Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/64

Click to flip

64 Cards in this Set

  • Front
  • Back
Which of the following is an activity included in master planning of resources?

A. Business planning
B. Strategic planning
C. Sales and operations planning
D. Materil requirements planning
C. Sales and operations planning
Which of the following is an element of demand management?

A. Forecasting
B. Setting overall supply levels
C. Rough-cut capacity planning
D. Master scheduling
A. Forecasting
Which of the following processes sets the projected backlog level at the product family level?

A. Master scheduling
B. Sales and operations planning
C. Business planning
D. Demand management
B. Sales and operations planning
The planning horizon is which of the following?

A. The amount of time it takes to conduct the planning process.

B. The maximum amount of lead time required to order and receive all purchased materials required.

C. Two years

D. The amount of time a plan extends into the future.
D. The amount of time a plan extends into the future.
Which of the follwoing is part of a business plan?

A. Statement of profit objectives

B. The production plan

C. Short-term sales objectives

D. Master scheduling
A. Statement of profit objectives
Which of the following includes an analysis of the nature of the firm, the market and the busienss enviroment?

A. Sales and operations planning

B. Benchmarking

C. Product family analysis

D. The business plan
D. The business plan
In which of the following manufacturing enviroments would there be more proliferation of item numbers at the raw material stage than at the finished product stage?

A. Make-to-order

B. Make-to-stock

C. Assemble-to-stock

D. Engineer-to-order
B. Make-to-stock
The sales and operations planning process occurs at which of the following levels?

A. Individual item

B. Sub-component line items

C. Product families

D. Servie parts
C. Product families
Forecasts are more accurate at which level of the product/service hierarchy?

A. Business unit

B. Product family

C. Model or brand

D. SKU
A. Business unit
Rough-cut capacity planning takes place at which of the following planning levels?

A. Stategic planning

B. Business planning

C. Master scheduling

D. Material requirements planning
C. Master scheduling
Forecasts for products that are subject to a promotional demand are most useful if they are based on:

A. Quantitative factors only

B. Qualitative factors only

C. Both quantitative and qualitative factors

D. Niether qualitative nor quantitative factors
C. Both quantitative and qualitative factors
Which of the following statements is true wbout the intergration of planning systems and the level of forecast accuracy?

A. the more intergrated the system, the more accurate the forecast.

B. The planning system should include information on the level of forecast accuracy.

C. Forecast accuracy is implied in the planning process system.

D. Once the data are input into the planning system, they remain constant through the planning horizon.
B. The planning system should include information on the level of forecast accuracy.
Which of the following is most directly affected by forecast inaccuracy?

A. Establishment of the firm planning time fence in master schedule

B. Safety stock levels of dependent demand items included in the forecast.

C. Leading indicators included in the extrinsic factors to determine the forecast.

D. Planned finished goos inventory level in a make to stock enviroment.
D. Planned finished goos inventory level in a make to stock enviroment.
Which of the following qualitative methods of forecasting should a company consider for a product that is replacing another?

A. Expert opinion

B. Focus groups

C. Historical analogy

D. Panel consensus
C. Historical analogy
Seasonality is demand that shows which of the following patterns?

A. Rpetitive pattern over some time interval

B. Genral movement up or down over time

C. Rpetitive pattern based on economic conditions

D. Reptitive pattern based on promotional activity
A. Rpetitive pattern over some time interval
Calculate the seasonal index for Product A

Period Average demand 600
Demand range 135-876
Average demand 600
Average Demand
previous year 485
Old Forecast 400

A. 1.0

B. 0.81

C. 1.24

D. 0.66
A. 1.0
Which of the following repsonses is the company most likely to consider when establishing the forecast for a new item being added to a make to stock product line?

