CPIM Part 1

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CPIM Part 1
Certified in Production and Inventory Management
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Total Questions: 278
Latest Version: 8.0
Question: 1
What is the minimum inventory level when the information of a item is as following? Demand
during lead time = 100 units.
Customer service lever = 99%
Standard deviation = 200 units.
Response:
A. 266
B. 366
C. 466
D. 566
Answer: A
Question: 2
Design for manufacturability is supposed to result in which of the following?
Response:
A. Improve product quality.

B. Reduced training needs.
C. Reduced product features.
D. Delayed market introductions.
Answer: A
Question: 3
Which of the following is (are) used to determine job priority?
I. Kanban.
II. Input/output control.
III. Staging.
IV. Queue time.
Response:
A. I
B. II
C. I, III
D. II, IV
Answer: A
Question: 4
Kanban can be BEST described by which of the following?
Response:
A. Just-in-time vendor delivery system

B. A Japanese form of statistical process control
C. A pull system used for signaling the previous operation that parts are needed
D. A work team improvement process
Answer: C
Question: 5
Which of the following tools is used to accommodate forecast errors when developing the master
production schedule?
Response:
A. Safety stock
B. Planning time fence
C. Firm planned orders
D. Available-to-promise
Answer: A
Question: 6
In general, statistical process control(SPC) is most useful to control quality. Which of the following
environment is likely to the most challenge of this technique?
Response:
A. Intermittent.
B. Repetitive flow.
C. Build-to-forecasting.
D. Continuous flow.
Answer: A
Question: 7
When quantitative data are being evaluated, a very small bias in a forecast can best be explained by
which of the following statements?
Response:
A. Positive forecast errors approximately offset negative forecast errors.

B. The absolute values of all forecast errors were approximately equal.
C. The variability of forecast data was skewed.
D. A very small alpha factor was used.
Answer: A
Question: 8
A company which have capital intentiveequipments for their product groups will want to develop:
Response:
A. Level production strategy.

B. Chase production strategy.
C. Hybrid production strategy
D. Subcontract production strategy.
Answer: A
Question: 9
Which of the following is MOST cost effective when accepting the rush orders of a specific customer in
demand time fence?
Response:
A. Using safety stock.

B. Reallocating ATP.
C. Establishing planning bills.
D. Rescheduling MPS.
Answer: A
Question: 10
Identification of performance problems in providing a high line-item service ratio provides an
opportunity to:
Response:
A. address imbalances in the customer order mix.

B. improve order-promising information.
C. redesign sales and marketing incentives.
D. reduce customer-demanded delivery time.
Answer: B
Question: 11
All of the following may increase the complexity of capacity planning EXCEPT?
Response:
A. Lot size.
B. Order Mix Variability.
C. Backlog.
D. Bottleneck
Answer: C
Question: 12
Lot size should be considered when calculating:
Response:
A. Gross requirement.
B. Net requirement.
C. Planned order receipt.
D. Planned order release.
Answer: C
Question: 13
The most significant factor affecting the difference between planned lead time and actual lead time for
a specific order or batch in a shop is
Response:
A. Priority
B. Capacity
C. Queues
D. Component availability
Answer: A
Question: 14
What is the time for the production of a lot of Part A when the information of this calculation are as the
follows?
- W/C100 change time = 5 minutes.

- W/C200, W/C300 : a dedicated machinery.
- Lot size = 5.
- Queue time of each work center does not need to consider.
Response:
A. 50 minutes.
B. 60 minutes.
C. 45 minutes.
D. 15 minutes.
Answer: A
Question: 15
All of the following would be included in the activities of capacity management EXCEPT?
Response:
A. Resource requirement planning.

B. RCCP
C. CRP.
D. Dispatching.
Answer: D
Question: 16
Which of the following are TRUE statements regarding JIT?
Ⅰ. Direct labor work force makes tactical decisions.
Ⅱ. Communication between functions is very important.
Ⅲ. Management and labor conflicts must be overcome.
Response:
A. I and II
B. I and III
C. II and III
D. I, II, and III
Answer: D
Question: 17
- Assemble time per piece = 30 minutes
- Utilization = 80%
- Efficiency = 90%
How many operators should be required when producing 800 units per 40 hours?
Response:
A. 12
B. 13
C. 14
D. 15
Answer: C
Question: 18
BCD Company is contemplating buying new automated manufacturing equipment. The cost of this
equipment is $2.5 million. Expected savings from the project are $500,000/year. This is offset by
anticipated annual running costs of $100,000.
The accounting department has informed management that the capital equipment, if purchased, would
be depreciated at 30%/year. BCD currently pays taxes at a rate of 20% of net profit.
The payback period for this project would be:
Response:
A. 6.25 years.
B. 5.0 years.
C. 2.5 years.
D. 1.5 years.
Answer: A
Question: 19
Which of the following is MOST effective in unit cost reduction by set up time reduction?
Volume Variety Production item Product resource
Response:
A. High High Many Many

B. High Low Low Many
C. Low High Many Low
D. Low LowLowLow
Answer: A
Question: 20
Which of the following items is required for making realistic customer promises?
Response:
A. Feasible master schedules

B. Procedures for managing abnormal demand
C. Finished-goods safety stock
D. A sales and operations planning process
Answer: A
Question: 21
Which of the following factors will affect on realistic MPS EXCEPT?
Response:
A. Utilization of modular bills.

B. Calculation of the rated capacity per each end item.
C. Accuracy of ATP.
D. Accuracy of bill of resource.
Answer: C
Question: 22
Every company should have a set of functional plans synchronizing activities across functions that
specify production levels, capacity levels, staffing levels, funding levels, etc. to achieve the intermediate
goals and objectives of the organization.
This plan would be called the
Response:
A. Business plan.
B. Strategic plan.
C. Tactical plan.
D. Operational plan.
Answer: C
Question: 23
Which of the following goals is the primary outcome of distribution requirements planning?
Response:
A. Accurately feed the gross requirements into the master production schedule
B. Decouple the distribution plan from the production plan
C. Deliver products in the quantities requested by the customer
D. Maintain an appropriate inventory level at all locations
Answer: D
Question: 24
Companies that produce a narrow range of high-volume products will MOST likely choose which of the
following processes?
Response:
A. Project.
B. Jobbing.
C. Batch.
D. Line.
Answer: D
Question: 25
All of the following practices are appropriate for increasing capacity EXCEPT:
Response:
A. Overtime.
B. Lot splits.
C. Machine purchasing.
D. Shifts increasing.
Answer: B
Question: 26
There are occasions when the quality of a product will not meet specifications without rework. When
this occurs, the product will go back through some of the same operations and maybe some new ones
as well.
Which of the following describes the best way to handle the rework, so as to be able to calculate the
required capacity including the rework?
Response:
A. Generate a rework order with the routing steps on it. CRP will then include it in its calculations.
B. Keep the rework order separate and add it to the work centers after the CRP run is completed.
C. Do not generate a rework order as it will duplicate erroneously the load on the plant.
D. Send the rework to a separate area in the plant and keep it out of the normal routings.
Answer: A
Question: 27
Sales has identified an opportunity to develop a new market for a product family and requested an
increase in the production plan. Which of the following actions would be most appropriate in this
situation?
Response:
A. The proposed change should be presented to top management for a decision.

B. The production plans for other product families should be reduced.
C. The sales and operations plan should be regenerated.
D. The request should be rejected.
Answer: A
Question: 28
Which of the following reasons could be used to justify maintaining safety stock in an MRP system?
I. Uncertain leadtimes for raw materials
II. Items used for spare parts which are also used in assembly
III. Component items manufactured in-house have had inventory errors
Response:
A. I and II
B. I and III
C. II and III
D. I, II, and III
Answer: A
Question: 29
Production plan can be evaluated by resource plan using:
Response:
A. Safety stock.
B. Safety lead time
C. The bill of resource.
D. Safety capacity.
Answer: B
Question: 30
A warehouse has 20,000 orders per year with an average of 10 line items per order. The warehouse
experiences 800 backorders per year averaging 5 line items per backorder.
What level of customer service is achieved when the percentage of line items shipped on schedule is
used?
Response:
A. 96%
B. 97%
C. 98%
D. 99%
Answer: C
Question: 31
Repetitive manufacturing frequently require MRP systems for:
Response:
A. Process flexibility.
B. Planning of throughput rates.
C. Execution of each workstation.
D. Manufacturing system efficiency.
Answer: B
Question: 32
The main objective of line balancing in an assembly operation is to
Response:
A. Provide maximum mobility of operators between assembly lines.

B. Minimize the total number of parts required for each assembly line.
C. Develop work standards for cost-estimating purposes.
D. Distribute the work to maximize line output.
Answer: D
Question: 33
All of the following information would be directly included in the MRP system EXCEPT?
Response:
A. Actual labor cost.

B. On-hand inventory.
C. Order due date.
D. Order release date.
Answer: A
Question: 34
Which of the following are actions management can take to demonstrate support for the quality
improvement process?
Ⅰ. Recognize and publicize quality achievements.
Ⅱ. Lay off those who don't cooperate.
Ⅲ. Provide leadership in the process.
Ⅳ. Encourage defect prevention.
Response:
A. I, II, and IV
B. I, III, and IV
C. II, III, and IV
D. I, II, III, and IV
Answer: B
Question: 35
The mission of the purchasing department is to identify and qualify adequate sources of competitively
priced supply to manufacture the products required by the marketplace.
Many times, this mission includes identifying sources regardless of their location. This is called:
Response:
A. Faceted sourcing.
B. Global sourcing.
C. Localized sourcing.
D. Leveled sourcing.
Answer: B
Question: 36
When the overall distribution requirements planning system is structured to achieve a high level of
customer service, the outcome generally will be:
Response:
A. lower inventory levels and lower total cost.

