Question 1

The three main inputs of a material requirements planning (MRP)system are:

Accepted Answer

A) required human resources,machine resources,and available resources. 
B) required manufacturing resources,human resources,and master production schedule. 
C) inventory records,annual sales forecast,and a master production schedule. 
D) Pareto analysis results,inventory records,and a master production schedule. 
E) bill of material,a master production schedule,and the inventory record. 
A) required human resources,machine resources,and available resources. 
B) required manufacturing resources,human resources,and master production schedule. 
C) inventory records,annual sales forecast,and a master production schedule. 
D) Pareto analysis results,inventory records,and a master production schedule. 
E) bill of material,a master production schedule,and the inventory record. E

Question 2

The "bullwhip effect" is a term that refers to the buildup of inventory in a supply chain resulting from fluctuations in demand.

Accepted Answer

A) True 
 B)False  True

Question 3

Usage of independent demand items is determined by the production schedule.

Accepted Answer

A) True 
 B)False  False

Question 4

Managing the consumption of services organization-wide:

Accepted Answer

A) is easy because organization-wide services spend data is readily accessible. 
B) is of little concern because annual spend for services is declining in most organizations. 
C) is easy because forecasting aggregate demand for services is typically more reliable than forecasting demand for goods. 
D) is easy because supply management has historically had responsibility for managing services spend. 
E) is difficult because multiple contracts may exist at varying prices and terms with the same suppliers. 
A) is easy because organization-wide services spend data is readily accessible. 
B) is of little concern because annual spend for services is declining in most organizations. 
C) is easy because forecasting aggregate demand for services is typically more reliable than forecasting demand for goods. 
D) is easy because supply management has historically had responsibility for managing services spend. 
E) is difficult because multiple contracts may exist at varying prices and terms with the same suppliers.

Question 5

For the supply function,time-based strategies that impact competitive advantage relate to cycle time reductions,and greater coordination of materials and information flows.

Accepted Answer

A) True 
 B)False

Question 6

Holding extra inventory to protect against a supply disruption from a supplier strike is an example of buffer inventory.

Accepted Answer

A) True 
 B)False

Question 7

Ordering raw material from a supplier in full truck loads only is an example of decoupling inventory.

Accepted Answer

A) True 
 B)False

Question 8

When a commercial janitorial service company predicts demand for its services using commercial building permits issued,office leasing and vacancy rates,this is an example of:

Accepted Answer

A) a repetitive pattern modeling tool. 
B) a time series forecasting technique. 
C) a deterministic model. 
D) a causal model. 
E) a qualitative forecasting technique. 
A) a repetitive pattern modeling tool. 
B) a time series forecasting technique. 
C) a deterministic model. 
D) a causal model. 
E) a qualitative forecasting technique.

Question 9

MRP II is a business practice in which multiple trading partners agree to exchange knowledge and share risks to generate the most accurate forecast possible,and develop effective replenishment plans.

Accepted Answer

A) True 
 B)False

Question 10

Demand for buttons and zippers at a sportswear manufacturer is an example of:

Accepted Answer

A) buffer demand. 
B) anticipated demand. 
C) derived demand. 
D) independent demand. 
E) scheduled demand. 
A) buffer demand. 
B) anticipated demand. 
C) derived demand. 
D) independent demand. 
E) scheduled demand.

Question 11

Anticipation inventories are carried:

Accepted Answer

A) to stock the distribution pipelines. 
B) to cover a well-defined future need. 
C) to permit activities on either side of a major process. 
D) to protect against machine breakdown. 
E) to protect against uncertainties in supply and demand. 
A) to stock the distribution pipelines. 
B) to cover a well-defined future need. 
C) to permit activities on either side of a major process. 
D) to protect against machine breakdown. 
E) to protect against uncertainties in supply and demand.

Question 12

Inventories can be classified by form and function.

Accepted Answer

A) True 
 B)False

Question 13

A company manufactures 1,200 cylinders per day,each requiring a pressure gauge.The purchase price of the pressure gauge is $3.20.The company controller estimated annual holding costs at 25 percent per year,while the cost of placing an order was estimated at $55.00.Assuming that the plant operates 45 weeks per year,the EOQ for the pressure gauge is:

Accepted Answer

A) 3,000 units 
B) 2,929 units. 
C) 2,872 units. 
D) 2,725 units. 
E) 1,200 units. 
A) 3,000 units 
B) 2,929 units. 
C) 2,872 units. 
D) 2,725 units. 
E) 1,200 units.

Question 14

Closed-loop MRP:

Accepted Answer

A) is a system which closes the loop between the supplier and the purchaser. 
B) provides a feedback loop between capacity and the master production schedule. 
C) requires a feedback loop between purchasing and accounting. 
D) requires a check between the master production schedule and inventory. 
E) allows a unit manager to sequence jobs done in that department. 
A) is a system which closes the loop between the supplier and the purchaser. 
B) provides a feedback loop between capacity and the master production schedule. 
C) requires a feedback loop between purchasing and accounting. 
D) requires a check between the master production schedule and inventory. 
E) allows a unit manager to sequence jobs done in that department.

