What is the effort to plan the coordination of demand forecasts with functional areas of
the firm and its supply chain?
A. enterprise resource planning
B. material requirements planning
C. capacity planning
D. sales and operations planning
E. new product development - Correct Answers -D. sales and operations planning
Which of the following best describes aggregate planning?
A. the link between intermediate term planning and short-term operating decisions
B. a collection of objective planning tools
C. make or buy decisions
D. an attempt to respond to predicted demand within the constraints set by product,
process, and location decisions
E. manpower planning - Correct Answers -D. an attempt to respond to predicted
demand within the constraints set by product, process, and location decisions
Which of the following is one of the main purposes of an MRP system?
A. Educate personnel in basic work rules.
B. Determine the amount of materials needed to produce each end item.
C. Stimulate the work force.
D. Decrease labor requirements.
E. Increase inventory accuracy. - Correct Answers -B. Determine the amount of
materials needed to produce each end item.
Demand for a given item is said to be dependent if:
A. it originates from the external customer.
B. there is a deep bill of material.
C. the finished products are mostly services (rather than goods).
D. it is a component of a clearly identifiable parent.
E. the item has several children. - Correct Answers -D. it is a component of a clearly
identifiable parent.
One of the main purposes of an MRP system is which of the following?
, A. Track inventory levels.
B. Create productive capacity.
C. Decrease layers of management.
D. Develop schedules specifying when each component should be ordered or
produced.
E. Upgrade manufacturing's professionalism. - Correct Answers -
Effective use of MRP and other dependent demand models does NOT require which of
the following?
A. master production schedule
B. bill of materials
C. inventory availability
D. lead times
E. cost of individual components - Correct Answers -E. cost of individual components
The MRP input listing the assemblies, subassemblies, parts, and raw materials needed
to produce one unit of finished product is the:
A. master production schedule
B. bill-of-materials
C. inventory-records
D. assembly-time chart
E. net-requirements chart - Correct Answers -B. bill-of-materials
Which one of the following is NOT a type of organizational data relevant to the
production process?
A. Company code
B. Credit control area
C. Client
D. Storage location
E. Plant - Correct Answers -B. Credit control area
In process industries like chemicals and beverages, the bill of materials is also known
as a(n)
A. Formula
B. List of chemicals
C. Bill of chemicals
D. Equation
E. Material list - Correct Answers -A. Formula
Which one of the following best describes a work center?
A. A location where materials are placed right before they are shipped
B. Another term used to describe an office building
C. A location where value-added work needed to produce a material is carried out
D. A shipping dock
E. A storage shelf in a warehouse - Correct Answers -C. A location where value-added
work needed to produce a material is carried out
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