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.

Question 2

When the carrying cost of inventory is expressed as a percentage:

Accepted Answer

A)  the lower it is, the lower the economic order quantity. 
B)  it is usually the same as the borrowing cost of the organization. 
C)  it is multiplied by the unit variable manufacturing cost to calculate the per unit carrying cost. 
D)  it is multiplied by the total unit cost, including allocated fixed costs, to calculate the per unit carrying cost. 
E)  it is multiplied by the labor and material cost to calculate the per unit carrying cost. 
A)  the lower it is, the lower the economic order quantity. 
B)  it is usually the same as the borrowing cost of the organization. 
C)  it is multiplied by the unit variable manufacturing cost to calculate the per unit carrying cost. 
D)  it is multiplied by the total unit cost, including allocated fixed costs, to calculate the per unit carrying cost. 
E)  it is multiplied by the labor and material cost to calculate the per unit carrying cost.

Question 3

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 4

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 5

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 6

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 7

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.

Question 8

Inventories can be classified by form and function.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Decoupling 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 to reduce the number of setups. 
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 to reduce the number of setups.

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

When the carrying cost of inventory is expressed as a percentage:

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

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

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:

Managing the consumption of services organization-wide:

Cycle inventories are used to:

Inventories can be classified by form and function.

Decoupling 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:

When the carrying cost of inventory is expressed as a percentage:

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

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

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:

Managing the consumption of services organization-wide:

Cycle inventories are used to:

Inventories can be classified by form and function.

Decoupling 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