About the Product

1. Which of the following is an input to the master production schedule (MPS)?
The aggregate plan
Bill of materials
Exception report
Inventory records file

2. What is the important starting point in developing a capacity plan?
Predicting the needs of customers
Predicting the ability of suppliers to meet needs
Understanding key components of the supply chain
Determining the effective capacity of a resource over some period of time.

3. Which of the following is an essential resource that flows through a hospital supply chain?
Patients
Information
Doctors and Nurses
Medicine

4. The text mentions several common approaches to use when developing a strategy to close a capacity gap (where utilization of a resource exceeds capacity available). Which of the following is among the common approaches mentioned?
Transferring capacity from other units
Hire more employees
New construction
Closing a related department

5. What is another name for the fixed-order quantity inventory model?
Cycle counting model
Periodic replenishment model
The ABC model
Economic order quantity model

6. What is the effect of the lack of synchronization among supply-chain members?
Forward buying
Continuous replenishment
Bullwhip effect
Metcalf’s Law

7. In conducting aggregate operations planning there are a number of required inputs. Which of the following are inputs considered most external to the firm?
Internal inventory levels and market demand
Current physical capacity of the organization
Subcontractor capacity and inventory levels
Raw material availability and competitor’s behavior

8. In business forecasting, what is usually considered a short-term time period?
More than three months
Six months or more
Less than three months
Four weeks or less

9. Which of the following is an input file necessary to run an MRP system?
Computer-aided-design files
Planned order schedule
Inventory records file
Exception report

10. Which of the following is an input file necessary to run an MRP program?
Quality management report
Planned-order schedules
Exception reports
Bill of materials (BOM) file

11. Which of the following is one of the categories of manufacturing inventory?
Economic Order Inventory
JIT Inventory
Quality units
Work-in-process

12. Which of the following is most closely related to the reason a firm might implement MRP?
So they can insure that parts to arrive D. To assure appropriate quality levels
So they can order parts sufficient for immediate use
To assure appropriate quality levels
So they can order the right parts

13. In most cases, demand for products or services can be broken into several components. Which of the following is considered a component of demand?
Past demand
Future demand
Cyclical elements
Inconsistent demand

14. Which is the most challenging kind of supply chain to manage according to Hau Lee?
Risk-hedging
Erratic
Efficient
Agile

15. Which of the following is considered a pure production planning strategy?
Stable workforce, variable work hours
Level playing field
Lag demand
Variable workforce, stable work hours

16. Which of the following is a perpetual system for inventory management?
First-in-first-out
Fixed-order quantity
P model
Fixed-time period

17. Which of the following is an input to the master production schedule?
Prototype products from product development
Peg reports from factory records
Forecasts of customer demand
Aggregate component schedule

18. The main purpose of aggregate operations planning is to specify the optimal combination of which of the following?
The strategic plan and the products available for sale
The workforce level and the degree of automation
Inventory on hand and financing costs for that inventory
Workforce levels and inventory on hand

19. Which of the following is one of the main purposes of a MRP system?
Decrease labor requirements.
Educate personnel in basic work rules.
Determine the materials needed.
Stimulate the work force.

20. When considering outsourcing, what should firms tend to avert?
Giving the outsourcing partner opportunities to become a strong competitor
Allowing outsourcing to develop into a substitute for innovation
Losing control of non-core activities
Allowing employees transferred to the outsourcing partner to rejoin the firm

21. Which of the following forecasting methods is very dependent on selection of the right individuals who will judgmentally be used to actually generate the forecast?
Weighted moving average
Simple moving average
Time series analysis
Delphi method