BSCMrevised

1The basic elements of the supply chain include:A) supply, manufacture, distribution.B)design, manufacture, inventory.C) engineer, design, manufacture.D) supply, engineer, manufacture.2In order to maximize profit, a company must have all of the following objectives except:A) Best customer serviceB)Most accurate production forecastC) Lowest inventory investmentD) Lowest distribution cost3The inventory turns ratio measures:A) the amount of inventory needed to support sales growth.B)obsolete inventory as a percent of sales.C) how effectively inventory is being used.D) the amount of space needed to store inventory.4Process specifications can be best defined as a document which:A) shows how the product will appear.B)shows the steps needed to produce the end item.C) details the capacity available at a work center.D) flow charts various processes.5A company's strategic plan:A) provides the manufacturing plan for families of end items.B)outlines the sales plan for the next year.C) is a statement of goals and objectives for a long range period.D) outlines new products for the next year.6In which of the following manufacturing environments would consumer products, such as film, food, etc. be classified?A) Assemble-to-orderB)Engineer-to-orderC) Make-to-orderD) Make-to-stock7Many different end items are made from a small number of components. What manufacturing environment would this be?A) Make-to-stockB)Make-to-orderC) Assemble-to-orderD) Engineer-to-order8The purpose of a strategic business plan is to:A) plan production by product family.B)plan for business changes which take a long time.C) establish customer requirements over the long term.D) establish order promising strategies.9Aggregate inventory management is concerned with:A) managing inventory items and how they are used.B)establishing the production plan.C) the cost and benefits of carrying the different classes of inventory.D) the distribution network and the movement of inventory.10Which of the following are objectives of inventory?I.Maximize customer serviceII.Efficient transactionIII.Low cost plan operationsIV.Minimum inventory investmentA) I, II, and IIIB)I, III, and IVC) I, II, and IVD) II, III, and IV11Which of the following would be included in the cost of carrying inventory?I.Heating and lighting a warehouseII.Obsolete inventorybor to move materialIV.Damaged inventoryA) I, II, and IIIB)II, III, and IVC) I, III, and IVD) I, II, III, and IV12Which of the following best describes a normal distribution?A) Most values clustered near a central pointB)Warehouses centrally located to marketsC) Values accumulated at six sigmaD) A critical ratio of 1.013Based on the following information, what would the safety stock need to be to ensure product is in stock 99.9999% of the time?MAD = 100On hand = 200Weekly demand = 400A) 100B)300C) 500D) 60014Each distribution center places orders from central supply as they are needed. This is called:A) pull system.B)push system.C) Just-in-Time delivery.D) supply chain management.15A company makes all decisions regarding forecasting and orders centrally for its distribution network. This company is using which of the following systems?A) Pull systemB)Push systemC) Just-in-TimeD) Time phased order point16A company wants to store 15,000 cartons with 20 cartons on each pallet. The warehouse is set up to store pallets 5 high. How many pallet positions are needed?A) 150B)500C) 750D) 300017All of the following are basic grouping methods to store and locate stock in a warehouse except: A) Items related functionallyB)Items in sequential SKU numberC) Items which are physically similarD) Items which are fast moving18What is the major disadvantage of a fixed location warehouse?A) Put away time is increasedB)Cube utilization is poorC) Dock time is increasedD) Material handling costs rise19Which of the following are advantages of point of use storage?I.Ease of controlII.Material handling is reducedIII.Storage costs are reducedIV.Material is accessible at all timesA) I, II, and IIIB)II, III, and IVC) I, III, and IVD) I, II, III, and IV20Which of the following are advantages of using central storage?I.Ease of controlII.Costs are reducedIII.Inventory record accuracy is easier to attainIV.Safety stock is reducedA) I, II, and IIIB)I, III, and IVC) II, III, and IVD) I, II, III, and IV21Which of the following best describes cycle counting?A) A process to reduce cycle timeB)Set up reduction to shorten the production cycleC) Counting inventory on a pre-determined scheduleD) Conducting a time study at a work center22The movement of finished goods from production to the customer is:A) physical supply.B)supply chain.C) physical distribution.D) conversion cycle.23All of the following activities are part of the physical distribution system except: A) TransportationB)WarehousingC) Material handlingD) Forecasting of customer orders24Trucks, as a mode of transportation, are best suited for:A) moving small quantities to widely dispersed markets.B)moving large quantities to widely dispersed markets.C) moving small quantities to narrowly dispersed markets.D) moving large quantities to narrowly dispersed markets.25For a given product, the line haul cost is $1.50 per mile. The product will move 400 miles. If 40,000 pounds are being shipped, what is the cost per hundred weight?A) 1.00B)1.50C) 2.00D) 2.5026Which of the following best describes the