Professional Documents
Culture Documents
All portions of the material production from __________ to ___________ are considered to be a linked chain under the
supply chain concept.
Finance must keep investment and costs low. This can be done by___________
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
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The concept of having ____ department(s) responsible for the ow of materials, from supplier through production
to consumer, is relatively new.
1. one
2. multiple
3. functional
4. none of the above
1. Distribution planning
2. Control and logistics management
3. Both of the above
Materials management is a coordinating function responsible for planning and controlling materials ow. Its
objective(s) is/are:
_______ and ______ are costs that increase or decrease with the quantity sold.
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 nished goods. This type of inventory is called _____________.
1. work-in-process
2. finished goods
3. raw materials
4. none of the above
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1. Capacity
2. Priority
3. Planning
4. Control
________ is responsible for analyzing the marketplace and deciding the rm'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 e ciently as possible.
1. Marketing
2. Finance
3. Production
4. Engineering
1. MPS
2. JIT
3. MRP II
4. MRP
Purchasing and ___________ represent the implementation and control phase of the production planning and control
system.
4. marketing
A _________ strategy means producing the amounts demanded at any given time.
1. production leveling
2. chase
3. subcontracting
4. TQM
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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
1. Production planning
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:
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1. To maintain the desired level of customer service by maintaining finished goods inventory levels or by
scheduling to meet customer delivery requirements
4. Be outside both the capacity of manufacturing and the guidelines of the production plan
1. Resolve differences between the preliminary MPS and the capacity available.
1. Bottle-neck operations
2. Labor
3. Critical materials
2. Scheduling overtime
3. Limiting subcontracting
4. Rerouting away from other work centers
In the __________________ environment, many di erent 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
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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
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
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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 is held to cover random unpredictable changes in supply and demand or lead time.
1. Anticipation
2. Fluctuation
3. Lot-size
4. Transportation
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1. Accounts payable
2. Wages payable
3. Long-term debt
1. Income
2. Cost of goods sold
3. Expenses
4. Retained earnings
A(n) _____________ lists all the parts needed to make one complete assembly.
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
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_______________ means that authorization is given to purchasing to buy the necessary material or to manufacturing
to make the component.
3. Scheduled receipts
4. Open orders
____________ are orders placed on manufacturing or on a vendor and represent a commitment to make or buy.
______________involves long-range capacity resource requirements and is directly linked to production planning.
1. Resource planning
2. MRP
Resource planning involves changes in sta ng, capital equipment, product design, or other facilities that take a
________ time to ___________.
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1. Demonstrated capacity
2. Rated capacity
3. Available hours
4. Utilization
Rated capacity is calculated by taking into account the work center ___________.
The term _____________means that the work center is overloaded and the term ________________ means the work
center is under loaded.
1. undercapacity, overcapacity
1. short, can
2. short, cannot
3. long, cannot
1. Schedule overtime
2. Schedule undertime
3. Adjust the workforce by hiring
4. All of the above
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1. Flow manufacturing
2. Intermittent manufacturing
3. Product manufacturing
4. All of the above
Routings are xed 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 ow is not
balanced.
1. flow manufacturing
2. intermittent manufacturing
3. product manufacturing
4. all of the above
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.
4. routing file
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_________ 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
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 rms spend about ________ of their sales dollars on the purchase of raw materials,
components, and supplies.
1. 20%
2. 50%
3. 30%
4. 40%
1. quotation
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2. purchase order
3. receiving order
4. supplier's invoice
In purchasing an item or service from a supplier, which factor is not included when speci cations 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 nally 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
___________speci cations and standard speci cations are the two major sources of speci cations 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
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2. Multiple
3. Sole
4. Engineering
1. Standard products
2. Items of small value
3. Made-to-order items
4. Commodities
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 in uence
demand and are called _________.
1. seasonality
2. random variation
3. cycles
4. trends
1. Independent
2. Dependent
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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
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
______________ exists when the cumulative actual demand varies from the cumulative forecast.
1. Forecast error
2. Random variation
3. Mean absolute deviation
4. Bias
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