B. higher inventory levels and higher total cost.
C. lower inventory levels and higher total cost.
D. higher inventory levels and lower total cost.
Answer: B
Question: 37
Which of the following activities would enhance a customer relationship management program?
Response:
A. Using an exponential smoothing forecast

B. Collecting point-of-sale data
C. Implementing an enterprise resources planning system
D. Moving from a make-to-order strategy to a make-to-stock strategy
Answer: B
Question: 38
When expediting purchased parts that are needed from the supplier before the original due date, a
buyer should first try to do which of the following?
Response:
A. Buy all the parts from an alternate source.

B. Offer to de-expedite another part that is needed later than the original due date.
C. Offer to pay a premium.
D. Increase safety lead time by one week.
Answer: B
Question: 39
Your are a company master scheduler and just have scheduled the master schedule, which calculate ATP
in demand time fence as 85 units.
If 100 units of a customer order in demand time fence is demanding, which of the following action is the
MOST appropriate as the master scheduler?
Response:
A. Accept this customer order and expedite production.

B. Firstly accept 85 units of the customer order, request the decision making to the senior management
for the remaining orders.
C. Accept this customer order and replan the mater production schedule.
D. Firstly accept 85 units of the customer order, promise the remaining order after demand time fence.
Answer: B
Question: 40
Which of the following sources of demand should be considered in production planning?
Ⅰ. Order backlog from customers.
Ⅱ. Scheduled receipts.
Ⅲ. Interplant transfer of parts.
Response:
A. I and II
B. I and III
C. II and III
D. I, II, and III
Answer: B
Question: 41
In a JIT environment, marketing may discuss with customers all of the following benefits EXCEPT
Response:
A. Incentives for large-lot deliveries.

B. Improved on-time delivery.
C. Improved quality.
D. Reduced customer hedge inventory.
Answer: A
Question: 42
One solution to minimize costs when getting small frequent deliveries from suppliers would be to utilize
backhauling. Which of the following BEST defines backhauling?
Response:
A. FOB at the suppliers dock.

B. Using a full truck outbound and an LTL load inbound.
C. Using Kanban to signal suppliers for delivery.
D. Utilizing your trucks to pick up product at suppliers on the way back to your facility.
Answer: D
Question: 43
All of the following are planning bill EXCEPT
Response:
A. Super bill.
B. Multilevel bill.
C. Pseudo bill.
D. Common parts bill.
Answer: B
Question: 44
Standardized work practices include which two of the following?
I. Flexible flow paths
II. Common sequencing of operations
III. Alternate operations
IV. Reproducible conditions
Response:
A. I and III
B. I and IV
C. II and III
D. II and IV
Answer: D
Question: 45
Which of the following elements affect on the change of the bill of resources?
Ⅰ. Product mix.
Ⅱ. Production technology.
Ⅲ. Product volume.
Ⅳ. Product costing.
Response:
A. Ⅰ, Ⅱ
B. Ⅱ, Ⅲ
C. Ⅲ, Ⅳ
D. Ⅰ, Ⅳ
Answer: A
Question: 46
In an assemble-to-order environment, which of the following indicators is most appropriate for
measuring the effectiveness of the master scheduling process?
Response:
A. Customer order fill rate

B. Number of stock outs
C. Capacity utilization
D. Aggregate inventory
Answer: A
Question: 47
Which of the following effects is likely to occur in a successful Collaborative Planning Forecasting and
Replenishment implementation?
Response:
A. Increased inventory turns

B. Increased gross revenue
C. Increased cycle time to market
D. Increased cost of components
Answer: A
Question: 48
Which of the following actions is MOST likely to produce a high degree of sustained inventory data
integrity?
Response:
A. Increasing frequency of cycle counts.

B. Changing cycle counting methods periodically.
C. Making periodic physical inventories.
D. Resolving problems exposed by cycle counting.
Answer: D
Question: 49
Which of the following principles are TRUE for establishing effective MPS?
Ⅰ. Planning horizon must be longer than the longest cumulative lead time of end items.
Ⅱ. Planning time fence must be calculated as much as purchase lead time.
Ⅲ. Demand time fence must be established as one week irrespectively of manufacturing environments.
Ⅳ. Manufacturing constraints must be considered.
Response:
A. Ⅰ, Ⅱ
B. Ⅱ, Ⅲ
C. Ⅲ, Ⅳ
D. Ⅰ, Ⅳ
Answer: D
Question: 50
Which of the following is the primary role for demand management?
Response:
A. Providing a tool for aggregation and disaggregation of demand.

B. Linking the production plan to MRP.
C. Providing input to the master schedule.
D. Synchronizing of market activities and the production plan.
Answer: D
Question: 51
A single-level, centralized distribution network would be most appropriate for a firm whose products
are:
Response:
A. small, inexpensive, and distributed throughout the world.

B. heavy, inexpensive, and with a short required delivery time.
C. large, expensive, and with a high level of demand.
D. large, and with a long required delivery time.
Answer: D
Question: 52
In a VMI system of inventory, who is responsible for maintaining the inventory levels at the proper levels
to ensure high customer service levels?
Response:
A. Planners.
B. Suppliers.
C. Buyers.
D. Supplier scheduler.
Answer: B
Question: 53
A company have just established EDI system. They expect:
Ⅰ. Improvement of planning accuracy.
Ⅱ. Rapid communication.
Ⅲ. Reduction of purchasing clerks.
Ⅳ. Increase of security for internal information.
Response:
A. Ⅰ
B. Ⅰ, Ⅱ
C. Ⅰ, Ⅱ, Ⅲ
D. Ⅰ, Ⅱ, Ⅲ, Ⅳ
Answer: C
Question: 54
When updating MPS, the planner will, first of all,
Response:
A. Investigate exception message.

B. Change lot size.
C. Change lead time.
D. Release orders.
Answer: A
Question: 55
_______ is used to effectively control inventory transaction costs when organizing demand based
focused factory.
Response:
A. Backflushing system.
B. Pre-deducted system.
C. Cycle counting system.
D. Kanban.
Answer: A
Question: 56
Employee involvement is the concept of using
Response:
A. Managerial employees to perform nonmanagerial tasks whenever they are idle.

B. Employees to perform jobs outside of their assigned duties without prior consent.
C. Employees' creative energy and intelligence in certain decision-making processes.
D. All of the above.
Answer: C
Question: 57
Which of the following activities can be included in contract management for suppliers?
I. Periodic status report.
II. Gantt chart.
III. First article inspection.
IV. Status review meetings.
Response:
A. I,II, III
B. II, III, IV
C. I, III, IV
D. I, II, III, IV
Answer: D
Question: 58
Establishing the production plan for period using level strategy, based on the following information.
- Starting inventory : 1000 units.
- Forecasted demand : 21,000 units.
- Projected ending inventory : 0 units.
- No. of periods : 4
Response:
A. 4,500
B. 5,000
C. 5,500
D. 6,000
Answer: B
Question: 59
Which of the following is TRUE when increasing MRP planning frequency?
Response:
A. Expediting/de-expedite increasing.
B. Planned lead time increasing.
C. Replanning frequency increasing.
D. MRP accuracy increasing.
Answer: D
Question: 60
Increases of distribution center and warehouse may result in
Response:
A. Reduction of total inventory level.

B. Decrease of total transportation cost.
C. Decease of fixed cost.
D. Decease of total operation cost.
Answer: B
Question: 61
Daily sales quantities are 10 units, standard deviation for sales is 3 units. What is the probability of sales
quantities less than 16 units?
Response:
A. 84.13%
B. 97.72%
C. 99.87%
D. None
Answer: B
Question: 62
Which of the following performance measures is MOST appropriate for determining the overall
improvement of JIT manufacturing operations?
Response:
A. Direct labor efficiency.

B. Inventory turns.
C. Equipment utilization.
D. Overhead variances.
Answer: B
Question: 63
Which of the following BEST explain the characteristics of strategic partnership?
I. Strategic alliance - business level.
II. Technical and commercial partnership - product level.
III. Operational partnering - part level.
Response:
A. I, II
B. II, III
C. I, III
D. I, II, III
Answer: D
Question: 64
The question below is based on the following information:
The mean absolute deviation for the above forecast is:

Response:
A. -1.
B. 1.
C. 3.
D. 5.
Answer: C
Question: 65
In today's manufacturing environment of eliminating waste, many companies are eliminating the
purchase order because it does not add value for the customer. This is accomplished usually by replacing
individual PO's with:
Response:
A. Phone calls
B. FAXes
C. Supplier schedules.
D. Planner reports
Answer: C
Question: 66
All of the following affect on rescheduling shop order EXCEPT
Response:
A. Machine downtime.
B. Scrap product.
C. Overload.
D. Planned order.
Answer: D
Question: 67
Which of the following basic strategies would be most appropriate to develop a production plan for a
restaurant?
Response:
A. Chase
B. Production leveling
C. Subcontracting
D. Hybrid
Answer: D
Question: 68
Measurements that focus on plant and/or machine utilization promote which of the following?
Ⅰ. Buying excessive amounts of raw material.
Ⅱ. Building finished goods inventories.
Ⅲ. Delaying preventive maintenance.
Response:
A. III only
B. I and II only
C. II and III only
D. I, II, and III
Answer: D
Question: 69
Which of the following is TRUE about calculating move time of MLT?
Response:
A. It uses average time among workcenters.
B. It's calculation is engineering responsibility.
C. It is based on each workcenter queue time.
D. It is dependent on the distance between workcenters.
Answer: D
Question: 70
When implementing a total quality management program, which of the following groups should receive
education FIRST?
Response:
A. Production workers.
B. Production supervision.
C. Middle Management.
D. Senior management.
Answer: D
Question: 71
A demand filter can best be used for which of the following purposes?
Response:
A. To remove scrap loss from a work center history

B. To adjust the alpha factor
C. To flag a large order
D. To remove seasonal variability from forecast data
Answer: C
Question: 72
Which of the following technique is MOST helpful in transition the design phase to production phase
smoothly?
Response:
A. Concurrent engineering.
B. Prototyping.
C. Benchmarking
D. Taguchi method.
Answer: B
Question: 73
In the above workcenter, what is the efficiency of the next week?
Response:
A. 72%
B. 75%
C. 80%
D. 90%
Answer: D
Question: 74
Which of the following is TRUE about planning bills?
Response:
A. It facilitates the planning process.