purpose of a distribution warehouse?A) A warehouse to store goods for long periods of timeB)A storage warehouse for floor stockC) A warehouse to move and mix goodsD) A supply chain warehouse for regional storage27Which of the following are the roles which warehouses serve?I.Transportation consolidationII.Inventory efficiencyIII.Product mixingIV.Customer serviceA) I, II, and IIIB)I, III, and IVC) II, III, and IVD) I, II, III, and IV28A market boundary can be defined as the:A) geographic boundary of a region.B)line where the laid down cost is the same from two supply sources.C) line where shipments in one distribution center equals another.D) mileage boundary where shipment costs exceed the margin to be gained.29As a company increases the number of warehouses from one to two, there is an impact on safety stock. Safety stock will:A) increase by a factor of 2.B)decrease by half.C) increase, and the percent can be calculated.D) decrease by a calculated percentage.30The Just-in-Time philosophy can be best defined as:A) Delivering goods just before they are neededB)Fulfilling customer orders just as they are neededC) Manufacturing without inventoryD) Elimination of waste31The Toyota Motor Company identified seven sources of waste in manufacturing. Which of the following represent those sources of waste?I.ProcessII.OverproductionIII.Wait-timeIV.MovementA) I, II, and IIIB)I, II, and IVC) II, III, and IVD) I, II, III, and IV32To achieve necessary quality levels in a JIT environment, quality must be:A) built into the product by operators.B)inspected at multiple points.C) ensured by the quality control lab.D) an inspectors function.33In order to reduce the number of transactions which occur in a JIT environment, companies use a system called:A) transaction prevention.B)pre-deduct.C) backflushing.D) bar coding.34The annual cost of goods sold for a company is $40 million and the average inventory is $10 million. By how much would the inventory need to be reduced to have annual inventory turns equal 20 turns?A) $2 millionB)$4 millionC) $6 millionD) $8 million35A company wants to produce 1000 units over the next four months using a level strategy. The months have 20, 21, 19 and 22 working days in each one. Based on this strategy, how much would be produced in the first month?A) 244B)254C) 260D) 26236System nervousness is caused by:A) the inability of the planner to remain calm.B)requirements changing rapidly.C) constant demands by manufacturing for long production runs.D) purchased materials which do not arrive on time.37A component has a fixed cost of $1,000 and a variable cost of $5.00 per unit to produce. What would the average cost per unit be if the company produces 4,000 units?A) $5.00B)$5.10C) $5.25D) $5.5038Which of the following best defines throughput?A) The number of bottlenecks slowing productionB)The total capacity which a factory can produceC) The speed of a work center to produceD) The total volume of production passing through a facility39Forecasts are typically more accurate for the near future than they are for the longer future. This occurs because:A) the near term holds less uncertainty than the long term.B)more data is available in the near term.C) aggregate data is easier to forecast.D) the future is more dynamic in the near term.40Forecasts are usually wrong but we continue to use them. They are necessary because:A) forecasters provide a service to the organization.B)forecasts are a prelude to business planning.C) the master production schedule (MPS) needs one.D) materials requirements planning (MRP) cannot operate without one.41Even in an intermittent manufacturing shop, certain JIT principles can be applied. Which of the following principles can be used in an intermittent manufacturing shop? I.Employee involvementII.Total preventive maintenanceIII.Inventory reductionIV.Continuous flow linesA) I and IIIB)II and IVC) I, II, and IIID) I, II, III, and IV42Which of the following manufacturing types would typically have the longest delivery time?A) Make-to-orderB)Engineer-to-orderC) Make-to-stockD) Assemble-to-order43Which of the following statements would be true regarding the delivery time in an engineer to order company?A) Delivery time is shorter than a make-to-order company.B)It would be the same as a make-to-stock item.C) It would be longer than an assemble-to-order company.D) It would be shorter than an assemble-to-order company.44Which of the following would be considered a function of physical distribution?A) Material handlingB)RoutingsC) Kanban sizeD) Pull signal45Which of the following would be considered part of the physical distribution system?A) Moving materials between work centersB)Receiving goods from suppliersC) Planning the transfer of goods to outside contractorsD) Forecasting inventory levels to support manufacturing46Which of the following would most likely be an independent demand item?A) Inventoried subassembly for a printerB)Manufactured subassembly in a carC) Purchased component for a fork truckD) Spare part for a jet engine47Production planning is generally a direct input to:A) material requirements planning.B)purchase order planning.C) capacity load at a work center.D) master production scheduling.48Which of the following would most likely be a dependent demand item?A) Safety glovesB)Office suppliesC) Purchased componentD) Item being shipped to customer49If a company is going