1 

- Consignment inventory requires that manufacturers:

Deliver their products to the consumer and payment from consumers is based on supply.
Stock their products on retail stores shelves and payment from consumers is based on forecast.
Deliver their products to the consumer and wait for payment until consumers requires to refill stock le
Stock their products on retail stores shelves and wait for payment until consumers purchase the produ

2 - A manufacturer must consider the long-term effects of its product's impact on the environment. A key pro
Routing and scheduling.
Material handling.
Facility planning.
Packaging options.

3 - A supply chain manager would like to guard against potential shortage in their company's manufacturing c
the manager pay most attention to ?
Technical
Demand
Process
Financial

4 - Which of the following activities best describes the functionality of decoupling stock within firms invento
Separation of the manufacturing process from order processing.
Separation of the manufacturing process from the selling process.
Maintaining inventory to accommodate uncertainty in demand at different geographical positions.
Maintaining inventory at a central location for all stages of the value-creation process.

5 - Which of the following is normally within the logistics function of a manufacturing organization ?
Production management.
Financial management.
Warehouse management.
Marketing management.

6 - In the income statement, the cost of goods sold is related to the:
Sales dollars.
Total inventory dollars.
Marketing expenses.
Manufacturing expenses.

7 - The lean production concept works best in which of the following manufacturing environments ?
 Make-to-order
Intermittent
Project
Flow

8 - Which of the following manufacturing environments presents the greatest complexity in promising compl
Flow
Repetitive
Continuous
Intermittent

9 - Which of the following manufacturing systems involves the creation of one unit or a small number of unit
Flow manufacturing
Intermittent manufacturing
Project manufacturing
Continuous manufacturing

10 - Which of the following types of manufacturing processes would tend to have the lowest work in process
Project
Intermittent
Batch
Flow

11 - The primary purpose of enterprise resources planning is to:

Focus on the manufacturing function within an organization.
Integrate an approach to business management.
Use external knowledge to seek an internal advantage.
Provide data protection along the supply chain.

12 - Which of the following characteristics is most distinctive of lean manufacturing ?

Teamwork.
Continuous improvement.
Qualitative measurements.
Bottom-line results.

13 - The principal objective of total quality management in manufacturing is to:

Implement statistical process control.
 Meet the expectations of the customer.
Reduce the costs of failure.
Eliminate inspections.

14 - Inventory turns is an appropriate performance measure for which of the following functions ?
Material control.
Activity-based costing control.
Total quality management.
Flexible manufacturing.

15 - Manufacturing overhead includes which of the following types of costs ?

Interest expense.
Supervision.
Direct labor.
Direct material.

16 - A manufacturer's market is highly dependent upon customers selecting standard options at the time of pla
best suited to compete in this market ?
Engineer-to-order.
Make-to-order.
Assemble-to-order.
Make-to-stock.

17 - Which of the following techniques deals with analysis and planning of logistics and manufacturing durin
Advanced planning and scheduling.
Aggregate planning.
Aggregate forecast.
Distribution Requirements Planning.

18 - Which of the following capacity management techniques is used to support the production plan ?
Resource planning.
Capacity requirements planning.
Rough-cut capacity planning.
Input/output control.

19 - Which of the following documents specifies how an item is to be manufactured ?

Routing
 Bill of labor
Dispatch list
Item master

20 - In which of the following environments is order-fill rate of primary importance to customer delivery exp
Make-to-stock
Design-to-order
Assemble-to-order
Make-to-order

21 - Which of the following approaches provides the reliability necessary to support a tightly integrated manu
Preventive maintenance.
Group technology.
A kanban system.
Computer-integrated manufacturing.

22 - Manufactured parts are being assembled on a production line at a constant rate when a faulty component
work ceases while the defect is reviewed. This action is an example of:
Heijinka.
Andon.
Jidoka.
Kaizen.

23 - Operations management should measure the workload resulting from manufacturing orders for which of
Determining order priority.
Controlling queues.
Planning materials.
Planning yields.

24 - Which of the following situations is an example of inventory being held as a way to balance supply and d
A manufacturer holds inventory of key components to maintain a level production schedule.
A manufacturer of seasonal products builds finished-goods inventory before the peak selling period.
A distributor maintains safety stock of slow-moving items at a central distribution center.
A retailer stocks a variety of sizes and colors of a fast-selling item to avoid losing sales.

25 - A remanufacturer of equipment is most likely to have what type of supply chain ?
Modular logistics.
 Reverse logistics.
Mixed model.
Lateral.

26 - A large manufacturer wanting to be more competitive in the global market place decided to outsource its
contractual basis. The companies providing the services would be referred to as:
Fourth party logistics providers.
Third party logistics providers.
Retail services providers.
Distribution services providers.

