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| Section | Objectives |
|---|---|
| Execution and Control of Operations | - Performance Measurement
|
| Strategic Management of Resources | - Supplier and Customer Relationships
|
| Detailed Scheduling and Planning | - Capacity Planning
|
| Master Planning of Resources | - Sales and Operations Planning
|
1. In a lean environment, the batch-size decision for planning "A" items would be done by:
A) lot-for-lot (L4L).
B) min-max.
C) least total cost.
D) periodic order quantity.
2. A company can easily change its workforce, but inventory carrying costs are high. Which of the followingstrategies would bemost appropriate during times of highly fluctuating demand?
A) Produce to demand
B) Produce to backorders
C) Produce to the sales forecast
D) Produce at a constant level
3. A planner has chosen to increase the order point for a raw material. Which of the following costs is most likely to increase?
A) Product
B) Ordering
C) Landed
D) Carrying
4. An increase in the scrap allowance in an assembled item will result in which of the following consequences?
A) Replanning of the component items in material requirements planning (MRP)
B) An increase in the component items' cost
C) A change in the bill ofmaterials'(BOM) quantity per assembled item
D) An increase in the assembled item's planned lead time
5. Reducing distribution network inventory days of supply will have which of the following impacts?
A) Decrease turnovers and reduce cash-to-cash cycle time.
B) Increase turnovers and increase cash-to-cash cycle time.
C) Increase turnovers and reduce cash-to-cash cycle time.
D) Decrease turnovers and increase cash-to-cash cycle time.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: C |
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