question

Manufacturing planning and control (MPC) includes which of the following activities? I. Material management II. product marketing III. coordinating suppliers

answer

I and III

question

In the MPC process, capacity decisions (equipment, facilities, suppliers, etc.) are most likely to occur in which time horizon?

answer

long

question

In the MPC process, detailed scheduling decision are most likely to occur in which time horizon?

answer

short

question

Shop-floor systems are a part of which MPC phase?

answer

execution

question

Sales and operations planning (SOP) & demand management are a part of which MPC phase?

answer

direction setting

question

Master production scheduling (MPS) and resource planning are a part of which MPC phase?

answer

detailed planning

question

Measurement and control are a part of which MPC phase?

answer

direction setting, detailed planning & execution

question

Products that are part of a continuous production process (e.g., petroleum products) would most likely use which form of MPC?

answer

flow

question

Products that are part of a one-time production process (e.g. bridges, aircraft carriers) would most likely use which form of MPC?

answer

project

question

Updating and old MPC systems can include which of the following? I. Adding new modules or functionality II. Consideration of new decision criteria III. Removing unneeded/obsolete modules or functionality

answer

I, II, III

question

Demand management (DM) includes which of the following activities? I. Forecasting II. Product shipping III. Entering customer orders

answer

I and III

question

Demand management is the firm's connection to which of the following entities?

answer

marketplace

question

Sources of demand that are part of demand management include all of the following except.

answer

scrap products

question

Which of the following are examples of independent demand? I. Customer orders II. Shipping samples to the sales team III. Use of raw materials in production

answer

I and II

question

Which of the following are examples of dependent demand? I. Customer orders II. Using finished goods stock to build preloaded store displays III. Raw materials usage

answer

II and III

question

The customer order decoupling point is best defined as.

answer

the point in the supply chain where demand changes from dependent to independent

question

In an engineer-to-order environment, the most likely point where customer order decoupling would take place is.

answer

suppliers

question

In an assemble-to-order environment, the most likely point where customer order decoupling would take place is.

answer

work-in-process parts and components

question

In a make-to-stock environment, the most likely point where customer order decoupling would take place is.

answer

finished goods

question

In which environment is defining the customer order in terms of components and options the key focus of demand management?

answer

assemble-to-order

question

Which of the following lists properly ranks the different environments from lowest to highest need to communicate with the customer?

answer

assemble-to-order, make-to-order, engineer-to-order

question

In an assemble-to-order environment, how many different product combinations are possible if the product is make from 12 components, each of which has three different options?

answer

531, 441

question

In a make-to-stock environment, what is the key problem?

answer

balancing inventory levels with customer service requirements

question

In an engineer-to-order environment, the forecasting process is not necessary

answer

false

question

Sales and operations planning can be completed at which of the following levels? I. product family II. region III. organizational unit

answer

I, II & III

question

The lifetime of a customer order (time from receiving the order until order is fulfilled) is longest in which environment.

answer

engineer-to-order

question

The lifetime of a customer order (time from receiving the order until order is fulfilled) is shortest in which environment?

answer

make-to-stock

question

In which environment is the demand management function least likely to provide customers with promise dates?

answer

make-to-stock

question

Which types of data are captured and monitored by the demand management function? I. detailed product mix II. product pricing III. overall market trends

answer

I, II & III

question

Collaborative planning, forecasting, and replenishment (CPFR) has been defined by the Voluntary Interindustry Commerce Standards Association as a process involving how many steps?

answer

9

question

The first step in the collaborative, forecasting, and replenishment (CPFR) process is to.

answer

establish a collaborative relationship

question

The main goal of a collaborative planning, forecasting, and replenishment (CPFR) process is to.

answer

reduce the variance between supply and demand

question

A manufacturer of printer paper would most likely be what type of firm?

answer

make-to-stock

question

A manufacturer of jet airplanes would most likely be what type of firm?

answer

make-to-order

question

A local coffee house restaurant would most likely be what type of firm?

answer

assemble-to-order

question

Which of the following decisions would be most likely to be made using highly aggregated estimate of general business trends? I. individual product plans II. product line development III. constructing a new plant

answer

III only

question

Which of the following lists the planning decisions in order from highest to lowest aggregation level?