B. It is related to manufacturing bill of materials.
C. It is related to engineering bill of materials.
D. It is very effective in final assemble.
Answer: A
Question: 75
Which of the following is MOST likely to help an individual move from denying the need for change to
accepting the change?
Response:
A. Telling him or her that the change is necessary.

B. Identifying potential problems resulting from the changes.
C. Training him or her on the new procedures.
D. Explaining the change and its effects.
Answer: D
Question: 76
Who is responsible for evaluating the master schedule?
Response:
A. Shop manager.
B. Middle manager.
C. Top manager.
D. Supervisor.
Answer: B
Question: 77
The question below is based on the following production environment information:
In which facility would product unit costs most likely be reduced through a setup reduction program?
Response:
A. Facility A
B. Facility B
C. Facility C
D. Facility D
Answer: C
Question: 78
Which of the following is typically characterized as an element of prevention cost?
Response:
A. A/S cost.
B. Subcontract certification cost.
C. Scrap dealing cost.
D. Changeover cost.
Answer: B
Question: 79
Key linkages managed by distribution requirements planning within the supply chain include links to:
Response:
A. forecasted demand and material requirements planning.

B. logistics systems and demand management.
C. customers only.
D. vendors only.
Answer: B
Question: 80
If more man power than usual is input to free slack of the project, which of following is MOST likely
impact to schedule?
Response:
A. Complete earlier than scheduled.

B. No changes in schedule.
C. Complete later than scheduled.
D. Increase cost.
Answer: B
Question: 81
Which of the following identifies the approach to inventory valuation in which variable costs and a
portion of fixed costs are assigned to each unit of production?
Response:
A. Activity based costing.

B. Throughput accounting.
C. Absorption costing.
D. Inventory turnover.
Answer: C
Question: 82
A forecasting method that responds slowly to changes in demand would be most appropriate when the
historical demand pattern shows a major:
Response:
A. seasonal component.
B. random component.
C. trend component.
D. cyclical component.
Answer: B
Question: 83
All of the following are priority sequencing rules EXCEPT
Response:
A. Earliest operation due date.

B. Least slack rule.
C. Latest part due date.
D. Shortest operation time.
Answer: C
Question: 84
During which of the following process steps of sales and operations planning would resource planning
be carried out?
Response:
A. Demand planning phase

B. Supply planning phase
C. Pre-sales and operations planning meeting
D. Executive sales and operations planning meeting
Answer: B
Question: 85
All of the following result from long-term commitment between supplier and customer EXCEPT
Response:
A. Single source.
B. Multiple source.
C. Point of use.
D. Empty bin.
Answer: B
Question: 86
In the implementation of Just-in-Time, which of the following is the MOST significant change for the
accounting function?
Response:
A. Cellular processes no longer report every operation to accounting.

B. Budgeted scrap and rework costs that create variances are reduced.
C. Physical inventory of work-in-process inventory is more time-consuming.
D. Costs of incentive programs increase.
Answer: A
Question: 87
The resource profile approach to rough-cut capacity planning is desirable in the manufacture of parts
with lengthy lead times because the approach:
Response:
A. uses detailed data about time standards for each product at the key resources.
B. assumes that all components are built in the same period as the end item.
C. considers the historical portion of the total plant time required.
D. time phases labor requirements.
Answer: D
Question: 88
It is important to maintain a close relationship with certified supplier partners. The MOST difficult part
of establishing a supplier partnership is:
Response:
A. Establishing trust in the relationship.
B. Developing a consistent, accurate form of communication.
C. Ensuring consistent meetings are occurring to build relationships across company boundaries.
D. Training and educating the workforce.
Answer: A
Question: 89
Which of the following calculates throughout backward scheduling?
Response:
A. Earliest start date.

B. Latest start date.
C. Earliest due date.
D. Latest due date.
Answer: B
Question: 90
In which of the following environments would the capable-to-promise (CTP) functionality be LEAST
helpful?
Response:
A. Make-to-stock.
B. Make-to-order.
C. Assemble-to-order.
D. Engineer-to-order.
Answer: A
Question: 91
A focused factory is usually characterized by which two of the following?
I. Restricted product variety
II. Decreased attention to detail
III. Layout by function
IV. Logical flow patterns
Response:
A. I and III
B. I and IV
C. II and III
D. II and IV
Answer: B
Question: 92
Traditionally, purchasing managers believed that having many suppliers for the same parts would allow
them to play one supplier against another. The trend today is toward fewer but higher quality suppliers.
One way to identify the high quality suppliers is through a
Response:
A. Supplier audit program.

B. Quality inspection program.
C. Supplier reliability program.
D. Supplier certification program.
Answer: D
Question: 93
The ability to take a customer order and provide a promised delivery date based on the existing capacity
and materials is called
Response:
A. Capable-to-promise.
B. Available-to-promise.
C. Delivery-to-promise.
D. Order-to-promise.
Answer: A
Question: 94
Which of the following manufacturing environment is the MOST expensive to increase capacity?
Response:
A. Job shop.
B. Project.
C. Batch.
D. Continuous.
Answer: D
Question: 95
Which of the following is a typical advantage of vertical integration?
Response:
A. Control over critical capacities.

B. Increase manufacturing flexibility.
C. Increase key supplier alliance.
D. Decrease in the levels of BOM.
Answer: A
Question: 96
Which of the following would NOT be a key operating objective?
Response:
A. Inventory dollars.
B. Shipment dollars.
C. Factory location selection.
D. Work force stabilization.
Answer: C
Question: 97
Which of the following actions is best for a company to take when a 2-week plant shutdown for
retooling is planned for the next year?
Response:
A. Increase planned production.

B. Increase material requirements planning safety-stock levels.
C. Decrease the planned sales level during the shutdown.
D. Alter the strategic plan.
Answer: A
Question: 98
Which of the following processes typically is linked directly to the customer-order processing
component of demand management for a firm that finishes and packages goods to customer order?
Response:
A. Master scheduling
B. Detailed material planning
C. Business planning
D. Resource planning
Answer: A
Question: 99
In a factory, the MOST under-utilized resource generally is/are the:
Response:
A. Machinery.
B. Building.
C. Workers.
D. Materials.
Answer: C
Question: 100
All of the following are about forecasting. Which of the following is LEAST related among others?
Ⅰ. Causal factor.
Ⅱ. External indicator.
Ⅲ. Historical data.
Ⅳ. Leading indicator.
Response:
A. Ⅰ
B. Ⅱ
C. Ⅲ.
D. Ⅳ.
Answer: C
Question: 101
Which of the following information would be used as the input of MRP and CRP?
Response:
A. Bill of Materials
B. Work center data.
C. Manufacturing orders
D. Inventory data.
Answer: C
Question: 102
In S&OP process, aggregate inventory management decision should focus on EXCEPT:
Response:
A. Maximize customer service.

B. Minimize inventory investment.
C. Minimize JIT's waste.
D. Maximize production efficiency
Answer: C
Question: 103
If critical ratio is 0.5, controller should:
Response:
A. De-expediting.
B. Setting slack time.
C. Expediting.
D. Rescheduling work order due-date.
Answer: C
Question: 104
The production planning process is meant to be a communication tool. In order to fulfill this objective,
the production plan should be stated in
Response:
A. Hours of capacity and output.

B. Units of capacity and output.
C. Dollars of capacity and output.
D. Commonly understood terms.
Answer: D
Question: 105
Under full absorption costing, overhead costs would be handled by which of the following methods?
Response:
A. They would be subtracted from the variable margin for a net profit.
B. They would not be allocated to individual products.
C. They would be allocated to each product based on the overhead burden rate.
D. None of the above.
Answer: C
Question: 106
- No. of machines = 12
- No. of shifts = 2
- Utilization = 90%
- Efficiency = 80%
- No. of operators during the first = 4
- No. of operators during the second = 3
- No. of machines per operator = 3
- Operation hours per shift = 8 hours
- No. of working days = 5 days
- Scrap rate = 8%
What is the rated capacity per week?
Response:
A. 345 hrs
B. 547 hrs
C. 605 hrs
D. 617 hrs
Answer: C
Question: 107
Which of the following is MOST likely to indicate that a process should be reengineered or redesigned
rather than incrementally improve?
Response:
A. A stable competitive environment.

B. An expansion of the scope of the process.
C. A large gap between customer requirements and performance.
D. A hierarchical and central organization structure.
Answer: C
Question: 108
Which of the following environment is typically the LEAST beneficial through RCCP?
Response:
A. Low finished good inventory.

B. Small customer order backlog.
C. High product varieties.
D. Very stable output rate
Answer: D
Question: 109
Which of the following is the BEST way to begin changing employee behavior?
Response:
A. Simplify and flatten the organizational structure.