to establish a cycle count program, a primary objective should be to:A) correct the inventory records.B)reduce the headcount.C) identify the causes of inventory errors.D) eliminate the physical inventory.50A company needs to increase production in the current week to meet a customer request. The quickest way to accomplish this is to:A) work overtime.B)hire more workers.C) hire temporary workers.D) subcontract the work.51Which of the following does a tracking signal identify in a forecast?A) Mean absolute deviationB)Standard deviationC) BiasD) Aggregate summarization52An income statement of a company will show which of the following?A) Inventory levelsB)Long term debtC) Cost of products soldD) Net cash available53Which of the following is a reason to maintain inventory?A) Improve customer serviceB)Reduce transportation costsC) Increase machine operating timeD) Reduce costs54Which of the following best describes the ABC approach to inventory control?A) Maintain a high inventory of "A" parts.B)Have plenty of "C" parts.C) Keep the "B" parts to a minimum level.D) Always keep plenty of inventory.55The law which states that a small percentage of the group usually accounts for a large percent of the results is which of the following?A) Fredo's lawB)Newton's first lawC) Pareto's lawD) Nielsen's law56Inventory is used to decouple:A) production plans from master schedules.B)rough cut capacity from capacity plans.C) supplier orders from supplier deliveries.D) supply from the demand.57A supervisor's primary role in a total employee involvement company is:A) controlling.B)cheerleading.C) coaching.D) quality control.58Conformance can be best described as:A) making the highest quality products.B)meeting the specified requirements.C) working together as a team.D) flowing product through cells.59The objective of scheduling is to:A) ensure work centers are properly loaded.B)meet delivery dates.C) provide capable to promise information.D) meet cost targets.60If a variety of products are made in a factory, the most common unit of capacity is:A) machine turns.B)inventory turns.C) time.D) dollars.61Which of the following best defines the term break even point?A) The point at which a product failsB)Current assets = current liabilitiesC) Required capacity = available capacityD) Revenues = total costs62The throughput of a manufacturing process is determined by:A) overloaded work centers.B)first work center in the process.C) underloaded work centers.D) last work center in the process.63In a JIT manufacturing environment, waste can be described as:A) component scrap.B)overtime.C) any process which does not add value.D) any overhead process.64A key element in selecting a site for a factory is:A) availability of water.B)access to rail sidings.C) cost and availability of transportation.D) warehouse space and cost.65The particular channel in which goods move describes:A) manufacturing channel.B)marketing channel.C) capacity channel.D) distribution channel.66Inventory areas should be locked except for during normal business hours because:A) people are apt to steal.B)storeroom personnel know where parts are stored.C) transactions might not be completed.D) it's the right thing to do.67A company has its warehouse divided so order pickers only pick in their area. This warehouse is operating under which of the following systems?A) Zone systemB)Area systemC) Consolidated pick systemD) Modified pick system68In a fixed location warehouse system, each SKU has an assigned location. While this has many positives, the negative aspect to fixed location warehousing is that:A) warehouses can get messy.B)cube utilization is poor.C) inventory accuracy suffers.D) items can be damaged in put away.69The balance to cube utilization is:A) pallet positions.B)accessibility.C) put away speed.D) material handling costs.70A normal distribution can be graphed as a :A) parabolic curve.B)trend seasonal curve.C) positive bias curve.D) bell shaped curve.71Which of the following manufactured product types are best suited for flow manufacturing?A) Wide range of disparate productsB)Limited range of similar productsC) Low volume of similar productsD) High volume of disparate products72The key component to quick changeovers is:A) dramatically reduced set up times.B)availability of materials to run when the changeover is complete.C) expensive machines which changeover automatically.D) large enough lot sizes so changeovers are not critical.73A company which can adapt swiftly to changes in the volume and mix of their products is:A) good at sales and operation planning.B)forecasting accurately.C) process flexible.D) six sigma certified.74The key driver in a Total Quality Management (TQM) company should be:A) lower costs.B)training employees.C) problem solving tools.D) customer needs.75Quality can best be defined as:A) job one.B)meeting or exceeding the users' expectations.C) the best product produced.D) zero defects.76In a flow manufacturing environment, product will generally flow consistently and constantly. As a result, there is little time to do inventory transactions to record the movement of parts through the line. To overcome this, many companies record their inventory by using:A) pre flushing.B)kanban.C) cycle counts.D) backflushing.77Production plans have all of the following except:A) Shipment planB)Product familiesC) Inventory planD) Weekly production78Which of the