Product life cycles for many products are

________, forcing companies to not only

become ________ in design but also to
communicate changes and needs to suppliers
and distributors.
1. shrinking rapidly, more flexible
2. shrinking rapidly, less flexible
3. growing rapidly, more flexible
4. growing rapidly, less flexible

All portions of the material production from

__________ to ___________ are considered to
be a linked chain under the supply chain
concept.
1. work in process, final customer
2. raw material, work in process
3. work in process, raw material
4. raw material, final customer

To get the most profit, a company

should________
1. Provide little customer service
2. Provide high production costs
3. Provide the lowest inventory investment
4. Provide the highest distribution costs

Finance must keep investment and costs low.

This can be done by___________
1. Increasing inventory so inventory investment is at a maximum
2. Decreasing the number of plants and warehouses
3. Producing small quantities
4. Using short production runs

Today the concepts of ______ manufacturing

stress the need to supply customers with
what they want when they want it and to keep
inventories at a _______.
1. TQM, maximum
2. Six Sigma, maximum
3. JIT, minimum
4. ISO 9000, minimum

The concept of having ____ department(s)

responsible for the flow of materials, from
supplier through production to consumer, is
relatively new.
1. one
2. multiple
3. functional
4. none of the above

Materials management is also

called____________
1. Distribution planning
2. Control and logistics management
3. Both of the above
4. Neither of the above

Materials management is a coordinating

function responsible for planning and
controlling materials flow. Its objective(s)
is/are:
1. Maximize the use of the firm's resources
2. Provide the required level of customer service
3. Both of the above
4. Neither of the above

_______ and ______ are costs that increase or

decrease with the quantity sold.
1. Direct labor, indirect material
2. Direct labor, direct material
3. Indirect labor, indirect material
 4. Indirect labor, direct material

Inventory not only makes up a portion of the

cost of goods sold but has to be purchased at
the beginning of production to be processed
into finished goods. This type of inventory is
called _____________.
1. work-in-process
2. finished goods
3. raw materials
4. none of the above

A good planning system must consider:

1. What are we going to make?
2. What does it take to make it?
3. What do we have and need?
4. All of the above

_______ is the capability of manufacturing to

produce goods and services.
1. Capacity
2. Priority
3. Planning
4. Control

________ is responsible for analyzing the

marketplace and deciding the firm's
response, the markets to be served, the
products supplied, and desired levels of
customer service.
1. Marketing
2. Finance
3. Production
4. Engineering
______ must satisfy the demands of the
marketplace. It does so by using plants,
machinery, equipment, labor, and materials as
efficiently as possible.
1. Marketing
2. Finance
3. Production
4. Engineering

The _____________________ is a plan for the

production of individual end items.
1. MPS
2. JIT
3. MRP II
4. MRP

Purchasing and ___________ represent the

implementation and control phase of the
production planning and control system.
1. production activity control (PAC)
2. material requirements planning (MRP)
3. just-in-time (JIT)
4. marketing

A _________ strategy means producing the

amounts demanded at any given time.
1. production leveling
2. chase
3. subcontracting
4. TQM
In the _____________ environment, several
product options exist (e.g., automobiles) and
the customer is not willing to wait until the
product is made. Therefore manufacturers
produce and stock standard component
parts.
1. make-to-order
2. assemble-to-order
3. level production
4. make-to-stock

____________ is the first step in a

manufacturing planning and control system.
1. Production planning
2. Achieving the forecast
3. Maintaining the required inventory levels
4. Maintaining the planned backlog

The cost of a _________ that is too large

equals the cost of turning away business.
1. production plan
2. backlog
3. resource plan
4. capacity plan

The MRP forms a vital link between sales and

production as follows:
1. The MRP makes possible valid order promises.
2. The MRP is a plan of what is to be produced and when.
3. The MRP is a contract between marketing and manufacturing.
4. All of the above
The information needed to develop an MPR
includes:
1. The production plan
2. Forecasts for individual end items
3. Actual orders received from customers and for stock replenishments.
4. All of the above

