inventories
Cyclic inventories

Answer: C

QUESTION 371
Inventory investment can be balanced with:
A.
B.
C.
D.

Customer service
Costs associated with changing production levels
Cost of placing orders
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.
B.
C.
D.

Carrying costs
Changing costs
Distributed costs
All of the above

Answer: A

QUESTION 373
Carrying can be broken down into which of the following three categories?
A.
B.
C.
D.

Capital costs, storage costs, risk costs

Training costs, storage costs, risk costs
Capital costs, ordering costs, risk costs
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.
B.
C.
D.

Capital cost
Investment cost
Minimum cost
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.
B.
C.
D.

Capital cost
Inventory cost
Normal cost
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.
B.
C.
D.

Capacity control
Production control
Purchase order cost
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.
B.
C.
D.

Capacity-associated control
Production cost
Purchase order cost
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.
B.
C.
D.

Revenues
Business Plan
Asset
Sales

Answer: C

QUESTION 380
Owner's equity is:
A.
B.
C.
D.

Difference between revenues and expenses

Difference between expenses and liabilities
Difference between assets and revenues
Difference between assets and liabilities

Answer: D

QUESTION 381
The formula to calculate the Inventory turns is:
A.
B.
C.
D.

Inventory turns = average cost of goods sold / annual inventory in dollars

Inventory turns = annual cost of goods purchased / average financial measures in dollars
Inventory turns = annual cost of goods sold / average inventory in dollars
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.
B.
C.
D.

First in first out

Last in first out
Average cost
Analysis cost

Answer: D

QUESTION 383
What uses cost determined before production begins?
A.
B.
C.
D.

Standard cost
Cost of quality
Average cost
Analysis cost

Answer: A

QUESTION 384
When a small number of items often dominate the results achieved in any situation, this is called:
A.
B.
C.
D.

Standard law
Recessive Act
Pareto's law
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.
B.
C.
D.

Inventory element
Stock-keeping units
Stock entity
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.
B.
C.
D.

Annual cost
Determined cost
Permanent cost
Relevant cost

Answer: D

QUESTION 389
What occurs when the cost of ordering equals the cost of carrying?
A.
B.
C.
D.

Exact-order completeness
Predetermined carrying cost
Economic-order quantity
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.
B.
C.
D.

Unit cost
Key cost
Economic cost
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.
B.
C.
D.

Period-order quantity =
Period-order quantity =
Period-order quantity =
Period-order quantity =

EOQ / average yearly usage

EOQ / average monthly usage
EOQ * average monthly usage
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.
B.
C.
D.

Demand point
Lead level
Order point
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.
B.
C.
D.

Safety stock
Average stock
Secure stock
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.
B.
C.
D.

Fast order release

Safety lead time
Direct release
Lead command

Answer: B

QUESTION 398
The safety stock required depends on which of the following:
A.
B.
C.
D.

Variability of demand during the lead time

Frequency of reorder
Service level desired
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.
B.
C.
D.

Normal distribution
Frequent distribution
Average distribution
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.
B.
C.
D.

distribution
disbursement
dispersion
deviation

Answer: C

QUESTION 401
A statistical value that measures how closely the individual values cluster about the average is called:
A.
B.
C.
D.

Mean value
Standard deviation
Sigma valuation
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.
B.
C.
D.

safety value
safety factor
secure level
secure stockout

Answer: B

QUESTION 403
Stockout cost money for which of the following reason?
A.
B.
C.
D.

Back-order costs
Lost costs
Lost customers
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.
B.
C.
D.

Two-bin system
Dual system
Two-fold system
Wait-for-next strategy

Answer: A

QUESTION 405
A simple system that signals the need for more products is known as:
A.
B.
C.
D.

Lot-for-more system
Kanban system
Manifesto system
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.
B.
C.
D.

Walkthroughs
Formal technical reviews
Periodic review system
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.
B.
C.
D.

Target value
Demand value
Review process value
All of the above

Answer: A

QUESTION 410
The formula to calculate the Target value is:
A.
B.
C.
D.

T = D (R + L) + SS
T = D (R + L) * SS
T = D (R -L) + SS
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.
B.
C.
D.

Central supply management

Order completeness management
Distribution inventory management
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.
B.
C.
D.

Decentralized system
Competency system
Advancements system
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.
B.
C.
D.

Anticipated centralized system

Predictive central system
Distribution requirements planning
Conjecture supply planning

Answer: C

QUESTION 414
Which of the following are those of space and materials handling equipment?
A.
B.
C.
D.

Capital costs
Material costs
Variance costs
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.
B.
C.
D.

