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Questions in this quiz (95)
1What term indicates the percentage of time the work center is active compared to the available time?
- Aefficiency
- Beffectiveness
- Cutilization
- Duptime
2what term is used for the ration of standard hours of work produced to actual hours worked?
- Aefficiency
- Beffectiveness
- Cutilization
- Duptime
3what term is used for calculating available time x utilization x efficiency?
- Aeffectiveness
- Buseful capacity
- Cdemonstrated capacity
- Drated capacity
4which of the following shows the capacity required at each work center based on planned and released orders for each time period of the plan?
- Awork center profile
- Bload profile
- Cscheduled order profile
- Dwork-to-be-done report
5which of the following PAC activities must be done when planning the flow of work?
- Abe sure the material and tooling needed are available
- Badvise the plant supervisor of future orders
- Crefer to the production plan for what orders to run
- Dcomplete a material requisition plan
6Which of the following is concerned with very short-term detailed planning of the flow of orders through manufacturing?
- Aproduction planning
- Bmaster production scheduling
- CMRP
- DPAC
7which of the following is an element of manufacturing lead time?
- Adesign time
- Bdelivery lead time
- Cwait time
- Dpurchase lead time
8what is the name given to a scheduling system in which the last operation on a routing is scheduled first and for completion on the due date?
- Aforward scheduling
- Bbackward scheduling
- Cinfinite scheduling
- Dfinite scheduling
9which of the following statements is most accurate?
- Awork centers located after a bottleneck should work at full capacity.
- Ba time buffer should be a established after a bottleneck.
- Cwork centers feeding a bottleneck should work at full capacity.
- Da bottleneck will control the throughput of all products processed by it.
10which of the following statements is most accurate?
- Awork centers located after a bottleneck should work at full capacity.
- Ba time buffer should be established after a bottleneck.
- Cwork centers feeding a bottleneck should work at full capacity.
- Da bottleneck will control the throughput of all products processed by it.
11In the diagram, which is the independent demand item?
X
1 2 3 4- AX
- B1
- C2
- D3
12which of the following is an objective of MRP?
- Akeep the factory busy.
- Bkeep priorities current.
- Cdetermine the forecast.
- Dminimize inventory investment
13what is the name of the set of priority planning techniques for planning component items below the end-item level?
- Amaster scheduling
- BMRP
- Ccapacity planning
- Dproduction control
14which of the following is a major input to an MRP system?
- Athe production plan
- Bthe capacity plan
- Cshop floor activity planning and control
- Dthe MPS
15what is the name of the document that shows the component parts and the number of parts needed to make one of an assembly or subassembly?
- Aroute sheet
- Bmaterial requirements plan
- CBOM
- Dmaterial requisition
16which of the following statements is true?
- Athe same part number can be used to identify similar products.
- Ba part has one and only one part number.
- Cthe same part on different BOMs will have a different number.
- Dan item can be either a parent or component, but not both.
17which of the following statements is accurate?
A
B C
D E- Aitem A is the parent of item B
- Bitem C is the parent of item A
- Citem A is a parent of item D
- DItems D and E are components of A
18What is the term for the ability to relate the demand for an item shown on an MRP record back to the parent causing the demand?
- Awhere-used
- Brelating
- Cpegging
- Ditem planning
19The lead time for each item is one week. if an order for 50 of A is to be delivered in week 5, in what week will there be a planned order release for item B?
A
B C
D E- A5
- B4
- C3
- D2
20which statement is correct?
- Aplanned order receipts show when the order is needed.
- Bwhen an order is released, it becomes a planned order.
- Cscheduled receipts show when goods were put into inventory.
- Dgross requirements come from the planed order receipt of the parent.
21which basic production planning strategy will build inventory and avoid the costs of excess capacity?