A schedule is satisfactory when:

1. Capacity is greater than the production plan
2. It doesn't specify to the plant when to start production
3. Capacity is consistent with the production plan
4. It doesn't specify to the plant when to stop production

The objectives in developing an MRP include:

1. To maintain the desired level of customer service by maintaining finished goods
inventory levels or by scheduling to meet customer delivery requirements
2. To make the best use of material, labor, and equipment
3. To maintain inventory investment at the required levels
4. All of the above

To reach its objectives, the master production

schedule must:
1. Satisfy customer demand
2. Be outside the capacity of manufacturing
3. Be outside the guidelines of the production plan
4. Be outside both the capacity of manufacturing and the guidelines of the production
plan

The first step in preparing an MPS is:

1. Resolve differences between the preliminary MPS and the capacity available.
2. Check the preliminary MRP against available capacity.
3. Develop a preliminary MRP.
4. Develop a rough-cut capacity plan.
Critical resources in rough-cut capacity
planning include:
1. Bottle-neck operations
2. Labor
3. Critical materials
4. All of the above

It is possible to increase the available

capacity by:
1. Using fewer workers
2. Scheduling overtime
3. Limiting subcontracting
4. Rerouting away from other work centers

In the __________________ environment,

many different end items are made from a
small number of components.
1. make-to-stock
2. make-to-order
3. assembly-to-order
4. engineer-to-order

In the __________________ environment,

many end items can be made from
combinations of basic components and
subassemblies.
1. make-to-stock
2. make-to-order
3. assembly-to-order
4. engineer-to-order
The sides, ends, legs, and tops of tables are
________ demand items.
1. dependent
2. independent
3. forecast
4. calculated

Since _______ demand is not related to the

demand for any other assemblies or products,
it must be ___________.
1. dependent, forecast
2. dependent, calculated
3. independent, forecast
4. independent, calculated

All major inputs to the MRP system include:

1. Master production schedule and bill of material
2. Bill of material and inventory records
3. Inventory records and master production schedule
4. Master production schedule, inventory records, and bills of material

The ___________ is a statement of which end

items are to be produced, their quantity, and
the dates they are to be completed.
1. MRP
2. MPS
3. inventory record
4. bill of materials

The bill of materials shows all the parts

required to make __________.
1. one item
 2. the MPR
3. work-in-process inventory
4. raw materials inventory

A _________ is used when companies usually

make more than one product and the same
components are often used in several
products.
1. single-level bill
2. multiple bill
3. multilevel bill
4. product tree

Financially, inventories are very important to

manufacturing companies and represent
_________ of total assets on the balance
sheet.
1. 10% to 45%
2. 25% to 40%
3. 20% to 60%
4. 50% to 80%

__________ are purchased items received that

have not entered the production process.
They include purchased materials,
component parts, and sub-assemblies.
1. Raw materials
2. Work-in-process
3. Finished goods
4. MRO supplies
___________ include hand tools, spare parts,
lubricants, and cleaning supplies.
1. Raw materials
2. Work-in-process
3. Finished goods
4. MRO supplies

Inventory serves as a buffer between:

1. Supply and demand
2. Finished goods and component availability
3. Customer demand and finished goods
4. All of the above

__________ inventory is held to cover random

unpredictable changes in supply and demand
or lead time.
1. Anticipation
2. Fluctuation
3. Lot-size
4. Transportation

_______is a measure of customer service.

1. Percentage of orders shipped on schedule
2. Percentage of line items shipped on schedule
3. Order-days out of stock
4. All of the above

Storing inventory requires

___________________ and as inventory
increases, so do these costs.
1. space and workers
2. workers and equipment
3. space and equipment
4. space, workers, and equipment
Liabilities are obligations or amounts owed by
a company and include:
1. Accounts payable
2. Wages payable
3. Long-term debt
4. All of the above

