Question 1

The lot-for-lot (LFL) rule is best applied when:

Accepted Answer

A)  inventory-carrying costs are high. 
B)  space constraints are low. 
C)  costs associated with purchase orders are high. 
D)  setup costs are moderate. 
A)  inventory-carrying costs are high. 
B)  space constraints are low. 
C)  costs associated with purchase orders are high. 
D)  setup costs are moderate. A

Question 2

Which of the following lot sizing rules is best applied when setup or order costs are high

Accepted Answer

A)  The fixed-order quantity rule 
B)  The lot-for-lot rule 
C)  The periodic-order quantity rule 
D)  The gross requirements rule 
A)  The fixed-order quantity rule 
B)  The lot-for-lot rule 
C)  The periodic-order quantity rule 
D)  The gross requirements rule A

Question 3

Enterprise resource planning (ERP) systems integrate all aspects of a business into a unified information system.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following is true of a master production schedule (MPS)

Accepted Answer

A)  Its primary output is a time-phased report for scheduling raw materials purchase. 
B)  It provides a means for evaluating alternative schedules in terms of capacity requirements. 
C)  Its input is obtained from the materials requirements planning. 
D)  It projects the requirements for the individual parts based on the demand for the finished goods. 
A)  Its primary output is a time-phased report for scheduling raw materials purchase. 
B)  It provides a means for evaluating alternative schedules in terms of capacity requirements. 
C)  Its input is obtained from the materials requirements planning. 
D)  It projects the requirements for the individual parts based on the demand for the finished goods.

Question 5

__________is the process of translating aggregate plans into short-term operational plans that provide the basis for weekly and daily schedules and detailed resource requirements.

Accepted Answer

A)  Aggregation 
B)  Execution 
C)  Disaggregation 
D)  Enterprise resource planning 
A)  Aggregation 
B)  Execution 
C)  Disaggregation 
D)  Enterprise resource planning

Question 6

A company currently has 500 items in inventory. The demand for the next 2 months is 900 and 1200 units. Assuming a level production rate of 1000 units per month, determine the ending inventory at the end of the second month.

Accepted Answer

A)  300 
B)  400 
C)  500 
D)  600 
A)  300 
B)  400 
C)  500 
D)  600

Question 7

Which of the following lot sizing rules bases the order quantity on a standard-size container or pallet load

Accepted Answer

A)  The lot-for-lot rule 
B)  The fixed-order quantity rule 
C)  The periodic-order quantity rule 
D)  The gross requirements rule 
A)  The lot-for-lot rule 
B)  The fixed-order quantity rule 
C)  The periodic-order quantity rule 
D)  The gross requirements rule

Question 8

In the context of aggregate planning options, which of the following costs are an implication of allowing stockouts

Accepted Answer

A)  Inventory-carrying costs 
B)  Lost sales and customer loyalty costs 
C)  High labor costs and premiums 
D)  Separation costs 
A)  Inventory-carrying costs 
B)  Lost sales and customer loyalty costs 
C)  High labor costs and premiums 
D)  Separation costs

Question 9

__________is the process of determining the amount of labor and machine resources required to accomplish the tasks of production on a more detailed level, taking into account all component parts and end items in the materials plan.

Accepted Answer

A)  Capacity requirements planning 
B)  Materials requirements planning explosion 
C)  Disaggregation 
D)  Execution 
A)  Capacity requirements planning 
B)  Materials requirements planning explosion 
C)  Disaggregation 
D)  Execution

Question 10

__________is the process of using the logic of dependent demand to calculate the quantity and timing of orders for all subassemblies and components that go into and support the production of the end item(s).

Accepted Answer

A)  Final assembly schedule 
B)  Materials requirements planning explosion 
C)  Disaggregation 
D)  Capacity requirements planning 
A)  Final assembly schedule 
B)  Materials requirements planning explosion 
C)  Disaggregation 
D)  Capacity requirements planning

Question 11

In manufacturing, a _____ is a statement of how many finished items are to be produced and when they are to be produced.

