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Question 1
Enterprise Resource Planning (ERP) is
severely limited by current MRP computer systems
not related to MRP
an advanced MRP II system that ties-in customers and suppliers
not currently practical

2 points   

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Question 2
Which of the following is not an assumption of the basic fixed-order quantity
inventory model?  
Ordering or setup costs are constant  
Inventory holding cost is based on average inventory  
Diminishing returns to scale of holding inventory  
Lead time is constant  

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Question 3
Which of the following dispatching rules tends to minimize job flow time?
FCFS: first come, first served
SPT: shortest processing time
EDD: earliest due date
LPT: longest processing time

2 points   

uestion 4
Acceptance sampling is usually used to control
the number of units output from one stage of a process which are then sent to the next
stage
the number of units delivered to the customer
the quality of work-in-process inventory
 incoming lots of purchased products

Question 5
Savings on transportation cost is a feature of

Centralized purchasing

    Localized purchasing

    Both a and b

    None of above

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Question 6
One way to facilitate production scheduling and production in firms making a large
number of different final products is to use
planning bills
modular bills
phantom bills
overdue bills
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Question 7
Which of the following is not necessarily an element of a good forecast?
estimate of accuracy
timeliness
meaningful units
low cost

2 points   

Question 8
Which of the following functions is not a core function of an organization

The accounting and finance function

The marketing (including sale) function

The operation function

All of these are core functions

Question 9
In what way are Distribution Resource Planning (DRP) and Material Requirements Planning
(MRP) similar?

Both employ similar logic and procedures.

Both are employed in a manufacturing organization.

Both work most efficiently with largest lot sizes.

Both are employed by retail organizations.

Question 10
Which of the following statements is true of Lean-Six Sigma?

Lean principles focus on advanced statistical methods.

Lean principles and Six-Sigma are separate bodies of knowledge

Lean principles have been developed over a lengthy period of time.

Lean principles include the 5Ss framework and practices.

Question 11
The type of inspection that classifies items as being either good or defective is

variable inspection

attribute inspection

fixed inspection

all of the above

2 points   

Question 12
Which of the following is true of a p-chart?

The lower control limit is found by subtracting a fraction from the average number of defects.

The lower control limit indicates the minimum acceptable number of defects.

The lower control limit may be below zero.

The lower control limit may be at zero.

Question 13
 Flow time represents the time

to complete an order, time spent in processing

to complete an order time spent in waiting

to complete an order, including time spent in processing and in waiting

none of these

Question 14
Enterprise resource planning (ERP)

has been made possible because of advances in hardware and software

uses client/server networks

creates commonality of databases

None of the above are true of ERP.

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Question 15
Collaborative Planning, Forecasting, and Replenishment (CPFR) a Web based tool
used to coordinate demand forecasting, ____________ and inventory replenishment
between supply chain trading partners. 
 Production and purchase planning
 Demand and supply planning 
 Quantitative forecasting
 Demand management 

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Question 16
Which of the following is not an assumption of the basic fixed-order quantity
inventory model?  
   Ordering or setup costs are constant  
   Inventory holding cost is based on average inventory  
   Diminishing returns to scale of holding inventory  
   Lead time is constant  

3 points   

Question 17
The forecasting model that is based upon estimates of salesperson's expected sales
is likely to be called ________. 
 Delphi method
Sales force combination
Consumer market survey
Panel of executive opinion

3 points   

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Question 18
The forecasting time horizon that would typically be easiest to predict would be: 
Medium-range
Long-range
Short-range
Intermediate range

3 points   

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Question 19
For products in introduction stage of the product life cycle the engineering and R&D
likely to be key functions influencing the purchase decision.
 True

 False

1 points   
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Question 20
Site visits to potential vendors, laboratory tests of a new product, and investigation of
possible product specifications are part of formal information search.
 True

 False
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Question 21
A document describing quantity of end items to be produced within specified periods
of time is called MPS
 True

 False

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Question 22
Preparation of machine load refers to progressing
 True

 False

1 points   

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Question 23
A firm pursuing a strategy based on customization and variety will tend to structure
and manage its supply chain to accommodate more _____________ than a firm
pursuing a strategy based on low-cost and high-volume.
Variation
Streamlined flow
Quality
Capacity

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 Question 24
Environmental scanning is a search for events or trends that present either threats or
opportunities to the organization.
 True

 False

1 points   

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Question 25
Trend adjusted exponential smoothing requires selection of two smoothing
constants.
 True

 False

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Question 26
Time series techniques involve identification of explanatory variables that can be
used to predict future demand.
 True

