1. Which of the following types of the files is a key input to material requirements planning (MRP)?

Ans: Bill Of Material

2. Three critical functions within demand management includes customer relationship
management, demand planning and
Ans: Marketing management
3. Which of the following statements best describes flow of manufacturing?
Ans: Production is performed by a team created especially for that purpose
4. Resource planning takes place at which of the following levels?
Ans: Business Planning
5. Which items in an indented bill of material will be purchased components?
Ans: All of these
6. Which of the following information is contained in a routing file
Ans: Quantity to be ordered/ Work center to be used
7. Which of the following processes employs a finite scheduling model of a company’s
manufacturing system to determine when as item can be delivered?
Ans: Capable to promise
8. One of the ways to purchase products using contract buying is __________
Ans: Purchase order
9. Which of the following activities represents reverse logistics?
Ans: Returning goods to seller for repair, remanufacture or recycling
10. Which department has the responsibility of procurement of materials?
Ans: Purchasing
11. What is the primary disadvantage of ordering in fixed order quantities?
Ans: Can result in high inventory levels
12. What are service parts?
Ans: Item stored in maintenance to repair
13. Which of the following goals of cycle counting is a benefit for production?
Ans: The material count is accurate by location
14. Which of the following warehouse activities involves bringing goods together and checking for
omissions or errors in the order?
Ans: Marshalling the shipment
15. Given the following, what is the work center backlog?
Ans: 1.6 weeks
16. Which helps in automating the purchase order creation, based on the requirements of a
product?
Ans: MRP
17. A work center receives the materials for 56 complete assemblies and processes them in 7 hours.
What is this work center’s hourly load?
Ans: 8
18. Which of the following is true if material and capacity resources are to be planning effectively?
Ans: All source of demand must be identified
19. Which of the following statement is true for a company that uses the first in, first out method of
evaluating inventory in a market where prices are deceasing
Ans:
20. An account payable is posted to accounting upon creations of which of the following document?
Ans: Invoice
21. Product inventory that is accumulated by the manufacturer in advance of the peak selling
season is as example of:
Ans: Hedge inventory
22. At what step Quality checks are done?
Ans: During PO creation
23. A manufacturing places a replenishment order to replace sold or used item every two months.
This is an example of what kind of inventory model?
Ans: Fixed reorder cycle
24. Which of the following is the process of combining statistical forecasting techniques and
contrast demand estimates for product/services across the raw materials to consumer’s needs?
Ans: Demand forecasting
25. Among the below which indicates the flow of Purchasing cycle?
Ans: option 2
26. How should a forecast for snowmobile sales for the coming year be constructed?
Ans: In the same schedule as customer orders
27. Which of the following is a critical factor in the supplier selection process?
Ans: Supplier’s manufacturing capability
28. A repetitive pattern of demand from year to year with some periods considerably higher than
others is known as:
Ans: Seasonably
29. Missing
Ans:
30. If the replenishment lead time of two weeks is reduced by 50% and all other factors remain
constant, the safety stock will most likely:
Ans: Decrease
31. Which of the following benefits of setup reductions is most immediate?
Ans: Reduced product cost
32. Which of the following techniques deals with the analysis and planning of logistics and
manufacturing during short, intermediate, and long term periods?
Ans: Advanced planning and scheduling
33. Input/output control is a technique for monitoring the:
Ans: Capacity requirements plan
34. Capital expenditures are generally of one time purchases, is this statement True or False?
Ans: True
35. Which of the following activities in the distribution system creates times value by placing the
product close to the customer?
Ans: Distribution inventories
36. What is capacity requirements planning (CRP) primarily used for?
Ans: Balancing work center capacity and load
37. Which is an accurate statement about ANC classification?
Ans: About 20 percent of the items will account for about 80 percent of the total value
38. What is included in work-in-progress inventory?
 Ans: Goods in various stages of completion throughout the plant
39. Which of the following types of costs is related to the clerical work of preparing, releasing,
monitoring and receiving orders, the physical handling of goods
Ans: Ordering cost
40. A workstation can produce 100 pencils per hour and possibly 20,000 per year. This is a measure
of the workstation’s hourly and annual:
Ans: Capacity