1. Operations generated forecasts often not to do with
a.Inventory requirements
b.Resource needs
c.Time requirements
d.Sales
Ans: d

2.Which of the following is not true for forecasting?
a.Forecasts are rarely perfect
b.The underlying casual system will remain same in the future
c.Forecast for group of items is accurate than individual item
d.Short range forecasts are less accurate than long range forecasts
Ans: d

3. Which of the following is not a forecasting technique?
a.Judgemental
b.Time series
c.Time horizon
d.Associative
Ans: c

4. In which of the following forecasting technique, subjective inputs obtained from various sources are analyzed?
a.Judgemental forecast
b.Time series forecast
c.Associative model
d.All of the above
Ans: a

5. In which of the following forecasting technique, data obtained from past experience is analyzed?
a.Judgemental forecast
b.Time series forecast
c.Associative model
d.All of the above
Ans: b

6. Delphi method is used for
a.Judgemental forecast
b.Time series forecast
c.Associative model
d.All of the above
Ans: a

7. Short term regular variations related to the calendar or time of day is known as
a.Trend
b.Seasonality
c.Cycles
d.Random variations
Ans: b

8. The demand for period t-2 and t-1 is 10 and 12 cases respectively. As per naïve method, the demand for next period ‘t’ is
a.10
b.11
c.12
d.14
Ans: d

9. Calculate four periods moving average forecast from the last six periods

Period

Demand

1

38

2

40

3

42

4

40

5

44

6

38

a. 40
b. 41
c. 42
d. 43
Ans: b

10. Calculate a weighted average forecast using a weight of .50 to the most recent period, .40 for the next recent period and .30 for the next period

Period

Demand

1

38

2

40

3

42

4

40

5

44

6

38

a. 46.6
b. 47.6
c. 48.6
d. 49.6
Ans: c

11. A linear trend equation has the form
a.F=a-bt
b.F=a+bt
c.F=2a-bt
d.F=2a+bt
Ans: b

12. If the actual demand for a period is 100 units but forecast demand was 90 units. The forecast error is
a. -10
b . +10
c.  -5
d. +5
Ans:  b

13.Advanced planning systems for aggregate planning rely heavily on ________ to deliver their full potential.
a. forecasting
b. constraints
c. data accuracy
d. the supply chain
Ans: C

14.Aggregate planning is concerned with determining
a. the production level, sales level, and capacity for each period.
b. the demand level, inventory level, and capacity for each period.
c. the production level, inventory level, and capacity for each period.
d. the production level, staffing level, and capacity for each period.
Ans: C

15.Aggregate planning should consider information from
a. downstream partners to produce forecasts.
b. all of the above
c. upstream partners to determine constraints.
d. only the enterprise as its breadth of scope.
Ans: B

16.Aggregate planning solves problems involving
a. aggregate decisions or stock keeping unit (SKU) level decisions.
b. stock keeping unit (SKU) level decisions rather than aggregate decisions.
c. aggregate decisions rather than stock keeping unit (SKU) level decisions.
d. aggregate decisions and stock keeping unit (SKU) level decisions.
Ans: C

17.Aggregate planning, to be effective, requires inputs from
a. throughout the supply chain.
b. all customers.
c. all departments.
d. all suppliers.
Ans: A

18.A highly effective tool for a company to use when it tries to maximize profits while being subjected to a series of constraints is
a. aggregate programming.
b. linear programming.
c. distribution programming.
d. production programming.
Ans: B

19.An aggregate planner requires information on constraints. Which of the following is one of the typical constraints for an aggregate
planner?
a. Labor/machine hours required per unit
b. Stock-out or backlog cost
c. Inventory holding cost
d. Limits on overtime
Ans: D

20.A poor aggregate plan can result in
a. appropriate inventory levels.
b. efficient use of capacity.
c. lost sales and lost profits.
d. better sales and lost profits.
Ans: C

21.As capacity utilization increases,
a. it becomes more important to perform aggregate planning.
b. it does not affect the importance of performing aggregate planning.
c. it becomes less important to perform aggregate planning.
d. it lessens the importance of aggregate planning.
Ans: A

22.Capacity used to satisfy demand that is higher than forecasted is
a. safety capacity.
b. safety sales.
c. safety inventory.
d. safety backlog.
Ans: A

23.Demand is forecast for the next five months as 200, 300, 500, 300, 200. The production planner decides to adopt a chase
strategy, so over the next five months they should produce
a. 100, 200, 300, 400, 500.
b. 300, 300, 300, 300, 300.
c. 200, 300, 500, 300, 200.
d. 500, 400, 300, 200, 100.
Ans: C

