MGT417 Midterm Exam New (2017)

Question 1 (2 points)

 Savings in the supply chain are mostly the result of:

Question 1 options:

 cutting cost after the design phase.

 members in the chain sharing information.

 members having clout with suppliers.

 being able to ship in larger quantities.

 sticking with local competition.

Question 2 (2 points)

If the manufacturing lead time of an item is reduced by 50%, the work in process inventory:

Question 2 options:

does not change.

is reduced by approximately 50%.

More information is needed for this problem.

is reduced by approximately 70%.

Question 3 (2 points)

Performance measures in a supply:

Question 3 options:

should be objective.

concentrate on cost only.

are viewed mostly by finance.

are not used once a process is automated.

must be measurements of one parameter only.

Question 4 (2 points)

Which of the following is/are primary activities of manufacturing planning and control?

I. Production planning

II. Implementation and control

III. Inventory management

Question 4 options:

I and III only

II and III only

I and II only

All of the above are primary activities.

Question 5 (2 points)

Making a pizza at a fast-food restaurant would be considered a form of:

Question 5 options:

assembling to order.

making to order.

making to stock.

none of the above.

engineering to order.

Question 6 (2 points)

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

Question 6 options:

product description

available facilities

quantities to be produced

process description

all of the above

Save

Question 7 (2 points)

 Which of the following is a complete closed-loop planning system that develops plans for all materials and operations?

Question 7 options:

 Capacity Requirements Planning

Supply Chain Management

Enterprise Resource Planning

Material Requirements Planning

Question 8 (2 points)

Which of the following are characteristics of an MRPII system?

I. It incorporates the plans of marketing, production, and finance.

II. It is a fully integrated planning and control system.

III. It has feedback from the bottom up.

Question 8 options:

III only

I only

II only

I, II, and III

Question 9 (2 points)

Which of the following is a basic strategy in developing a production plan?

Question 9 options:

 chase strategy

 hybrid strategy

 production leveling

 production leveling and chase strategy

 hybrid strategy and production leveling

Question 10 (2 points)

Which of the following information is needed to develop a make-to-stock production plan?

I. Forecast by time period for the production plan

II. Opening inventory

III. Opening backlog of customer orders

IV. Desired ending inventory

Question 10 options:

I, II, and IV

II, III, and IV

I, III, and IV

None of the above

I, II, and III

Question 11 (2 points)

Priority in production planning relates to:

Question 11 options:

none of the above

an objective of the firm.

how much of what is needed and when.

 capacity.

what should come first.

Question 12 (2 points)

 Over a 10-week period the cumulative sales are forecast at 10,000 units, the opening inventory is 200 units, and the closing inventory is to be 100 units. What should be the weekly planned production for level production?

Question 12 options:

1,010

1,000

990

 none of the above

1,030

Question 13 (2 points)

Given the following table, calculate the ATP. There are 50 units on hand.

Week                           1          2          3          4          5

Customer orders          20        20        15        30        10

Scheduled receipts                             50                    

ATP                                                     

Question 13 options:

 The ATP in week 1 is 30.

 The ATP in week 1 is 5.

 The ATP in week 2 is 10.

 The ATP in week 1 is 10.

 The ATP in week 3 is 35.

Question 14 (2 points)

The portion of inventory or production not committed to customer orders is called:

Question 14 options:

waste.

available to promise.

excess capacity.

excess production.

free stock.

Question 15 (2 points)

Which of the following modules follows the sales and operations plan?

Question 15 options:

Production planning

Material requirements planning

Master scheduling

Business planning

Question 16 (2 points)

The final assembly schedule is used:

Question 16 options:

in none of the above.

in a make-to-stock environment.

in an assemble-to-order environment.

in a make-to-order environment.

in any of the above.

Question 17 (2 points)

Which of the following is the term applied to a master schedule for a purchased item?