B. Implement a human resource information system.
C. Change the performance measurement and reward system.
D. Provide more timely and explicit management directives.
Answer: C
Question: 110
Zone location system have some advantages such as:
I. Reduction of material handling.
II. Proximity for related parts.
III. Travel cost effectiveness.
IV. Utilization of branch warehouse.
Response:
A. I, II
B. II
C. I, II, III
D. I, II, III, IV
Answer: C
Question: 111
Distribution requirements planning would most directly interface with:
Response:
A. capacity requirements planning

B. master planning.
C. material requirements planning.
D. warehouse facility planning.
Answer: B
Question: 112
What is scalon plan?
Response:
A. Pay for knowledge.

B. Skill-based pay
C. Gain sharing.
D. Group incentive.
Answer: D
Question: 113
Which of the following actions would most likely lead to an achievable master production schedule?
Response:
A. Minimizing changes in periods before the demand time fence
B. Keeping safety stock for key subassemblies
C. Limiting changes in periods after the planning time fence
D. Committing to customer requested shipment dates
Answer: A
Question: 114
What is the product lead time?
Actual input : 100/week.
Actual output : 100/week.
Current WIP : 160 units.
Response:
A. 0.63 week.
B. 1 week.
C. 1.6 week.
D. 2.6 week.
Answer: C
Question: 115
Which of the following should occur for a sales and operations process working properly?
Response:
A. Time will be spent on the problems which occurred in the previous month.
B. Middle managers will have solved the issues before the meeting.
C. Senior managers will provide reasons for the near misses.
D. Customer service will improve.
Answer: B
Question: 116
Translation of a master production schedule directly into key resources results in a:
Response:
A. production schedule.
B. final assembly schedule.
C. rough-cut capacity plan.
D. bill of labor.
Answer: C
Question: 117
Which is TRUE about modular BOM?
I. Segregation common parent from unique parts.
II. Eliminating absolute number of BOM.
III. Simplifying BOM structure
Response:
A. I
B. II
C. I and II
D. I, II and III
Answer: C
Question: 118
What is the required capacity for W/C 121 when lot size of component A is 100 units?
Response:
A. 10
B. 12
C. 100
D. 210
Answer: B
Question: 119
Management notice that a vendor have the chronic problem for on-time delivery. Which of the
following practice is appropriate corresponding to the vendor?
Response:
A. Safety lead time.

B. Safety stock.
C. Reorder point.
D. MRP
Answer: A
Question: 120
All of the following are quantitative forecasting methods EXCEPT?
Response:
A. Delphi.
B. Seasonal index.
C. Cyclic index.
D. Additive trend.
Answer: A
Question: 121
Worker idle time should be an accepted part of any work improvement process because:
Response:
A. Workers will need to rest

B. Workers should spend time on work problems implementing improvements.
C. Work will eventually run out at times.
D. Workers should always be producing.
Answer: B
Question: 122
Which of the following statements is TRUE regarding the inclusion of dependent demand as part of
demand management?
Response:
A. Include them in the production plan.

B. Include them in the MPS.
C. Include them in the MRP system.
D. Do not include them at all.
Answer: D
Question: 123
During inflationary periods, which of the following statements would be true if the LIFO method of
inventory valuation is used?
Response:
A. Inventory value would be lower, cost of goods sold higher.

B. Inventory value would be higher, cost of goods sold higher.
C. Inventory value would be higher, cost of goods sold lower.
D. None of the above.
Answer: A
Question: 124
A company has 500 units of week demand and 8 days of transit lead time. In case of the product price
for this demand is $25 and carrying cost rate is 20%, how much cost reduction is expected when
decreasing transit lead time from 8 days to 5 days?
Response:
A. $900
B. $1500
C. $7500
D. $12500
Answer: B
Question: 125
Production is being planned to emphasize the utilization of a critical and very expensive piece of capital
equipment. Which of the following production planning strategies should be used?
Response:
A. Chase
B. Level
C. Cost-based
D. Combination
Answer: B
Question: 126
Which of the following factors has the greatest effect on the length of the forecast horizon?
Response:
A. Cumulative product lead time

B. Purpose of the forecast
C. Frequency of forecast revision
D. Size of forecast period
Answer: B
Question: 127
If efficiency of a workcenter have just improved from 80% to 90% and other parameter affecting
workcenter capacity are the same, what is input having same queue?
(assuming the prior input is 680 units.)
Response:
A. 680 units.
B. 725 units.
C. 765 units.
D. 785 units.
Answer: C
Question: 128
Based on the following information, calculate the production rate per period if a company want to
develop the level production plan?
- Beginning inventory : 200 units.
- Ending inventory : 100 units.
- Forecasted demand.
Response:
A. 460 units
B. 480 units.
C. 500 units.
D. 520 units.
Answer: A
Question: 129
In a continuous flow manufacturer, manufacturing planning and control systems must be able to
accommodate which of the following operations?
Ⅰ. Handling of by-products.
Ⅱ. Assembly operations.
Ⅲ. Salvage materials which must be re-processed.
Response:
A. I and II
B. I and III
C. II and III
D. I, II, and III
Answer: B
Question: 130
Which of the following is generally MOST complex resource profile when run the RCCP?
Volume Variety Product item Product resource
Response:
A. High High Many Many

B. High Low Low Many
C. Low High Many Low
D. Low LowLowLow
Answer: A
Question: 131
When a company changes overhead allocation method from full absorption accounting to ABC, which of
the following is generally affect on product price?
Response:
A. Increase.
B. Decrease.
C. No changes.
D. Can estimate product cost accurately
Answer: D
Question: 132
The purpose of purchasing is to buy the:
Response:
A. Lowest cost product.

B. Lowest total cost product.
C. Highest quality product.
D. Product which can be delivered fastest.
Answer: B
Question: 133
When measuring an organization's flexibility, which of the following would be used?
Response:
A. Number of setups under ten minutes.

B. Number of skills per employee.
C. Number of different models produced.
D. Percent of sales from new products.
Answer: B
Question: 134
The greatest risk of aggregating product families at too high of a level for sales and operations planning
is that:
Response:
A. it will be more difficult to reconcile the sales plans with the business plan.
B. imbalances between the demand plan and resources may not be visible.
C. the resource planning process will be more complicated.
D. the sales forecasts will not be as accurate for the larger product families.
Answer: B
Question: 135
Which of the following is LEAST true about push system?
Response:
A. Central production control.

B. Kanban.
C. MRP Ⅱsystem.
D. Job shop.
Answer: B
Question: 136
Bucketless MRP system are generally evaluated more effective than typical MRP system because:
Response:
A. It is capable of planning MRP system at the accurate time point.

B. It is appropriate for the stable demand business environment.
C. It is possible for MRP system regenerated to the overall transaction during some periods.
D. Never, it is only the cost factor.
Answer: A
Question: 137
Which of the following is required for the successful implementation of JIT?
Response:
A. Pilot group.
B. Returnable container.
C. Lag strategy.
D. Accurate MRP output.
Answer: B
Question: 138
Which of the following BEST describes the measure of a "good design?"
Response:
A. Creates value for the customer.

B. Engineers approve of the design.
C. Time from concept to market is short.
D. Cost of the product.
Answer: A
Question: 139
Which of the following systems would be most appropriate for managing an inventory of solenoids
purchased by an appliance manufacturer for use in the assembly of several models of an automatic
dishwasher?
Response:
A. Two-bin replenishment system.

B. MRP system.
C. Fixed order quantity, EOQ, reorder point system.
D. Fixed interval, periodic ordering system.
Answer: B
Question: 140
Which of the following is cost accounting system in which the costs are collected by time period and
averaged over all the units produced during the period?
Response:
A. Project costing.
B. Activity based costing.
C. Job costing.
D. Process costing.
Answer: D
Question: 141
Which of the following would typically be a consideration in a distribution requirements planning (DRP)
environment?
Response:
A. Where to carry safety stock
B. How to monitor forecast error at central warehouse
C. Whether to use safety lead time or safety stock
D. Whether to aggregate distribution forecasts
Answer: A
Question: 142
A distribution network structure is the
Response:
A. Planned channels of inventory disbursement from one or more sources to a field warehouses and,
ultimately, to the customer.
B. Planned route along which a product travels to the ultimate customer.
C. Organization including distribution planners which maintain the outflow of products to the customer.
D. Process of determining the need to replenish inventory at branch warehouses.
Answer: A
Question: 143
Which of the following is an advantage of the focus forecasting technique?
Response:
A. It combines top-down and bottom-up forecasts.

B. It uses qualitative forecasting methods.
C. It evaluates multiple forecasting methods.
D. It gathers information from pools of experts.
Answer: C
Question: 144
When increasing tolerance limits from ± 0.2 to ± 0.5, ultimately we can expect this results in:
Response:
A. Defectives are reduced, while process capability is increased.

B. Defectives are reduced, while process capability is decreased.
C. Defectives are enlarged, while process capability is increased.
D. Defectives are enlarged, while process capability is decreased.
Answer: D
Question: 145
In developing a sales and operation planning process, measurements must be created to be published
and reviewed at each meeting. Which of the following measures would NOT be a likely measure for
sales and operations planning?
Response:
A. Sales versus plan.