- Achase strategy
- Blevel production strategy
- Ccycle counting strategy
- Ddemand matching strategy
22for the purposes of production planning, product families should be established on the basis of
- Amarket segments
- Bsimilarity of manufacturing process
- Cthe availability of materials
- Dthe availability of machinery
23if the opening inventory is 100 units, sales are 500 units, and the ending inventory is 200 units, what will manufacturing produce?
- A300 units
- B400 units
- C500 units
- D600 units
24under which of the following circumstances will firms generally make-to-stock?
- Ademand is unpredictable
- Bmany product options exist
- Crequired delivery times are shorter than the time needed to make the product
- Dcustomers require special engineering
25the information needed to develop a master schedule will come from which of the following?
- Athe capacity requirements plan
- Bthe forecast of individual end items
- Cproduction activity control
- Dthe material requirements plan
26which of the following is a characteristic of the MPS?
- Ait facilitates forecasting
- Bit works with families of products
- Cit is an agreed-upon plan between production and marketing and sales.
- Dit cannot be used for order promising
27which of the following is an objective of an MPS?
- Amaximize utilization of equipment
- Bkeep the sales department happy
- Cmaintain the desired level of customer service
- Dminimize inventory investment
28which of the following statements is most accurate about the MPS?
- Ait is an agreed-upon plan between finance and manufacturing.
- Bif it is poorly done, we can expect past-due schedules and unreliable delivery promises.
- Cit is a plan for families of products that manufacturing expects to make over some period in the future.
- Dit provides input to the production plan.
29what is the name for the portion of inventory or production not committed to customer orders?
- Afree stock
- BATP
- Cexcess production
- Dwaste
30which of the following is true about time fences in a master schedule system?
- Achanges far out in the planning horizon can be made with little or no cost to manufacturing.
- Bin the "frozen zone," capacity and materials can easily be committed to new orders.
- Cchanges in the near future on the panning horizon are less costly to make than changes in the distant future.
- Dthe master planner should be authorized to make changes in the frozen zone.
31which of the following is a characteristic of demand?
- Amean absolute variation
- Bseasonal variation
- Caverage variation
- Dstandard variation
32product A is made from components B and C, Component B is made from parts D and E. which items should be forecast?
- Aonly A
- BA, B, and C
- CD and E
- DB,C,D, and E
33which of the follwoing is the best statement about the general principles of forecasting?
- Aforecasts are more accurate for individual items than for groups of items.
- Bforecasts are more accurate for distant periods of time.
- Cevery forecast should include an estimate of error.
- Dforecasts usually are accurate.
34what important assumption is made about quantitative forecasting methods?
- Athe past is a valid indicator of the future.
- Bdemand trend is seldom linear.
- Cseasonal variations are small.
- Drandom variations are small.
35which forecasting techniques take the average demand for some past number of periods?
- Atrend time average
- Bmoving average
- Cdemand smoothing
- Dqualitative analysis
36why is it important to monitor the forecast?
- Ato compare the actual sales with the forecast.
- Bto improve our forecasting methods.
- Cto utilize actual sales data.
- Dto satisfy marketing's need to know.
37which of the following statements is most accurate?
- Ademand fluctuations that depend on the time of the year, week, or day are called trend.
- Bthe seasonal index is an estimate of how much demand during the season will be above or below the average demand.
- Cseasonality always occurs in summer, winter, spring, and fall.
- Drandom variation is constant from period to period.
38which of the following causes forecast error?
- Arandom variation from the average demand.
- Berrors in monitoring the forecast.
- Cdifferences in lead times.
- Ddifferences between sales and demand.
39which of the following statements is most accurate?
- Aindependent demand items should be forecast.
- Ba forecast for sales next year will not be as accurate as a forecast for a year from now.
- Cforecasts for families of products should be built up from individual product forecasts.
- Dforecasts are almost always accurate.
40which of the following statements is most accurate?
- Aif we wish to forecast demand, past sales must be used for the forecast.
- Bforecasts made in dollars for total sales should be used by manufacturing.