A. Evaluate the sales promotion effect of the new item on sales of existing products

B. Reduce the alpha factor so that the downward-trending demand in recent periods is more heavily weighted.

C. Adopt pyriamid forecasting in order to evaluate the impotance of the new item above its family members

D. Appy quantitative analysis techniques based on leading economic indicators to establish short-term forecasts.
A. Evaluate the sales promotion effect of the new item on sales of existing products
In which of the following processes are wulaitative techniques appropriately used?

A. Determination of a seasonal index

B. Pyramid forecasting

C. Detection of a demand increase or decrease

D. Extrapolation of essentially level data
B. Pyramid forecasting
Which of the following quantitative techniques repsonds the most quickly to trends?

A. High Alpha Factor exponential smoothing

B. Moving average

C. Seasonal index

D. Exert opnion
A. High Alpha Factor exponential smoothing
Given the following information, calculate the new forecast for product A using exponential smoothing:

Alpha Factor 0.7
Actual Demand 600
Old Forecast 562
Seasonal Index 2.1

A. 813

B. 882

C. 260

D. 589
D. 589
Which of the following best expresses the intent of forecasting?

A. To give managers on which to base decisions

B. To give managers accurate data projecting material requirements

C. To give shop floor workers ranges and variations within which production must take place.

D. To give production supervisors direct input into the distribution requirements system
A. To give managers on which to base decisions
Tracking signals do which of the following?

A. Identiy causes of forecast errors

B. Identify forecast bias

C. Compute the appropriate trip value to be used in demand filtering.

D. Adjust forecasts when errors are reported.
B. Identify forecast bias
Which of the following is most likely to be a reason for forecast error?

A. Functional manager participation in development and execution of forecast systems

B. Involvement of users in the process of developing forecast tools.

C. Tracking actual demand against projected demand

D. Complexity of the forecasting tool
D. Complexity of the forecasting tool
" The average of the absolute values of the deviations from some expected value" best defines which of the following terms?

A. Standard deviation

B. Forecast error

C. Mean average deviation

D. Mean absolute deviation
D. Mean absolute deviation
Tracking signals are computed by which of the following methods?

A. Divide the cummulative sum of errors by the MAD

B. Divide the average error by the trip value

C. Multiply the MAD by four

D. Increase the alpha coefficient to the MAD
A. Divide the cummulative sum of errors by the MAD
All of the following re characteristics of customer service lleadership EXCEPT:

A. Defining a vision of service excellence

B. Teaching customer service leadership behaviour only

C. Being proactive with customers

D. Creating and maintaining high standards
B. Teaching customer service leadership behaviour only
which of the following is a generally accepted principle of date management?

A. Customer service should be measured by delivery lead time

B. Changes to dates as a result of customer requests are handled outside the system

C. changes as a result of supplier constraints do not have an impact on customer service measurements

D. Due dates should be in the future and realistic
D. Due dates should be in the future and realistic
Which of the following components should be addressed by a world class customer service strategy?

A. Customer concerns

B. Customer concerns, supplier concerns

C. Customer concerns, employee concerns, supplier concerns

D. Customer concerns, employee concerns, shareholder concerns, supplier concerns
D. Customer concerns, employee concerns, shareholder concerns, supplier concerns
" Responding to the customer with the proper product, quantity, price, and location" best defines which of the following terms?

A. Focus on quality

B. Continuous improvement

C. Quick response

D. Order qualifier
C. Quick response
Line item fill rate, shipment by due dates, stockouts, cycle times and other similar process data are elements used during which of the following activities of order management?

A. Order entry

B. Order processing

C. Order allocation

D. Order monitoring
D. Order monitoring
Which of the following is the general rule for planning horizons?

A. They depend on the delivery time and quantity of goods already ordered and in transit

B. They extend into the future to cover the lead times through supply processes and delivery to the final distribution point

C. They are primarily based on lead time in the manufacturing processes

D. They are based on the gross requirement of each distribution center in the system for that item
B. They extend into the future to cover the lead times through supply processes and delivery to the final distribution point
Pull systems of planning and control in a distribution enviroment:

A. Allow each distribution center to manage its own inventory

B. Centralize inventory management

C. Rely on replenishment orders from the stocking locations closest to the production facilities

D. Are centralized at the first level in distribution and the first level in production, and are decentralized at every other point
A. Allow each distribution center to manage its own inventory
Which of the following is the overall goal of a distribution system?