Dispatch shipment
Marshal the shipment
Operate the shipment
Receive the shipment

Answer: B

QUESTION 417
Which factor influence effective use of warehouses?
A.
B.
C.
D.

Cube utilization and accessibility

Stock location
Packaging
All of the above

Answer: D

QUESTION 418
Which is the basic system used for locating stock?
A.
B.
C.
D.

Group functionally related items together

Group fast-moving items
Group physically similar items together
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.
B.
C.
D.

Active stock
Marshalling stock
Working stock
Withdrawal stock

Answer: C

QUESTION 420

The order picker circulates throughout the warehouse selecting the items on the order through:
A.
B.
C.
D.

Area system
Pick and choose system
Managing system
Zone system

Answer: A

QUESTION 421
The amount or permissible variation between an inventory record and a physical count is called:
A.
B.
C.
D.

Charity
Tolerance
Variable Charity
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.
B.
C.
D.

Evolutionary inventory
Functional inventory
Physical inventory
Periodic inventory

Answer: D

QUESTION 423
Which of the three factors are involved in good preparation of the physical inventory?
A.
B.
C.
D.

Tolerance, identification and training

Housekeeping, Inventory and production
Housekeeping, identification and training
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.
B.
C.
D.

Housekeeping
Recordkeeping
Bookkeeping
Recording

Answer: A

QUESTION 425
A difference between the physical count and inventory dollars for the inventory records is called:
A.
B.
C.
D.

Accuracy
Resolution
Reconciliation
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.
B.
C.
D.

Physical supply
Distribution
Goods Flow
Trading

Answer: A

QUESTION 428
The movement and storage of finished goods from end of production to the customer is called:
A.
B.
C.
D.

Physical
Physical
Physical
Physical

supply
distribution
associate
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.
B.
C.
D.

Business channel
Distribution channel
Contracted channel
Transaction channel

Answer: D

QUESTION 431
The specific way in which materials move depends upon which of the following factor?
A.
B.
C.
D.

The channels of distribution that the firm is using

The types of markets served
The characteristics of the product
All of the above

Answer: D

QUESTION 432
In s distribution system, which activity affects customer service and the cost of providing it?
A.
B.
C.
D.

Distribution inventory
Warehouses
Order processing and communication
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.
B.
C.
D.

Distribution inventory
Distribution management
Process management
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.
B.
C.
D.

Terminals
Mortals
Workstations
None of the above

Answer: A

QUESTION 435
Economic regulation has centered on which of the following areas?
A.
B.
C.
D.

Regulations of rates
Control of routes and service levels
Control of market entry and exit
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.
B.
C.
D.

Contract service
Contract carriers
Contract capability
Commodity contract

Answer: B

QUESTION 437
Which of the following is NOT the basic cost element in transportation?
A.
B.
C.
D.

Line haul
Pickup and delivery
Terminal handling
Consignee collection

Answer: D

QUESTION 438
The total line-haul cost varies with:
A.
B.
C.
D.

cost per mile

the distance moved
weight moved
Only A and B

Answer: D

QUESTION 439
If shippers want to reduce transportation cost, they should:
A.
B.
C.
D.

increase the weight shipped

maximize density
Both A and B
Neither A nor B

Answer: C

QUESTION 440
Which method influences the risk of damage and breakage?
A.
B.
C.
D.

value
density
Perishability
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.
B.
C.
D.

General warehouse
Distribution warehouse
Store house
Go-down

Answer: A

QUESTION 442
Which of the following is NOT the role that warehouses serve?
A.
B.
C.
D.

Transportation consolidation
Cubic space
Product mixing
Service

Answer: B

QUESTION 443
_______________ is the delivered cost of a product to a particular geographic point.
A.
B.
C.
D.

Delivery cost
Laid-down cost
Deteriorate cost
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.
B.
C.
D.

Inventory line
Market boundary
Production boundary
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.
B.
C.
D.

Package
Boundary
Frontier
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.
B.
C.
D.

Exclusiveness
Itemization
Unitization
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.
B.
C.
D.

Unit load
Contemporary load
Package load
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.
B.
C.
D.

Industrial trucks
Conveyors
Cranes
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.
B.
C.
D.

Introduction phase
Growth phase
Maturity phase
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.
B.
C.
D.

Product simplication
Product Standardization
Product Specialization
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.
B.
C.
D.

Standard
Technique
Machinery
Routine of process

Answer: A

QUESTION 452
What uses standardization parts for flexibility and variety?
A.
B.
C.
D.

Manufacturing
Modularization
Specialization
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.
B.
C.
D.

Process focus
Focused factory
Functional focus
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.
B.
C.
D.