The risks in carrying inventory are:

1. Obsolescence and damage
2. Damage and pilferage
3. Pilferage and deterioration
4. Obsolescence, damage, pilferage, and deterioration

________ is the costs incurred in the process

of making revenue.
1. Income
2. Cost of goods sold
3. Expenses
4. Retained earnings

A(n) _____________ lists all the parts needed

to make one complete assembly.
1. summarized parts list
2. indented bill
3. multilevel bill
4. single-level bill

___________ is the process of multiplying the

requirements by the usage quantity and
recording the appropriate requirements
throughout the product tree.
1. Offsetting
2. Planning orders
3. Lead time
4. Exploding
_______________ means that authorization is
given to purchasing to buy the necessary
material or to manufacturing to make the
component.
1. Planned order release
2. Releasing an order
3. Scheduled receipts
4. Open orders

____________ are orders placed on

manufacturing or on a vendor and represent a
commitment to make or buy.
1. Planned order releases
2. Releasing orders
3. Scheduled receipts
4. Open orders

______________involves long-range capacity

resource requirements and is directly linked
to production planning.
1. Resource planning
2. MRP
3. Capacity requirements planning
4. Rough-cut capacity planning

Resource planning involves changes in

staffing, capital equipment, product design, or
other facilities that take a ________ time to
___________.
1. short, acquire and eliminate
 2. long, acquire and eliminate
3. short, utilize and change
4. long, utilize and change

The inputs needed for a CRP include:

1. Open shop orders
2. Planned order released
3. Routings
4. All of the above

The Gregorian calendar:

1. Has an equal number of days per month
2. Spreads holidays evenly throughout the year
3. Works on a decimal base
4. Presents problems for manufacturing planning and control

Capacity needs to be measured:

1. At the machine or individual worker level
2. At the work center level
3. At the plant level
4. All of the above

_____________ is the number of hours a work

center can be used.
1. Demonstrated capacity
2. Rated capacity
3. Available hours
4. Utilization

Rated capacity is calculated by taking into

account the work center ___________.
1. utilization and efficiency
2. utilization and demonstrated capacity
3. efficiency and production
4. efficiency and demonstrated capacity
The term _____________means that the work
center is overloaded and the term
________________ means the work center is
under loaded.
1. undercapacity, overcapacity
2. overcapacity, under capacity
3. overcapacity, utilization
4. utilization, under capacity

In the _________ run, capacity ________ be

adjusted.
1. short, can
2. short, cannot
3. long, cannot
4. none of the above

If the workload in a manufacturing plan

cannot be changed, an alternative is to:
1. Schedule overtime
2. Schedule undertime
3. Adjust the workforce by hiring
4. All of the above

______________is concerned with the

production of high-volume standard products.
1. Flow manufacturing
2. Intermittent manufacturing
3. Product manufacturing
4. All of the above
Routings are fixed and work centers are
arranged according to the routing in
________________.
1. flow manufacturing
2. intermittent manufacturing
3. product manufacturing
4. all of the above

Flow of work through the shop is varied and

depends on the design of a particular
product. In _____________, as orders are
processed, they will take more time at one
workstation than at another. Thus, the work
flow is not balanced.
1. flow manufacturing
2. intermittent manufacturing
3. product manufacturing
4. all of the above

An example of project manufacturing is:

1. Gasoline
2. Automobiles
3. Appliances
4. Large shipbuilding
The __________________ contains a list of
the single-level components and quantities
needed to assemble a parent item.
1. work center master file
2. item master file
3. product structure file (bill of material file)
4. routing file

The _________________ collects all of the

relevant data on a work center.
1. work center master file
2. item master file
3. product structure file (bill of material file)
4. routing file

Each active manufacturing order has a record

in the _____________________.
1. work center master file
2. item master file
3. product structure file (bill of material file)
4. shop order master file

