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MATERIAL MANAGEMENT STUDY MATERIAL - MCQ FOR SAIL MT

ADMIN

1.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
2.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
3.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
4.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
5.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

6_______ 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
7._______ is the capability of manufacturing to produce goods and services.
1. Capacity
2. Priority
3. Planning
4. Control

8.________ 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

9.______ 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

10.The _____________________ is a plan for the production of individual end items.

1. MPS
2. JIT
3. MRP II
4. MRP

11.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

12.A _________ strategy means producing the amounts demanded at any given time.

1. production leveling
2. chase
3. subcontracting
4. TQM
13.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

14.____________ 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

15.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

16.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

17.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

18.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
19.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

20.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.

21.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

22.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

23.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

24.The sides, ends, legs, and tops of tables are ________ demand items.

1. dependent
2. independent
3. forecast
4. calculated
25.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

26.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

27.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

28.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

29.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

30.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%
31.__________ 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
32.___________ include hand tools, spare parts, lubricants, and cleaning supplies.
1. Raw materials
2. Work-in-process
3. Finished goods
4. MRO supplies

33.__________ inventory is held to cover random unpredictable changes in supply and

demand or lead time.

1. Anticipation
2. Fluctuation
3. Lot-size
4. Transportation

34.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
35.The risks in carrying inventory are:
1. Obsolescence and damage
2. Damage and pilferage
3. Pilferage and deterioration
4. Obsolescence, damage, pilferage, and deterioration

36.________ is the costs incurred in the process of making revenue.

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

37.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

38.___________ 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

39._______________ 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

40.____________ 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

_41._____________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

42.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
43.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

44._____________ is the number of hours a work center can be used.

1. Demonstrated capacity
2. Rated capacity
3. Available hours
4. Utilization

45.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

46.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

47.An example of project manufacturing is:

1. Gasoline
2. Automobiles
3. Appliances
4. Large shipbuilding

48.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
49.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

50.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

51._________ 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

52.The transit time between work centers is ____________.

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

53._______________ 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

54.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%
55.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

56.A ________________ is a legal offer to purchase.

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

57.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

58.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

59.________ 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

60._______ 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
61.___________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

62.______ sourcing is the use of more than one supplier for an item.

1. Single
2. Multiple
3. Sole
4. Engineering

63.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

64._______________ occurs when a customer's order is received.

1. Demand management
2. Forecasting
3. Random variation
4. Order processing

65.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

66._____________ demand items need to be forecast.

1. Independent
2. Dependent
3. Both independent and dependent
4. Neither independent nor dependent
5.
67._______________ techniques are projections based on judgment, intuition, and informed
opinions.

1. Extrinsic forecasting
2. Quantitative forecasting
3. Intrinsic forecasting
4. Qualitative forecasting

68.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

69.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

70.______________ exists when the cumulative actual demand varies from the cumulative
forecast.

1. Forecast error
2. Random variation
3. Mean absolute deviation
4. Bias