Product engineering
Low-cost engineering
Simultaneous engineering
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.
B.
C.
D.

Workgroup engineering
Concurrent engineering
Manufactured engineering
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.
B.
C.
D.

Operations management
Marketing management
Production management
Product-review management

Answer: A

QUESTION 457
___________are the means by which operations management reaches their desired objectives.

A.
B.
C.
D.

Products
Processes
People
Projects

Answer: B

QUESTION 458
Based on material flow, processes can be organized in which way?
A.
B.
C.
D.

Flow
Intermittent
Project
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.
B.
C.
D.

Product's design
Product's manufacturing
Process development
All of the above

Answer: A

QUESTION 460
If the units are discrete, such as automobiles, flow manufacturing is called:
A.
B.
C.
D.

Continuous manufacturing
Fixed manufacturing
Repetitive manufacturing
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.
B.
C.
D.

machinery and tooling can be specialized

little build-up of work-in-process inventory
lead times are short
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.
B.
C.
D.

Fixed manufacturing
Intermittent manufacturing
Discrete manufacturing
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.
B.
C.
D.

cost of quantity point

total cost production
fixed cost projected point
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.
B.
C.
D.

Increasing volume
Improving productivity
Continuous process improvement
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.
B.
C.
D.

Pareto diagram
Cause-and-effect diagram
Component diagram
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.
B.
C.
D.

Processes
Materials
Machines
Environment

Answer: A

QUESTION 470
The resources used in changing inputs to outputs are usually known as:
A.
B.
C.
D.

Processes
Decisions
Measurements
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.
B.
C.
D.

Operations process chart

Operations description chart
Operations inspection chart
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.
B.
C.
D.

Functional chart
Process flow diagram
Performance flow chart
Pareto chart

Answer: B

QUESTION 474
In order to develop possible solutions, which approach to take to help develop a better method?
A.
B.
C.
D.

Eliminate all unnecessary work

Rearrange the sequence of operations for more effective results
Simplify whenever possible by making the necessary operations less complex
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.
B.
C.
D.

Job assignment
Job design
Job enrichment
Job 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.
B.
C.
D.

Horizontal enlargement
Vertical enlargement
Parallel expansion
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.
B.
C.
D.

Maintenance
Preserving curve
Leaning curve
Protection

Answer: C

QUESTION 478
The elimination of all waste and continuous improvement of productivity is known as:
A.
B.
C.
D.

Up-gradation manufacturing
Just-in-time manufacturing
Work-in-progress manufacturing
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.
B.
C.
D.

Standardization
Value-added scheme
Periodic review
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.
B.
C.
D.

Waiting time
Overproduction
Inventory
Product defects

Answer: D

QUESTION 482
_____________ to the marketplace depends on being able to provide shorter lead times and better due date
performance.
A.
B.
C.
D.

Reliability
Responsiveness
Equivalence
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.
B.
C.
D.

Poke-yoke
Scrap step
Statistical sole
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.
B.
C.
D.

Successive check
Self-check
Source inspection
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.
B.
C.
D.

Productive manufacturing
Repetitive manufacturing
Flow manufacturing
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.
B.
C.
D.

machine suppleness
machine softness
machine elasticity
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.
B.
C.
D.

compound progressiveness
operator flexibility
machine adaptability
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.
B.
C.
D.

Quality at the source

Process balancing
Quality assurance
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.
B.
C.
D.

Source maintenance
Pull-up system
Total productive maintenance
valid schedule maintenance

Answer: C

QUESTION 491
Work done at each workstation should take about the same time, this is called:
A.
B.
C.
D.

Consistency planting
Homogeneous system
Identical point in time
Uniform plant loading

Answer: D

QUESTION 492
If demand shifts between models, the assembly line can respond daily, this is called:
A.
B.
C.
D.

miscellaneous scheduling
Shifting scheduling
mixed-model scheduling
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.
B.
C.
D.

modularity
linearity
consistency
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.
B.
C.
D.

lead time
test time
production time
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.
B.
C.
D.

Frequency planning
Training level
Capacity planning
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.
B.
C.
D.

post-deduct system
leveling system
demand pattern system
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.
B.
C.
D.

Put system
Buffer system
Pull system
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.
B.
C.
D.

Enterprise production
Lead production
Control production
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.
B.
C.
D.

Allen
Kaizen
Fair
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.
B.
C.
D.

Species, straighten, shine, standardize, sustain

Sort, strong, shower, standardize, sustain
Sort, straighten, shine, standardize, sustain
Sort, straighten, shine, standardize, suspect

Answer: C

QUESTION 505
Goods or services satisfy the needs and expectations of the user, this refers to:
A.
B.
C.
D.

