Introduction to Materials Management 8th Edition Test Bank

Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The ability of manufacturing to produce goods and services is called: 1) _______ A) production planning. B) capacity. C) routing. D) scheduling. E) none of the above 2) Priority in production planning relates to: A) capacity. B) an objective of the firm. C) how much of what is needed and when. D) routing. E) none of the above 2) _______ 3) Which of the following is an input to the production plan? A) financial plan B) strategic business plan C) market plan D) engineering plan E) All of the above are inputs. 3) _______ 4) Which of the following plans has the longest planning horizon and the least level of detail? A) production plan B) master production schedule C) strategic business plan D) All of the above have the same level of detail. E) none of the above 4) _______ 5) In terms of INCREASING level of detail, which is the correct sequence of activities? I. Material requirements planning II. Master production scheduling III. Production planning A) I, II and III B) II, I, and III C) II, III, and I D) I, III, and II E) III, II, and I 5) _______ 6) Over the time span of the production plan, which of the following can usually be varied to change capacity? A) work force B) inventories C) plant and equipment D) all of the above E) A and B 6) _______ 7) Which of the following is a characteristic of a production plan? A) The only objective is to have an efficient plant. 7) _______ B) Time horizons are five years. C) The production plan is for individual items. D) All of the above are characteristics of a production plan. E) None of the above is characteristic of a production plan. 8) Determining the need for labor, machines, and physical resources to meet the production objectives of the firm is called: A) capacity planning. B) production control. C) production planning. D) all of the above E) none of the above 8) _______ 9) The function of setting the limits or levels of manufacturing operations based on the market plan and resource availability is called: A) production activity level. B) production planning. C) capacity planning. D) all of the above E) none of the above 9) _______ 10) A statement of a schedule of requirements for individual end items is called: A) a capacity plan. B) a material requirements plan. C) a master production schedule. D) a production plan. E) none of the above 10) ______ 11) Which of the following statements is true regarding production planning? A) A translation must be made from product demand to capacity demand. B) Product groups based on similarity of manufacturing process should be used in planning. C) A high level of detail is not needed. D) All of the above are true. E) None of the above is true. 11) ______ 12) Which of the following statements is true about sales and operations planning? A) It has no effect on inventory levels. B) It provides a means of updating the material requirements plan. C) It includes only the marketing and production plans. D) It is usually updated on a monthly basis. 12) ______ 13) 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. A) I only B) II only C) III only 13) ______ D) I, II and III 14) For the purposes of production planning, product groups should be established on the basis of: A) market segments. B) the availability of materials. C) the availability of machinery. D) similarity of manufacturing process. 14) ______ E) all of the above 15) Which of the following is a basic strategy in developing a production plan? A) hybrid strategy B) production leveling C) chase strategy D) A and B above E) B and C above 15) ______ 16) A production planning strategy which turns away extra demand is called: A) demand matching. B) hybrid strategy. C) production leveling. D) all of the above E) none of the above 16) ______ 17) Which basic production planning strategy will build inventory and avoid the costs of excess capacity? A) demand matching (chase) B) subcontracting C) production leveling D) all of the above E) none of the above 17) ______ 18) Which basic production planning strategy avoids hiring and layoff costs and the costs of excess capacity? A) subcontracting B) demand matching C) operation smoothing D) all of the above E) none of the above 18) ______ 19) If the opening inventory is 100 units, the sales are 500 units and the ending inventory is 200 units, then manufacturing must produce: A) 400 units. B) 600 units. C) 500 units. D) 300 units. E) none of the above 19) ______ 20) 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? A) 1000 B) 990 C) 1010 D) 1030 E) none of the above 20) ______ 21) Firms will generally make-to-stock when: A) delivery lead times are long. B) there are many product options. 21) ______ C) demand is unpredictable. D) all of the above E) none of the above 22) Firms will generally make-to-order when: A) products are produced to customer specifications. B) product is expensive to make and store. C) there are many product options. D) all of the above E) none of the above 22) ______ 23) Which of the following information is needed to develop a make-to-stock production plan? I. Forecast by time period for the production plan II. Opening inventory III. Opening backlog of customer orders IV. Desired ending inventory A) I, III and IV B) II, III and IV C) I, II and IV D) I, II and III E) none of the above 23) ______ 24) If the old backlog was 200 units, the forecast for the next period is 500 units, and production for the next period is 600 units, what will be the backlog at the end of the next period? A) 100 units B) 200 units C) 300 units D) 700 units E) 800 units 24) ______ 25) Which of the following is concerned with long-term planning of manufacturing activity? A) sales and operations planning B) master planning C) production activity control D) master production scheduling E) MRP 25) ______ 26) Which of the following is NOT a rule of Sales and Operations Planning? A) A planning horizon must include new product development time. B) Performance review periods to be compared should be decided. C) Planning units of measure need to be decided. D) Product groups need not be decided. 26) ______ 27) Which of the following is a complete closed loop planning system that develops plans for all materials and operations? A) enterprise resource planning B) supply chain management C) material requirements planning D) capacity requirements planning 27) ______ 28) Which of the following represents the major reason for developing the production plan as part of Sales and Operations Planning? A) to decide how to best produce exactly what is in the sales plan B) to plan the acquisition of new manufacturing facilities C) to plan a schedule for the production of individual products D) to plan for resources required to produce to the agreed plan 28) ______ 29) Which of the following is true? I. II. The strategic pla The 29) strategic business plan is stated in financial terms. III. The strategic business plan is develope d from the strategic plan. A) I and III only B) I, II, and III C) I and II only D) II and III only E) None is correct. ___ ___ 30) Which following best represents the concept of sustainability? A) the ability to maintain the supplier base B) the ability to make long production runs C) the ability to continue operation in the long term D) the ability to train labor effectively 30) ______ 31) When a company establishes a program to recycle or reuse products discarded or returned from customers it is typically called which of the following? A) reverse supply chain B) customer servicing C) product return contract D) resupply planning 31) ______ 32) Which of the following is most true about Sales and Operations Planning? A) It usually is produced only once a year. B) It usually includes all functions at the executive level. C) It is typically done in financial terms. D) It usually includes only sales and manufacturing people. 32) ______ 1) B 2) C 3) E 4) C 5) E 6) E 7) E 8) A 9) B 10) C 11) D 12) D 13) D 14) D 15) E 16) E 17) C 18) A 19) B 20) B 21) E 22) D 23) C 24) A 25) A 26) D 27) A 28) D 29) D 30) C 31) A 32) B