27 - Which of the following consequences is a result of shipping directly from the point of manufacture to the
Delivery lead times are consistent.
Risk pooling benefits are negated.
Distribution overhead is increased.
Order-fill rate is decreased.

28 - A company's product cannot be sold beyond 12 months from the date of manufacture. The product conta
neutralized. This situation is an example of product:
Reuse.
Remanufacturing.
Recovery.
Refurbishing.

29 - A manufacturer and the distributors of its products have decided to focus on price and product availabilit
most appropriate measure of customer service?
Manufacturer's volume flexibility.
Order-fulfillment lead times.
Distributors' order-fill rates.
Supply chain inventory days of supply.

30 - What is the primary benefit of using modular rather than integral designs ?
Lower cost of manufacturing.
Increased product performance.
Greater responsiveness in marketing and production.
Reduced complexity of bills of material.

31 - Component commonality in manufacturing primarily allows a company to:

 Optimize production runs for the components.
Use less-specialized machinery.
Decrease single-minute exchange of die processes.
Increase planning and control.

32 - Which of the following actions is most likely to increase total supply chain risk ?
Standardizing components used in a product family.
Expanding operations to multiple locations.
Consolidating manufacturing locations.
Reducing the supplier base for commodity-type components.

33 - A company ships from its manufacturing facilities directly to its warehouses. If the number of warehouse
and warehouses most likely will:
Increase.
Decrease.
Not change.
Become less predictable.

34 - A consumer goods manufacturer has introduced a new frozen product and encountered problems applyin
methodologies would be most appropriate to use to identify the root cause of the problem ?
Six sigma.
Statistical process control.
Lean production.
Theory of constraints.

35 - The heijunka philosophy can best be described as:

Level production.
Make-to-stock production.
A chase production strategy.
Produce to stock production.

36 - Which of the following terms refers to the practice of stopping the production line when a defect occurs ?
Haiku.
Arigato.
Poka-yoke.
Jidoka.

37 - Which of the following situations is characteristic of a make-to-stock environment ?

 Work in process (WIP) represents the largest cost of inventory.
The impact of technology on the production process will be large.
The master schedule is stated at the finished product level.
Customer involvement is typically very high.

38 - A production rate based on customer demand is called:

Cycle time.
Takt time.
Lead time.
Queue time.

39 - The portion of a firm's inventory and planned production that is not already committed is referred to as:
Planned order receipts.
Projected inventory balance.
Master production schedule due date.
Available-to-promise.

40 - A manufacturing facility is considering adopting cellular flow. Which of the following factors is most im
Availability of shipping methods.
Maturity of the product line.
Distance to the supplier.
Stability of the production schedule.

41 - Rough-cut capacity planning is best used to:

Assess the load on a work center.
Evaluate the master production schedule.
Establish order priorities.
Determine labor requirements.

42 - In which of the following environments does demand change from dependent to independent at the raw m
Finish-to-order.
Make-to-order.
Assemble-to-order.
Make-to-stock.

43 - Sales has identified an opportunity to develop a new market for a product family and requested an increa
most appropriate in this situation ?
 The proposed change should be presented to top management for a decision.
The production plans for other product families should be reduced.
The sales and operations plan should be regenerated.
The request should be rejected.

44 - In a capacity-constrained situation, which of the following actions is best to take if marketing wants to in
Increase production of the item, but do not make any other changes.
Increase production of the item, and decrease production of another item.
Increase production of the item, and change the production plan.
If the item is within the demand time fence, let the computer make the change automatically.

45 - Which of the following goals is the primary outcome of distribution requirements planning ?
Accurately feed the gross requirements into the master production schedule.
Decouple the distribution plan from the production plan.
Deliver products in the quantities requested by the customer.
Maintain an appropriate inventory level at all locations.

46 - In a make-to-order environment, if cumulative production exceeds cumulative demand, which of the foll
Excess capacity will exist.
Inventory will increase.
The backlog will increase.
The backlog will decrease.

47 - Which of the following situations is an example of postponement ?

Shipments are broken down into small groups for reshipment.
Shipments are consolidated immediately for reshipment.
Production begins after a customer order is received.
Partially assembled goods are assembled at a later stage.

48 - Which of the following outcomes most likely is the primary reason for outsourcing production of a new p
Increase control of the supply chain.
Increase flexibility of the supply chain.
Reduce required capital investment.
Reduce the need for skilled workers.

49 - In an assemble-to-order manufacturing environment, the master production schedule is typically the sche
Resources.
 Customer orders.
Components and subassemblies.
The final assembly.

50 - Which of the following lean tools would a warehouse team use to document, analyze, and improve the fl
Lean six sigma.
Kaizen.
Value stream mapping.
Five S methodology.