Stability
Quality
Reliability
Maintainability

Answer: B

QUESTION 506
Who is responsible for meeting the minimum specifications of the product design?
A.
B.
C.
D.

Policy
Scope
Manufacturing
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.
B.
C.
D.

Tolerances
Acceptability
Charity Act
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.
B.
C.
D.

Usability
Accomplishment
Implementation
Performance

Answer: D

QUESTION 509
Which three dimensions to performance are important?
A.
B.
C.
D.

Accessibility, durability and maintainability

reliability, durability and maintainability
reliability, security and maintainability
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.
B.
C.
D.

Reliability
Durability
Maintainability
Efficiency

Answer: B

QUESTION 511
Total customer satisfaction based on the complete experience with an organization, not just the product is
known as:
A.
B.
C.
D.

Total quality
Absolute quality
Perceived quality
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.
B.
C.
D.

Continuous Process Management

Workflow Management
Total Quality Management
All of the above

Answer: C

QUESTION 514
_______________ describes the function of the organization.
A.
B.
C.
D.

Vision statement
Mission statement
Policy statement
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.
B.
C.
D.

Total workflow
Customer focus
Commitment
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.
B.
C.
D.

Empowerment
Dominance
Intensity
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.
B.
C.
D.

Quantity
Cost
Quality
All of the above

Answer: D

QUESTION 518
Which of the following is NOT the dimension to quality measurements?
A.
B.
C.
D.

Function
Aesthetic
Production
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.
B.
C.
D.

Prevention cost
Deterrence cost
Production cost
Anticipation cost

Answer: A

QUESTION 521
The cost associated with checking and auditing quality in the organization is called:
A.
B.
C.
D.

Assessment cost
Appraisal cost
Testing cost
Evaluation cost

Answer: B

QUESTION 522
To detect the presence of assignable causes of variation is the objective of:
A.
B.
C.
D.

Analytical cost assessment

Statistical process control
Critical process control
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.
B.
C.
D.

Flexible variation
Convertible variation
Assignable variation
Transferable variation

Answer: C

QUESTION 524
The capability of the process is a measure of _____________ compared to the specifications limit.
A.
B.
C.
D.

Process center
Mean process
Process tolerance
Process spread

Answer: D

QUESTION 525
Processes can produce defects in which way?
A.
B.
C.
D.

having too big a spread

by a shift in the mean
Both A & B
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.
B.
C.
D.

Process capability
Process variation
Process control
Process value

Answer: C

QUESTION 528
A control chart for averages and ranges tracks which critical characteristics of a frequency distribution?
A.
B.
C.
D.

center and spread

control and tolerance
specification limit and center
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.
B.
C.
D.

Cause-and-effect charts
Process flowcharts
Scatter-plots
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.
B.
C.
D.

Acceptance sampling
Statistical sampling
Analytical sampling
Batch sampling

Answer: A

QUESTION 531
What is the reason for using the sample inspection?

A.
B.
C.
D.

testing the product is destructive

there is not enough time to give 100% inspection to a batch of product
human error is estimated to be as high as 20% when performing long-term repetitive testing
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.
B.
C.
D.

plan, procedures, performance and proof

policies, procedures, practice and environment
policies, procedures, practice and proof
scope, procedures, practice and quality

Answer: C

QUESTION 534
Showing the scope of the quality management system is known as:
A.
B.
C.
D.

plan
policy
procedure
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.
B.
C.
D.

Benchmarking
Analyzing
Standardization
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.
B.
C.
D.

Target Quality Assurance

Competitive Quality Evaluation
Quality Function Deployment
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.
B.
C.
D.

Customer will
Voice of customer
Customer liquidity
Customer satisfaction

Answer: B

QUESTION 539
__________ is the amount of work that can be done in a specified time period.
A.
B.
C.
D.

Size
Role
Capacity
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.
B.
C.
D.

Capacity available
Capacity required
Capacity check
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.
B.
C.
D.

Assignment
Load
Agility
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.
B.
C.
D.

Capacity Running
Capacity Board
Capacity Organization
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.
B.
C.
D.

Capacity Manipulation
Capacity Inspection
Capacity Control
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.
B.
C.
D.

Realistic capacity planning

Expected capacity planning
Rough-cut capacity planning
Work-capacity planning

Answer: C

QUESTION 547
What involves long-range capacity resource requirements and is directly linked to production planning?
A.
B.
C.
D.

Resource acquisition
Resource planning
Resource capacity
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.
B.
C.
D.

