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NEW QUESTION 1
The portion of a firm's inventory and planned production that is not already committed is referred to as:
- A. planned order receipts.
- B. projected inventory balance.
- C. master production schedule due date.
- D. available-to-promise.
Answer: D
NEW QUESTION 2
Which of the following statements describes the difference between capacity requirements planning and material requirements planning ?
- A. Material requirements planning ignores capacity constraints.
- B. Capacity requirements planning accounts for material.
- C. Material requirements planning is confined by capacity constraints.
- D. Capacity requirements planning only accounts for critical resources.
Answer: A
NEW QUESTION 3
A manufacturer needs to monitor and balance the flow of work between work centers. Which of the following techniques would address this need?
- A. Dispatching
- B. Drum-buffer-rope
- C. Critical ratio
- D. Input/output control
Answer: D
NEW QUESTION 4
Which of the following factors most likely will impact the demand for a firm's products or services?
- A. Forecast accuracy
- B. Order processing system
- C. Competition
- D. Planning horizon
Answer: C
NEW QUESTION 5
Which of the following actions is an example of a company expanding its customer service offering?
- A. Adding a distribution center
- B. Increasing work-in-process (WIP) inventory
- C. Implementing statistical process control (SPC)
- D. Decreasing manufacturing lot sizes
Answer: A
NEW QUESTION 6
An order winner is a competitive characteristic that:
- A. is universal between customers and markets.
- B. differentiates among potential customers.
- C. a company must exhibit to be considered a potential supplier.
- D. a company must exhibit to gain new sales.
Answer: D
NEW QUESTION 7
Inventory turns is an appropriate performance measure for which of the following functions?
- A. Material control
- B. Activity-based costing control
- C. Total quality management
- D. Flexible manufacturing
Answer: A
NEW QUESTION 8
Which of the following describes a competitive characteristic that a firm must exhibit to be considered as a supplier in a market?
- A. Marketing research
- B. Manufacturing automation
- C. Order qualifier
- D. Order winner
Answer: C
NEW QUESTION 9
In an assemble-to-order production environment, the master production schedule contains:
- A. standard items.
- B. finished items.
- C. raw materials.
- D. subassemblies.
Answer: D
NEW QUESTION 10
When demand is uncertain, what is the most appropriate action to take?
- A. Recalculate safety stock
- B. Increase order quantity
- C. Change method of transportation
- D. Increase number of warehouses for distribution
Answer: A
NEW QUESTION 11
Material requirements planning requires which of the following files to plan requirements?
- A. Standard cost
- B. Bill of materials
- C. Routing
- D. Work center
Answer: B
NEW QUESTION 12
Which of the following inventory classifications would include semi-finished goods at an outside supplier?
- A. Maintenance, repair, and operating supplies
- B. Finished goods
- C. Raw materials
- D. Work in process
Answer: D
NEW QUESTION 13
Material requirements planning provides recommendations for which of the following processes?
- A. Shop orders and capacity
- B. Capacity and purchase orders
- C. Purchase orders and shop orders
- D. Routing and lead times
Answer: C
NEW QUESTION 14
Which of the following statements about a distribution requirements planning system is true?
- A. It is used only for service parts.
- B. Priority is given to open orders.
- C. Material requirements planning logic is used.
- D. Gross requirements come from exploding the bill of material.
Answer: C
NEW QUESTION 15
Which of the following production environment strategies requires unique design or significant customization?
- A. Make-to-order
- B. Assemble-to-order
- C. Make-to-stock
- D. Engineer-to-order
Answer: D
NEW QUESTION 16
The question below is based on the following cost information:
What is the carrying cost?
- A. 14%
- B. 16%
- C. 20%
- D. 25%
Answer: D
NEW QUESTION 17
The primary advantage of process flexibility is the:
- A. ease of implementing engineering changes.
- B. responsiveness to volume or mix changes.
- C. decrease in labor costs.
- D. reduced need for skills.
Answer: B
NEW QUESTION 18
The heijunka philosophy can best be described as:
- A. level production.
- B. make-to-stock production.
- C. a chase production strategy.
- D. produce to stock production.
Answer: A
NEW QUESTION 19
Which of the following concepts could a firm implement to reduce defects?
- A. Hansei
- B. Jidoka
- C. Muri
- D. Heijunka
Answer: B
NEW QUESTION 20
As a company moves from domestic to global distribution, it becomes increasingly critical to control which of the following distribution costs?
- A. Warehousing
- B. Material handling
- C. Protective packaging
- D. Transportation
Answer: D
NEW QUESTION 21
Knowing average daily consumption and on hand inventory, a company can calculate:
- A. storage cost.
- B. days of supply.
- C. annual usage rate.
- D. annual cost of goods sold.
Answer: B
NEW QUESTION 22
Which of the following items is a source of independent demand?
- A. Customer orders for finished products
- B. Subassembly requirements from material requirements planning
- C. Raw material requirements from material requirements planning
- D. Protective packaging for shipping customer orders
Answer: A
NEW QUESTION 23
A 5-year decline in demand for diapers most closely represents which of the following types of forecast patterns?
- A. Irregular
- B. Cyclic
- C. Trend
- D. Seasonal
Answer: C
NEW QUESTION 24
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