B. Shipment dollars versus plan.
C. Actual production versus production plan.
D. Work center capacity utilized versus plan.
Answer: D
Question: 146
Which two of the following functions are the responsibility of purchasing rather than inventory
management?
I. Negotiating the price to be paid for purchased materials.
II. Determining the appropriate order quantity when the supplier offers quantity discounts.
III. Specifying delivery dates and quantities on blanket purchase orders.
IV. Monitoring supplier performance and deciding when to switch from one supplier to another.
Response:
A. I, II
B. I, IV
C. II, III
D. II, IV
Answer: B
Question: 147
Which of the following is the LEAST impact by the result of quality function deployment?
Response:
A. Product plan.
B. Product design.
C. Process planning.
D. Statistical process control.
Answer: D
Question: 148
All MRP systems operate as exception systems. They generate messages to tell a planner when an out of
limits condition is met. For which of the following conditions would an exception message be
generated?
I. Planned orders have reached the leadtime for ordering
II. Scheduled receipts due dates are later than the need date
III. Standard leadtime for an end item will result in a late delivery
Response:
A. I and II
B. I and III
C. II and III
D. I, II and III
Answer: D
Question: 149
Firm planned orders are useful for doing which of the following?
I. Preventing the system from automatically rescheduling
II. Creating a planned order that does not agree with the lot sizing rule for that item
III. Preventing the explosion of requirements at lower levels
IV. Freezing the timing of a planned order release
Response:
A. I only
B. III and IV only
C. I, II, and IV only
Answer: C
Question: 150
Sales and Operation Planning's (S&OP) primary objective is:
Response:
A. to align operations with the business plan.
B. to create a long-term strategy.
C. to reduce the forecast variance.
D. to finalize the demand plan.
Answer: A
Question: 151
A chemical plant refines crude oil from a nearby oil field into a few bulk chemicals that are stored on-
site. The master planning of resources processes in this situation would most appropriately focus on:
Response:
A. forecasting bulk chemical demand.

B. determining crude supply and capacity required.
C. determining the most effective use of capacity.
D. maximizing the output of the plant.
Answer: C
Question: 152
Which of the following environment is typically the LEAST beneficial through RCCP?
Response:
A. Low finished good inventory.

B. Small customer order backlog.
C. High product varieties.
D. Very stable output rate
Answer: D
Question: 153
Which of the following elements affect on the change of the bill of resources?
Ⅰ. Product mix.
Ⅱ. Production technology.
Ⅲ. Product volume.
Ⅳ. Product costing.
Response:
A. Ⅰ, Ⅱ
B. Ⅱ, Ⅲ
C. Ⅲ, Ⅳ
D. Ⅰ, Ⅳ
Answer: A
Question: 154
Which of the following BEST describes an outbound stockpoint in a Kanban scheduling system?
Response:
A. A field warehouse nearest a large market.

B. A staging area for outbound shipments.
C. A location on the plant floor near the point of use where material is moved to be pulled to the next
operation.
D. An inventory location at the customer site.
Answer: C
Question: 155
Routing file is as follows for a order in W/C 100:
- Setup time = 4 hrs.
- Run time = 0.2 hrs / piece
- Order quantity = 100 pieces
If thirty quantities of order are complete, How much loads are left in the W/C 100?
Response:
A. 6 hrs.
B. 10 hrs.
C. 14 hrs.
D. 18 hrs.
Answer: C
Question: 156
Which of the following weekly production rates best supports these criteria?
Response:
A. 70
B. 78
C. 80
D. 90
Answer: C
Question: 157
Using the routing information of order A, when is appropriate for the working start date of operation
20?
- Interoperation time = 4 hours.

- Working hours per day = 8 hours.
- Lot size = 20 units.
- Order due date = 195.
Response:
A. 186
B. 187
C. 188
D. 189
Answer: A
Question: 158
When updating MPS, the planner will, first of all,
Response:
A. Investigate exception message.

B. Change lot size.
C. Change lead time.
D. Release orders.
Answer: A
Question: 159
A focused factory is usually characterized by which two of the following?
Ⅰ. Restricted product variety.
Ⅱ. Decreased attention to detail.
Ⅲ. Layout by function.
Ⅳ. Logical flow patterns.
Response:
A. I and III
B. I and IV
C. II and III
D. II and IV
Answer: B
Question: 160
Inventory control can be improved by adopting which of the following storeroom practices?
I. Calculating EOQs to determine quantities to issue
II. Initiating a cycle-counting system
III. Making the storeroom off-limits to all except storeroom personnel
IV. Maintaining parallel record systems to cross-check balances
Response:
A. I and II only
B. II and III only
C. III and IV only
D. I, III, and IV pnly
Answer: B
Question: 161
A company is going to design their products for manufacturability. This will result in:
Response:
A. Faster market introductions.

B. Reduced product options and features.
C. Improved product quality.
D. Increased capacity available.
Answer: C
Question: 162
Which of the following is NOT one of operation time?
Response:
A. Run time.
B. Setup time.
C. Queue time.
D. Teardown time.
Answer: C
Question: 163
Which of the following effects is likely to occur in a successful Collaborative Planning Forecasting and
Replenishment implementation?
Response:
A. Increased inventory turns

B. Increased gross revenue
C. Increased cycle time to market
D. Increased cost of components
Answer: A
Question: 164
If make-to-stock company only concentrate on the increase of inventory for improving customer service,
we can expect that:
Response:
A. The company will lose sales force due to increased inventories.

B. The company will continually increase sales volumes due to increased inventories.
C. The company will experience sales volume improvement gradually slow downed.
D. The company will experience sales decline at first, but immediately they will learn by experience that
sales volume are continuously increased.
Answer: C
Question: 165
Which of the following inputs is important to forecasts used in the sales and operations planning
process?
Response:
A. Capacity constraints
B. Customer plans
C. Inventory levels
D. Sales quotas
Answer: B
Question: 166
A bill of resources typically contains information about a product's:
Response:
A. inventory balances.
B. key work centers.
C. production schedule.
D. complete list of components.
Answer: B
Question: 167
Output of capacity requirement plan is:
Response:
A. Product load profile.

B. Action notice.
C. Workcenter file.
D. Dispatching list.
Answer: A
Question: 168
Based on the following information, what is the rated capacity for month?
- Production hours = 8 hrs per shift.
- No. of shifts = 2.
- Working days = 20 days per month.
- Utilization = 75 %.
- Efficiency = 75%.
Response:
A. 320
B. 180
C. 200
D. 160
Answer: B
Question: 169
MRP/CRP are concurrently affected by which of the following transaction?
I. Reschedule planned order.
II. Open order cancel.
III. Reschedule purchased order.
IV. Revise MPS.
Response:
A. I, II, III
B. II, III, IV
C. I, III, IV
D. I, II, IV
Answer: D
Question: 170
The master planning processes in a high volume manufacturing company with a narrow product mix
would most appropriately focus on which of the following factors?
Response:
A. Determining production flow rates

B. Determining raw material requirements
C. Forecasting end item demands
D. Managing process stages
Answer: A
Question: 171
The evaluation for forecasting system performance should include EXCEPT
Response:
A. Tracking signal.
B. Average.
C. Outliers and demand filters.
D. MAD.
Answer: B
Question: 172
The purpose of purchasing is to buy the:
Response:
A. Lowest cost product.

B. Lowest total cost product.
C. Highest quality product.
D. Product which can be delivered fastest.
Answer: B
Question: 173
Which of the following is an advantage of the focus forecasting technique?
Response:
A. It combines top-down and bottom-up forecasts.

B. It uses qualitative forecasting methods.
C. It evaluates multiple forecasting methods.
D. It gathers information from pools of experts.
Answer: C
Question: 174
Which of the following is the MOST important consideration when designing an information system to
control shop floor operations?
Response:
A. Supporting differentiation between functional areas and production operations.

B. Providing staff specialists with the information needed to control production operations.
C. Allowing factory personnel to manage their own production operations.
D. Encouraging users to operate independently with a minimal amount of training.
Answer: C
Question: 175
A disciplined effort to compare the function performed by an item and its cost in an attempt to find a
lower cost alternative is called:
Response:
A. Item evaluation.
B. Re-engineering.
C. Supplier partnership.
D. Value analysis.
Answer: D
Question: 176
Which of the following is MOST appropriate forecasting technique when a company planning sales
promotion for their new product line at the current year?
Response:
A. Historical analogy.
B. Regression analysis.
C. Level Strategy
D. Seasonal index
Answer: A
Question: 177
Inputs of rough-cut capacity plan are
Ⅰ. Critical workcenter.
Ⅱ. Load profile.
Ⅲ. MPS.
Ⅳ. Bill of resource.
Response:
A. Ⅰ, Ⅱ, Ⅲ
B. Ⅰ, Ⅲ, Ⅳ
C. Ⅱ, Ⅲ, Ⅳ
D. Ⅰ, Ⅱ, Ⅲ, Ⅳ
Answer: B
Question: 178
The greatest advantage of forward integration is likely to:
Response:
A. Investigate customer requirements more precisely.

B. Focus on communication among suppliers.
C. Decrease defectives of buying parts.
D. Be more cost effective because it can decrease the frequency of use for POS data.
Answer: A
Question: 179
Which of the following performance measures is MOST appropriate for determining the overall
improvement of JIT manufacturing operations?
Response:
A. Direct labor efficiency.
B. Inventory turns.
C. Equipment utilization.
D. Overhead variances.
Answer: B
Question: 180
The MOST significant impact of electronic business on supply chain management is
Response:
A. Reduction of paper-based communications.

B. Reduction of data capture costs.
C. Coordination of information.
D. Ease of global sourcing.
Answer: C
Question: 181
If the master production schedule is overstated, which of the following short-term actions is most
appropriate?
Response:
A. The demand time fence should be moved out.