Question 17 options:

Supplier scheduling

Master scheduling

Purchase order

Material scheduling

Question 18 (2 points)

 Master scheduling is a balancing act between which of the following?

Question 18 options:

 Inventory and customer service

 Supply and demand

 Forecast and inventory

 Forecasts and orders

Question 19 (2 points)

Which of the following comes directly from external customers?

Question 19 options:

 Order quantity

 Independent demand

 Bill of materials

 Dependent demand

Question 20 (2 points)

A set of priority planning techniques for planning component items below the end item level is called:

Question 20 options:

production control.

material requirements planning.

capacity planning.

none of the above

master scheduling.

Question 21 (2 points)

In material requirements planning, the process of placing the exploded requirements in the proper time periods, based on the assembly lead times involved, is known as:

Question 21 options:

netting.

offsetting.

none of the above

exploding.

all of the above

Question 22 (2 points)

Given the following parents and components, how many B’s are required to make an X? (Quantities are shown in parentheses.)

Parent              X         A

Component     A(2)     B(2)

                        B(1)     D(1)

Question 22 options:

 3

 2

 5

 4

 1

Question 23 (2 points)

A multilevel bill of materials:

I. Reflects the way the product will be manufactured.

II. Is produced by the engineering department.

III. Is a parts list only and does not contain subassemblies.

Question 23 options:

 Only I is true.

 I, II, and III are true.

 Only II is true.

 Only III is true.

 I and II are true.

Question 24 (2 points)

The document that shows the component parts and the number of parts needed to make an assembly or subassembly is called:

Question 24 options:

none of the above

a material requisition.

a material requirements plan.

a bill of materials.

a route sheet.

Question 25 (2 points)

A report that shows the future capacity requirements based on released and planned orders for each time period of the plan is called:

Question 25 options:

dispatch list.

order report.

capacity report.

load report.

none of the above

Question 26 (2 points)

 A work center was available for work 80 hours, produced 74 standard hours of work, and actually worked 67 hours. What is the efficiency of the work center?

Question 26 options:

119.4%

108.1%

92.5%

110.4%

Question 27 (2 points)

Rated capacity is calculated taking into account work center:

I. Historical data

II. Utilization

III. Efficiency

Question 27 options:

I and II.

None of the above.

II and III.

I and III.

Question 28 (2 points)

Available capacity in production planning is:

Question 28 options:

a measure of the ability of a plant to consume raw materials.

none of the above.

the quantity of work that can be performed in a given period of time.

all of the above.

the amount of inventory that can be held in a warehouse.

Question 29 (2 points)

The ratio of standard hours of work produced to hours actually worked is called:

Question 29 options:

efficiency.

effectiveness.

Murphy's factor.

up-time.

utilization.

Question 30 (2 points)

In one week, a work center produced 130 standard hours of work. The actual hours worked was 114. The efficiency is:

Question 30 options:

92.3%

80.8%

114.0%

87.7%

Question 31 (2 points)

The activities of production activity control can be classified as:

I. planning.

II. implementation.

III. control.

IV. process control.

Question 31 options:

I, III, and IV

II, III, and IV

All of the above

I, II, and III

I, II, and IV

Question 32 (2 points)

Planning the flow of work requires production activity control to:

I. be sure the material needed is available.

II. be sure the tooling needed is available.

III. schedule the start and stop dates at each work center.

IV. advise the plant supervisor of future orders.

Question 32 options:

I, III, and IV

II, III, and IV

I, II, and IV

All of the above

I, II, and III

Question 33 (2 points)

Which of the following files is used by PAC for planning?

I. Shop order master file

II. Shop order detail file

III. Item master file

IV. Routing file

Question 33 options:

I and II

II and III

III and IV

I and III

All of the above

Question 34 (2 points)

Which file contains information on the efficiency and utilization of a work center?

Question 34 options:

Utilization file

Efficiency file

Routing file

Efficiency file or utilization file

Work center file

Question 35 (2 points)

Which of the following dispatching rules ignore(s) due dates?