following statements is most correct?A) The MPS shows families of products.B)The MPS has more detail than the production plan.C) The production plan has more detail than the MPS.D) The production plan rolls up to equal the MPS.79A closed loop MRP system can be best defined as:A) action taken by a planner to approve planned orders.B)re-planning of capacity to accommodate restraints.C) integrated planning and control system with feedback from the bottom-up.D) integrated systems which include financial software, finite capacity, and logistics.80You are working as a Master Scheduler in a discrete manufacturing company. A large customer has asked if you can deliver an order, but you have some short term capacity constraints. Which of the following actions could be taken so the order can be delivered?I.People could be hiredII.Overtime could be workedIII.Inventory could be built in slow timesIV.Work could be subcontractedA) I, II, and IIIB)II, III, and IVC) I, III, and IVD) I, II, and IV81Which of the following are strategies to use in developing a production plan?I.Chase strategyII.Delphi strategyIII.Level strategyIV.Backlog strategyA) I and IIB)I and IIIC) II and IVD) III and IV82 Which of the following are inputs to a realistic MPS?I.Production planII.Forecasts for end itemsIII.Product costs for end itemsIV.Capacity constraintsA) I, II, and IIIB)I, II, and IVC) II, III, and IVD) I, III, and IV83 Which of the following are objectives when establishing the MPS?I.Efficient use of resourcesII.Efficient final assemblyIII.High customer service levelsIV.Efficient use of inventoryA) I, II, and IIIB)I, II, and IVC) I, II, III, and IVD) I, III, and IV84 Final assembly scheduling usually occurs when:A) a customer order is received.B)planning a build schedule.C) the MPS is established.D) capacity is constrained.85 In make to stock requirements, customer orders are satisfied from:A) available capacity.B)work in process inventory.C) finished goods inventory.D) raw material inventory.86Independent demand can be defined by all of the following except:A) Demand not related to demand from higher level assembliesB)Forecasted demandC) Demand calculated based on present demandD) Demand from customer orders87Which of the following would best define dependent demand?I.Demand which is dependent on the forecastII.Demand which is dependent on demand for a higher level assemblyIII.Demand which is calculatedA) IB)I and IIC) II and IIID) III88Which of the following is not an input to MRP?A) Master Production ScheduleB)Inventory recordsC) Bill of materialsD) Capacity planning89 Planning bills can be best described as:A) bills of material based on forecast demand.B)bills of material for new products.C) bills of material which represent average products.D) bills of material for expected usage.90A firm planned order is used to:A) freeze the planned order against changes in quantity and time.B)convert the planned order to a scheduled receipt.C) simulate the projected inventory balance.D) manipulate the data and quantity of the customer order.91Which of the following would be included in demand management?I.Forecasted requirementsII.Service parts requirementsIII.Branch warehouse requirementsIV.Inter-plant ordersA) I, II, and IIIB)II, III, and IVC) I, III, and IVD) I, II, III, and IV92All of the following are principles of forecasting except:A) Forecasts are usually wrongB)Forecasts are more accurate for end itemsC) Forecasts should include an estimate of errorD) Forecasts are more accurate in the near term93When a company has historical data available for use in forecasting future demand, the technique for utilizing this data is called:A) qualitative forecasting techniques.B)extrinsic forecasting techniques.C) intrinsic forecasting techniques.D) causal forecasting techniques.94The following formula represents which forecasting technique?New forecast = (alpha)(latest demand) + (1-alpha)(previous forecast)A) Weighted moving averageB)Double exponential smoothingC) Exponential smoothingD) Focus forecasting95The annual demand for a product is 1200 but during July, the product sells 150 units. What is the seasonal index for the product in July?A) 1.0B)1.5C) 1.75D) 2.0096 Which of the following best describes the term bias?A) Actual demand consistently varies from forecast; either above or below.B)The standard deviation is consistently positive.C) The mean absolute deviation equals the forecast error.D) The sum of the errors is less than the MAD.97A tracking signal is used to:A) monitor the quality of the forecast.B)determine the variation in the production plan.C) measure whether the schedule is being met.D) measure the material plan.98 Based on the following information, what is the mean?PeriodDemand11000250037004600A) 500B)600C) 700D) 80099Demand on a work center is caused by the next work center. Product is not made unless signaled by the next work center. This is called:A) push system.B)pull system.C) demand system.D) MRPII system.100Which of the following best describes the Master Production Schedule?A) It is the actual build schedule for manufacturing.B)It is the final assembly schedule.C) It is driven by materials requirements planning.D) It is the planned build schedule for manufacturing.101A company wants to produce at a level rate. Based on the following information, what production rate will provide a projected inventory of 20 at the end of