A. customer service

B. Maximum distribution efficiency at lowest cost

C. Minimum inventory investment and lowest cost distribution

D. Efficient, timely service with minimal inventory investment
D. Efficient, timely service with minimal inventory investment
Small standard size containers do which of the following?

A. Create damage to goods in shipment

B. Make handling more difficult

C. Increase accuracy of goods counts

D. Significantly decrease packing and unpacking
C. Increase accuracy of goods counts
Delivery direct to point of use does which of the following?

A. Creates additional intermediate stocking locations

B. Increases lead time

C. Increases packing and unpacking

D. Increases direct shipments
D. Increases direct shipments
Which of the following is most effective in maintaining a high level of customer service with a minimum amount of inventory investment?

A. EOQ

B. JIT

C. Increased production volume

D. Pull systems with reorder point
B. JIT
What is the logical connecting point between the supply system and the distribution system?

A. ISO 9000

B. MPS

C. TOC

D. MRP
B. MPS
Increasing the number of distribution centers generally does which of the following?

A. Decreases the cost of truck loads to distribution centers

B. Decreases the cost of car loads to distribution centers

C. Increases the cost of less than truck loads to customers

D. Decreases the total cost of transportation
D. Decreases the total cost of transportation
Estimating demand at each final distribution center based on historical demand and summing the total is forecasting by which of the following?

A. Aggregation

B. Allocation

C. Intermediary

D. Channel
A. Aggregation
Calculate the new safety stock requirement given the following information:

Present # of distribution centers: 1

# of DC's being added: 3

Total current safety stock: 4000

A. 2000
B. 4000
C. 8000
D. 1000
C. 8000
Which of the following is the process of creating a detailed statement of independent demand that is used to develop detailed material and capacity plans?

A. Master scheduling

B. Master planning of resources

C. Rough cut capacity planning

D. Bill of material
A. Master scheduling
Which of the following best represents inputs to the master scheduling process?

A. Master production schedule, forecast, rough cut capacity planning

B. Master production schedule, production plan, resource planning

C. Sales and operations planning, material requirements planning, capacity planning

D. Production plan, forecast, rough cut capacity planning
D. Production plan, forecast, rough cut capacity planning
Which of the following provides detailed supply and demand information for individual items and supports both purchased and manufactured products in all manufacturing strategies?

A. Sales and operations planning

B. Master production schedule

C. Capacity planning

D. Marketing planning
B. Master production schedule
Which of the following is a point in timedenoted in the planning horizon of the master scheduling process that marks a boundry inside of which changes to the schedule may adversely affect component schedules, capacity plans, customer deliveries and cost?

A. Demand time fence

B. Projected available balance

C. Planning time fence

D. Available to promise
C. Planning time fence
Master scheduling is a balancing act between which of the following?

A. Forecasts and orders

B. Inventory and customer service

C. Supply and demand

D. Forecast and inventory
C. Supply and demand
A time fence policy does which of the following?

A. Controls the amount of change that can occur during predefined areas of the planning horizon

B. Controls supply planning information for production

C. Avoids excess inventory through a dynamic process

D. Monitors changes in supply and demand conditions
A. Controls the amount of change that can occur during predefined areas of the planning horizon
Which of the following are the elements of demand?

A. Forecasts and safety stock

B. projected sales and orders

C. Production and purchases

D. Inventory and safety stock
B. projected sales and orders
Which of the following are data required for the development of a realistic master production schedule?