Accepted Answer

A)  master production schedule 
B)  capacity requirements plan 
C)  materials requirements plan 
D)  planned order receipt 
A)  master production schedule 
B)  capacity requirements plan 
C)  materials requirements plan 
D)  planned order receipt

Question 12

In industries where jobs have low skill requirements, changing workforce levels can be cost effective.

Accepted Answer

A) True 
 B)False

Question 13

A company currently has no items in inventory. The demand for the next four months is 200, 400, 250, and 350 units. Assuming a level production rate of 350 units per month, determine the ending inventory at the end of the fourth month.

Accepted Answer

A)  100 
B)  150 
C)  200 
D)  250 
A)  100 
B)  150 
C)  200 
D)  250

Question 14

Which of the following is true of a level production strategy

Accepted Answer

A)  Labor schedules are dynamic. 
B)  Equipment schedules are stable. 
C)  There are no capacity restrictions. 
D)  The production rate keeps changing. 
A)  Labor schedules are dynamic. 
B)  Equipment schedules are stable. 
C)  There are no capacity restrictions. 
D)  The production rate keeps changing.

Question 15

__________refers to moving work from one workstation to another, assigning people to tasks, setting priorities for jobs, scheduling equipment, and controlling processes.

Accepted Answer

A)  Aggregate planning 
B)  Disaggregation 
C)  Capacity planning 
D)  Execution 
A)  Aggregate planning 
B)  Disaggregation 
C)  Capacity planning 
D)  Execution

Question 16

Aggregate planning:

Accepted Answer

A)  is not driven by demand forecasts. 
B)  includes detailed staff schedules. 
C)  helps in defining budget allocations and resource requirements. 
D)  does not translate forecast into production plans. 
A)  is not driven by demand forecasts. 
B)  includes detailed staff schedules. 
C)  helps in defining budget allocations and resource requirements. 
D)  does not translate forecast into production plans.

Question 17

In a garments factory, a part requires 0.10 hours of labor per unit in Work Center B and 1 hour of setup time. The planned order release (order size) for a week is 2000 units. Which of the following is the capacity requirement for a week at Work Center B?

Accepted Answer

A)  101 
B)  151 
C)  201 
D)  251 
A)  101 
B)  151 
C)  201 
D)  251

Question 18

_____ are the quantity of a component needed to support production at the next-higher level of assembly.

Accepted Answer

A)  Planned order receipts 
B)  Scheduled receipts 
C)  Explosions 
D)  Gross requirements 
A)  Planned order receipts 
B)  Scheduled receipts 
C)  Explosions 
D)  Gross requirements

Question 19

The periodic-order quantity (POQ) can be determined using an economic time interval, which is the economic order quantity (EOQ) divided by _____.

Accepted Answer

A)  on-hand inventory 
B)  annual demand 
C)  gross requirements 
D)  total required inventory 
A)  on-hand inventory 
B)  annual demand 
C)  gross requirements 
D)  total required inventory

Question 20

Which of the following is true of the lot-for-lot (LFL) rule?

Accepted Answer

A)  It minimizes the costs associated with production setups. 
B)  It ignores the costs associated with purchase orders. 
C)  It maximizes the amount of inventory that needs to be carried. 
D)  It masks the true nature of dependent demand. 
A)  It minimizes the costs associated with production setups. 
B)  It ignores the costs associated with purchase orders. 
C)  It maximizes the amount of inventory that needs to be carried. 
D)  It masks the true nature of dependent demand.

The lot-for-lot (LFL) rule is best applied when:

Which of the following lot sizing rules is best applied when setup or order costs are high

Enterprise resource planning (ERP) systems integrate all aspects of a business into a unified information system.

Which of the following is true of a master production schedule (MPS)

__________is the process of translating aggregate plans into short-term operational plans that provide the basis for weekly and daily schedules and detailed resource requirements.

A company currently has 500 items in inventory. The demand for the next 2 months is 900 and 1200 units. Assuming a level production rate of 1000 units per month, determine the ending inventory at the end of the second month.

Which of the following lot sizing rules bases the order quantity on a standard-size container or pallet load

In the context of aggregate planning options, which of the following costs are an implication of allowing stockouts

__________is the process of determining the amount of labor and machine resources required to accomplish the tasks of production on a more detailed level, taking into account all component parts and end items in the materials plan.

