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1) __________ is when the activities in the stage must stop because
there is no place to deposit the item just completed
A. Buffering
B. Blocking
C. Starving
D. Pacing

2) According to your text, the most common process metric is
A. productivity
B. efficiency
C. utilization
D. throughput time

3) Declining product prices
A. increase the manufacturing costs
B. lower the break-point
C. result in lower manufacturing costs
D. increase the break-even point

4) The type of processing structure that is used for producing
discrete products at a controlled rate is
A. job shop
B. batch
C. assembly line
D. project

5) The best process flow structure to use for making automobiles
A. job shop
B. batch shop
C. group technology cell
D. assembly line

6) The break-even analysis is a standard approach to determine
alternative processes A break-even analysis chart usually present
alternative __________ and __________ based upon the units produced
or sold
A. demand, supply
B. profits, losses
C. equipment, materials
D. variable, fixed costs

7) A statistical term that refers to the philosophy and methods
companies use to eliminate defects in their products and processes
by establishing a quality goal of no more than four defects out of
every million units is
A. ISO 9000
B. Six Sigma
C. Total Quality Management

8) Independent demand is
A. inventory where demand comes from independent suppliers
B. inventory that is independent of any known rules of demand and
C. demand that is related to the demand for another item
D. demand determined by the marketplace that requires

9) An inventory system designed to ensure that an item will be
available on an ongoing basis throughout the year is known as
A. Optional Replenishment System
B. Inventory Accuracy and Cycle Counting
C. ABC Inventory Planning
D. Multiperiod Inventory Systems

10) A/an __________ approach actually schedules in detail each
resource using the setup and runtime required for each order
A. infinite loading
B. finite loading
C. forward scheduling
D. backward scheduling

11) What is the net result of reducing the duration of a task
(crashing) not on the critical path?
A. Decreased project overhead costs
B. Reduced likelihood of liquidated damages for late delivery
C. Increased slack time associated with the task
D. Reduction in the project duration

12) The idea of the value density calculation is
A. finding a carrier that can handle the weight
B. matching the weight of the product with an appropriate
C. deciding where items should be stocked geographically and how
they should be shipped
D. finding the minimum cost carrier

13) When designing a supply chain,
A. cost vs customer service must be considered
B. quality vs cost must be considered
C. lead times vs payment terms must be considered
D. customer service vs product customization must be considered

14) According to Hau Lee, which of the following types of products
need to be delivered with efficient supply-chains?
A. Custom products
B. Innovative products
C. Grocery products
D. High technology products

15) Which of the following product promotional activities would
probably help make the supply chain more efficient?
A. Price promotions that expire on a specific date
B. An “everyday” low price strategy where prices are not dependent
on quantity delivered with a specific order
C. Special packaging for a specific event that occurs one time each
D. A 2-for-1 price promotion

16) The best operating level is
A. the maximum point of the cost curve
B. the level of capacity for which average unit cost is
C. maximum capacity
D. the level of capacity for which total cost is minimized

17) Capacity utilization rate can be computed as
A. Capacity used – best operating level
B. Capacity used x best operating level
C. Capacity used / best operating level
D. Capacity used + best operating level

18) The objective of __________ is to provide an approach for
determining the overall capacity level of capital-intensive
resources that best supports the company’s long-range competitive
A. workforce management
B. management supervision
C. operations management
D. strategic capacity planning

19) Lean production systems typically require
A. delivery of large lots at frequent intervals
B. buyer inspection of goods and materials
C. multiple sources from which to purchase
D. low inventory levels throughout production

20) Given that the previous forecast of 65 turned out to be four
units less than the actual demand The next forecast is 66 What
would be the value of alpha if the simple exponential smoothing
forecast method is being used?
A. 002
B. 04
C. 004
D. 0.25

21) Linear regression sales forecasting techniques
A. work best when future sales are randomly distributed
B. will not work for declining sales
C. work best when sales are increasing
D. will not work if future sales forecasts lie on a curve

22) What should the value of alpha be in an exponential smoothing
forecast to be very responsive to recent demand?
A. Large
B. Small
C. Negative
D. Zero

23) Which of the following statements are true about time-series
A. Time series analysis employs empirical data to forecast future
B. Time series analysis is used to understand the system underlying
and surrounding the item being forecast
C. Under time-series methods, demand is divided into the time-based
components such as daily, weekly, etc
D. Time series methods are useful for long-range forecasts when the
demand pattern is erratic

24) One option for altering the pattern of demand is
A. hiring employees
B. using overtime
C. carrying inventory
D. pricing

25) Aggregate planners balance
A. demand and costs
B. demand and inventories
C. demand and capacity
D. supply and inventories

26) Which of the following accurately describes a chase
A. The firm produces the same amount each day over the planning
period and deals with the variations in demand through the use of
inventory or overtime
B. The firm produces at the same level for several months, and then
adjusts production to another level and produces at that level for
several more months
C. The firm matches its production rate to meet demand by varying
the size of its workforce as demand varies
D. The firm produces the same amount each day within the planning
period and deals with variations in demand through the use of
outsourcing partners

27) Which of the following reflects net material requirements:
A. gross requirements – scheduled receipts
B. gross requirements – projected available balance + scheduled
C. gross requirements – projected available balance – scheduled
D. gross requirements – scheduled releases

28) Which MRP system input element specifies how many and when the
firm plans to build each end item?
A. Inventory records file
B. Bills of material
C. Master production schedule
D. Capacity planning

29) Which of the following is true about MRP Systems?
A. Based on independent demand
B. Lot sizing is based on Economic Order Quantity
C. Demand pattern is random
D. Objective is to meet manufacturing needs

30) A Material Requirements Planning (MRP) is most valuable in
industries where a number of products are made in batches using the
same productive equipment and with companies involving
A. fabrication
B. low number of units annually
C. complex, expensive products
D. assembly operations


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