answer

strategic business unit - sales and operations planning (SOP)- master production scheduling (MPS)

question

Which of the following lists the planning decisions in order from lowest to highest data processing costs?

answer

master production scheduling (MPS) - sales and operations planning (SOP) - strategic business unit

question

Which of the following is an example of a casual model? I. product sales increasing over time II. lawn mower sales decreasing in the winter III. increasing appliance sales when housing construction increases

answer

III only

question

A forecast used for sales and operations planning is likely to cover a period of

answer

several months to a year

question

A forecast used for master production scheduling and control is likely to cover a period of

answer

several days to a few weeks

question

Regression analysis where the relationship between variable is a straight line is called

answer

linear regression

question

In regression analysis, the dependent variable could be time.

answer

false

question

In a time series analysis, time is the

answer

independent variable

question

The least squares method of linear regression minimizes I. the error of the slope II. the squared distance between each point and the line III. the error of the intercept

answer

II only

question

In a least squares regression analysis, if the value of a has been calculated as 10 and b has been found to be 100, what is the equation of the line?

answer

y=10+100x

question

Which of the following are possible components of time series demand? I. seasonal variation II. cyclical variation III. trend

answer

I, II & III

question

With additive seasonal variation, the seasonal change is constant regardless of trends.

answer

true

question

Seasonal variations are generally associated with the seasons of the year, while cyclical variations refer to other annual patterns

answer

true

question

As forecasts are extended further into the future, the prediction internal is most likely to

answer

increase

question

A moving-average forecast is often superior to a simple average because it considers only recent data

answer

true

question

An exponential smoothing forecast considers all past data

answer

true

question

In an exponential smoothing forecast, a higher level alpha will place more emphasis on recent history

answer

true

question

Compared to a moving-average forecast, an exponential smoothing forecast places more emphasis on recent history

answer

can't determine without more information

question

To make an exponential smoothing forecast more reactive to trends, a lower value of alpha should be used

answer

false

question

Mean error of a forecast provides information concerning the forecast's

answer

bias

question

Which value indicates the better forecast?

answer

cannot be determined

question

Mean absolute deviation (MAD) measures

answer

magnitude of forecast errors

question

Evaluating forecast accuracy requires an understanding of I. mean absolute deviation (MAD) II. Mean error (bias) III. Forecast costs

answer

I & II

question

Assuming that forecast errors are normally distributed, what is the relationship between mean absolute deviation (MAD) and standard deviation (SD)?

answer

SD > MAD

question

In pyramid forecasting, the "roll-up" process involves

answer

adding together family forecasts to determine the aggregate forecast

question

In pyramid forecasting, the "fore-down" process involves

answer

allocating aggregate forecast changes to product families

question

One of the most important ways to reflect special events (promotions, product changes, etc.) is to directly modify the product forecast.

answer

true

question

Sales and operations planning (SOP) provides which of the following benefits? I. key communications links for top management II. a basis to focus production resources III. detailed production plans

answer

I & II

question

The four fundamental issues in sales and operations planning are

answer

volume, mix, demand and supply

question

One role of sales and operations planning is to provide early warning when demand and supply become unbalanced.

answer

true

question

Sales and operations planning balances supply and demand at the

answer

volume level

question

Many key sales and operations planning linkages are outside the manufacturing planning and control (MPC) system.

answer

true

question

Which of the following are true? I. the sales and operations planning plan is usually stated in aggregate units II. the master production schedule is usually stated in end product units. III. the sales and operation planning plan and the master production schedule should be stated in the same units.

answer

I and II only

question

The recommended number of product groups for sales and operations planning is

answer

6-12

question

The operations plan is a form of demand forecast.

answer

false

question

The master production schedule disaggregates the operations plan.

answer

true

question

The demand management function's contribution to sales and operations planning is.

answer

ensuring that the operations plan considers all aspect of demand.

question

Advantages of the sales and operations planning process include. I. Visibility of the interaction between functional groups II. Identification of the trade-offs between functional groups III. The ability to overproduce the plan without the need for additional meetings

answer

I and II

question

Capacity planning occurs during the supply planning phase of sales and operations planning

answer

true

question

Decisions concerning the balance of supply and demand are made in the ______ phase of sales and operations planning.

