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Question # 4

Which of the following capacity planning methods uses the master production schedule (MPS) as its primary input?

A.

Resource planning

B.

Rough-cut capacity planning (RCCP)

C.

Finite loading

D.

Input/output analysis

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Question # 5

Substituting capital equipment in place of direct labor can be economically Justified for which of the following scenarios?

A.

Volumes are forecasted to increase

B.

Material prices are forecasted to increase

C.

Implementing a pull system in production

D.

Functional layouts are being utilized

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Question # 6

Which of the following stock location systems would you use in a repetitive manufacturing, lean environment?

A.

Fixed location

B.

Floating location

C.

Point-of-use storage

D.

Central storage

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Question # 7

Given the information below, reducing which measure by 10% would contribute most to shortening the cash-to-cash cycle time?

A.

Accounts receivable

B.

Inventory value

C.

Accounts payable

D.

Cost of capital

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Question # 8

One advantage of adopting a supply network perspective Is that it:

A.

protects global markets.

B.

enhances understanding of competitive and cooperative forces.

C.

defines the market relationships and partnerships.

D.

encourages rivals to collaborate.

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Question # 9

Exhibit:

A company has prioritized customers A, B, and C, filling orders in that sequence. What are the impacts to customer service levels for customers B and C?

A.

100% service levels for B and C

B.

Customer B has higher service level

C.

Customer C has higher service level

D.

Customer B and C have same service level

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Question # 10

Fishbone diagrams would help a service organization determine:

A.

the proper level of service for a customer segment.

B.

the source of a quality-of-service issue.

C.

differences in the performance of employees.

D.

the decomposition of customer return rates with seasonality.

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Question # 11

What priority control technique is most appropriate for a firm using a cellular production system?

A.

Shortest processing time (SPT) rule

B.

Distribution requirements planning (DRP)

C.

Pull production activity control (PAC)

D.

Push production activity control (PAC)

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Question # 12

The primary outcome of frequent replenishments in a distribution requirements planning (DRP) system is that:

A.

lead times to customers decrease.

B.

transportation costs decrease.

C.

the level of required safety stock is reduced.

D.

more efficient load consolidation occurs.

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Question # 13

A newer automotive supplier has not fully developed its information technology (IT) systems. The supplier has Just received a contract from a large automotive manufacturer which requires the supplier to use electronic data interchange (EDI) transactions for receiving orders, sending advance ship notices (ASNs), and receiving invoice payments. What strategy can the supplier adopt to immediately meet the EDI requirements?

A.

Select, install, and implement EDI software.

B.

Use current third-party logistics provider (3PL) to handle the EDI transactions.

C.

Claim hardship and ask the automotive manufacturer for a waiver.

D.

Negotiate using email as an alternative with the customer.

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Question # 14

A company can easily change Its workforce, but inventory carrying costs are high. Which of the following strategies would be most appropriate during times of highly fluctuating demand?

A.

Produceto backorders

B.

Produceat a constant level

C.

Produceto the sales forecast

D.

Produceto demand

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Question # 15

What is the main negative effect of changing the due dates of open orders?

A.

The schedule information becomes inaccurate.

B.

The customer service level decreases.

C.

It leads to "nervousness" in the schedule.

D.

The schedule does not support demand.

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Question # 16

Which of the following production activity control (PAC) techniques focuses on optimizing output?

A.

Gantt chart

B.

Priority sequencing rules

C.

Theory of constraints (TOC) scheduling

D.

Critical path management (CPM)

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Question # 17

How would a master production schedule (MPS) be used In an assemble-to-order (ATO) manufacturing environment?

A.

The MPS is used to plan subassemblies and components; end items are only scheduled when a customer order is received.

B.

Subassemblies are scheduled in the MPS when the customer order is received, and production can start.

C.

Typically, the MPS is not used in companies using an ATO manufacturing strategy.

D.

Often In an ATO environment, the MPS is created once a year and only revised if a product is discontinued.