B. Lot sizes should be decreased.
C. Safety stocks should be decreased.
D. Firm planned orders should be rescheduled.
Answer: D
Question: 182
Bottleneck work center is
Response:
A. W/C 111
B. W/C 121
C. W/C 136
D. W/C 142
Answer: C
Question: 183
When increasing tolerance limits from ± 0.2 to ± 0.5, ultimately we can expect this results in:
Response:
A. Defectives are reduced, while process capability is increased.

B. Defectives are reduced, while process capability is decreased.
C. Defectives are enlarged, while process capability is increased.
D. Defectives are enlarged, while process capability is decreased.
Answer: D
Question: 184
The production planning process is meant to be a communication tool. In order to fulfill this objective,
the production plan should be stated in
Response:
A. Hours of capacity and output.

B. Units of capacity and output.
C. Dollars of capacity and output.
D. Commonly understood terms.
Answer: D
Question: 185
Which of the following are TRUE about random location?
I. Random location is feasible when a computer system is employed.
II. Lot, or batch, Identity can be more easily maintained.
III. Picking orders can be scheduled on FIFO basis.
Response:
A. I
B. I, II
C. I, III
D. I, II, III
Answer: D
Question: 186
The question below is based on the following distribution requirements plan:
Lead time is 1 week, lot size is 30, and safety stock is 0. Planned order releases would occur in which of
the following sequences?
Response:
A. Weeks 3, 4, 6
B. Weeks 2, 3, 5
C. Weeks 2, 3, 4
D. Weeks 3, 4, 5
Answer: B
Question: 187
A company has chosen to execute a level production plan. What is the production rate per period?
Response:
A. 108
B. 110
C. 112
D. 125
Answer: A
Question: 188
Which of the following manufacturing environment is typically NOT control the order status?
Response:
A. Project.
B. Job Shop.
C. Batch.
D. Line
Answer: D
Question: 189
The primary outputs of the pre-sales and operations planning (S&OP) meeting are:
Response:
A. the recommendations and agenda for the executive S&OP meeting.
B. a statistical forecast and field sales worksheet.
C. a capacity-constraints analysis and second-pass spreadsheets.
D. decisions about and authorization of the plan.
Answer: A
Question: 190
The greatest risk of aggregating product families at too high of a level for sales and operations planning
is that:
Response:
A. it will be more difficult to reconcile the sales plans with the business plan.
B. imbalances between the demand plan and resources may not be visible.
C. the resource planning process will be more complicated.
D. the sales forecasts will not be as accurate for the larger product families.
Answer: B
Question: 191
In Plant X, flow of purchased parts is from receipt at dock to receiving/inspection to receipt at In the
MRP system, inventory on hand is increased when material is received at stores.
Which of the following are true about this situation?
I. A supplier delivery performance measurement should be based on actual receipts at dock versus
schedule.
II. Purchase orders should be closed when all parts are received at stores.
III. A resource constraint could cause parts to be received at the dock but not into the stores on
schedule.
Response:
A. I and II only
B. I and III only
C. II and III only
D. I, II and III
Answer: D
Question: 192
Key linkages managed by distribution requirements planning within the supply chain include links to:
Response:
A. forecasted demand and material requirements planning.

B. logistics systems and demand management.
C. customers only.
D. vendors only.
Answer: B
Question: 193
The customers of a company that implements Just-in-Time will MOST likely benefit from which of the
following?
Response:
A. Increased delivery lead time.

B. Improved quality of products shipped.
C. Small lot sizes.
D. Reduced freight costs.
Answer: B
Question: 194
When a company select backflusing as inventory control system, a company have some problems
concerning to
Response:
A. Inventory accuracy.
B. Staging and kitting.
C. Incoming inspection.
D. Transaction cost.
Answer: A
Question: 195
In a transfer line, cycle time of the end item is 36 seconds. How many inventory are carried for customer
delivery?
(Projected delivery lead time is 2 hours)
Response:
A. 4 units
B. 72 units
C. 200 units
D. 432 units
Answer: C
Question: 196
It is important to maintain a close relationship with certified supplier partners. The MOST difficult part
of establishing a supplier partnership is:
Response:
A. Establishing trust in the relationship.

B. Developing a consistent, accurate form of communication.
C. Ensuring consistent meetings are occurring to build relationships across company boundaries.
D. Training and educating the workforce.
Answer: A
Question: 197
The purchasing manager of a company received the following quote for some raw materials:
Less than 500 units - $50/unit.
500 units or more - $40/unit.
If the ordering cost equals $40, annual volume is 2500 units and the carrying cost of inventory is 20%,
what is the annual cost of the least-cost order quantity ?
Response:
A. $2000
B. $1414
C. $4000
D. $2200
Answer: B
Question: 198
The below work center file is for product group A and B.
Which of the following is TRUE regarding bottleneck work centers?
Response:
A. W/C 110, 120 bottleneck.

B. W/C 120, 130 bottleneck.
C. W/C 110, 120, 140 bottleneck.
D. No bottleneck W/C.
Answer: A
Question: 199
Which of the following outcomes indicates the effectiveness of a master schedule?
Response:
A. Customer service performance measures are reviewed regularly.

B. The number of product families is in the range of 5 to 15.
C. The master schedule meets the target level of responsiveness.
D. Finance and accounting participate in the development of the master schedule.
Answer: C
Question: 200
The production plan relates to a firm's financial planning because it is used to:
Response:
A. calculate standard product costs.

B. determine variable costs.
C. project payroll costs.
D. identify future cash needs.
Answer: D
Question: 201
All of the following are used for determining no. of kanbans EXCEPT
Response:
A. Daily use.
B. Lead time.
C. Container size.
D. Bill of materials.
Answer: C
Question: 202
Which of the following actions is most effective when planning production of menu items in a restaurant
environment?
Response:
A. Maintain usage history of ingredient items.

B. Estimate future guest counts and item sales.
C. Make today's schedule the same as yesterday's sales.
D. Base the plan on the current ingredients inventory level.
Answer: B
Question: 203
All of the following are quantitative forecasting methods EXCEPT?
Response:
A. Delphi.
B. Seasonal index.
C. Cyclic index.
D. Additive trend.
Answer: A
Question: 204
Which of the following costs is most likely to decrease when the number of warehouses in a distribution
network increases?
Response:
A. Inventory costs
B. Packaging costs
C. Transportation costs
D. Handling costs
Answer: C
Question: 205
The value of work-in-process inventory is LEAST affected by which of the following?
Response:
A. Process time.
B. Lot sizing.
C. Queue time.
D. MRP processing frequency.
Answer: D
Question: 206
- Lead time for a item = 16 weeks
- MAD = 100 units
- Forecasting interval = 4 weeks
- Customer service level = 95%
Safety stock level of the item is:
Response:
A. 330 units
B. 413 units
C. 660 units
D. 826 units
Answer: B
Question: 207
If actual production for an item is less than the master production schedule due to material shortages,
the first step in resolving the problem should be to:
Response:
A. reschedule the past due orders.

B. move in the time fence.
C. revise the rough-cut capacity plan.
D. overstate the production plan.
Answer: A
Question: 208
The business plan should provide which of the following?
Ⅰ. Sales objectives.
Ⅱ. Profit objectives.
Ⅲ. Capital requirements.
Response:
A. I and II
B. I and III
C. II and III
D. I, II, and III
Answer: D
Question: 209
When quantitative data are being evaluated, a very small bias in a forecast can best be explained by
which of the following statements?
Response:
A. Positive forecast errors approximately offset negative forecast errors.

B. The absolute values of all forecast errors were approximately equal.
C. The variability of forecast data was skewed.
D. A very small alpha factor was used.
Answer: A
Question: 210
The following question is based on the following information:
The master production schedule quantity that should be placed in Period 7 is:
Response:
A. 00.
B. 10.
C. 13.
D. 20.
Answer: D
Question: 211
A firm uses the level production planning approach to produce a product family to stock. Senior
management has requested that the finished-goods inventory for the product family be reduced by 18%
over the sales and operations planning horizon.
Which of the following statements best describes the relationship between total demand and total
production required for the product family over the planning horizon?
Response:
A. Total production required and demand will be equal.

B. Total production required will be less than total demand.
C. Total production required will be greater than total demand.
D. There is not sufficient data to determine the relationship.
Answer: B
Question: 212
Available-to-promise data facilitates the process of:
Response:
A. inventory planning.
B. capacity planning.
C. forecasting.
D. order entry.
Answer: D
Question: 213
The greatest advantage of a blanket order is that it
Response:
A. Consolidates small repetitive buys over time.

B. Is used for inexpensive supply item only.
C. Is used for MRO items
D. Reduces control
Answer: A
Question: 214
Calculate the EOQ using the following information.
- Annual Demand = 2500 units.
- Ordering costs = $ 25.
- Carrying costs = $ 2 / unit
- Unit costs = $8
Response:
A. 63 units
B. 125 units
C. 250 units
D. 560 units
Answer: C
Question: 215
Which of the following systems would be most appropriate for managing an inventory of solenoids
purchased by an appliance manufacturer for use in the assembly of several models of an automatic
dishwasher?
Response:
A. Two-bin replenishment system.

B. MRP system.
C. Fixed order quantity, EOQ, reorder point system.
D. Fixed interval, periodic ordering system.
Answer: B
Question: 216
Pareto analysis is included in training so that employees may use it to identify which of the following?
Response:
A. The most frequently occurring defects.