period five? Period12345Forecast Demand2010151510Planned ProductionPlanned Inventory10A) 14B)15C) 16D) 17102 Which of the following are steps in developing a Master Production Schedule? I.Develop a preliminary MPSII.Check the schedule against the capacity availableIII.Check MPS against the production plan to ensure they are equalA) I and IIB)I and IIIC) II and IIID) I, II, and III103Over the past three months, the demand for a product has been 240, 260, and 280. Calculate the three month moving average forecast for month four.A) 240B)260C) 280D) 300104The material requirements system receives direct input from:A) production planning.B)capacity requirements planning.C) master production scheduling.D) purchasing.105Based on the following data, what should the monthly production be to achieve level production?Beginning inventory = 300 unitsEnding inventory = 400 unitsSales forecastMonth12345Quantity300400200300200A) 200B)250C) 300D) 350106Based on the following data, what should the monthly production be to level production?Beginning inventory = 500 unitsEnding inventory = 200 unitsSales forecastMonth12345Quantity400300400400300A) 250B)300C) 350D) 400107 Which of the following best describes a master production schedule?A) Product families, monthlyB)End items, monthlyC) End items, weeklyD) Product families, weekly108The forecast for a part is 200 units per week. The actual shipments for the last 5 weeks have been 250, 260, 210, 240, and 220. If the MAD is 20, what would the tracking signal equal?A) 3B)6C) 9D) 12109 Based on the following data, what would the projected forecast for month 5 be, using a 3 month moving average?Month1234Forecast200200200200Actual Demand190210190170A) 170B)180C) 190D) 200110What is the Mean Absolute Deviation for the following data?Period12345Forecast100100150150150Demand90105140160170A) 3B)9C) 11D) 15111In order for a forecast to signal negative bias, the tracking signal would be:A) less than zero but greater than -1.B)more than zero but less than +1.C) equal to one.D) equal to zero.112 An anticipated build schedule can be best described as:A) production plan.B)capacity plan.C) materials requirements plan.D) master production schedule.113In which of the following manufacturing environments are forward scheduling and finite loading best suited for providing customer promise dates?A) Make-to-stockB)Make-to-orderC) Assemble-to-orderD) Configure-to-order114Planning bills can be best described as:A) grouping like items together for planning.B)products which the factory plans to build.C) indented bill of materials.D) phantom bill of materials.115 The portion of a company's inventory and planned production which is not already committed is:A) inventory allocation.B)inventory commitment.C) available to promise.D) multi-plant planning.116The primary reason for a time fence is to:A) determine how to use the forecast.B)manage schedule changes most effectively.C) provide a stable schedule for the suppliers.D) maintain a steady shipment schedule.117A bill of materials contains:ponents used to make a productbor needed to build the productIII.Assemblies at various stages of productionIV.Safety stock by itemA) I and IIB)I and IIIC) II and IIID) III and IV118The term value can be best defined as:A) total revenue of products and services.B)total inventory available for shipment.C) amount buyers are willing to pay for a product or service.D) gross margin on a product or service.119The term, Value Chain, refers to the:A) total value generated by a company's activities.B)total revenue for all the products and services.C) supplier network for providing goods and services.D) margin associated with the activities.120The primary advantage of the concurrent engineering process is that:A) inventory needs are reduced.B)engineers work with other departments on projects improving communication.C) project costs for the development are accurately accounted for.D) product development time is reduced.121Which of the following would NOT be considered a source of demand?A) Customer ordersB)Interplant orders between facilitiesC) ForecastsD) Goods due in from a supplier122A responsive company will incorporate the customers' desires for product improvements into their goods and services. The ability to do this effectively is described as listening to the "voice of the customer." The phrase "voice of the customer" can be best described as:A) conducting focus groups with potential customers to see what features are best.B)obtaining actual customer descriptions in word for the features and functions they desire.C) getting feedback to a survey on the company website.D) sending out surveys to all important customers regarding the goods and services. 123Which of the following is the primary benefit of a customer partnership?A) Higher prices can be charged because the customer is not buying from other sourcesB)Reduced paperwork between the two partiesC) Lower costs in the supply chain for both companies because of the mutual sharing of informationD) Higher margins for the supplier124The attributes of the product or service that cause a customer to buy from a company are called the:A) order winners.B)order qualifiers.C) buyers criteria.D) order modifiers.125Many companies will call themselves market driven. This would indicate that they:A) develop strong advertising campaigns.B)established a strong brand image in the market.。