Question 1

Which of the following is/are primary activities of manufacturing planning and control?
I. Production planning.
II. Implementation and control.
III. Inventory management.

Accepted Answer

A)   I and II only
B)   II and III only
C)   I and III only
D)   all the above are primary activities D

Question 2

A channel master in a supply chain

Accepted Answer

A)   Initiates integration of a supply chain
B)   Is the final customer in a supply chain
C)   Is the largest member of a supply chain
D)   Controls the raw material supplies in a supply chain A

Question 3

Metrics in a supply chain are:

Accepted Answer

A)   Governed by the International Metric Commission
B)   Measurements of performance
C)   A charge passed on to customers
D)   Not used on transportation B

Question 4

Which of the following is normally a major activity of materials management?
I. Manufacturing planning and control.
II. Physical supply/distribution.

Accepted Answer

A)   both I and II
B)   neither I nor II
C)   I only
D)   II only

Question 5

Materials management can be considered a balancing act because:
I. There are trade-offs between customer service and the cost of providing the service.
II. Priority and capacity must be balanced.

Accepted Answer

A)   neither I nor II
B)   I only
C)   II only
D)   I and II

Question 6

The process of managing the recovery, recycling and reuse of material is called

Accepted Answer

A)   Kaizen
B)   Heijunka
C)   Reverse logistics
D)   Return material authorization

Question 7

The objective of materials management is to:
I. Provide the required level of customer service.
II. Maximize the use of the firm's resources.

Accepted Answer

A)   I only
B)   II only
C)   I and II
D)   neither I nor II

Question 8

Performance measures in a supply chain:

Accepted Answer

A)   Should be objective
B)   Are viewed mostly by finance
C)   Must be measurements of one parameter only
D)   Concentrate on cost only
E)   Are not used once a process is automated

Question 9

Which of the following statements is best regarding order winners?

Accepted Answer

A)   they persuade a company's customers to choose its product
B)   they are the same in every market
C)   they are the same as order qualifiers, only better
D)   they are present in every product

Question 10

Select the best answer to the following:

Accepted Answer

A)   traditionally the supply-production-distribution functions have reported to different departments
B)   the supply, production and distribution functions are part of a total system
C)   materials flow into an organization, are processed in some way and distributed to the consumer
D)   all the above are correct

Question 11

Which of the following is NOT an activity of physical supply/distribution?

Accepted Answer

A)   transportation
B)   factory inventory
C)   warehousing
D)   packaging
E)   material handling

Question 12

If a firm wishes to maximize profit, which of the following objectives are in conflict?
I. Maximize customer service.
II. Minimize production costs.
III. Minimize inventory costs.
IV. Minimize distribution costs.

Accepted Answer

A)   all the above
B)   I and II only
C)   I and III only
D)   II and III only

Question 13

Which of the following statements is best?

Accepted Answer

A)   the basic elements of a supply chain are supply, production, and distribution
B)   the elements of a supply chain are interdependent
C)   design information generally flows from customer to supplier
D)   all the above are true

Question 14

Companies A and B supply company C, which supplies customers D and E. Which of the following statements is best?

Accepted Answer

A)   the supply chain for company A includes B, C, D, and E.
B)   the supply chain for company B includes A, C, D and E.
C)   the supply chain for company C includes A, B, D, and E.
D)   all the above are true.

Question 15

Which of the following is the best statement about the operating environment in which operations management functions?

Accepted Answer

A)   most organizations do not need to worry about competition
B)   customers are more demanding
C)   government regulation is not important for companies
D)   price is more important than quality

Question 16

Postponement is best described as:

Accepted Answer

A)   Delaying payment to a supplier until the goods have been sold
B)   Delaying the removal of inventory until the last possible moment
C)   Delaying the customer-specific differentiation until the last possible moment
D)   Delaying the change to the BOM until the old components have been used up

Question 17

Which statement is best?

Accepted Answer

A)   Performance standards are set by the supplier
B)   Performance standards set the goal
C)   Performance measurements show how well you did
D)   Both b and c are correct

Question 18

Which of the following is (are) input(s) to manufacturing planning and control?

Accepted Answer

A)   product description
B)   process description
C)   available facilities
D)   quantities to be produced
E)   all the above are inputs

Question 19

Manufacturing is important to the economy because:

Accepted Answer

A)   it generates wealth
B)   it supports service industries
C)   it adds value to products
D)   all of the above

Question 20

Delivery lead time for an engineer-to-order product includes which of the following?

Accepted Answer

A)   Design, purchase, manufacture, assemble, ship
B)   Design, manufacture, assemble, ship
C)   Purchase, manufacture, assemble, ship
D)   Purchase, assemble, ship

Exam 1: Introduction to Materials Management

Which of the following is/are primary activities of manufacturing planning and control? I. Production planning. II. Implementation and control. III. Inventory management.