Operations & Supply Chain Management | Chapter 3 | Part 2 | MBA MCQs | OSM

Operations and Supply Chain Management MCQs

  

 

1. In MRP record
   calculations, the
   appearance of a
   negative value for the
   gross requirements of
   an end item in a
   specific time bucket
   1.   signals the need
      to purchase that
      end item in that
      period
   2.   implies that
      value was
      scheduled by
      the MPS
   3.   signals the
      need for a
      negative
      Planned
      Order Receipt
      in that period
   4.   is
      impossible
2. A material
   requirements plan
   contains information
   with regard to all of the
   following except
   1.   quantities and
      required delivery
      dates of all subassemblies
   2.   quantities and
      required
      delivery dates
      of final products
   3.   the
      capacity
      needed to
      provide the
      projected
      output rate
   4.   inventory
      on hand for
      each final
      product
3. The number of units
   projected to be
   available at the end of
   each time period refers
   to
   1.   net
      requirements
   2.   scheduled
      receipts
   3.   the
      projected
      usage of the
      item
   4.   the amount
      projected to
      be on hand
4. Linking a part
   requirement with the
   parent component that
   caused the requirement
   is referred to as
   1.   net
      requirements
      planning
   2.   a time fence
   3.   pegging
   4.   Kanban
5. In MRP, system
   nervousness is caused
   by
   1.   management's
      attempt to
      continually
      respond to minor
      changes in
      production
      requirements
   2.   the use of the
      lot-for-lot
      approach
   3.   management's
      marking part
      of the master
      production
      schedule as
      "not to be
      rescheduled"
   4.   the use of
      phantom bills
      of materials
6. One of the tools that is
   particularly useful in
   reducing the system
   nervousness in the
   MRP system is
   1.   modular bills
   2.   time phasing
   3.   time fences
   4.   lot sizing
7. A major strength of
   MRP is its capability
   1.   to minimize
      labor hours used
      in production
   2.   for timely
      and accurate
      replanning
   3.   to reduce
      lead times
   4.   to
      maximize
      production
      throughput
8. Material requirements
   plan specify
   1.   the quantities
      of the product
      families that need
      to be produced
   2.   the quantity
      and timing of
      planned order
      releases
   3.   the
      capacity
      needed to
      provide the
      projected
      output rate
   4.   the costs
      associated
      with
      alternative
      plans
9. Which of the following statements is true about
   the MRP plan whenusing lot-for-lot ordering?
   1.   The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent.
   2.   The quantity of gross requirements for a child item is equal to the quantity of net requirements for its parent(s) multiplied by the number of child items used in the parent assembly
   3.   The quantity of gross requirements for a child item is always equal to the quantity of gross
   4.   The quantity and gross requirements
      for a child item is alwaysequal to the
      quantity of net
10. Which of the following
    lot-sizing-techniques
    results in the lowest
    holding costs?
    1.   lot-for-lot
    2.   Wagner- Whitin
       algorithm
    3.   part period balancing
    4.   EOQ
11. What lot sizing
    technique is generally
    preferred when
    inventory holding costs
    are extremely high?
    1.   lot-for-lot
    2.   Wagner- Whitin
       algorithm
    3.   part period balancing
    4.   EOQ
12. For the lot-for-lot lotsizing
    technique to be
    appropriate
    1.   future demand
       should be known
       for several weeks
    2.   setup cost
       should be
       relatively small
    3.   annual
       volume
       should be
       rather low
    4.   item unit
       cost should be
       relatively
       small
13. MRP II is accurately
    described as
    1.   MRP software
       designed for
       services
    2.   MRP with a
       new set of
       computer
       programs that
       execute on
       microcomputers
    3.   MRP
       augmented by
       other
       resource
       variables
    4.   usually
       employed to
       isolate
       manufacturing
       operations
       from other
       aspects of an
       organization
14. Enterprise Resource
    Planning (ERP) is
    1.   severely
       limited by current
       MRP computer
       systems
    2.   not related to
       MRP
    3.   an
       advanced
       MRP II
       system that
       ties-in
       customers
       and suppliers
    4.   not
       currently
       practical
15. The extension of MRP
    which extends to
    resources such as labor
    hours and machine
    hours, as well as to
    order entry, purchasing,
    and direct interface
    with customers and
    suppliers is
    1.   MRP II
    2.   Enterprise
       Resource
       Planning
    3.   the master
       production
       schedule
    4.   closed-loop
       MRP
16. Distribution Resource
    Planning (DRP) is
    1.   a transportation
       plan to ship materials to
       warehouses
    2.   a time-phased
       stock
       replenishment plan for all
       levels of a
       distribution
       network
    3.   a shipping
       plan from a
       central warehouse to
       retail
       warehouses
    4.   material
       requirements
       planning with feedback loop
       from
       distribution
       centers
17. In what way are
    Distribution Resource
    Planning (DRP) and
    Material Requirements
    Planning (MRP)
    similar?
    1.   Both employ
       similar logic and
       procedures.
    2.   Both are
       employed in a
       manufacturing
       organization
    3.   Both work
       most
       efficiently
       with largest
       lot sizes.
    4.   Both are
       employed by
       retail
       organizations
18. Enterprise resource
    planning (ERP)
    1.   has existed for
       over a decade
    2.   does not
       integrate well
       with functional
       areas other than
       operations
    3.   is
       inexpensive
       to implement
    4.   automates and
       integrates the
       majority of
       business
       processes
19. Enterprise resource
    planning (ERP)
    1.   has been made
       possible because
       of advances in
       hardware and
       software
    2.   uses
       client/server
       networks
    3.   creates
       commonality
       of databases
    4.   All of the
       above are true
       of ERP.
20. Which of the following
    is false concerning
    enterprise resource
    planning (ERP)?
    1.   It attempts to
       automate and
       integrate the
       majority of
       business
       processes.
    2.   It shares
       common data
       and practices
       across the
       enterprise.
    3.   It is
       inexpensive
       to implement
    4.   It provides
       and accesses
       information in
       a real-time
       environment.
21. All of the following are
    advantages of
    enterprise resource
    planning (ERP) except
    it
    1.   creates
       commonality of
       databases
    2.   increases
       communications
       and
       collaboration
       worldwide
    3.   helps
       integrate
       multiple sites
       and business
       units
    4.   requires major
       changes in the
       company and
       its processes
       to implement