- Cforecasts should be made for individual items in a group.
- Dthe circumstances relating to demand data should be recorded.
41why is manufacturing important to the economy?
- Ait adds value to products to generate wealth.
- Bit uses natural resources and prevents waste.
- Cit decreases employment and generates wealth.
- Dit prevents waste and decreases employment.
42in a conventional manufacturing environment, which of the following objectives are in conflict?
- Amaximize customer service and increasing inventory investment.
- Bminimize production costs and increasing inventory investment.
- Cminimize production costs and decreasing inventory investment.
- Dminimize customer service and decreasing inventory investment.
43which of the following statements is true?
- Athe objectives of marketing and production can be met with higher inventories.
- Bthe objectives of marketing and finance can be met with higher inventories.
- Cthe objectives of marketing and production can be met with lower inventories.
- Dthe objectives of marketing and finance can be met with lower inventories.
44which of the following manufacturing environments, or manufacturing strategies, produces the longest delivery lead time?
- AMTO
- BATO
- CMTS
- Dcontinuous manufacturing
45which of the following is a major objective of materials management?
- Aprovide sufficient equitable employment.
- Bprovide the required level of customer service.
- Csupport cost accounting by decreasing inventory turns.
- Dprovide cost information for management decisions.
46which of the following are primary activities of MPC?
- Ainventory management and cost information.
- Bsales support and cost information.
- Cproduction planning and inventory management.
- Dsales support, implementation, and control.
47which of the following is the performance measure that relates to daily work routines, such as cycle time and utilization?
- Atactical
- Bstrategic
- Coperational
- Dreliability
48which of the following systems is unique in its focus on the reduction of defects by reducing variation?
- Alean
- Bsix sigma
- CERP system
- DTOC
49which of the following statements is true about the product layout, or the continuous process?
- Aworkstations are located according to the type of machinery.
- Bworkflow is lumpy.
- Ca wide variety of different products can be produced.
- Dthere is little buildup of WIP inventory.
50which of the following statements is true regarding process layout, or intermittent manufacturing?
- Acapital costs generally are higher than for product layout.
- Bspecial-purpose machinery is used.
- Ceach workstation must be flexible.
- Dthere is little buildup of WIP inventory.
51which of the following best specifies the flow of material through the production process of manufacturing an orbital satellite?
- AV
- BA
- CT
- DI
52where should the stock buffers be located?
raw material A(12) B(11) C(10) D(9) ship
capacity = units per day
market demand = 8 per day- Abefore raw material. resource A, and before resource C.
- Bbefore raw material, resource C, and before resource D.
- Cbefore raw material, resource D, and before ship
- Dbefore raw material, resource A, and before ship.
53in a simplified DBR system, what is the throughput-based constraint?
- Araw materials
- Bshipping point
- Cthe active bottleneck
- Dthe market
54what is the throughput if sales revenue equals $250 million and true variable costs equal $100 million?
- A$350 million
- B$150 million
- C$100 million
- D$2.5 million
55which one of these steps from the five focusing steps represents the likely point where an organization would add more resources to the CCR?
- Aidentify the constraint
- Bexploit the constraint
- Csubordinate everything else
- Delevate the constraint
56A fishbone diagram is an example of which of the following?
- Aa cost buildup method
- Ba method to determine root cause
- Ccapability analysis
- Danother name for Pareto analysis
57which of the following is most likely to improve quality at the source for manufactured parts?
- Aapplying as much automation as possible
- Binspecting all parts for known defectives
- Cimproving customer warranty coverage
- Dreducing the variation in manufacturing process
58which of the following statements is best regarding employee empowerment?
- Amanagement is relieved of the responsibility for decisions the company makes.
- Bemployees are empowered to set their wage rates and hours of work.
- Cline employees are given more authority to make decisions.
- Ddecision-making power is concentrated in a small, upper-level management group.
59which of the following statements is true regarding Pareto analysis?