Resource Plan
Material Requirement Plan
Capacity Requirements Plan
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.
B.
C.
D.

Open order file

Material Requirements Plan
Routing file
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.
B.
C.
D.

Planned orders
Open order file
Operational plan
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.
B.
C.
D.

Work centers to be used

Tooling needed at each operation
Standard times
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.
B.
C.
D.

Work center
Run time
Routing
Calendar

Answer: A

QUESTION 553
The time a job waits at a work center before being handled is called:
A.
B.
C.
D.

Queue time
Wait time
Linger time
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.
B.
C.
D.

Machine or individual worker

Work center
Plant, which can be considered as a group of different work centers
All of the above

Answer: D

QUESTION 556
Calculated or rated capacity is based on:
A.
B.
C.
D.

finite time, recovery and production

available time, utilization and efficiency
available time, resources and efficiency
rated capacity time, utilization and production

Answer: B

QUESTION 557
The available time depends on the number of machines, number of workers and:
A.
B.
C.
D.

resource assistance
Work effort
hours of operation
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.
B.
C.
D.

Work center utilization

Work center availability
Work center efficiency
Work center production

Answer: A

QUESTION 559
What is calculated by taking into account the work center utilization and efficiency?

A.
B.
C.
D.

actual rate of production

Rated capacity
resource availability
None of the above

Answer: B

QUESTION 560
The formula to calculate the rated capacity is:
A.
B.
C.
D.

Rated capacity =
Rated capacity =
Rated capacity =
Rated capacity =

actual time * utilization * efficiency

available time * utilization * efficiency
available time * performance * efficiency
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.
B.
C.
D.

Back scheduling
Front scheduling
Liquidity scheduling
Fixed scheduling

Answer: A

QUESTION 564
What is responsible for executing the master production schedule and the material requirements plan?

A.
B.
C.
D.

Production activity control

Production requirement plan
Standard production
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.
B.
C.
D.

Mechanizing system
Developed system
Manufacturing system
Master system

Answer: C

QUESTION 566
Manufacturing processes can be conveniently organized into which of the following three categories?
A.
B.
C.
D.

Flow manufacturing, intermittent manufacturing, and project manufacturing

Material manufacturing, control manufacturing, and project manufacturing
Flow manufacturing, alternating manufacturing, and control manufacturing
Material manufacturing, Regular manufacturing, and project manufacturing

Answer: A

QUESTION 567
__________________ is concerned with the production of high-volume standard products.
A.
B.
C.
D.

Continuous manufacturing
Flow manufacturing
Repetitive manufacturing
None of the above

Answer: B

QUESTION 568
Which of the following is the characteristic to flow manufacturing?
A.
B.
C.
D.

Routings are variable

work centers are dedicated to produce a limited range of similar products
Materials flows from one workstation to another using some form of realistic transfer
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.
B.
C.
D.

Intermittent manufacturing
process improvement
Streamline manufacturing
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.
B.
C.
D.

Intermittent manufacturing
process improvement
Streamline manufacturing
Periodic manufacturing

Answer: A

QUESTION 571
The files contained in the database are of two types which are:
A.
B.
C.
D.

planning and control

planning and procedural
fixed and variable
absolute and relative

Answer: A

QUESTION 572
Which of the following is the file that fall in planning category?
A.
B.
C.
D.

master file
product structure file
routing file
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.
B.
C.
D.

routing
builds
procedures
All of the above

Answer: A

QUESTION 575
Each active manufacturing order has a record in which file?
A.
B.
C.
D.

work center master file

work center detail file
shop order master file
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.
B.
C.
D.

Manufacturing load time

Manufacturing conduct time
Manufacturing control time
Manufacturing lead time

Answer: D

QUESTION 577
Which of the following is NOT the manufacturing lead time?
A.
B.
C.
D.

Queue time
Setup time
Run time
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.
B.
C.
D.

Run time activity

Production activity control
Activity management
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.
B.
C.
D.

throughput time
workforce time
creation time
assembly time

Answer: A

QUESTION 580
What is used to calculate how long it will take to complete a task?
A.
B.
C.
D.

Forward scheduling
Finite scheduling
Self-assured scheduling
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.
B.
C.
D.

Timid scheduling
Rearward scheduling
Self-assistant scheduling
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.
B.
C.
D.

setup time is low compared to run time

a suitable work center is idle
it is possible for an operator to run more than one machine at a time
All of the above

Answer: D

QUESTION 585
The time needed to unload and load must be shorter than _____________.
A.
B.
C.
D.

run time per piece

planning time
manufacturing time
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.
B.
C.
D.

timeframe
bottleneck
elapsed operation
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