answer

pre-SOP meeting

question

Mechanisms to ensure support for the sales and operations planning process can include I. informal adjustments to the plan between SOP meetings II. contracts between functional groups III. senior executive involvement

answer

II and III

question

A strategy that matches monthly supply to forecasted demand is

answer

chase

question

A strategy that maintains a consistent monthly output is

answer

level

question

In a chase strategy, if the expected demand in October is 1,000 units, and there are 24 working days in October, how much inventory should be held at the end of September if the goal is 15 days' supply?

answer

625 units

question

In a chase strategy, if planned production for the month is 10,000 units and employee productivity is 85 units per month, how many employees should be the firm employ at the beginning of the month?

answer

120

question

Top management roles in sales and operations planning include I. commitment to the process II. forcing resolution of trade-offs III. designing tools used to conduct sales and operations planning

answer

I and II

question

The primary obligation for any functional area is to "hit the plan"

answer

true

question

The sales and operations planning process is led by which team member?

answer

sales and operations planning process owner

question

Product family groups should represent?

answer

sales' and marking's view of the market

question

For the sales group, overselling the plan is as bad as underselling the plan.

answer

true

question

Strategic business unit (SBU) planning involves grouping information by

answer

products and markets

question

To ensure control of the operations plan, which of the following are necessary? I. accurate forecasts II. a transparent planning process III. clear communications of expectations

answer

I, II & III

question

Which of the following are prerequisites to implementing a master production scheduling system? I. define master production schedule (MPS) unit II. install an enterprise resource planning (ERP) system III. train an employee in MPS concepts and techniques

answer

I & III

question

The master production schedule (MPS) translates the sales and operations plan (SOP) into

answer

a specific production plan

question

The master production schedule (MPS) shows when products will physically be available to ship.

answer

false

question

A master production schedule is.

answer

neither a statement of current production nor current demand

question

The master production schedule (MPS) differs from forecast by considering. I. capacity limtis II. production costs III. the sales and operations plan (SOP)

answer

I, II & III

question

The master production schedule (MPS) must be stated in terms that relate to the producible product.

answer

true

question

The master production schedule (MPS) must be stated in terms of actual products.

answer

false

question

In which environment is a planning bill-of-material (BOM) most likely to be used?

answer

assemble-to-order

question

The master production schedule (MPS) considers preferred lot sizes when constructing the plan.

answer

true

question

Cycle stock is.

answer

inventory carried as a result of lot size requirements

question

Available-to-Promise (ATP) is likely to be least useful in which environment?

answer

make-to-stock

question

Which formula is used to calculate the projected available inventory balance?

answer

projected available inventory = previous available inventory + MPS - max (forecast, actual orders)

question

A planning bill of material is

answer

a bill of material that represents probably usage in an assemble-to-order environment

question

A super bill represents average usage of components in an assemble-to-order environment.

answer

true

question

The final assembly schedule (FAS) represents which of the following? I. the assembly plan when a planning BOM is used II. the exact set of end products to be built in an assemble-to-order environment III. the plan for moving pre-fabricated components into completed projects

answer

I, II & III

question

When the master production schedule (MPS) is frozen for some period, changes to the plan within the period are typically prohibited.

answer

true

question

Inside the demand fence, which of the following are true?

answer

available-to-promise (ATP) calculations ignore forecasts

question

Inside the planning fence, which of the following are true?

answer

changes to production orders are not allowed

question

One key to avoiding an overstated master production schedule (MPS) is to

answer

force the MPS to match the production plan (in terms of total units)

question

Supporting information for material requirements planning (MRP) systems includes which of the following? I. Bills of material II. Routing file III. Inventory status data

answer

I & III

question

Material requirements planning (MRP) takes place in the front-end systems of manufacturing planning and control system.

answer

false (in the engine)

question

Material requirements planning (MRP) systems perform which of these functions? I. translating the overall production plan into detailed steps II. providing information for capacity planning III. providing information for staffing plans

answer

I & II

question

In a material requirements planning (MRP) system, gross requirements (demand) are.