- Ait separates the significant few from the trivial many.
- Bit uses the six categories of quality.
- Cit is an extension of the 50-50 rule of quality.
- Dit assigns weighted costs associated with internal versus external failure costs.
60which of the following statements is true?
- Acost buildup and storage add value to a product.
- Bvalue starts with the customer.
- Ccost and value are interchangeable terms.
- Dlean manufacturing means always having product ready for the customer.
61which of the following is an advantage of work cells?
- Amaximum machine utilization.
- Breduced material movement.
- Clarger batches and lower unit costs.
- Dreduced worker skills required.
62which of the following statements is true regarding total productive maintenance?
- Askilled mechanics are used to perform routine machine maintenance.
- Binspectors are used to ensure that every machine is ready for work at all times.
- Coperators regularly report maintenance productivity to management.
- Dmachine operators take responsibility for most of the routine machine maintenance.
63which of the following statements is true regarding the relationship with suppliers in a lean environment?
- Aall cost reductions will be awarded directly to the buyer.
- Bshort-term contracts for multiple small deliveries will be used.
- Cplanning becomes more erratic and difficult.
- Dthe supplier is viewed as an upstream work center.
64which of the following describes the DMAIC methodology?
- Aa method for implementing PDCA.
- Ba six-sigma process-improvement methodology.
- Ca method for lowering manufacturing expenses.
- Da lean methodology for implementing flow.
65a control chart primarily used to determine which of the following?
- Athe highest frequency of an event
- Bthe specification limit
- Cdetecting special causes of variation in a process, as opposed to random variation
- Dthe cost of implementing quality systems
66which of the following is an objective of purchasing?
- Ato keep many sources of supply available to ensure competitive pricing.
- Bto control budgetary expenditures of all employees through sound PO control.
- Cto obtain goods and services of the required quality and right cost.
- Dto ensure that goods are always purchased at the lowest price.
67in a purchasing system, which of the following originates with the departments or person who will be the ultimate user?
- Apurchase requisition
- BPO
- Cvendor selection
- Drequest for quotation
68which type of sourcing is set up when a product is unique and available from only one source?
- Asingle sourcing
- Bsole sourcing
- Cmultiple sourcing
- Ddouble sourcing
69which of the following is the next step in the purchasing cycle after a requisition is generated?
- Afollow up
- Bapprove payment
- Creceive goods
- Dissue PO
70which of the following categories of a supplier agreement covers specifications, allowable defects, and grade?
- Aprice
- Bterm
- Cquality
- Dquantity
71which of the following is a major objective of distribution inventory management?
- Ato provide the required level of customer service.
- Bto minimize the costs of warehouse space.
- Cto always have enough of everything on hand so there are no stockouts.
- Dto minimize labor costs.
72which of the following is NOT considered a function of physical distribution?
- Atransportation
- Bproduction control
- Cdistribution inventory
- Dwarehousing
73which of the following four P's influences how physical distribution planning and execution addresses product volume, location of demand, and demand fluctuations?
- Aproduct
- Bprice
- Cplace
- Dpromotion
74considering the service desired and the relative cost of the items, which of the following would you most likely ship by truck?
- Aregular shipment of cut flowers direct to a florist shop.
- Bregular shipments of iron ore.
- Cregular shipments of grain.
- Demergency maintenance parts.
75total line haul costs will vary with which of the following?
- Adistance moved
- Bpackaging
- Ccustomer discounts
- Dperishability of the goods
76which of the following statements best describes SKUs?
- Asodas in a 6-pack and 12-pack are the same SKU because the cans are the same SKU.
- Bwhite shirts of different sizes but in the same size box are the same SKU.
- Cwires of different gauges that are stocked in reels are the same SKU.
- Dtwo white shirts in the same inventory but of different sizes or styles would be different SKUs.
77if the order quantity is increased, which of the following occurs?