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Question # 18

A low-cost provider strategy works best when which of the following conditions are met?

A.

Price competition among rivals is similar.

B.

Buyers are more price sensitive.

C.

There are many ways to achieve product differentiation.

D.

There are few industry newcomers.

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Question # 19

An advantage of applying ABC classification to a firm's replenishment items is that:

A.

it distinguishes independent demand from dependent demand.

B.

it allows planners to focus on critical products.

C.

it provides better order quantities than the economic order quantity (EOQ).

D.

it allows the firm to utilize time-phased order point (TPOP).

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Question # 20

The master schedule is an Important tool in the sales and operations planning (S&OP) process because it:

A.

represents the forecast before changes are made in S&OP.

B.

represents the forecast with less detail.

C.

balances supply and demand at the product mix level.

D.

balances supply and demand at the sales volume level.

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Question # 21

An example of a cradle-to-cradle sustainability model would be:

A.

a laundry service collects dirty baby clothes from families; cleans the clothes in large, efficient batches; and then sorts and delivers the clothes back to each family.

B.

a coffee shop collects paper waste in its restaurants, has a selected supplier collect the paper waste to be recycled, and then purchases paper products from that supplier.

C.

a company uses wood that has been gathered from multiple sources to construct items, such as beds and toys for babies and young children.

D.

a bank offers the lowest interest rates on loans to firms that are committed to using recycled materials and implementing zero-waste initiatives in their processes.

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Question # 22

Components of an organization's Immediate industry and competitive environment Include:

A.

political factors.

B.

interest rates.

C.

substitute products.

D.

sociocultural forces.

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Question # 23

In Company XYZ, transaction-costing capability has been Integrated into the shop floor reporting system. A batch of 20 units was started in production. At the fourth operation, 20 units are reported as complete. At the fifth operation, 25 units are reported as complete. When all operations are complete, 20 units are checked into the stockroom. If the error at the fifth operation is undetected, which of the following conditions will be true?

A.

Stockroom inventory balance will be incorrect.

B.

Operator efficiency for the fifth operation will be overstated.

C.

Units in process will be understated.

D.

Work-in-process (WIP) cost will be understated.

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Question # 24

One of the benefits of Integrating a poka-yoke into the production process is that it can be used to:

A.

facilitate mixed-model scheduling.

B.

prevent defects.

C.

Improve machine utilization.

D.

enable one-piece flow.

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Question # 25

A part is sold as a service part, and It is also used as a component In another part. Which of the following statements about the planning for this part is true?

A.

Its low-level code is zero.

B.

The material requirements for the part will be understated.

C.

The service part demand can be included In the gross requirements.

D.

It shouldn’t have any safety stock.

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Question # 26

The primary purpose for engaging in cycle count activities is to:

A.

eliminate the need for a traditional physical inventory count.

B.

more frequently reconcile the actual on-hand and system on-hand for items.

C.

smooth out the tasks of counting inventory throughout the fiscal year.

D.

improve material handling processes and reduce or eliminate errors.

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Question # 27

A company selling seasonal products is preparing their sales and operations plan for the coming year. Their current labor staffing is at the maximum for their production facility and cannot meet the forecasted demand. The business plan shows they do not have the financial capability to add to the production facility. Which of the following actions would be most appropriate?

A.

Uselevel production planning and investigate subcontracting to meet the extra demand.

B.

Usechaseproduction planningand only take the orders that can be produced In the highdemand season.

C.

Usehybridproduction planningto save labor costs and inventory costs in the low demand season.

D.

Usehybridproduction planningand reduce the size of the customer base during the highdemand season.

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Question # 28

Check sheets can be used to:

A.

determine the frequency of a defect and the time period between occurrences.

B.

provide a quick method to identify if possible defects exist.

C.

allow improvement teams to see if action items are being completed on time.

D.

provide an indication of correlation between defects.