Question 35 options:

Shortest processing time

Earliest operation due date

First come, first served, and shortest processing time

First come, first served, and earliest operation due date

First come, first served

Question 36 (2 points)

A scheduling system that assumes that the required capacity will always be available is called:

Question 36 options:

finite scheduling.

infinite scheduling.

none of the above

forward scheduling.

backward scheduling.

Question 37 (2 points)

In which of the following situations would a company probably specify by brand?

Question 37 options:

When the item to be bought is made to an industry standard

When the item to be bought is patented

When the item to be bought is patented, and when the item to be bought is made to an industry standard

When buying small quantities

When buying small quantities, and when the item to be bought is patented

Question 38 (2 points)

Purchasing departments usually have the responsibility and authority to:

Question 38 options:

none of the above

satisfy the needs of the user department.

legally commit the company to a contract.

determine price and source.

all of the above

Question 39 (2 points)

Verifying shipments for quantity and no damage is the responsibility of:

Question 39 options:

the shipping department.

the receiving department.

accounts payable.

the purchasing department.

the quality department.

Question 40 (2 points)

Which of the following statements is true about planner/buyers?

I. Planner/buyers handle more components than planners do.

II. Planner/buyers issue material releases to suppliers.

III. Planner/buyers establish supplier delivery priorities.

IV. Planner/buyers negotiate prices with suppliers.

Question 40 options:

I, II, and III are true.

II and III are true.

II, III, and IV are true.

I and II are true.

III and IV are true.

Question 41 (2 points)

Special items will generally be purchased on the basis of a quotation. The purchasing agent will select on the basis of:

Question 41 options:

the most reliable bidder.

the preference of the department that will use the item.

all of the above

none of the above

the lowest price.

Question 42 (2 points

From the buyer's point of view the best quality is:

Question 42 options:

none of the above

the least expensive.

the most expensive.

that which technically does the best job.

that which is best adapted to a particular use.

Question 43 (2 points)

Products should be specified by brand because:

Question 43 options:

price levels of brand items are low, and the number of potential suppliers is restricted.

all of the above

it is difficult to develop accurate specifications for an item.

the number of potential suppliers is restricted.

price levels of brand items are low.

Question 44 (2 points)

Which of the following departments is most likely to be familiar with waste products, the legislation governing their handling, and other uses in the company?

Question 44 options:

Maintenance.

Direct Customer Sales.

Purchasing.

Human Resources

Engineering.

Question 45 (2 points)

Which of the following is an advantage of specifying by company-developed specification?

Question 45 options:

Unless a performance specification is used, the buyer takes responsibility for performance.

None of the above is an advantage.

All of the above are advantages.

It is always possible to draw up specifications for any product.

The cost of establishing specifications is low.

Question 46 (2 points)

Forecasts are far more accurate for which of the following?

Question 46 options:

End-use components

Individual items

Short term

Product families

Question 47 (2 points)

If the February demand for a product is 5,000 units and the seasonal index for February is 0.75, what is the deseasonalized February demand?

Question 47 options:

8,750

10,000

6,667

15,000

3,750

Save

Question 48 (2 points)

Select the best statement from the following:

Question 48 options:

All of the above are true.

Usually forecast error is distributed normally about the average demand.

In a normal distribution the error will be within 1 MAD of the average about 60% of the time.

None of the above is true.

The mean absolute deviation can be used as a measure of forecast error.

Question 49 (2 points)

Which of the following methods can be used to forecast the demand for a NEW product?

Question 49 options:

Qualitative techniques

All of the above

Equation fitting

Moving averages

None of the above

Question 50 (2 points)

Which of the following statements is (are) best regarding forecasting techniques?

Question 50 options:

Intrinsic techniques use historical data.

Qualitative techniques are based on judgment.

Techniques that use external economic indicators are classified as extrinsic.

All of the above are true.

None of the above is true.