B. Out-of-control operations.
C. The customer base for marketing.
D. The volume of work through the plant.
Answer: A
Question: 217
Which of the following distributions would be the central warehouse allocation of 120 units of inventory
to district warehouses A, B, and C if the equal run-out method were used?
Response:
A. 20 units to A, 53 units to B, 47 units to C

B. 20 units to A, 60 units to B, 40 units to C
C. 20 units to A, 80 units to B, 20 units to C
D. 100 units to A, 0 units to B, 20 units to C
Answer: C
Question: 218
Which of the following techniques typically uses the bills of material for master schedule items in
determining the capacity required?
Response:
A. Advanced production scheduling (APS)

B. Bill of resources
C. Finite forward scheduling
D. Critical path method (CPM)
Answer: A
Question: 219
Which of the following BEST explain the characteristics of strategic partnership?
I. Strategic alliance - business level.
II. Technical and commercial partnership - product level.
III. Operational partnering - part level.
Response:
A. I, II
B. II, III
C. I, III
D. I, II, III
Answer: D
Question: 220
Which of the following sources of demand should be considered in production planning?
Ⅰ. Order backlog from customers.
Ⅱ. Scheduled receipts.
Ⅲ. Interplant transfer of parts.
Response:
A. I and II
B. I and III
C. II and III
D. I, II, and III
Answer: B
Question: 221
Calculate overtime per day per worker:
- Available hours per week : 40 hours.
- Utilization : 90%.
- Efficiency : 80%.
- Lot size : 1000 units.
- Cycle time per work = 15 minutes.
- No. of workers = 4.
- Required production time = 2 weeks.
Response:
A. 10 minutes
B. 20 minutes
C. 30 minutes
D. 40 minutes
Answer: C
Question: 222
A firm manufactures four product families in a single facility using one production line for each product
family.
It has selected the hybrid approach to production planning and has specified that there will be no more
than four changes in production rates per production line in a year.
Resource planning will have to be performed for:
Response:
A. each item when there is a change in the production rate for the family.
B. each production line for each month in the production planning horizon.
C. each product family and production line weekly.
D. each product family when there is a change in the production rate for the family.
Answer: D
Question: 223
Measurements that focus on plant and/or machine utilization promote which of the following?
Ⅰ. Buying excessive amounts of raw material.
Ⅱ. Building finished goods inventories.
Ⅲ. Delaying preventive maintenance.
Response:
A. III only
B. I and II only
C. II and III only
D. I, II, and III
Answer: D
Question: 224
What is the minimum inventory level when the information of a item is as following? Demand
during lead time = 100 units.
Customer service lever = 99%
Standard deviation = 200 units.
Response:
A. 266
B. 366
C. 466
D. 566
Answer: A
Question: 225
Finite loading has been viewed as a sophisticated technique to ensure promised delivery dates to the
customer are met. However, there are some problems with it.
Which of the following would describe a problem with finite loading?
Response:
A. Planned orders cannot be planned accurately.

B. It assumes predictability of job arrival.
C. Capacity is not finite.
D. Efficiency is not predictable, therefore, capacity is not predictable.
Answer: B
Question: 226
Which of the following communicates in-transit inventories to a warehouse?
Response:
A. Bill of distribution
B. Master schedule
C. Order acknowledgment to warehouse
D. Distribution requirements planning
Answer: D
Question: 227
Velocity costing:
Response:
A. Use to lead time for allocating overhead costs.

B. Is as the same as variable costing.
C. Use to labor hour for allocating overhead costs.
D. Is avoidable cost.
Answer: A
Question: 228
Input of CRP is NOT:
Response:
A. Routing data.
B. Work center data.
C. Inventory data.
D. Manufacturing order data.
Answer: C
Question: 229
All of the following are requirements for a successful employee involvement (EI) program EXCEPT
Response:
A. Common understanding of the employee's role in achieving the plant's strategy
B. Management clearly identifying and defining the problems to be solved.
C. Providing the EI teams with authority to change work processes.
D. Developing intrinsic and extrinsic rewards to recognize jobs done well.
Answer: B
Question: 230
Which of the following production systems have the closest relationship with synchronous production?
I. Just-in-Time.
II. Pull system.
III. Push system.
IV. Project production.
Response:
A. I
B. I, II
C. I, II, III
D. I, II, III, IV
Answer: B
Question: 231
Due date information of shop order are storage in which of the following base?
Response:
A. Job order file.

B. Work ticket.
C. Item master file.
D. Routing file.
Answer: A
Question: 232
Which process converts the sales and operations plan into gross labor hours, floor space, and machine
hours?
Response:
A. Resource planning
B. Rough cut capacity planning
C. Capacity requirements planning
D. Finite load planning
Answer: A
Question: 233
Capacity planning occurs at what stage of the Sales and Operations Planning (S&OP) process?
Response:
A. Demand planning phase

B. Supply planning phase
C. Pre- SOP meeting
D. Executive SOP meeting
Answer: B
Question: 234
Which of the following strategy is the MOST appropriate order winner, when manufacturing lead time is
longer than delivery lead time?
Response:
A. Volume flexibility.
B. Delivery speed.
C. Delivery reliability.
D. Variety flexibility.
Answer: B
Question: 235
Planned orders from the warehouse translate to which of the following in the factory?
Response:
A. Planned orders in the MRP system.

B. Scheduled receipts.
C. Gross requirements in the MPS.
D. Inventory in the MPS.
Answer: C
Question: 236
Which of the following forecasting methods is most appropriate for projecting demand for a product
family?
Response:
A. Single exponential smoothing

B. Simple average
C. Focus
D. Pyramid
Answer: D
Question: 237
The measurement, machine utilization, is a poor measure because it causes all of the following EXCEPT:
Response:
A. Increased finished goods inventory.

B. Increased work-in-process inventory.
C. Improved quality.
D. Increased raw materials inventory.
Answer: C
Question: 238
Cross-trained workers are an important part of a JIT factory for which of the following reasons?
Ⅰ. All skills necessary to run a cell reside in the cell.
Ⅱ. Cross-trained workers can create productive teams.
Ⅲ. Union rules can be circumvented.
Response:
A. I and II
B. I and III
C. II and III
D. I, II, and III
Answer: A
Question: 239
Under the group technology concept, which of the following is TRUE?
Response:
A. Like machines should be grouped in clusters.

B. Machines should be grouped to produce parts of similar form.
C. Tape controlled machines are required.
D. Manufacturing departments should be laid out according to function.
Answer: B
Question: 340
Which of the following factors will affect on realistic MPS EXCEPT?
Response:
A. Utilization of modular bills.

B. Calculation of the rated capacity per each end item.
C. Accuracy of ATP.
D. Accuracy of bill of resource.
Answer: C
Question: 241
The most effective way to cope with uncertainty of demand and to improve customer service is to
reduce:
Response:
A. lead times.
B. backlogs.
C. safety stock.
D. product options.
Answer: A
Question: 242
In a make-to-stock environment, which of the following factors is a key determinant of inventory levels
necessary to support customer demand?
Response:
A. Capable-to-promise
B. Available-to-promise
C. Service costs
D. Service level
Answer: D
Question: 243
In environments using backflush inventory relief, perpetual on-hand inventory counts are relieved when
Response:
A. Planned orders for the parent items are created by MRP.

B. A work order for the parent item is generated.
C. Production against the parent item is reported.
D. The parent item is shipped to a customer.
Answer: C
Question: 244
All of the following concepts and techniques are included by Taguchi method EXCEPT:
Response:
A. Process variation.
B. Tolerance Design.
C. Design of experiment.
D. Quality loss function.
Answer: A
Question: 245
EDI or electronics transaction can eliminate:
Response:
A. Move ticket.
B. Time ticket.
C. Order number.
D. Priority number.
Answer: A
Question: 246
The forecast tracking signal is the ratio of the:
Response:
A. forecast to the MAD.

B. cumulative error to the MAD.
C. cumulative error to the forecast.
D. standard deviation to the MAD.
Answer: B
Question: 247
Which of the following types of activities links the marketplace, sister plants, warehouses, and
distribution channels?
Response:
A. Forecast management
B. Resource management
C. Demand management
D. Sales management
Answer: C
Question: 248
The purchasing manager of a company received the following quote for some raw materials:
Less than 500 units - $50/unit.
500 units or more - $40/unit.
If the ordering cost equals $40, annual volume is 2500 units and the carrying cost of inventory is 20%,
what is the annual cost of the least-cost order quantity ?
Response:
A. $2000
B. $1414
C. $4000
D. $2200
Answer: B
Question: 249
Which of the following objectives is a critical performance measurement in distribution network
logistics?
Response:
A. Increasing the service level

B. Increasing cash-to-cash cycle time
C. Increasing inventory days of supply
D. Decreasing inventory turnover
Answer: A
Question: 250
When a process efficiency is increased, we can
Response:
A. Increase production output.

B. Decrease production output.
C. Increase production input.
D. Decrease production input.
Answer: A
Question: 251
A company manufactures at several plants around the world and uses a multi-echelon distribution
network. Customer service levels in this situation would be highest when safety stock is stored at the:
Response:
A. central and field warehouses.

B. factories and field warehouses.
C. central warehouse.
D. factories.
Answer: A
Question: 252
The objective of CRP is:
Response:
A. Work center load profiling.

B. Capacity analysis.
C. Routing analysis.
D. Balancing between load and capacity.
Answer: D
Question: 253
A work center, which has two machines, are given 400 hours for a specific customer order at the last
month. In the operation process, the following information are collected.
- Preventive maintenance = 60 Hrs.
- Absenteeism = 25 Hrs.
- Late tools = 15 Hrs.
- Active standard hours = 270 Hrs.
- Hours of work per week = 40 Hours.
When jobs and each priority of the next period are as the follows, which jobs are possible to complete?
1. Job M : 17 Hrs. 2. Job N : 9 Hrs. 3. Job O : 14 Hrs. 4. Job P : 14 Hrs. 5. Job Q : 21 Hrs.
Response:
A. M, N
B. M, N, O
C. M, N, O, P
D. M, N, O, P, Q
Answer: C
Question: 254
The primary purpose of a pre-sales and operations planning meeting between representatives from
different business functions is to:
Response:
A. reconcile differences in recommendations.