answer

anticipated future usage or demand for the item during each period

question

In a material requirements planning (MRP) system, scheduled receipts are.

answer

existing replenishment orders for the item due at the beginning of each period

question

In a material requirements planning (MPS) system, the projected available balance is

answer

current and projected inventory status for the item at the end of the period

question

In a material requirements planning (MRP) system, gross requirements are time phased which means which of the following?

answer

requirements from all periods are stated on a period-by-period basis

question

The precedent relationship shows.

answer

the order in which production steps must be accomplished

question

Front scheduling logic starts each step of the process as late as possible

answer

false (early)

question

Back scheduling logic starts each step of the process as late as possible.

answer

true

question

A lot-for-lot order policy generates orders for a fixed quantity, independent of actual requirements.

answer

false

question

Processing all material requirements planning (MRP) records in a single computer run is called.

answer

regeneration

question

Safety stock is an inventory buffer of stock over and above requirements.

answer

true

question

Safety lead time involved inflating lead times to ensure stock availability.

answer

false

question

In a system where timing of production is uncertain, it would be more appropriate to utilize.

answer

safety lead time

question

Information concerning the specific source of demand is called

answer

pegging information

question

A firm planned order (FPO) can be changed by the material requirements planning (MRP) system without human involvement.

answer

false

question

A commitment to an external supplier (e.g. a purchase order) is represented in the material requirements planning (MRP) system by a

answer

schedule receipt

question

Which of the following is not an action commonly taken by an MRP planner? I. release orders II. confirm inventory counts on incoming shipments III. reconcile MRP errors

answer

II only

question

Order launching occurs when a planned order release is in the action bucket.

answer

true

question

In a well-functioning material requirements planning (MRP) system, what percent of parts would be expected to require planner review (via exception codes) in any given processing cycle?

answer

10-20

question

Exception codes are usually generated for which of the following reasons? I. open order timing/amount not satisfactory II. need for management intervention III. generation of planned orders

answer

I & II

question

Which type of inventory occurs as a result of the time needed to physically move goods from one location to another?

answer

transit stock

question

Which type of inventory occurs as a result of seasonal patterns of demand?

answer

anticipation stock

question

Which of the following are decisions made when managing independent-demand inventories? I. how much to order II. when to order III. amount of scarp associated with production

answer

I & II

question

A measurement that relates inventory levels to product sales?

answer

inventory turnover

question

Which of the following is not a type of cost associated with inventory? I. ordering preparation costs II. inventory carrying costs III. shortage and customer service costs

answer

I, II & III

question

Which of the following are NOT a part of inventory carrying costs? I. cost of capital II. delivery charges III. product obsolescence

answer

II

question

If the cost of ordering decreases, what happens to the economic order quantity (EOQ)?

answer

decreases

question

Assuming that demand is normally distributed, with a standard deviation during lead time of 50 units, what level of safety stock is required to ensure that 95% of order cycles will have no stockouts?

answer

85

question

Assuming that demand is normally distributed, with a mean of 100 units, standard deviation during the lead time is 50 units, and a lead time of 2 periods, what reorder point will guarantee that no more than 10% of order cycles will have one or more stockouts?

answer

165

question

Assuming that demand is normally distributed (mean of 250 units, standard deviation of 75 units per period) and a lead time of 3 periods, what reorder point will guarantee that no more than 5% of order cycles will have one or more stockouts?

answer

1200

question

Assuming that demand is normally distributed (mean of 250 units, standard deviation of 75 units per period) and a lead time of 3 periods (with a standard deviation of 2 periods), what reorder point will guarantee that no more than 5% of order cycles will have one or more stockouts?

answer

1850

question

In a system with a forecast mean absolute deviation (MAD) of 100 units (over the lead time), what level of safety stock would be required to ensure that 90% of order cycles have no stockouts?

answer

160

question

In ABC analysis, the A group will likely contain the most items.

answer

false (c)

question

In ABC analysis, the C group will likely have the highest usage volume (in dollars).

answer

false (a)

question

Order point inventory control methods are generally used for items with what type of demand?

answer

independent

question

Which type of inventory occurs as a result of order quantities being larger than needed to satisfy immediate requirements?

answer

cycle stock

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