I. New product introduction schedule
II. Sales forecasts
III. Shipment history
IV. Workforce constraints

A. I, II and III only
B. I, II, and IV only
C. I, III and IV only
D. I, II, III and IV.
B. I, II, and IV only
Which of the following are possible solutions for a master scheduler trying to resolve a short term problem with an overloaded critical work center?

I. Schedule overtime or extra shifts
II. Reduce the amount of sub-contracting
III. Establish committees to reduce setup times
IV. Hire temporary help

A. I and II only
B. I and IV only
C. II and III only
D. II and IV only
B. I and IV only
In master scheduling, hedging refers to a practice which:

I. provides a safety lead time
II. Provides safety inventory in case option mixes are different from forecast
III. Gives safety capacity to protect against workcenter overload
IV. Provides safety inventory in case volume is greater than forecast

A. III only
B. I and III only
C. II and IV only
D. I, II and IV only
C. II and IV only
The production forecast:

A. Is primarily used with master production scheduled items

B. Forecasts the family available to promise multiplied by option percentages

C. Represents the product family forecast in two level master scheduling

D. Is based on production lead times
B. Forecasts the family available to promise multiplied by option percentages
What is the difference between a final assembly schedule and a master production schedule?

A. The final assembly schedule addresses a longer term planning period than the master production schedule and looks at customer orders rather than forecasted demand.

B. The final assembly schedule addresses a shorter term planning period than the master prodcution schedule and looks at customer orders rather than forecasted demand

C. The final assembly schedule addresses a longer term planning period than the master production schedule and looks at forecasted orders rather than customer orders.

D. The fianl assembly schedule addresses a shorter term planning period that the master production schedule and looks at forecasted demand rather than customer orders
B. The final assembly schedule addresses a shorter term planning period than the master prodcution schedule and looks at customer orders rather than forecasted demand
which of the following is defined as the process of converting the master production schedule into the load for critical reosurces?

A. Available to promise

B. Resource capacity planning

C. Rough cut capacity planning

D. Multilevel master scheduling
C. Rough cut capacity planning
In shich of the following zones is it most difficult to respond to changes in customer demand?

A. Danger

B. Frozen

C. Free

D. Flexible
B. Frozen
In shich of the following zones can changes be made with relative ease?

A. Danger

B. Free

C. Frozen

D. Flexible
B. Free
all of the following are elements to measure forecast performance except:

A. Forecast accuracy
B. Pyramid forecasting
C. Rate at which sales are booked
D. Standard deviation
B. Pyramid forecasting
Market share, customer share and customer acquisition are ways of measuring which of the following?

A. Efficiency

B. Utilization

C. Sales

D. Quality
C. Sales
Which of the following is the process used to validate the sales and operations planning process?

A. Material requirements planning

B. Resource planning

C. Master scheduling

D. Business planning
B. Resource planning
Which of the following serves as the coordination tool between the business plan and the master production schedule?

A. Capacity planning

B. Strategic planning

C. Production plan

D. Sales and operations planning
D. Sales and operations planning
which of the following is the output of the sales and operations planning process?

A. The production plan

B. Material requirements plan

C. Business plan

D. Capacity plan
A. The production plan
Some symptoms of poor master scheduling include:

I. Expediting some orders
II. Upper management maintains a 'hands' off policy
III. Orders chronically past due
IV. Month end production surge

A. I and II only
B. II and III only
C. III and IV only
D. All of these
C. III and IV only
A rush order is an order that is accepted by a supplier with which of the following?

A. Backlogs
B. Back orders
C. Less than quoted lead time
D. Production constraints
C. Less than quoted lead time
Which of the following are policies or guidelines established to note where restrictions or changes in operating procedures take place?

A. Time fences

B. Planning periods

C. Planning horizon

D. Production downtime
A. Time fences
Which of the following is the capability to identify, for a given item, the sources of its gross requirements and/or allocations?

A. Bill of material

B. Inventory turns

C. Material plan

D. Pegging
D. Pegging