MGT417 Midterm Exam 2017 (Score 100%)

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 planningII. Implementation and controlIII. Inventory managementQuestion 4 options:I and III onlyII and III onlyI and II onlyAll 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 descriptionavailable facilitiesquantities to be producedprocess descriptionall of the aboveSaveQuestion 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 PlanningSupply Chain ManagementEnterprise Resource PlanningMaterial Requirements PlanningQuestion 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 onlyI onlyII onlyI, II, and IIIQuestion 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 levelingQuestion 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 planII. Opening inventoryIII. Opening backlog of customer ordersIV. Desired ending inventoryQuestion 10 options:I, II, and IVII, III, and IVI, III, and IVNone of the aboveI, II, and IIIQuestion 11 (2 points)Priority in production planning relates to:Question 11 options:none of the abovean 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:1,0101,000990 none of the above1,030Question 13 (2 points)Given the following table, calculate the ATP. There are 50 units on hand.Week            1    2    3    4    5Customer orders    20    20    15    30    10Scheduled 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 planningMaterial requirements planningMaster schedulingBusiness planningQuestion 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 schedulingMaster schedulingPurchase orderMaterial schedulingQuestion 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 ordersQuestion 19 (2 points)Which of the following comes directly from external customers?Question 19 options: Order quantity Independent demand Bill of materials Dependent demandQuestion 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 abovemaster 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 aboveexploding.all of the aboveQuestion 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    AComponent    A(2)    B(2)         B(1)    D(1)Question 22 options: 3 2 5 4 1Question 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 abovea 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 aboveQuestion 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 dataII. UtilizationIII. EfficiencyQuestion 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 IVII, III, and IVAll of the aboveI, II, and IIII, II, and IVQuestion 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 IVII, III, and IVI, II, and IVAll of the aboveI, II, and IIIQuestion 33 (2 points)Which of the following files is used by PAC for planning?I. Shop order master fileII. Shop order detail fileIII. Item master fileIV. Routing fileQuestion 33 options:I and IIII and IIIIII and IVI and IIIAll of the aboveQuestion 34 (2 points)Which file contains information on the efficiency and utilization of a work center?Question 34 options:Utilization fileEfficiency fileRouting fileEfficiency file or utilization fileWork center fileQuestion 35 (2 points)Which of the following dispatching rules ignore(s) due dates?Question 35 options:Shortest processing timeEarliest operation due dateFirst come, first served, and shortest processing timeFirst come, first served, and earliest operation due dateFirst come, first servedQuestion 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 aboveforward 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 standardWhen the item to be bought is patentedWhen the item to be bought is patented, and when the item to be bought is made to an industry standardWhen buying small quantitiesWhen buying small quantities, and when the item to be bought is patentedQuestion 38 (2 points)Purchasing departments usually have the responsibility and authority to:Question 38 options:none of the abovesatisfy the needs of the user department.legally commit the company to a contract.determine price and source.all of the aboveQuestion 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 abovenone of the abovethe lowest price.Question 42 (2 pointsFrom the buyer's point of view the best quality is:Question 42 options:none of the abovethe 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 aboveit 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 ResourcesEngineering.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 componentsIndividual itemsShort termProduct familiesQuestion 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:8,75010,0006,66715,0003,750SaveQuestion 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 techniquesAll of the aboveEquation fittingMoving averagesNone of the aboveQuestion 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.