 False

1 points   

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Question 27
The most commonly used measure of dispersion is range
 True

 False
 1 points   

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Question 28
Environment of certainty is a condition in which certainty of outcomes of all
alternatives is known
 True

 False

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Question 29
A quality circle holds a brainstorming session and attempts to identify the factors
responsible for flaws in a product. Then Ishikawa diagram can be used to organize
their findings.
 True

 False

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Question 30
A suitable chart for controlling fraction defective is c chart
 True

 False
 1 points   

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Question 31
Total Quality Management emphasizes a commitment to quality that goes beyond
internal company issues to suppliers and customers.
 True

 False

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Question 32
Median refers to the central value
 True

 False

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    Question 33 of 63   
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Question 33
One concern in the design of production systems is the degree of standardization.
 True

 False

1 points   

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    Question 34 of 63   
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Question 34
Production functions interacts with purchase
 True

 False

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    Question 35 of 63   
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Question 35
Outsourcing tends to improve quality but at the cost of lowered productivity.
 True

 False

1 points   

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Question 36
A moving average forecast tends to be more responsive to changes in the data
series when more data points are included in the average.
 True

 False

1 points   

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Question 37
A Type II error occurs when the population is worse than the LTPD.
 True

 False

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Question 38
The concept of cause and effect is used in JIT
 True

 False

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Question 39
JIT is the contribution of USA
 True

 False

1 points   

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Question 40
 Measurement of productivity in service is more straightforward than in manufacturing
since it is not necessary to take into account the cost of materials.
 True

 False

1 points   

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Question 41
A suitable chart for controlling defects is p chart
 True

 False

1 points   

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Question 42
Organizational purchase situations are known as straight rebuy, modified rebuy, and
new task.
 True

 False

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Question 43
A record of all the components of an item, the parent component relationship and
usage quantities is called BOM
 True
  False

1 points   

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Question 44
A cement plant should be located near river
 True

 False

1 points   

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    Question 45 of 63   
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Question 45
Mr. Jhon's job as a purchasing agent consists mostly of reordering basic supplies
and component parts. Then it represents modified rebuy organizational purchase
situation.
 True

 False

1 points   

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Question 46
A layout for allowing workers to operate more machines is called hybrid
 True

 False
 1 points   

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Question 47
The term robust design refers to a product that has exceptional strength.
 True

 False

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Question 48
Poka-yoke is the Japanese term for continuous improvement.
 True

 False

1 points   

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Question 49
Individual power and expertise have virtually no influence on organizational
decisions since it is a group process involving DMUs.
 True

 False

1 points   

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Question 50
The data relating to product defects can be categorized as attribute
 True

 False

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    Question 51 of 63   
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Question 51
Quality refers to cost of product
 True

 False

1 points   

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Question 51
Quality refers to cost of product
 True

 False

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Question 52
 Carrying out negotiations is a part of maintenance function
 True

 False

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Question 53
An advantage of a weighted moving average is that recent actual results can be
given more importance than what occurred a while ago.
 True

 False

1 points   

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Question 54
Machine is an input?
 True

 False

1 points   

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Question 55
Inspection, scrap, and repair are examples of external costs.
 True

 False

1 points   
     Question 55 of 63   
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Question 56
The Uniform Commercial Code specified that a product must be suitable for its
intended purpose.
 True

 False

1 points   

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Question 57
ISO 9000 seeks standardization in terms of suppliers' specifications.
 True

 False

1 points   

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Question 58
If 100 kg material is used for producing 50 product units, material productivity is 2
 True

 False

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Question 59
One of the examples of Wastivity is
 Inventory in store
    Waiting time
    Defective product
    All above

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Question 60
Which of the following would not generally be a motive for a firm to hold inventories?
to decouple or separate parts of the production process
to provide a stock of goods that will provide a selection for customers
to take advantage of quantity discounts
to minimize holding costs

4 points   

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Question 61
The first era of evolution of operations management was
Scientific management era
    Human relation era
    Industrial revolution era
    Advanced techniques era

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Question 62
Which of the following best describes how short-term schedules are prepared?
Short-term schedules are prepared
directly from the aggregate plans
directly from the capacity plans
from inventory records for items that have been used up
from master schedules which are derived from aggregate plans

4 points   

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    Question 63 of 63
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Question 63
The amount of inventory kept at each stock point in a warehouse network is usually
based on:
Minimizing transportation costs
Constant demand
Tradeoffs between warehousing, inventory, and transportation costs
Product pricing strategy

4 points   

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