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Question # 29

We have observed the inventory system does not handle plastic parts well." What should be added to the problem statement to make it more useful?

A.

Measurements that help describe the problem

B.

Guidance to which problem-solving tools should be used

C.

Criteria for selecting the improvement team

D.

Description of who is responsible for the problem

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Question # 30

A company is having trouble with raw material deliveries and has decided to develop a supplier certification program. The certification process most appropriately would start with which of the following suppliers?

A.

Suppliers of "A“ classified items

B.

Suppliers recently ISO 9000 certified

C.

Suppliers with the worst performance records

D.

Suppliers with vendor-managed inventory (VMI)

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Question # 31

Which of the following product design approaches are likely to reduce time to market for a global supply chain?

A.

Concurrent engineering

B.

Design for manufacture

C.

Design for logistics

D.

Quality function deployment (QFD)

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Question # 32

Which of the following actions will result In lower inventory levels?

A.

Level load the master production schedule (MPS).

B.

Reduce replenishment lead times.

C.

Increase customer service level.

D.

Decentralize inventory locations.

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Question # 33

Based on the above table, calculate the mean absolute deviation (MAD).

A.

-25

B.

6.25

C.

18.75

D.

20

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Question # 34

In a lean environment, the batch-size decision for planning "A" items would be done by:

A.

least total cost.

B.

min-max system.

C.

lot-for-lot (L4L).

D.

periodic order quantity.

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Question # 35

In pyramid forecasting, the "roll up" process begins with:

A.

combining individual product item forecasts into forecasts for product families.

B.

combining forecasts for product families into a total business forecast.

C.

allocating total business forecast changes to product families.

D.

allocating product family forecast changes to individual products.

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Question # 36

One way to mitigate liability risk in the supply chain is to:

A.

negotiate lower component cost.

B.

require traceability for components.

C.

push inventory to supplier locations.

D.

use less-than-truckload (LTL) shipments more frequently.

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Question # 37

The planned channels of Inventory disbursement from one or more sources to field warehouses are known as:

A.

a supply chain community.

B.

interplant demand.

C.

a bill of distribution.

D.

logistics data interchange (LDI).

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Question # 38

Which of the following environments is most suitable for the use of kanban systems?

A.

Short product life cycles

B.

High levels of customization

C.

Intermittent production

D.

Stable and predictable demand

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Question # 39

Price negotiation is most appropriate when purchasing which of the following product categories?

A.

Commodities

B.

Standard products

C.

Items of small value

D.

Made-to-order (MTO) items

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Question # 40

The costs provided in the table below are associated with buying a quantity larger than immediately needed. What Is the total landed cost based on this table?

Cost CategoryCost

Custom fees$125

Freight$700

Warehouse rent$200

Matenal cost$500

A.

$825

B.

$1,325

C.

$1,400

D.

$1,525

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Question # 41

Which of the following statements correctly describes the relationship between the strategic plan and the business plan?

A.

These are two names for the same plan.

B.

The strategic plan constrains the business plan.

C.

The two plans are developed independently.

D.

The two plans are the output of a single process.

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Question # 42

Given the bill of material (BOM) information below and independent requirements of 10 pieces (pcs) per week of Component A and 20 pieces (pcs) per week of Component B, what is the weekly gross requirement of component F?

A.

80

B.

120

C.

160

D.

200

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Question # 43

The time spent In queue by a specific manufacturing job is determined by which of the following factors related to the order?

A.

Lot size

B.

Priority

C.

Setup time

D.

Run time

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Question # 44

Which of the following prioritization rules will have the greatest impact In reducing the number of orders In queue?

A.

Critical ratio

B.

Shortest processing time

C.

Fewest operations remaining

D.

First come, first served

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Question # 45

Which of the following methods places a replenishment order when the quantity on hand falls below a predetermined level?

A.

Min-max system

B.

Fixed order quantity

C.

Periodic review

D.

Available-to-promlse (ATP)

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