24.Demand is forecast for the next five months as 200, 300, 500, 300, 200. The production planner decides to adopt a level strategy,
so over the next five months they should produce
a. 500, 400, 300, 200, 100.
b. 100, 200, 300, 400, 500.
c. 300, 300, 300, 300, 300.
d. 200, 300, 500, 300, 200.
Ans: C

25.Forecasting errors are dealt with using
a. safety capacity.
b. safety inventory.
c. safety backlog.
d. B and C only
Ans: D

26.How frequently should the aggregate plan be rerun?
a. As inputs to the aggregate plan change
b. Every 3 to 8 months
c. Weekly
d. Monthly
Ans: A

27.Inventory held to satisfy demand that is higher than forecasted is
a. safety inventory.
b. safety sales.
c. safety backlog.
d. safety capacity.
Ans: A

28.________ is used to determine customer service levels.
a. Workforce hired/laid off
b. Inventory held
c. Backlog/stockout quantity
d. Machine capacity increase/decrease
Ans: C

29.Most strategies that an aggregate planner actually uses are in combination and are referred to as the
a. level strategy.
b. adjustable strategy.
c. mixed strategy.
d. chase strategy.
Ans: C

30.Much of aggregate planning has traditionally been focused
a. on customer relationship management.
b. beyond enterprise boundaries.
c. on short-term production scheduling.
d. within an enterprise.
Ans: D

31.The aggregate plan needs to
a. be considered fixed because forecasts are usually accurate.
b. be a final product because changes are disruptive to the supply chain.
c. have some flexibility built into it because forecasts are usually right.
d. have some flexibility built into it because forecasts are always wrong.
Ans: D

32.The aggregate plan should be communicated to
a. all supply chain partners who will be affected by it.
b. only downstream partners.
c. only the local firm.
d. only upstream partners.
Ans: A

33.The earliest IT supply chain products were
a. SaaS (software as a service).
b. aggregate planning modules.
c. cloud-based.
d. enterprise resource planning modules.
Ans: B

34.The fundamental trade-offs available to an aggregate planner are between
a. capacity, inventory, and backlog costs.
b. capability, inventory, and backlog costs.
c. capacity, inventory, and sales costs.
d. capability, inventory, and sales costs.
Ans: A

35.The goal of aggregate planning is to
a. satisfy demand in a way that maximizes profit.
b. dissatisfy customers in a way that maximizes profit.
c. dissatisfy customers in a way that minimizes profit.
d. satisfy demand in a way that minimizes profit.
Ans: A

36.The length of the planning horizon is usually between
a. three and five years.
b. three and eighteen months.
c. one and three years.
d. one and three months.
Ans: B

37.The operational parameter concerned with the number of units completed per unit time (such as per week or per month) is
a. backlog.
b. overtime.
c. workforce.
d. production rate.
Ans: D

38.The operational parameter concerned with the number of workers/units of capacity needed for production is
a. workforce.
b. overtime.
c. production rate.
d. backlog.
Ans: A

39.The operational parameter concerned with the planned inventory carried over the various periods in the planning horizon is
a. production rate.
b. backlog.
c. overtime.
d. inventory on hand.
Ans: D

40.The planning horizon is
a. the length of time required to produce the aggregate plan.
b. the duration of each time period in the aggregate plan.
c. the solution to the aggregate plan.
d. the time period over which the aggregate plan is to produce a solution.
Ans: D

41.The process by which a company determines levels of capacity, production, subcontracting, inventory, stock-outs, and even
pricing over a specified time horizon is
a. sales planning.
b. detail planning.
c. inventory planning.
d. aggregate planning.
Ans: D

42.The quality of the aggregate plan can be improved by using information from
a. only the local firm.
b. only upstream partners.
c. all parts of the supply chain.
d. only downstream partners.
Ans: C

43.The quality of the forecast can be improved by using information from
a. downstream partners.
b. upstream partners.
c. competing supply chains.
d. the focal firm.
Ans: A

44.The strategy where a stable machine capacity and workforce are maintained with a constant output rate, with inventory levels
fluctuating over time, is the
a. mixed strategy.
b. chase strategy.
c. level strategy.
d. adjustable strategy.
Ans: C

45.The strategy where the production rate is synchronized with the demand rate by varying machine capacity or hiring and laying off
employees as the demand rate varies is the
a. level strategy.
b. adjustable strategy.
c. mixed strategy.
d. chase strategy.
Ans: D

46.The strategy where workforce (capacity) is kept stable but the number of hours worked is varied over time in an effort to
synchronize production with demand is the
a. chase strategy.
b. flexibility strategy.
c. mixed strategy.
d. level strategy.
Ans: B

47.What information does a master production schedule provide that an aggregate plan does not?
a. Revenue information for the planning period
b. A specific machine schedule for each order
c. Specific product family production information
d. Expense information for the planning period
Ans: C

48.What is the name of the plan that breaks apart the aggregate plan into distinct product families?
a. Master production schedule
b. SKU aggregate plan
c. Rough cut capacity plan
d. Process plan
Ans: C

49.When formulating aggregate plans,
a. forecast accuracy is assumed.
b. forecast accuracy is not a factor.
c. forecast errors must be taken into account.
d. forecast errors have no impact.
Ans:  C

50.Which of the following is an approach a company can use to create a buffer for forecast error using safety inventory?
a. Build and carry extra inventories
b. Overtime
c. Carry extra workforce permanently
d. Subcontracting
Ans:  B

1.Which of the following is not an inventory?
a.Machines
b.Raw material
c.Finished products
d.Consumable tools
Ans: a

2.The following classes of costs are usually involved in inventory decisions except
a.Cost of ordering
b.Carrying cost
c.Cost of shortages
d.Machining cost
Ans: d

3.The cost of insurance and taxes are included in
Cost of ordering
Set up cost
Inventory carrying cost
Cost of shortages
Ans: c

4.‘Buffer stock’ is the level of stock
a.Half of the actual stock
b.At which the ordering process should start
c.Minimum stock level below which actual stock should not fall
d.Maximum stock in inventory
Ans: c

5.The minimum stock level is calculated as
a.Reorder level – (Nornal consumption x Normal delivery time)
b.Reorder level + (Nornal consumption x Normal delivery time)
c.(Reorder level + Nornal consumption) x Normal delivery time
d.(Reorder level + Nornal consumption) / Normal delivery time
Ans: a

6.Which of the following is true for Inventory control?
a.Economic order quantity has minimum total cost per order
b.Inventory carrying costs increases with quantity per order
c.Ordering cost decreases with lo size
d.All of the above
Ans: d

7.The time period between placing an order its receipt in stock is known as
a.Lead time
b.Carrying time
c.Shortage time
d.Over time
Ans: a

8.Re-ordering level is calculated as
a.Maximum consumption rate x Maximum re-order period
b.Minimum consumption rate x Minimum re-order period
c.Maximum consumption rate x Minimum re-order period
d.Minimum consumption rate x Maximum re-order period
Ans: a

9.Average stock level can be calculated as
a.Minimum stock level + ½ of Re-order level
b.Maximum stock level + ½ of Re-order level
c.Minimum stock level + 1/3 of Re-order level
d.Maximum stock level + 1/3 of Re-order level
Ans: a

10.The Economic Order Quantity (EOQ) is calculated as
a.(2D*S/h)^1/2
b.(DS*/h)^1/2
c.(D*S/2h)^1/2
d.(D*S/3h)^1/2
Where, D=Annual demand (units), S=Cost per order, h=Annual carrying cost per unit
Ans: a

11. Which of the following is not an inventory?
A.Machines
B.Raw material
C.Finished products
D.Consumable tools
Answer: a

12. The cost of insurance and taxes are included in
A.Cost of ordering
B.Set up cost
C.Inventory carrying cost
D.Cost of shortages
Answer: c

13. The minimum stock level is calculated as
A.Reorder level – (Nornal consumption x Normal delivery time)
B.Reorder level + (Nornal consumption x Normal delivery time)
C.(Reorder level + Nornal consumption) x Normal delivery time
D.(Reorder level + Nornal consumption) / Normal delivery time
Answer: a

14. The time period between placing an order its receipt in stock is known as
A.Lead time
B.Carrying time
C.Shortage time
D.Over time
Answer: a

15. Re-ordering level is calculated as
A.Maximum consumption rate x Maximum re-order period
B.Minimum consumption rate x Minimum re-order period
C.Maximum consumption rate x Minimum re-order period
D.Minimum consumption rate x Maximum re-order period
Answer: a

16. The Economic Order Quantity (EOQ) is calculated as
A.(2D*S/h)^1/2
B.(DS*/h)^1/2
C.(D*S/2h)^1/2
D.All of the above
Answer: a

17. If demand in units is 18000, relevant ordering cost for each year is $150 and an order quantity is 1500 then annual relevant ordering cost would be
A.$200
B.$190
C.$160
D.$180
Answer: d

18. Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as
A.relevant purchase order costs
B.relevant inventory carrying costs
C.irrelevant inventory carrying costs
D.relevant opportunity cost of capital
Answer: d

19. Costing system which omits some of journal entries in accounting system is known as
A.ain-time costing
B.trigger costing
C.back flush costing
D.lead time costing
Answer: c

20. If required rate of return is 12% and per unit cost of units purchased is $35 then relevant opportunity cost of capital will be
A.$6.20
B.$7.20
C.$4.20
D.$5.20
Answer: c

21. If purchase order lead time is 35 minutes and number of units sold per time is 400 units then reorder point will be
A.14000 units
B.14500 units
C.15000 units
D.15500 units
Answer: a

22. If demand of one year is 25000 units, relevant ordering cost for each purchase order is $210 and carrying cost of one unit of stock is $25 then economic order quantity is
A.678 packages
B.648 packages
C.658 packages
D.668 packages
Answer: b

23. Which of the following is true for Inventory control?
A.Economic order quantity has minimum total cost per order
B.Inventory carrying costs increases with quantity per order
C.Ordering cost decreases with lo size
D.All of the above
Answer: d

24. Average stock level can be calculated as
A.Minimum stock level + ½ of Re-order level
B.Maximum stock level + ½ of Re-order level
C.Minimum stock level + 1/3 of Re-order level
D.Maximum stock level + 1/3 of Re-order level
Answer: a

25. The time period between placing an order its receipt in stock is known as
A.Lead time
B.Carrying time
C.Shortage time
D.Over time
Answer: a

26. Activities related to coordinating, controlling and planning activities of flow of inventory are classified as
A.decisional management
B.throughput management
C.inventory management
D.manufacturing management
Answer: c

27. Cost of product failure, error prevention and appraisals are classified as
A.stocking costs
B.stock-out costs
C.costs of quality
D.None of the above
Answer: c

28. An example of purchasing costs include
A.incoming freight
B.storage costs
C.insurance
D.spoilage
Answer: c

29. If an average inventory is 2000 units and annual relevant carrying cost of each unit is $5 then annual relevant carrying cost will be
A.$5,000
B.$4,500
C.$5,500
D.$6,000
Answer: a

30. The order cost per order of an inventory is Rs. 400 with an annual carrying cost of Rs. 10 per unit. The Economic Order Quantity (EOQ) for an annual demand of 2000 units is
A.400
B.440
C.480
D.500
Answer: a

1.The ‘drum, buffer, rope’, concept comes from:
a.Disconfirmation theory
b.The theory of constraints and optimized production technology
c.The theory of behaviour and financial theory
d.Inventory theory and automated engineering concepts
Answer: b

2.Juran’s Rule applies to the sequencing of n jobs through two work centres.
a.True
b.False
Answer: a

3.Which of the following is NOT true of finite loading?
a.The amount of work can be fixed.
b.It is not possible to limit the load.
c.It is necessary to limit the load.
d.The cost of limiting the load is not prohibitive.
Answer: b

4.One way of characterizing the graduation between resource-to-order and make-to-stock is:
a.The R:P Ratio
b.The P:R Ratio
c.The D:R Ratio
d.The P:D Ratio
Answer: d

5.When sequencing jobs, an approach which may be used to help in a cash constrained situation is:
a.Longest operation time first (LOT)
b.Last in first out (LIFO)
c.Shortest operation time first (SOT)
d.First in first out (FIFO)
Answer: c

6.Johnson’s Rule applies to the sequencing of jobs through two work centres. It states that:
a.The job with the smallest processing time for the first process should be done first and the job with the longest processing time for the second process should be done last.
b.The job with the longest processing time for the first process should be done first and the job with the longest processing time for the second process should be done last.
c.The job with the longest processing time for the first process should be done first and the job with the smallest processing time for the second process should be done last.
d.The job with the smallest processing time for the first process should be done first and the job with the smallest processing time for the second process should be done last.
Answer: d

7.Which of the following is not an advantage of backward scheduling:
a.Tends to focus the operation on customer due dates.
b.Lower material costs – materials are not used until they have to be, therefore delaying added value until the last minute.
c.Flexible – the time slack in the system allows unexpected work to be loaded.
d.Less exposed to risk in case of schedule change by the customer.
Answer: c

8.If the operation is cash constrained it may use:
a.Shortest operation time first
b.Last in first out
c.Longest operation time first
d.First in first out
e.Due date
Answer: a

9.If the operation wants to improve delivery reliability and improve average delivery speed it may use:
a.Shortest operation time first
b.Last in first out
c.First in first out
d.Longest operation time first
e.Due date
Answer: e

10.If the operation selects a sequencing approach purely on practical reasons for an activity such as unloading cases from an aircraft, it may choose:
a.Due date
b.First in first out
c.Longest operation time first
d.Last in first out
e.Shortest operation time first.
Answer: d

11.If the operation needs to keep utilisation high it may choose:
a.Last in first out
b.First in first out
c.Shortest operation time first
d.Due date
e.Longest operation time first
Answer: e

12.If the operation selects a sequencing approach which will appear fair to its customers it may choose:
a.Longest operation time first
b.First in first out
c.Shortest operation time first
d.Due date
e.Last in first out
Answer: b

13.Which of the following operations would normally be considered the most difficult to control?
a.Production of electricity
b.Car manufacturer
c.Care provision for old people
d.Fast-food outlet
Answer: c

14.In order to cope with changes in demand, organisations often use some of the following techniques as a buffer around a stable core of capacity:
a.Inventory / forward loading / short-term capacity adjustments
b.Inventory / short-term capacity adjustments / Taguchi techniques
c.Decision trees / forward loading / inventory
d.Master production scheduling / inventory / order backlog
e.Short-term capacity adjustments / decision trees / forward loading
Answer: a

15.Which of these statements does NOT apply to independent demand (for a product)?
a.Must be forecast.
b.Is dependent on the demand for other related products and services.
c.Is often predicted on the basis of past demand.
d.Is not dependent on the demand for other related products and services.
e.Can apply equally to services.
Answer: b

16.One of the best known computerized packages available for designing process layouts is CRAFT. CRAFT stands for
A) computerized relationship assembly flow time
B) computerized relative assembly and flow technology
C) computerized relative allocation of facilities technique
D) computerized relationship activity and flow technique
Answer: c

17.The MRP process of subtracting on-hand quantities and scheduled receipts from gross requirements to produce net requirements is referred to as
A) netting
B) exploding
C) lot sizing
D) cycle counting
Answer: a

18.A(n) ___ curve is a graph showing the probability of accepting a lot for different quality levels with a specific sampling plan.
A) single sample attribute
B) lot tolerance percent defective
C) average outgoing quality
D) operating characteristics
Answer: d

19.Motion study, the study of the individual human motions used in a task, was developed by
A) Frederick Herzberg
B) Frank and Lillian Gilbreth
C) F. W. Taylor
D) Henry Ford
Answer: b

20.Accepting null hypotheses is when it is false or when alternative hypothesis is true is called:
A) Type III error
B) Type II error
C) Type I error
D) None of the above
Answer: b

21.The expected number of defective items that will pa on to the customer with a sampling plan is known as the
A) sampling plan
B) average outgoing quality
C) acceptable quality level
D) lot tolerance percent defective
Answer: b

22.A 90% learning curve indicates
A) a 10% decrease in processing time per unit as output doubles
B) a 10% increase in processing time per unit as output doubles
C) a 90% decrease in processing time per unit as output doubles
D) a 90% increase in processing time per unit as output doubles
Answer: a

23.The distribution in which mean, median and mode coincide is
A) Binomial distribution
B) Poisson distribution
C) Normal distribution
D) Exponential distribution
Answer: c

24.All of the following can improve a product’s reliability except
A) adding redundant components
B) changing the product warranty
C) improving individual component reliability
D) simplifying product design
Answer: b

25.The fraction of orders filled by a distribution center or warehouse within a specific time period is referred to as the
A) aggregate orders proceed
B) fill rate
C) inventory supply time
D) inventory turnover
Answer: b

1. Which of the following is not a phase of project management?
a) Project planning
b) Project scheduling
c) Project controlling
d) Project being
Answer: d
Explanation: There are three phases of project management. These are project planning, project scheduling and project controlling. Project management refers to a highly specialised job to achieve the objectives of a project.

2. Who introduced the bar charts?
a) Williams henry
b) Henry Gantt
c) Jane Gantt
d) Joseph henry
Answer: b
Explanation: Henry Gantt introduced the bar charts around 1900 A.D. They give pictorial representation in two dimensions of a project by breaking it down into numerous manageable units.

3. Bar charts were modified later to obtain the milestone charts.
a) True
b) False
Answer: a
Explanation: The various tools or techniques used for project management are bar charts, milestone charts and network diagrams. Bar charts were modified later to obtain the milestone charts.

4. The full form of PERT is ___________
a) Program Evaluation and Rate Technology
b) Program Evaluation and Robot Technique
c) Program Evaluation and Robot Technology
d) Program Evaluation and Review Technique
Answer: d
Explanation: There are various network techniques that are called by various names like PERT, CPM, TOPS and LESS. Network technique is one of the major advancements in management science. The full form of PERT is Program Evaluation and Review Technique.

5. The full form of CPM is ___________
a) Critical Path Method
b) Control Path Method
c) Critical Plan Management
d) Control Path Management
Answer: a
Explanation: The full form of CPM is the Critical Path Method. CPM networks are mainly used for those projects for which a fairly accurate estimate of time of completion can be made for each activity.

6. In bar charts, which colour is used to show the actual progress?
a) Red
b) Black
c) Blue
d) Green
Answer: d
Explanation: In bar charts, different colours are sometimes filled in the bars for showing various control information. For actual progress, green colour is used. For anticipated progress, black colour is used and for progress behind schedule, red colour is used.

7. A PERT network is activity-oriented while a CPM network is event-oriented.
a) True
b) False
Answer: b
Explanation: A CPM network is activity-oriented while a PERT network is event-oriented. Event is the completion of an activity or the commencement of an activity. An event may be head event, tail event or dual role event.

8. _________ are used to represent activity in a network diagram.
a) Circles
b) Squares
c) Rectangles
d) Arrows
Answer: d
Explanation: A network is a flow diagram that consists of events and activities which are connected sequentially and logically. Arrows are used to represent activity in a network diagram. Events are generally represented by circles.

9. The shortest possible time in which an activity can be achieved under ideal circumstances is known as ________
a) Pessimistic time estimate
b) Optimistic time estimate
c) Expected time estimate
d) The most likely time estimate
Answer: b
Explanation: There are three kinds of time estimates made by PERT planners. These are the optimistic time estimate, the pessimistic time estimate and the most likely time estimate. The shortest possible time in which an activity can be achieved under ideal circumstances is known as the optimistic time estimate.

10. According to the time estimates made by the PERT planners, the maximum time that would be needed to complete an activity is called as __________
a) The most likely time estimate
b) Optimistic time estimate
c) Pessimistic time estimate
d) Expected time estimate
Answer: c
Explanation: According to the time estimates made by the PERT planners, the maximum time that would be needed to complete an activity is called the pessimistic time estimate. This estimate does not include possible effects of floods, earthquakes, etc.

11. In a network, a critical path is the time-wise shortest path.
a) True
b) False
Answer: b
Explanation: In a network, a critical path is the time-wise longest path. The critical path in the Critical Path Method plays an essential role in scheduling and planning.

12. The difference between the maximum time available and the actual time needed to perform an activity is known as _________
a) Free float
b) Independent float
c) Total float
d) Half float
Answer: c
Explanation: The difference between the maximum time available and the actual time needed to perform an activity is known as the total float. Hence, the total float is the excess of the maximum available time throughout the time of the activity.

13.PERT analysis is based on
A) Optimistic time
B) Pessimistic Time
C) Most likely Time
D) All the above
Answer: D

14.Which of the option is not a notable challenge while scheduling a project?
A) Deadlines exist
B) Independent activities.
C) Too many workers may be required.
D) Costly delay
Answer: B

15.The particular task performance in CPM is known
A) Dummy
B) Event
C) Activity
D) Contract
Answer: C

16.The earliest start time rule
A) Compares the activities starting time for an activity successor.
B) Compares the activities end time for an activity predecessor.
C) Directs when a project can start.
D) Regulates when a project must begin.
Answer: B

17.The critical path
A) Is a path that operates from the starting node to the end node
B) Is a mixture of all paths
C) Is the longest path
D) Is the shortest path
Answer: C

18.A construction schedule is prepared after collecting
A) Number of operations
B) Output of Labour and Machinery
C) Quantity of various items
D) All the above
Answer: D

19.Three-activities implementable in parallel, have the following time-cost relationship for direct cost component in each, Activity A: 10 days-800 units; 9 days-900 units; 8 days-1000 units, Activity B: 11 days-1200 units; 10 days-1350 units; 9 days-1500 units, Activity C: 7 days-500 units; 6 days-700 days; 5 days-900 units, The feasible range of total direct cost component for the three activities together is
A) 2500 to 3400 units
B) 2650 to 3200 units
C) 2500 to 2900 units
D) 2600 to 3100 units
Answer: C

20.Crashing a project in terms of its duration would result in 1. An increase in the indirect cost. 2. A decrease in the indirect cost. 3. A decrease in the direct cost. 4. An increase in the direct cost. of these statements________
A) 1 and 4 are correct
B) 2 and 3 are correct
C) 1 and 3 are correct
D) 2 and 4 are correct
Answer: D

21.In the time-cost optimization, using CPM method for network analysis, the crashing of the activities along the critical path is done starting with the activity having
A) Longest duration
B) Highest cost slope
C) Least cost slope
D) Shortest duration
Answer: C

1.Which of the following describes an ERP system?
A)  ERP systems provide a foundation for collaboration between departments
B)  ERP systems enable people in different business areas to communicate
C)  ERP systems have been widely adopted in large organisations to store critical knowledge used to make the decisions that drive the organisation’s performance
D)  All of the above
Answer: D

2.What is at the heart of any ERP system?
A)  Information
B)  Employees
C)  Customers
D)  Database
Answer: D

3.What must a system do to qualify as a true ERP solution?
A)  Be flexible
B)  Be modular and closed
C)  Extend within the company
D)  All of the above
Answer: A

4.Which of the following is a reason for ERPs explosive growth?
A)  ERP is a logical solution to the mess of incompatible applications
B)  ERP addresses the need for global information sharing and reporting
C)  ERP is used to avoid the pain and expense of fixing legacy systems
D)  All of the above
Answer: D

5.Which of the following occurs when everyone involved in sourcing, producing, and delivering the company’s product works with the same information?
A)  Eliminates redundancies
B)  Cuts down wasted time
C)  Removes misinformation
D)  All of the above
Answer: D

6.What are several different types of software, which sit in the middle of and provide connectivity between two or more software applications?
A)  Middleware
B)  Enterprise application integration middleware
C)  Automated business process
D)  e-business infrastructure
Answer: A

7.What represents a new approach to middleware by packaging together commonly used functionality, such as providing prebuilt links to popular enterprise applications, which reduces the time necessary to develop solutions that integrate applications from multiple vendors?
A)  Middleware
B)  Enterprise application integration middleware
C)  Automated business process
D)  e-business infrastructure
Answer: B

8.Who are the primary users of SCM systems?
A)  Sales, marketing, customer service
B)  Accounting, finance, logistics, and production
C)  Customers, resellers, partners, suppliers, and distributors
D)  All of the above
Answer: C

9.What are the primary business benefits of an ERP system?
A)  Sales forecasts, sales strategies, and marketing campaigns
B)  Market demand, resource and capacity constraints, and real-time scheduling
C)  Forecasting, planning, purchasing, material management, warehousing, inventory, and distribution
D)  All of the above
Answer: C

10.Who are the primary users of ERP systems?
A)  Sales, marketing, customer service
B)  Accounting, finance, logistics, and production
C)  Customers, resellers, partners, suppliers, and distributors
D)  All of the above
Answer: B

11. Enterprise Resource Planning (ERP) has been criticised on a number of grounds. Which of the following is not a common criticism of ERP?
a.It doesn’t allow decisions and databases from all parts of the organisation to be integrated
b.Implementation is expensive
c.The effect it has on businesses is disappointing
d.It can have a disruptive effect on the organisation’s operations
Answer: A

12. Demand for a given item is said to be dependent if
a.the item has several children
b.there is a deep bill of materials
c.the finished products are mostly services (rather than goods)
d.there is a clearly identifiable parent
Answer: D

13. In MRP (Materials Requirements Planning) the Bill of Materials is:
a.The required output from a process over time
b.A list of required safety stock items
c.The sum of stock-on-hand and work-in-progress
d.The product structure showing where common parts are used
Answer: D

14. What is measurementship?
a.Trying to agree low objectives so as to look good later
b.Discussing “the numbers” at every opportunity
c.Surveying by naval architects.
d.Collecting too much performance data
Answer: A

15. The outputs of a MRP II system are:
a.Sales order priorities / Bills of Materials / Material Requirement Plans
b.Material Requirement Plans / scheduled purchase orders / capacity requirement plans
c.Stock quantities / Bills of Materials / Master Production Schedule
d.Capacity requirement plans / stock quantities / stock locations
Answer: B

16. Three levels of planning. What are they?
a.Top, middle and bottom
b.Headquarters, divisional and local
c.Operational, intermediate and strategic
d.None of these
Answer: C

17. Three inputs for every MRP system are:
a.Sales forecast, delivery costs, capacity plan
b.Average replenishment time, re-order point, economic order quantity
c.Stock on hand, Master Production Schedule, Bill of Materials
d.Bill of Materials, sales forecast, sales history
Answer: C

18. What three problems commonly hindering successful planning did we identify?
a.An oversized planning department; poor co-operation between managers and planners; managers with little time to gather information.
b.Procedures unsuited to change; negative organisational culture; poor interpersonal relationships.
c.Lack of planning expertise; little top management support; misuse of planning specialists.
d.Conflict among objectives; impossibility of measuring outcomes; confusion between means and ends.
Answer: C

19. What is the more formal term for what is known as ‘Plan B’?
a.A contingency plan
b.A circumstantial plan
c.A catastrophe plan
d.A convergence plan
Answer: A

20. What is the planning horizon?
a.The time ahead for which there is no information.
b.The time period within which uncertainty is very low.
c.The maximum time for which managers can make plans.
d.The time between making a plan and putting it into effect.
Answer: D

21.The list of quantities of components, ingredients, and materials required to produce a product is the
a.purchase order.
b.engineering change notice.
c.bill-of-materials.
d.master schedule.
Answer: C

22.____________ allows a segment of the master schedule to be designated as “not to be rescheduled.”
a.System nervousness
b.Time fence
c.Regenerative MRP
d.Pegging
Answer: B

23.A lot-sizing technique that generates exactly what was required to meet the plan is
a.economic order quantity.
b.the Wagner-Whitin algorithm.
c.part period balancing.
d.lot-for-lot.
Answer: D

24.Breaking up the order and running part of it ahead of schedule is known as
a.pegging.
b.operations splitting.
c.overlapping.
d.lot splitting.
Answer: D

25.The difference between a gross material requirements plan (gross MRP) and a net material requirements plan (net MRP) is
a.the gross MRP may not be computerized, but the net MRP must be computerized.
b.the net MRP includes consideration of the inventory on hand, whereas the gross MRP does not.
c.the gross MRP doesn’t take taxes into account, whereas the net MRP includes the tax considerations.
d.the gross MRP includes consideration of the inventory on hand, whereas the net MRP does not.
Answer: B

26.A phantom bill-of-materials is a bill-of-materials developed for
a.a subassembly that exists only temporarily.
b.the purpose of grouping subassemblies when we wish to issue “kits” for later use.
c.a final product for which production is to be discontinued.
d.a module that is a major component of a final product.
Answer: A

27.Which of the following lot-sizing techniques is likely to prove the most complex to use?
a.economic order quantity (EOQ)
b.the Wagner-Whitin algorithm
c.lot-for-lot
d.part period balancing (PPB)
Answer: B

28.When a bill-of-materials is used in order to assign an artificial parent to a bill-of-materials, it is usually called a
a.planning bill-of-materials.
b.pick list.
c.modular bill-of-materials.
d.phantom bill-of-materials.
Answer: A

29.The operations manager has several tools available to deal with MRP system nervousness. Those tools are
a.pseudo bills and kits.
b.time fences and pegging.
c.buckets with back flush.
d.net and gross requirements.
Answer: B

30.An MRP system that provides feedback to the capacity plan, master production schedule, and production plans is called
a.lot-sizing.
b.closed-loop MRP.
c.load report.
d.system nervousness.
Answer: B

31.A time-phased stock-replenishment plan for all levels of a supply chain is called
a.MRP II.
b.ERP.
c.DRP.
d.MRP.
Answer: C

32.Which of the following is an advantage of ERP?
a.requires major changes to the company and its processes
b.is simple enough that companies have an easy time adjusting to it
c.creates commonality of databases
d.is very inexpensive to purchase
Answer: C

33.A(n) ________ system provides feedback to the capacity plan, master production schedule and production plan.
a.load
b.efficient consumer response
c.closed-loop
d.Wagner-Whitin
Answer: C

34.Which of these pieces of information is NOTcontained in a bill of material?
a.raw materials to be used
b.lead times
c.quantities of components
d.physical dimensions
Answer: B

35.A report that shows the resource requirements in a work center for all currently assigned work as well as all planned and expected orders is a
a.closed-loop report.
b.MRP II report.
c.back flush report.
d.load report.
Answer: D