B. discuss changes in demand for end items.
C. prepare recommendations for the demand planning phase.
D. prepare recommendations for the supply planning phase.
Answer: A
Question: 255
Which of the following is the MOST likely related to House Of Quality(HOQ)?
Response:
A. Quality Function Deployment.

B. Total Quality Management.
C. Distribution Requirement Planning.
D. Master Production Schedule.
Answer: A
Question: 256
The majority of companies tend to be technological followers, choosing to wait for tested technologies
which they then exploit to their advantage.
Which of the following statements describes technological followers?
Ⅰ. They achieve slow steady improvement in technology.
Ⅱ. They avoid risk by using technologies which have been time-tested.
Ⅲ. They try to use obsolete existing technology.
Response:
A. I and II
B. I and III
C. II and III
D. I, II, and III
Answer: A
Question: 257
Which of the following element is (are) included in item master file (item record)?
I. Lead time.
II. Part number.
III. Part structure.
IV. Manufacturing cost.
Response:
A. I and II
B. II and III
C. III and IV
D. I and IV
Answer: A
Question: 258
Firm planned orders are useful for doing which of the following?
I. Preventing the system from automatically rescheduling
II. Creating a planned order that does not agree with the lot sizing rule for that item
III. Preventing the explosion of requirements at lower levels
IV. Freezing the timing of a planned order release
Response:
A. I only
B. III and IV only
C. I, II, and IV only
Answer: C
Question: 259
When a supplier has been certified and has been reliably delivering products to a company, often times
the company will develop a process, whereby, purchase orders are no longer necessary.
The product will arrive at the dock, bypass inspection and counting, and be delivered to the production
line.
This delivery location on the production line is called a:
Response:
A. Point of use location.

B. Consignment location.
C. Dock to stock location.
D. VMI location.
Answer: A
Question: 260
Which of the following must be essentially considered when scheduling final assembly in ATO
manufacturing environment?
Response:
A. Customer shipping date.

B. Master production schedule.
C. Material requirement plan.
D. Tracking signal.
Answer: A
Question: 261
A chemical plant refines crude oil from a nearby oil field into a few bulk chemicals that are stored on-
site. The master planning of resources processes in this situation would most appropriately focus on:
Response:
A. forecasting bulk chemical demand.

B. determining crude supply and capacity required.
C. determining the most effective use of capacity.
D. maximizing the output of the plant.
Answer: C
Question: 262
In a transfer line, cycle time of the end item is 36 seconds. How many inventory are carried for customer
delivery?
(Projected delivery lead time is 2 hours)
Response:
A. 4 units
B. 72 units
C. 200 units
D. 432 units
Answer: C
Question: 263
A company is considering the adoption of a highly form of manufacturing technology that will have a
major impact on its production process.
Which of the following situations will MOST likely cause the longest delay in the of this new technology?
Response:
A. The necessary support and maintenance systems do not currently exist and must be developed.
B. The proposed changes will cause a mismatch between products and processes.
C. This technology conflicts with the company's capabilities and culture.
D. The company has too few skilled technicians and experienced implementers of this type of new
technology.
Answer: C
Question: 264
Which of the following strategy is the MOST appropriate order winner, when manufacturing lead time is
longer than delivery lead time?
Response:
A. Volume flexibility.
B. Delivery speed.
C. Delivery reliability.
D. Variety flexibility.
Answer: B
Question: 265
When the MPS is infeasible to produce, which of the following techniques would be used to smooth the
capacity requirements?
Response:
A. Scheduled receipts.
B. Firm planned orders.
C. Resource profiles.
D. Capacity bills.
Answer: B
Question: 266
Which of the following is the MOST important factor of JIT to the customer?
Response:
A. Quality.
B. Price
C. Short lead time.
D. On time delivery.
Answer: A
Question: 267
The same manufacturing strategy can be used
Response:
A. For all products with the competitive advantage in all phases of the product life cycle.
B. For all products in each market niche with the same volumes and varieties.
C. For all competitive advantages of products in the same market niche.
D. For all products with the same volume/variety and same competitive advantages in the same market
niche.
Answer: D
Question: 268
The question below is based on the distribution center requirements shown below:
How many units of product X should be planned to satisfy the demand for period 6?
Response:
A. 100
B. 80
C. 60
D. 40
Answer: B
Question: 269
All of the following are external demand factors affecting on demand EXCEPT:
Ⅰ. Competitor's action.
Ⅱ. Company pricing strategy.
Ⅲ. Company lot size strategy.
Ⅳ. Company sales promotion.
Response:
A. Ⅰ, Ⅱ, Ⅲ
B. Ⅱ, Ⅲ, Ⅳ
C. Ⅰ, Ⅲ, Ⅳ
D. All
Answer: B
Question: 270
What is the planned order release in period 4?
Response:
A. 10
B. 15
C. 20
D. 25
Answer: B
Question: 271
Based on the below time phased record, which of the following is TRUE?
Response:
A. Period 1 for 50 ; Period 2 for 400 ; Period 3 for 100 ; Period 4 for 50
B. Period 3 for 350 ; Period 4 for 50
C. Period 2 for 400 ; Period 3 for 50 ; Period 4 for 50
D. Period 2 for 350 ; Period 3 for 50 ; Period 4 for 50
Answer: D
Question: 272
A company is transitioning from a make-to-stock production environment to a finish-to-order
production environment. Which of the following outcomes is most likely to occur as a result of the
transition?
Response:
A. Inventory levels will be increased.

B. Less training will be required in the distribution centers.
C. Planning or phantom bills of material will be created.
D. Forecasts will become more detailed.
Answer: C
Question: 273
The majority of companies tend to be technological followers, choosing to wait for tested technologies
which they then exploit to their advantage.
Which of the following statements describes technological followers?
Ⅰ. They achieve slow steady improvement in technology.
Ⅱ. They avoid risk by using technologies which have been time-tested.
Ⅲ. They try to use obsolete existing technology.
Response:
A. I and II
B. I and III
C. II and III
D. I, II, and III
Answer: A
Question: 274
Which of the following is the MOST appropriate technique for trade-off analysis between forecasts
accuracy and costs?
Response:
A. Cost variance analysis.

B. Tracking signal.
C. Cost/benefit analysis.
D. Focus forecasting.
Answer: C
Question: 275
U-shaped cells that group dissimilar machines to perform various operations on a part result in
reduction of all of the following EXCEPT
Response:
A. Travel distances.
B. Machine downtime.
C. In-process inventory
D. Lead times.
Answer: B
Question: 276
An intensive distribution channel strategy would be most appropriate for which of the following types of
product?
Response:
A. Special tools
B. Capital equipment
C. Designer clothing
D. Carbonated beverages
Answer: D
Question: 277
Which of the following is true about staging EXCEPT
Response:
A. Staging is pulling in advance from inventory before the material is required.

B. Staging can be effectively used in JIT system to reduce lead time.
C. Staging disrupts the production flow.
D. Staging causes detrimental problems in inventory management.
Answer: B
Question: 278
In moving a manufacturing organization towards flexible manufacturing systems or computer integrated
manufacturing, the MOST important obstacle to overcome is:
Response:
A. Personnel issues which arise from change.

B. Hardware compatibility across platforms.
C. Software language barriers.
D. Networking capability of the organization.
Answer: D
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A. Improve product quality.

A. Just-in-time vendor delivery system

A. Positive forecast errors approximately offset negative forecast errors.

A. Level production strategy.

A. Using safety stock.

A. address imbalances in the customer order mix.

- W/C100 change time = 5 minutes.

A. Resource requirement planning.

A. High High Many Many

A. Feasible master schedules

A. Utilization of modular bills.

A. The proposed change should be presented to top management for a decision.

A. Provide maximum mobility of operators between assembly lines.

A. Actual labor cost.

A. lower inventory levels and lower total cost.

A. Using an exponential smoothing forecast

A. Buy all the parts from an alternate source.

A. Accept this customer order and expedite production.

A. Incentives for large-lot deliveries.

A. FOB at the suppliers dock.

A. Customer order fill rate

A. Increased inventory turns

A. Increasing frequency of cycle counts.

A. Providing a tool for aggregation and disaggregation of demand.

A. small, inexpensive, and distributed throughout the world.

A. Investigate exception message.

A. Managerial employees to perform nonmanagerial tasks whenever they are idle.

A. Reduction of total inventory level.

A. Direct labor efficiency.

The mean absolute deviation for the above forecast is:

A. It uses average time among workcenters.

A. To remove scrap loss from a work center history

A. It facilitates the planning process.

A. Telling him or her that the change is necessary.

A. forecasted demand and material requirements planning.

A. Complete earlier than scheduled.

A. Activity based costing.

A. Earliest operation due date.

A. Demand planning phase

A. Cellular processes no longer report every operation to accounting.

A. Earliest start date.

A. Supplier audit program.

A. Control over critical capacities.

A. Increase planned production.

A. Maximize customer service.

A. Hours of capacity and output.

A. A stable competitive environment.

A. Low finished good inventory.

A. Simplify and flatten the organizational structure.

A. capacity requirements planning

A. Pay for knowledge.

A. Safety lead time.

A. Workers will need to rest

A. Include them in the production plan.

A. Inventory value would be lower, cost of goods sold higher.

A. Cumulative product lead time

A. High High Many Many