QUIZ 1 MOODULE 5: 20/20 9.

Use explanatory variables to predict future

demand for the variable of interest.
1. Is a study of a firm's past employment needs over a
period of years to predict future needs. Associative model

Trend analysis

10. A technique that averages a number of recent

actual values, updated as new values become
2. Is a forecasting technique for determining future
available.
staff needs by using ratios between Sales Volume
and Number of Employees needed. Moving average

Ratio analysis

11. A time ordered sequence of observations taken at

regular intervals.
3. Hide Is the determination of statistical
relationships between two variables, staff levels & Time series
measure of business activity.

Correlation analysis
12. An iterative process in which managers and staff
complete a series of questionnaires, each developed
from the previous one to achieve a consensus
4. Second steps in the forecasting process.
forecast.
Establishing a time horizon
Delphi technique

5. Forecast accuracy increases as time horizon

13. Two general approaches to forecasting, these are:
increases.
Qualitative and quantitative
False

14. Qualitative techniques involve either the

6. The forecast for any period equals the previous
projection of historical data or the development of
period's actual value.
associative models.
Naive forecast
False

7. Pages Time Running: Hide Judgmental methods

15. Refers to long-term upward or downward of
use objective inputs from consumers, sales staff,
movement in the data.
managers, executives to help develop a forecast.
Trend
False

16. These are forecast based on time-series data,

8. The difference between the actual value and the
except.
value that was predicted for a given period.
Correlation
Error
17. If demand for a product last month was 100 cases 1. Short range aggregate production plan involve
the forecast for this month is 100 cases. facility construction and major equipment purchase.

Naive forecast False

18. The naive approach is simple because it is easy to 2. Shows quantity and timing of end items master
prepare and data analysis is nonexistent and has production schedule.
ability to provide highly accurate forecast.
Intermediate range
False

3. Detailed planning for components and parts to

19. Which of the following not in the list of three support master production schedule (MRP).
techniques for averaging
Short range
Not in the list

4. These are operations planning computer based

20. More recent values in a series are given more "push" resource systems, except.
weight in computing a forecast.
Not in the list
Weighted average

5. Enterprise resource planning is an extension of

manufacturing resource planning.

True

6. Time phased net customer demand requirements

from warehouses and distribution centers less than
on hand in transit inventories.

DRP

7. Which of the following is True under aggregate

production plan.

All of the above

8. APP planning horizon includes costs for the

planning decisions including inventory, setup and
machine operation, hiring/firing/training, overtime
costs.

True

QUIZ 2 MODULE 6: 19/20

9. Which of the following statements Not True under 17. Independent demand for final product: demand
chase strategy. affected by trends, seasonal patterns, and general
market conditions.
Holding optimal inventory
True

10. Adjust capacity to match demand is called finished

goods inventories. 18. Dependent demand final product is internal
demand for parts based on sub-assemblies.
False
True

11. Is the process of determining the production

capacity required to meet demand. 19. Computer based materials management system.

Capacity planning MRP

12. Level strategy relies on a constant output rate and 20. Material requirement Planning requires:
works well for make - to - stock firms.
All of the above
True

13. Is a detailed production plan, lists stems to be

produced by a specific period.

MPS

14. Master production schedule is more detailed than

aggregate production plan.

True

15. The difference between confirmed customer

orders and quantity a firm planned to produce.

ATP

16. A document showing a listing of all component

parts and assemblies for the final product.

BOM
 QUIZ 3 MODULE 19/20 2nd Statement = The terms "inventory on hand" and
"inventory position" have the same meaning.
1 Requirements for effective inventory management:
Both statements are incorrect
1. Knowledge of A system to keep track of

the inventory on hand and on order

5 1st statement time for an item increase, the cycle
2. A reliable forecast of demand (that include an
time increases.
indication of possible forecast error)
2nd statement = An = assumption in the economic
3. The time interval between ordering and
production lot size model is that there is storage
distribution in the supply chain
capacity to hold the entire
4. The production department constitute
Both statements are incorrect
large source of request

5. Reasonable estimates of inventory holding costs,

6 Periodic review inventory systems
ordering cost & shortage cost
a. is less subject to stockouts than corresponding
6. declassification system for inventory
continuous review systems.
7. TPL must be given consideration
b. requires larger safety stock levels than
corresponding continuous review systems.

2 Which of the following is Not one of the
assumptions of the basic EOQ model?
A. Annual demand requirements are known and
constant.
c. has constant order quantities.
d. makes the coordination of orders for multiple
products more difficult.

B. Lead time does not vary.

7 Inventory position is defined as
C. Each order is received in a single delivery.
a. the amount of inventory on hand in excess of
D. Quantity discounts are available. expected demand.

E. All of the above are necessary assumptions. b. the amount of inventory on hand.

c. the amount of inventory on hand plus the amount

of inventory on order.
3 1st Statement The single-period = inventory model
is most applicable to items that are perishable or d. None of the alternatives is correct
have seasonal demand.

2nd Statement = If the optimal production lot size

decreases, average inventory increase
8 For the EOQ model, which of the following
Both statements are correct
relationships is incorrect?

a. As the order quantity increases, the number of

4 1st Statement = Periodic review systems require
smaller safety stock levels than corresponding
continuous review systems.
orders placed annually decreases.
b. As the order quantity increases, annual holding
cost increases.
c. As the order quantity increases, annual ordering C. Material Requirements Planning (MRP)
cost increases.
D. Finished goods
d. As the order quantity increases, average
E. Not in the list
inventory increases

13 REASONS for Holding Inventory except

9 Which costs would not be considered part of a
holding cost? a. Meet anticipated customer demand

a. cost of capital b. protects against stockouts

b. shipping cost c. Take advantage of economic order cycles

c. insurance cost d. Maintain independence of operations

d. warehouse overhead e. Guard against price increases,

e. Not in the list f. serves as buffer

g. Not in the list

10 For inventory systems with constant demand and

a fixed lead time,
14 Inventory Counting Systems are Periodic System
a. the reorder point = lead-time demand. and Intermittent inventory system

b. the reorder point > lead-time demand. False

c. the reorder point < lead-time demand.

d. the reorder point is unrelated to lead-time 15 Uncertainty in Demand Customers demand is

demand known Maintain target customer service levels
Stock out cost vs Inventory carrying cost.

False
11 Safety stock

a. can be determined by the EOQ formula.

b. depends on the inventory position.

c. depends on the variability of demand during lead

time.

d. is not needed if Q* is the actual order quantity

e. all of the above

12 Inventory is a stock of items kept by an

organization to meet internal or external customer
demand. Which of the following Not a type?

A. Raw Material

B. Work in progress (WIP)