Question 15

Independent demand items are:

Accepted Answer

A) derived demand. 
B) determined directly by customer orders. 
C) determined by the production schedule. 
D) derived demand and determined directly by customer orders. 
E) derived demand and determined by the production schedule. 
A) derived demand. 
B) determined directly by customer orders. 
C) determined by the production schedule. 
D) derived demand and determined directly by customer orders. 
E) derived demand and determined by the production schedule.

Question 16

Stock-out costs may be higher in a buyer's market compared to a seller's market.

Accepted Answer

A) True 
 B)False

Question 17

If there were 400 requests for a particular item in a year and 372 were immediately satisfied,the service level would be 7 percent.

Accepted Answer

A) True 
 B)False

Question 18

Strategies for managing "A" items in ABC analysis are:

Accepted Answer

A) minimizing inventories. 
B) using procurement cards. 
C) review inventory levels frequently. 
D) minimizing inventories and review inventory levels frequently. 
E) using procurement cards and review inventory levels frequently. 
A) minimizing inventories. 
B) using procurement cards. 
C) review inventory levels frequently. 
D) minimizing inventories and review inventory levels frequently. 
E) using procurement cards and review inventory levels frequently.

Question 19

JIT requires frequent deliveries of relatively small quantities in compliance with quality standards.

Accepted Answer

A) True 
 B)False

Question 20

Cycle inventories are used to:

Accepted Answer

A) avoid an anticipated change in supply,demand,or price. 
B) protect against disruptions due to unplanned events. 
C) reduce the number of setups. 
D) accommodate different rates or patterns of demand. 
E) avoid an anticipated change in supply,demand,or price,and protect against disruptions due to unplanned events. 
A) avoid an anticipated change in supply,demand,or price. 
B) protect against disruptions due to unplanned events. 
C) reduce the number of setups. 
D) accommodate different rates or patterns of demand. 
E) avoid an anticipated change in supply,demand,or price,and protect against disruptions due to unplanned events.

The three main inputs of a material requirements planning (MRP)system are:

The "bullwhip effect" is a term that refers to the buildup of inventory in a supply chain resulting from fluctuations in demand.

Usage of independent demand items is determined by the production schedule.

Managing the consumption of services organization-wide:

For the supply function,time-based strategies that impact competitive advantage relate to cycle time reductions,and greater coordination of materials and information flows.

Holding extra inventory to protect against a supply disruption from a supplier strike is an example of buffer inventory.

Ordering raw material from a supplier in full truck loads only is an example of decoupling inventory.

When a commercial janitorial service company predicts demand for its services using commercial building permits issued,office leasing and vacancy rates,this is an example of:

MRP II is a business practice in which multiple trading partners agree to exchange knowledge and share risks to generate the most accurate forecast possible,and develop effective replenishment plans.

Demand for buttons and zippers at a sportswear manufacturer is an example of:

Anticipation inventories are carried:

Inventories can be classified by form and function.

Closed-loop MRP:

Independent demand items are:

Stock-out costs may be higher in a buyer's market compared to a seller's market.

If there were 400 requests for a particular item in a year and 372 were immediately satisfied,the service level would be 7 percent.

Strategies for managing "A" items in ABC analysis are:

JIT requires frequent deliveries of relatively small quantities in compliance with quality standards.

Cycle inventories are used to:

Purchasing and Supply Management

Supply Strategy

Supply Organization

Supply Processes and Technology

Make or Buy,insourcing and Outsourcing

Need Identification and Specification

Quality

Delivery

Price

Cost Management

Supplier Selection

Supplier Evaluation and Supplier Relationships

Global Supply Management

Legal and Ethics

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters

Exam 8: Quantity and Inventory

The three main inputs of a material requirements planning (MRP)system are:

The "bullwhip effect" is a term that refers to the buildup of inventory in a supply chain resulting from fluctuations in demand.

Usage of independent demand items is determined by the production schedule.

Managing the consumption of services organization-wide:

For the supply function,time-based strategies that impact competitive advantage relate to cycle time reductions,and greater coordination of materials and information flows.

Holding extra inventory to protect against a supply disruption from a supplier strike is an example of buffer inventory.

Ordering raw material from a supplier in full truck loads only is an example of decoupling inventory.

When a commercial janitorial service company predicts demand for its services using commercial building permits issued,office leasing and vacancy rates,this is an example of:

MRP II is a business practice in which multiple trading partners agree to exchange knowledge and share risks to generate the most accurate forecast possible,and develop effective replenishment plans.

Demand for buttons and zippers at a sportswear manufacturer is an example of:

Anticipation inventories are carried:

Inventories can be classified by form and function.

Closed-loop MRP:

Independent demand items are:

Stock-out costs may be higher in a buyer's market compared to a seller's market.

If there were 400 requests for a particular item in a year and 372 were immediately satisfied,the service level would be 7 percent.

Strategies for managing "A" items in ABC analysis are:

JIT requires frequent deliveries of relatively small quantities in compliance with quality standards.

Cycle inventories are used to:

Purchasing and Supply Management

Supply Strategy

Supply Organization

Supply Processes and Technology

Make or Buy,insourcing and Outsourcing

Need Identification and Specification

Quality

Delivery

Price

Cost Management

Supplier Selection

Supplier Evaluation and Supplier Relationships

Global Supply Management

Legal and Ethics

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters