Bsbwor501 Final Exam
Basics Exam 1.
1. Which of the following strategies produces the longest lead-time?
a. Make to order
b. Engineer to order
c. Make to stock
d. Assemble to order
2. Which of the following statements s true?
a. A product layout creates longer lead-time than a process layout.
b. There is less WIP inventory in a product layout.
c. Overhead costs are higher n a product layout.
d. Capital equipment costs are typically higher in a process layout.
3. The objective of maximising customer service is easiest met with:
a. Low inventors and low operational costs
b. High inventors and high operational costs
c. Low inventors and high operational costs
d. High inventors and low operational costs
4. Which of the following statements …show more content…
is true?
a. Inventory and production must be planned together
b. Inventory can be planned independently of production.
c. Inventory planning only takes place during material requirements planning.
d. Production plans only take capacity into account.
5. Characteristics of demand include all of the following except:
a. Seasonal variation
b. Trends
c. Average variation.
d.
Stability
6. Which of the following statements about forecasting is false:
a. History is always taken into account.
b. History is a valid indicator of future demand.
c. Forecasts by individual product will be less accurate than forecasts for groups of products.
d. Short-term forecasts will be more accurate than long-term forecasts.
7. The decision on what to forecast will be based upon:
a. The length of the forecast horizon.
b. The purpose of the forecast
c. The availability of information.
d. The time available to make the forecast.
8. Monitoring the forecast involves:
a. Comparing shipments with the forecast
b. Comparing customer requirements with the forecast
c. Calculating the standard deviation of the forecast
d. Choosing a new forecasting method if the error is too large.
9. Which production planning strategy will create inventory to match supply with demand?
I. Level strategy
II. Chase strategy
III. Hybrid strategy
a. I and II only
b. I and III only
c. II and III only
d. I II and III
10. What will be the resultant inventory from the 6-month production plan if the opening inventory is 500 units, sales are forecasted to be 700 per month and production is set at 750 per month?
a.
500
b. 200
c. 800
d. 550
11. Which of the following statements about the Master Schedule is false?
a. The MPS sets out a build schedule by individual product.
b. A poor MPS will lead to poor operational performance.
c. The MPS matches the shipments plan.
d. Rules relating to changes to the MPS must be in place and adhered to.
12. Which capacity planning process is used to verify the feasibility of the MPS?
a. Resource planning
b. Capacity requirements planning
c. Production scheduling
d. Rough-cut capacity planning.
13. The technique used to identify the source of the requirement for a part is called:
a. Exploding the bill of material
b. Pegging
c. Priority planning
d. MRP
14. The MRP inputs include all of the following except:
a. Bills of material
b. Master Production Schedule
c. Inventory status
d. Sales forecast.
15. Which of the following determines the gross requirements for a component:
a. Parent part gross requirements
b. Parent part net requirements
c. Parent part planned order receipts
d. Parent part planned order releases.
16. Top-level parent part gross requirements are based upon which of the following:
a. The MPS
b. The sales forecast less on-hand stock.
c. The shipments plan.
d. All of the above.
17. Rated capacity is calculated using which of the following formulae:
a. Actual output over 4 periods divided by 4.
b. Hours per week multiplied by efficiency.
c. Available hours multiplied by efficiency and utilisation.
d. Maximum machine output rates.
18. The report which shows the availability of capacity and the requirement for capacity in a work centre is:
a. The load report
b. The dispatch list.
c. The production schedule.
d. The overdue orders report.
19. Which of the following is used to calculate efficiency?
a. Output in standard hours / Available hours.
b. Output in standard hours / (available hours x utilisation rate)
c. Available hours / Worked hours.
d. Average output over a number of periods.
20. Which of the following statements is most accurate?
a. Work centres downstream of a bottleneck work-centre should usually work at full capacity.
b. Work centres upstream of a bottleneck work-centre should usually work at full capacity.
c. A queue of work should be positioned n front of a bottleneck.
d. A queue of work should be positioned after a bottleneck.
21. Inventories of items resulting from purchasing or manufacturing in quantities greater than immediately required are called:
a. Safety stock
b. Hedge stock
c. Lot-size stock.
d. Excess stock. 22. If the ordering quantity of a product is reduced which of the following will result?
a. Total ordering cost will increase and carrying cost will decrease.
b. Total ordering cost will increase and carrying cost will increase.
c. Total ordering cost will decrease and carrying cost will decrease.
d. Total ordering cost will decrease and carrying cost will increase.
23. Which of the following equations is correct?
a. Assets = Liabilities + Profits.
b. Liabilities = Assets – Equity
c. Equity = Assets + Profits
d. Assets + Equity = Liabilities.
24. Which of the following is not considered a carrying cost?
a. Obsolescence cost
b. Storage cost
c. Insurance cost
d. Product cost.
25. Which of the following statements about safety stock is best:
a. The amount of safety stock is determined by the price of the product.
b. The amount of safety stock is determined by the customer service target.
c. The amount of safety stock is determined by the availability of space.
d. The amount of safety stock is determined by the shelf life of the product.
26. If the weekly demand for a product is 150 units and 1 weeks worth of product is set as the safety stock, what will be the effect on the reorder point if the lead-time is reduced from 3 weeks to 1 and the reorder quantity is reduced from 500 to 250?
a. Reduce by 250
b. Reduce by 300
c. Reduce by 500
d. Reduce by 400
27. If the ordering cost of a product is reduced to one quarter of its previous level, what will be the effect on the economic order quantity?
a. It will reduce by 75%
b. It will reduce by 50%
c. It will increase by 75%
d. It will increase by 50%.
28. Cycle counting improves stock status accuracy through which of the following means:
a. Inaccuracies are adjusted daily.
b. All records are reconciled with the physical count more frequently.
c. Causes of errors are detected and eliminated.
d. All of the above.
29. Which of the following statements is most accurate?
a. A class parts are the most expensive parts.
b. 20% of the parts account for 50% of the value.
c. 30% of the parts account for 15% of the value.
d. C class parts are insignificant parts.
30. A fixed location warehouse system has which of the following major characteristics?
a. A sophisticated system is needed to identify where each part is stored.
b. Overflow areas are needed for every part.
c. It is appropriate for all types of material.
d. It is inefficient in the use of space.
31. Line-haul costs will be most directly affected by which of the following:
a. The number of pick-ups and drops on the route.
b. The length of the route.
c. The weight carried.
d. The type of goods carried.
32. Consolidating several units into bigger units in order to simplify and reduce handling is called:
a. Palletisation.
b. Packaging.
c. Load consolidation.
d. Unitisation.
33. Quality in manufactured parts is best achieved by which of the following means?
a. Improving staff training.
b. Automation of the process.
c. Reduction of variability in the process.
d. Increasing the vigilance of inspectors.
34. When a company commences on a TQM programme, which of the following statements is true:
a. Initially quality will seem to disimprove.
b. Quality costs will begin to reduce immediately.
c. In the longer term, quality will improve but costs will remain about the same.
d. In the longer term, quality costs will reduce but the level of quality will remain about the same.
35. Which of the following is an objective of purchasing:
a. To ensure parts are bought at the lowest price.
b. To ensure that suppliers can deliver quality products and service.
c. To ensure that manufacturing is never interrupted by a material shortage.
d. To ensure that alternative suppliers are in place at all times.
36. Process control charts are used primarily by:
a. Quality controllers.
b. Process engineers.
c. Production operators.
d. Production management.
37. Which of the following is not an advantage of using work cells?
a. Machine utilisation will increase.
b. Set-up times will reduce.
c. Inventory levels will reduce.
d. Operator skill levels will increase.
38. Which of the following is untrue in relation to Total Productive Maintenance (TPM)?
a. Operators will be responsible for the maintenance of their machines.
b. Operators will perform routine simple maintenance tasks.
c. Technicians will deal only with machine breakdowns.
d. Machine performance will probably improve.
39. In a JIT system, material moved from the producing to the using work centre will be:
a. The same in quantity as the producer’s batch size.
b. The same in quantity as the user’s batch size.
c. Delivered as soon as it is produced.
d. Produced as soon as it is needed.
40. Employee empowerment means:
a. Giving employees the responsibility and authority to make decisions.
b. Employees have the power to recommend changes.
c. Managers must get employee approval for all decisions.
d. Employees are consulted before management make decisions.
1. Which of the following strategies produces the longest lead-time?
a. Make to order
b. Engineer to order
c. Make to stock
d. Assemble to order
2. Which of the following statements s true?
a. A product layout creates longer lead-time than a process layout.
b. There is less WIP inventory in a product layout.
c. Overhead costs are higher n a product layout.
d. Capital equipment costs are typically higher in a process layout.
3. The objective of maximising customer service is easiest met with:
a. Low inventors and low operational costs
b. High inventors and high operational costs
c. Low inventors and high operational costs
d. High inventors and low operational costs
4. Which of the following statements …show more content…
is true?
a. Inventory and production must be planned together
b. Inventory can be planned independently of production.
c. Inventory planning only takes place during material requirements planning.
d. Production plans only take capacity into account.
5. Characteristics of demand include all of the following except:
a. Seasonal variation
b. Trends
c. Average variation.
d.
Stability
6. Which of the following statements about forecasting is false:
a. History is always taken into account.
b. History is a valid indicator of future demand.
c. Forecasts by individual product will be less accurate than forecasts for groups of products.
d. Short-term forecasts will be more accurate than long-term forecasts.
7. The decision on what to forecast will be based upon:
a. The length of the forecast horizon.
b. The purpose of the forecast
c. The availability of information.
d. The time available to make the forecast.
8. Monitoring the forecast involves:
a. Comparing shipments with the forecast
b. Comparing customer requirements with the forecast
c. Calculating the standard deviation of the forecast
d. Choosing a new forecasting method if the error is too large.
9. Which production planning strategy will create inventory to match supply with demand?
I. Level strategy
II. Chase strategy
III. Hybrid strategy
a. I and II only
b. I and III only
c. II and III only
d. I II and III
10. What will be the resultant inventory from the 6-month production plan if the opening inventory is 500 units, sales are forecasted to be 700 per month and production is set at 750 per month?
a.
500
b. 200
c. 800
d. 550
11. Which of the following statements about the Master Schedule is false?
a. The MPS sets out a build schedule by individual product.
b. A poor MPS will lead to poor operational performance.
c. The MPS matches the shipments plan.
d. Rules relating to changes to the MPS must be in place and adhered to.
12. Which capacity planning process is used to verify the feasibility of the MPS?
a. Resource planning
b. Capacity requirements planning
c. Production scheduling
d. Rough-cut capacity planning.
13. The technique used to identify the source of the requirement for a part is called:
a. Exploding the bill of material
b. Pegging
c. Priority planning
d. MRP
14. The MRP inputs include all of the following except:
a. Bills of material
b. Master Production Schedule
c. Inventory status
d. Sales forecast.
15. Which of the following determines the gross requirements for a component:
a. Parent part gross requirements
b. Parent part net requirements
c. Parent part planned order receipts
d. Parent part planned order releases.
16. Top-level parent part gross requirements are based upon which of the following:
a. The MPS
b. The sales forecast less on-hand stock.
c. The shipments plan.
d. All of the above.
17. Rated capacity is calculated using which of the following formulae:
a. Actual output over 4 periods divided by 4.
b. Hours per week multiplied by efficiency.
c. Available hours multiplied by efficiency and utilisation.
d. Maximum machine output rates.
18. The report which shows the availability of capacity and the requirement for capacity in a work centre is:
a. The load report
b. The dispatch list.
c. The production schedule.
d. The overdue orders report.
19. Which of the following is used to calculate efficiency?
a. Output in standard hours / Available hours.
b. Output in standard hours / (available hours x utilisation rate)
c. Available hours / Worked hours.
d. Average output over a number of periods.
20. Which of the following statements is most accurate?
a. Work centres downstream of a bottleneck work-centre should usually work at full capacity.
b. Work centres upstream of a bottleneck work-centre should usually work at full capacity.
c. A queue of work should be positioned n front of a bottleneck.
d. A queue of work should be positioned after a bottleneck.
21. Inventories of items resulting from purchasing or manufacturing in quantities greater than immediately required are called:
a. Safety stock
b. Hedge stock
c. Lot-size stock.
d. Excess stock. 22. If the ordering quantity of a product is reduced which of the following will result?
a. Total ordering cost will increase and carrying cost will decrease.
b. Total ordering cost will increase and carrying cost will increase.
c. Total ordering cost will decrease and carrying cost will decrease.
d. Total ordering cost will decrease and carrying cost will increase.
23. Which of the following equations is correct?
a. Assets = Liabilities + Profits.
b. Liabilities = Assets – Equity
c. Equity = Assets + Profits
d. Assets + Equity = Liabilities.
24. Which of the following is not considered a carrying cost?
a. Obsolescence cost
b. Storage cost
c. Insurance cost
d. Product cost.
25. Which of the following statements about safety stock is best:
a. The amount of safety stock is determined by the price of the product.
b. The amount of safety stock is determined by the customer service target.
c. The amount of safety stock is determined by the availability of space.
d. The amount of safety stock is determined by the shelf life of the product.
26. If the weekly demand for a product is 150 units and 1 weeks worth of product is set as the safety stock, what will be the effect on the reorder point if the lead-time is reduced from 3 weeks to 1 and the reorder quantity is reduced from 500 to 250?
a. Reduce by 250
b. Reduce by 300
c. Reduce by 500
d. Reduce by 400
27. If the ordering cost of a product is reduced to one quarter of its previous level, what will be the effect on the economic order quantity?
a. It will reduce by 75%
b. It will reduce by 50%
c. It will increase by 75%
d. It will increase by 50%.
28. Cycle counting improves stock status accuracy through which of the following means:
a. Inaccuracies are adjusted daily.
b. All records are reconciled with the physical count more frequently.
c. Causes of errors are detected and eliminated.
d. All of the above.
29. Which of the following statements is most accurate?
a. A class parts are the most expensive parts.
b. 20% of the parts account for 50% of the value.
c. 30% of the parts account for 15% of the value.
d. C class parts are insignificant parts.
30. A fixed location warehouse system has which of the following major characteristics?
a. A sophisticated system is needed to identify where each part is stored.
b. Overflow areas are needed for every part.
c. It is appropriate for all types of material.
d. It is inefficient in the use of space.
31. Line-haul costs will be most directly affected by which of the following:
a. The number of pick-ups and drops on the route.
b. The length of the route.
c. The weight carried.
d. The type of goods carried.
32. Consolidating several units into bigger units in order to simplify and reduce handling is called:
a. Palletisation.
b. Packaging.
c. Load consolidation.
d. Unitisation.
33. Quality in manufactured parts is best achieved by which of the following means?
a. Improving staff training.
b. Automation of the process.
c. Reduction of variability in the process.
d. Increasing the vigilance of inspectors.
34. When a company commences on a TQM programme, which of the following statements is true:
a. Initially quality will seem to disimprove.
b. Quality costs will begin to reduce immediately.
c. In the longer term, quality will improve but costs will remain about the same.
d. In the longer term, quality costs will reduce but the level of quality will remain about the same.
35. Which of the following is an objective of purchasing:
a. To ensure parts are bought at the lowest price.
b. To ensure that suppliers can deliver quality products and service.
c. To ensure that manufacturing is never interrupted by a material shortage.
d. To ensure that alternative suppliers are in place at all times.
36. Process control charts are used primarily by:
a. Quality controllers.
b. Process engineers.
c. Production operators.
d. Production management.
37. Which of the following is not an advantage of using work cells?
a. Machine utilisation will increase.
b. Set-up times will reduce.
c. Inventory levels will reduce.
d. Operator skill levels will increase.
38. Which of the following is untrue in relation to Total Productive Maintenance (TPM)?
a. Operators will be responsible for the maintenance of their machines.
b. Operators will perform routine simple maintenance tasks.
c. Technicians will deal only with machine breakdowns.
d. Machine performance will probably improve.
39. In a JIT system, material moved from the producing to the using work centre will be:
a. The same in quantity as the producer’s batch size.
b. The same in quantity as the user’s batch size.
c. Delivered as soon as it is produced.
d. Produced as soon as it is needed.
40. Employee empowerment means:
a. Giving employees the responsibility and authority to make decisions.
b. Employees have the power to recommend changes.
c. Managers must get employee approval for all decisions.
d. Employees are consulted before management make decisions.