1 Aggregate planning is long-range planning (2 B.

Demand for each period

. years or more) for large products.
C. Capacity for each period
A. True
D. Costs (regular time, overtime,
B. False subcontracting, backorders, etc.)
E. Inventory policies

2 Keeping a constant level of production in

. every time division of a planning period
(month, week, etc.) is usually the best way to 7 Which term is most closely associated with
perform aggregate planning. . disaggregation?
A. True A. Backorders
B. False B. Use of minority vendors or minority
employees
C. Subcontracting
D. Master schedule
E. Trial and error
3 Disaggregating an aggregate plan involves
. creating a master schedule for production of
the end items included in the aggregate plan.
A. True
B. False 8 Which one of the following is not a basic
. option for altering capacity?
A. Hire and fire workers
B. Use overtime
4 A "level" strategy involves matching demand C. Use subcontracting
. and capacity in each period. D. Use backorders
A. True E. All are options for altering capacity
B. False

9 Which one of these is not an output of a

5 A master schedule and a master production . master production schedule?
. schedule are similar, but not exactly the same. A. Production requirements
A. True B. Projected inventory
B. False C. Customer orders
D. Available-to-promise inventory

6 In order to effectively plan, estimates of each

. of the following items must be available to
planners except: 1 Aggregate planners balance:
0 A. make vs. buy
A. Inventory lot sizes.
.
 B. demand and costs component, assembly, subassembly or end
item.
C. capacity and inventories
A. True
D. fixed and variable costs
B. False
E. capacity and demand

5 An MRP worksheet shows all the various

1 One option for altering the availability of . requirements on hand, planned releases and
1 capacity is: planned receipts for every item and for every
. A. use of overtime or slack time time bucket covered by the current master
B. pricing schedule.
C. promotion A. True
D. backorders B. False
E. all are options

1 The output of an MRP system is forecasted 6 ERP involves an effort to standardize record
. demand by period. . keeping by the use of shared files across
A. True several systems.
B. False A. True
B. False

2 MRP systems are run using batch processing.

. A. True 7 ERP is essentially MRP except that it has
. been customized for service operations.
B. False
A. True
B. False

3 Because of the pyramid relationship for all

. components in an MRP system, it is
appropriate to provide safety stocks at all
levels, since this would help to reduce the
setup costs required to produce inventory at
each level.
A. True
B. False
4 An inventory record file needs to be
. maintained in MRP for every raw material,
8 The principal input files and programs that
. are incorporated into a computerized MRP
system are:
A. inventory record, master schedule,
BOM, MRP computer program.
B. inventory record, master file, part-
period balancing program.
C. end items, components, and load
reports.
D. capacity requirements planning file,
master schedule, inventory record.
 E. MRP computer program, master B. planned order release
schedule, capacity requirements C. net change
planning file.
D. regenerative
E. exception report

9 Which one of these would not be a possible

. lot size that would be identified by MRP?
A. EOQ. 13. Which is not an input to an MRP system?
B. Gross requirements. A. MPS
C. Net requirements. B. Inventory Master records
D. An amount less than net requirements. C. Gross requirements
E. All are possible lot sizes. D. Lead times
E. BOM

1. JIT production systems work best when there is a fix

A. True
1 A list of all parts and materials needed to B. False
0 assemble one unit of a product is called:
. A. a master schedule.
B. a kanban.
C. an inventory record file.
2 A kanban approach to managing inventory
D. gross requirements . levels is simpler than MRP II.
E. a bill of materials. A. True
B. False

1 Which phrase or term is most clearly

1 associated with the acronym BOM? 3 A goal of JIT is increased flexibility in the
. A. Master schedule . organization's ability to respond to changing
B. Net requirements product demand.
C. Scheduled receipts A. True
D. Product-structure tree B. False
E. Inventory record file

4 JIT attempts to balance inventory levels with

. the smaller lot sizes it requires.
1 Periodic updating and rerunning of an MRP
A. True
2 system to account for all changes which have
. occurred within a given time interval is B. False
called:
A. pegging
5 A customer orders twice as many as they did
. last month; JIT will have us make twice as
many as we made last month for this
customer.
A. True
B. False
6 JIT II can be described briefly as:
. A. a lower cost replacement for JIT I.
B. placing the buyer's representatives in
the supplier's factory.
C. empowering suppliers.
D. replacing one supplier with many
suppliers for the same supplies to
assure availability.
E. the same thing as MRP II but designed
for service operations.
7 Which of these groups would be least likely
. to resist conversion from a ROP/EOQ
inventory management systems to a JIT
system?
A. Workers
B. Management
C. Customers
D. Vendors
8 Which is not a benefit of JIT?
. A. Flexibility
B. Lower Inventories
C. Work Cells
D. Reduced lead times
E. Lower total setup costs
9 In the JIT philosophy, the ideal lot size is:
. A. the economic order quantity
B. the economic run size
C. one unit
D. the capacity of the standard container
E. N=(DT(1+X))/C
1 A basic requirement for operating with low
0 inventories in JIT systems is:
. A. Adequate space is available to store
inventory
B. Inventory investment must be saved.
C. Major problems must be uncovered.
D. Major problems must have been
solved.
E. Safety stock must be sufficient to cover
all possible stockouts.
1 Inventory management requires two
1 questions to be answered: How many and
. when.
JIT answers those two questions with:
A. exact quantities, when orders are
received
B. economic order quantities, reorder
point
C. economic run sizes, reorder point
D. exact quantity, first of each month
E. economic lot sizes, lead time