_________ is the amount of time the job is

waiting at a work center before an operation
begins.
1. Queue time
 2. Setup time
3. Run time
4. Wait time

The transit time between work centers is

____________.
1. setup time
2. run time
3. wait time
4. move time

_______________ is a method of reducing

manufacturing lead time. The order is split
into two or more lots and run on two or more
machines simultaneously.
1. Operation overlapping
2. Operation splitting
3. Infinite loading
4. Backward scheduling

On average, manufacturing firms spend about

________ of their sales dollars on the
purchase of raw materials, components, and
supplies.
1. 20%
2. 50%
3. 30%
 4. 40%

The objectives of purchasing include:

1. Obtaining the goods and services at the
highest price
2. Obtaining goods and services of the lowest
quality
3. Ensuring the best possible service and
prompt delivery by the supplier
4. Obtaining goods and services at any
quantity

A ________________ is a legal offer to

purchase.
1. quotation
2. purchase order
3. receiving order
4. supplier's invoice

When the supplier's invoice is received, the

following should agree:
 The purchase order, the receiving report,
and the invoice
 The purchase order, the work order, and the
production report
 The receiving report, the quotation, and the
material specification
 The material specification, the purchase
requisition, and the invoice
In purchasing an item or service from a
supplier, which factor is not included when
specifications are being developed?
1. Delivery requirement
2. Quantity requirements
3. Price requirements
4. Functional requirement

________ is the systematic use of techniques

that identify a required function, establish a
value for that function, and finally provide the
function at the lowest overall cost.
1. Cost analysis
2. Functional analysis
3. Value analysis
4. Functional specifications

_______ is most often used in wholesale or

retail businesses but is also used extensively
in manufacturing.
1. Description by brand
2. Description by specification
3. Description by function
4. Description by buyer

___________specifications and standard

specifications are the two major sources of
specifications or ways of describing a
product.
1. Functional
2. Buyer
3. Marketing
4. Production

______ sourcing is the use of more than one

supplier for an item.
1. Single
2. Multiple
3. Sole
4. Engineering

Materials such as copper, coal, wheat, meat,

and metals are:
1. Standard products
2. Items of small value
3. Made-to-order items
4. Commodities

_______________ occurs when a customer's

order is received.
1. Demand management
2. Forecasting
3. Random variation
4. Order processing
Trends:
1. Are level
2. Have no change from period to period
3. Can rise or fall
4. All of the above

______________ is usually thought of as

occurring on a yearly basis, but it can also
occur on a weekly or even daily basis.
1. Seasonality
2. Random variation
3. A cycle
4. A trend

Over a span of several years and even

decades, wavelike increases and decreases in
the economy influence demand and are called
_________.
1. seasonality
2. random variation
3. cycles
4. trends

______________ demand items need to be

forecast.
1. Independent
 2. Dependent
3. Both independent and dependent
4. Neither independent nor dependent

The near future holds _____ uncertainty than

(as) the far future.
1. less
2. more
3. the same
4. all of the above

_______________ techniques are projections

based on judgment, intuition, and informed
opinions.
1. Extrinsic forecasting
2. Quantitative forecasting
3. Intrinsic forecasting
4. Qualitative forecasting

The Delphi method:

1.Uses a panel of experts who give their
opinion on what is likely to happen
2.Consists of projections based on external
indicators that relate to the demand for a
company's products
3.Uses economic indicators, such as housing
starts and gasoline consumption, to forecast
demand
 4.Uses historical data to forecast demand

Products likely to have seasonal or periodic

demand patterns include:
1.Toilet paper and paper towels
2.Toothpaste and deodorant
3.Skis and lawnmowers
4.Milk and meat

______________ exists when the cumulative

actual demand varies from the cumulative
forecast.
1. Forecast error
2. Random variation
3. Mean absolute deviation
4. Bias