- Athe cost of carrying inventory decreases and the cost of ordering increases.
- Bthe cost of carrying inventory increases and the cost of ordering decreases.
- Cthe cost of carrying inventory increases and the cost of ordering increases.
- Dthe cost of carrying inventory decreases and the cost of ordering decreases.
78in developing the standard EOQ formula, which of the following assumptions are made?
- Ademand for the item is relatively uniform.
- Breplenishment is in lots or batches that arrive all at once.
- Cordering and carrying costs are constant and known.
- Dall of the above are assumed
79which of the following statements is best?
- Aorder point (OP) = demand during lead time (DDLT) + safety stock (SS)
- Baverage inventory = (Q + SS) / 2
- Csafety stock is always needed.
- Dsafety stock = order point + order quantity
80Safety stock will depend on which of the following?
- Avariability of demand
- Bcost of carrying inventory
- Ccost of placing an order
- Dproduct obsolescence
81which of the following statements is most accurate?
- Aabout 20 percent of the items will usually account for about 80 percent of the total value.
- BA items should have the loosest possible control.
- Cthe general rule for using the ABC approach is to have plenty of everything in stock.
- DC items account for about 50 percent of the total value.
82which of the following statements is best?
- AA items usually account for bout 50 percent of the total usage.
- Babout 50 percent of the items usually account for 5 percent of the value.
- CC items should be given top priority in inventory management.
- Dall inventory items should be managed in the same way.
83what type of inventory record system keeps a continuous account of transactions as they occur?
- Aperpetual inventory system
- Bperiodic inventory system
- Ctwo-bin system
- Dsafety stock system
84if the lead time is one week, the review period one week, the average demand 100 units per week, and the safety stock 50 units, the target level will be?
- A150 units
- B200 units
- C250 units
- D300 units
85which of the following is an advantage of cycle counting?
- Atimely detection and correction of problems.
- Breduction of direct labor costs.
- Cuse of spare labor.
- Dreplenishment of inventory.
86which of the following statements is most accurate about inventory management?
- Ainventories and production must be managed together.
- Binventory is not important at the production planning level.
- Cinventories are usually insignificant on the balance sheet.
- Dinventory does not cost much to carry.
87what is the name of materials used in the production process that do not become part of the product?
- Araw materials
- BWIP
- Cfinished goods
- Dmaintenance, repair, and operating supplies.
88what is the name given to inventories of items that are purchased or manufactured in quantities greater than needed immediately?
- Afluctuation inventory
- Blot-size invenotry
- Ctransportation inventory
- Dscheduled receipts
89which of the following company objectives are in conflict?
- Amaximize customer service and low-cost plant operation.
- Blow-cost plant operation and cash flow.
- Cmaximum inventory investment and customer service.
- Dcash flow and profitability.
90which of the following costs will increase if order quantity is increased?
- Aannual cost of carrying inventory
- Bcost of ordering
- Ccost of manufacturing operations
- Dcost of customer service
91which of the following are costs of carrying inventory?
- Acapital costs and production control costs.
- Bcapital costs and storage costs.
- Cproduction control costs and purchase costs.
- Dstorage costs and purchasing costs.
92which of the following are considered ordering costs?
- Aproduction control costs.
- Bcapital costs.
- Crisk costs.
- Dobsolescence costs.
93which of the following equations is correct?
- Aassets = liabilities - owner's equity
- Bincome = revenue - liabilities
- Cowner's equity = assets - liabilities
- Drevenue = COGS - general and administrative expenses
94if the inventory turns ration is 6 and the average inventory is $2.5 million, what is the annual cost of goods sold?
- A$8.5 million
- B$2.4 million
- C$12.5 million
- D$15 million
95which of the following costs is relevant to inventory management decisions?
- Arun costs
- Bstorage costs
- Cmarketing costs
- Dnew product development costs
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- Quiz on BSCM , created by haiden on 16/01/2016.
- Author
- haiden
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