CHAPTER 2 MULTIPLE CHOICE SCM_3309_SP_2019_LEWIS_ILIANA

CHAPTER 2 MULTIPLE CHOICE.

Choose the one alternative that best completes the statement or answers the question.

1) The ability of manufacturing to produce goods and services is called: 1) _______

A) routing.
B) capacity.
C) scheduling.
D) production planning.
E) none of the above

2) Priority in production planning relates to: 2) _______

A) capacity.
B) an objective of the firm.
C) routing.
D) how much of what is needed and when.
E) none of the above

3) Which of the following is an input to the production plan? 3) _______

A) strategic business plan
B) market plan
C) engineering plan
D) financial plan
E) All of the above are inputs.

4) Which of the following plans has the longest planning horizon and the least level of detail? 4) _______
A) master production schedule
B) production plan
C) strategic business plan
D) All of the above have the same level of detail.
E) none of the above

5) Determining the need for labor, machines, and physical resources to meet the production objectives of the firm
Is called: 5) _______

A) capacity planning.
B) production planning.
C) production control.
D) all of the above
E) none of the above

6) The function of setting the limits or levels of manufacturing operations based on the market plan and resource
availability is called: 6) _______

A) capacity planning.
B) production activity level.
C) production planning.
D) all of the above
E) none of the above

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CHAPTER 2 MULTIPLE CHOICE SCM_3309_SP_2019_LEWIS_ILIANA

7) A statement of a schedule of requirements for individual end items is called: 7) _______

A) a production plan.
B) a master production schedule.
C) a material requirements plan.
D) a capacity plan.
E) none of the above

8) Which of the following statements is true about sales and operations planning? 8) _______

A) It includes only the marketing and production plans.

B) It has no effect on inventory levels.
C) It provides a means of updating the material requirements plan.
D) It is usually updated on a monthly basis.

9) For the purposes of production planning, product groups should be established on the basis of: 9) _______

A) the availability of machinery.

B) market segments.
C) similarity of manufacturing process.
D) the availability of materials.
E) all of the above

10) A production planning strategy which turns away extra demand is called: 10) ______

A) demand matching.
B) production leveling.
C) hybrid strategy.
D) all of the above
E) none of the above

11) Which basic production planning strategy will build inventory and avoid the costs of excess capacity?
11) _______
A) subcontracting
B) demand matching (chase)
C) production leveling
D) all of the above
E) none of the above

12) Which basic production planning strategy avoids hiring and layoff costs and the costs of excess capacity?
12) ______

A) subcontracting
B) operation smoothing
C) demand matching
D) all of the above
E) none of the above

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CHAPTER 2 MULTIPLE CHOICE SCM_3309_SP_2019_LEWIS_ILIANA

13) If the opening inventory is 100 units, the sales are 500 units and the ending inventory is 200 units, then
manufacturing must produce: 13) ______

A) 600 units.
B) 500 units.
C) 400 units.
D) 300 units.
E) none of the above

14) Firms will generally make-to-stock when: 14) ______

A) delivery lead times are long.

B) demand is unpredictable.
C) there are many product opti ons.
D) all of the above
E) none of the above

15) Firms will generally make-to-order when: 15) ______

A) there are many product options.

B) product is expensive to make and store.
C) products are produced to customer specifications.
D) all of the above
E) none of the above

16) Which of the following is concerned with long-term planning of manufacturing activity? 16) ______

A) master production scheduling

B) master planning
C) sales and operations planning
D) production activity control
E) MRP

17) Which of the following represents the major reason for developing the production plan as part of Sales and
Operations Planning? 17) ______

A) to plan for resources required to produce to the agreed plan

B) to plan the acquisition of new manufacturing facilities
C) to plan a schedule for the production of individual products
D) to decide how to best produce exactly what is in the sales plan

18) Which of the following is a complete closed loop planning system that develops plans for all materials and
operations? 18) ______

A) material requirements planning

B) enterprise resource planning
C) supply chain management
D) capacity requirements planning

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CHAPTER 2 MULTIPLE CHOICE SCM_3309_SP_2019_LEWIS_ILIANA

19) Which following best represents the concept of sustainability? 19) ______

A) the ability to maintain the supplier base

B) the ability to train labor effectively
C) the ability to make long production runs
D) the ability to continue operation in the long term

20) When a company establishes a program to recycle or reuse products discarded or returned from customers it
is typically called which of the following? 20) ______

A) resupply planning
B) product return contract
C) reverse supply chain
D) customer servicing

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