1.

All portions of the material production from __________ to ___________ are considered to be a linked chain under
the supply chain concept. Select one:

a. raw material, final customer b. work in process, final customer

c. work in process, raw material d. raw material, work in process

2. ______________ exists when the cumulative actual demand varies from the cumulative forecast. Select one:

a. Mean absolute deviation b. Random variation

c. Forecast error d. Bias

3. _______ and ______ are costs that increase or decrease with the quantity sold. Select one:

a. Indirect labor, indirect material b. Indirect labor, direct material

c. Direct labor, indirect material d. Direct labor, direct material

4. 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. Select one:

a. assemble-to-order b. make-to-stock

c. level production d. make-to-order

5. The near future holds _____ uncertainty than (as) the far future. Select one:

a. more b. Less c. Same d. all of the above

6. _________ is the amount of time the job is waiting at a work center before an operation begins. Select one:

a. Wait time b. Run time c. Setup time d. Queue time

7. The term _____________means that the work center is overloaded and the term ________________ means the work
center is under loaded. Select one:

a. overcapacity, under capacity b. under capacity, overcapacity

c. overcapacity, utilization d. utilization, under capacity

8. _______________ techniques are projections based on judgment, intuition, and informed opinions. Select one:

a. Qualitative forecasting b. Quantitative forecasting

c. Intrinsic forecasting d. Extrinsic forecasting

9. Rated capacity is calculated by taking into account the work center ___________. Select one:

a. utilization and demonstrated capacity b. utilization and efficiency

c. efficiency and demonstrated capacity d. efficiency and production

10. ___________ include hand tools, spare parts, lubricants, and cleaning supplies. Select one:

a. Finished goods b. Work-in-process

c. MRO supplies d. Raw materials

11. To get the most profit, a company should Select one:

a. Provide the lowest inventory investment b. Provide high production costs

c. Provide the highest distribution costs d. Provide little customer service

12. A good planning system must consider: Select one:

a. What are we going to make? b. What does it take to make it?

c. What do we have and need? d. All of the above

13. Critical resources in rough-cut capacity planning include: Select one:

a. Bottle-neck operations b. Labor

c. Critical materials d. All of the above

14. ______________ demand items need to be forecasted. Select one:

a. Neither independent nor dependent b. Both independent and dependent

c. Independent d. Dependent

15. Purchasing and ___________ represent the implementation and control phase of the production planning and control
system. Select one:

a. just-in-time (JIT) b. marketing

c. material requirements planning (MRP) d. production activity control (PAC)

16. Financially, inventories are very important to manufacturing companies and represent _________ of total assets on
the balance sheet. Select one:

a. 25% to 40% b. 20% to 60% c. 10% to 45% d. 50% to 80%

17. Products likely to have seasonal or periodic demand patterns include: Select one:

a. Toilet paper and paper towels b. Skis and lawnmowers

c. Milk and meat d. Toothpaste and deodorant

18. The first step in preparing an MPS is: Select one:

a. Develop a preliminary MPS b. Develop a rough-cut capacity plan

c. Resolve differences between the preliminary MPS and the capacity available

d. Check the preliminary MPS against available capacity

19. The MRP forms a vital link between sales and production as follows: Select one:

a. The MRP makes possible valid order promises b. The MRP is a contract between marketing and manufacturing

c. The MRP is a plan of what is to be produced and when d. All of the above

20. A _________ strategy means producing the amounts demanded at any given time. Select one:

a. TQM b. subcontracting c. chase d. production leveling