__________is the process of using the logic of dependent demand to calculate the quantity and timing of orders for all subassemblies and components that go into and support the production of the end item(s).

In manufacturing, a _____ is a statement of how many finished items are to be produced and when they are to be produced.

In industries where jobs have low skill requirements, changing workforce levels can be cost effective.

A company currently has no items in inventory. The demand for the next four months is 200, 400, 250, and 350 units. Assuming a level production rate of 350 units per month, determine the ending inventory at the end of the fourth month.

Which of the following is true of a level production strategy

__________refers to moving work from one workstation to another, assigning people to tasks, setting priorities for jobs, scheduling equipment, and controlling processes.

Aggregate planning:

In a garments factory, a part requires 0.10 hours of labor per unit in Work Center B and 1 hour of setup time. The planned order release (order size) for a week is 2000 units. Which of the following is the capacity requirement for a week at Work Center B?

_____ are the quantity of a component needed to support production at the next-higher level of assembly.

The periodic-order quantity (POQ) can be determined using an economic time interval, which is the economic order quantity (EOQ) divided by _____.

Which of the following is true of the lot-for-lot (LFL) rule?

Operations Management and Value Chains

Measuring Performance in Operations and Value Chains

Operations Strategy

Technology and Operations Management

Goods and Service Design

Supply Chain Design

Process Selection, Design, and Analysis

Facility and Work Design

Forecasting and Demand Planning

Capacity Management

Managing Inventories in Supply Chains

Supply Chain Management and Logistics

Operations Scheduling and Sequencing

Quality Management

Quality Control and SPC

Lean Operating Systems

Project Management

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Exam 13: Resource Management

The lot-for-lot (LFL) rule is best applied when:

Which of the following lot sizing rules is best applied when setup or order costs are high

Enterprise resource planning (ERP) systems integrate all aspects of a business into a unified information system.

Which of the following is true of a master production schedule (MPS)

__________is the process of translating aggregate plans into short-term operational plans that provide the basis for weekly and daily schedules and detailed resource requirements.

A company currently has 500 items in inventory. The demand for the next 2 months is 900 and 1200 units. Assuming a level production rate of 1000 units per month, determine the ending inventory at the end of the second month.

Which of the following lot sizing rules bases the order quantity on a standard-size container or pallet load

In the context of aggregate planning options, which of the following costs are an implication of allowing stockouts

__________is the process of determining the amount of labor and machine resources required to accomplish the tasks of production on a more detailed level, taking into account all component parts and end items in the materials plan.

__________is the process of using the logic of dependent demand to calculate the quantity and timing of orders for all subassemblies and components that go into and support the production of the end item(s).

In manufacturing, a _____ is a statement of how many finished items are to be produced and when they are to be produced.

In industries where jobs have low skill requirements, changing workforce levels can be cost effective.

A company currently has no items in inventory. The demand for the next four months is 200, 400, 250, and 350 units. Assuming a level production rate of 350 units per month, determine the ending inventory at the end of the fourth month.

Which of the following is true of a level production strategy

__________refers to moving work from one workstation to another, assigning people to tasks, setting priorities for jobs, scheduling equipment, and controlling processes.

Aggregate planning:

In a garments factory, a part requires 0.10 hours of labor per unit in Work Center B and 1 hour of setup time. The planned order release (order size) for a week is 2000 units. Which of the following is the capacity requirement for a week at Work Center B?

_____ are the quantity of a component needed to support production at the next-higher level of assembly.

The periodic-order quantity (POQ) can be determined using an economic time interval, which is the economic order quantity (EOQ) divided by _____.

Which of the following is true of the lot-for-lot (LFL) rule?

Operations Management and Value Chains

Measuring Performance in Operations and Value Chains

Operations Strategy

Technology and Operations Management

Goods and Service Design

Supply Chain Design

Process Selection, Design, and Analysis

Facility and Work Design

Forecasting and Demand Planning

Capacity Management

Managing Inventories in Supply Chains

Supply Chain Management and Logistics

Operations Scheduling and Sequencing

Quality Management

Quality Control and SPC

Lean Operating Systems

Project Management

Filters