NEW QUESTION 1

What is the long-term effect of reducing the number of distribution centers between a
manufacturer and its customers?

• A. Total stock quantity increases.
• B. Transport costs from factory to distribution centers only decrease.
• C. Transport costs from distribution centers to customers only decrease.
• D. Transport costs from factory to distribution centers and from distribution centers to customers decrease.

Answer: B

NEW QUESTION 2

Which of the following terms refers to a sequence of end items to produce for specific customers' orders in a make-to-order or assemble-to-order environment?

• A. Master schedule
• B. Final assembly schedule
• C. Dispatch list
• D. Input/output control

Answer: B

NEW QUESTION 3

Which of the following measures should a company focus on to reduce variation in the product?

• A. Mode
• B. Mean
• C. Median
• D. Standard deviation

Answer: D

NEW QUESTION 4

Which of the following factors is included in cost of goods sold?

• A. Revenue
• B. General and administrative expenses
• C. Overhead
• D. Standard cost

Answer: C

NEW QUESTION 5

Which of the following tools is considered to be one of the seven quality tools?

• A. Gantt chart
• B. Input/output chart
• C. Control chart
• D. Capacity chart

Answer: C

NEW QUESTION 6

When determining a make or buy decision, reasons to buy out would include:

• A. accommodating large changes in volume.
• B. maximizing resource utilization.
• C. protecting confidential information.
• D. maintaining workforce.

Answer: A

NEW QUESTION 7

Consolidating shipments and reducing the frequency of pickups help to reduce which of the following types of costs?

• A. Warehousing and inspection
• B. Import duties and processing
• C. Total transportation
• D. Capital

Answer: C

NEW QUESTION 8

A product has a forecast of 200 units a month. The actual demand for the past 6 months has been 195, 210, 205, 190, 220, and 225. Calculate the tracking signal for this product's forecast.

• A. 6
• B. 7.5
• C. 45
• D. 75

Answer: A

NEW QUESTION 9

Which of the following types of inventory is characterized by item quantity gradually being depleted then replenished?

• A. Decoupling
• B. Cycle
• C. Pipeline
• D. Anticipation

Answer: B

NEW QUESTION 10

The primary purpose of enterprise resources planning is to:

• A. focus on the manufacturing function within an organization.
• B. integrate an approach to business management.
• C. use external knowledge to seek an internal advantage.
• D. provide data protection along the supply chain.

Answer: B

NEW QUESTION 11

Which of the following manufacturing systems involves the creation of one unit or a small number of units?

• A. Flow manufacturing
• B. Intermittent manufacturing
• C. Project manufacturing
• D. Continuous manufacturing

Answer: C

NEW QUESTION 12

Which of the following statements characterizes an intermittent manufacturing environment?

• A. Work center load is predictable.
• B. Routings for all products are the same.
• C. Work centers are organized by function.
• D. Kanban is the most appropriate scheduling method.

Answer: C

NEW QUESTION 13

Which of the following techniques deals with analysis and planning of logistics and manufacturing during various time periods?

• A. Advanced planning and scheduling
• B. Aggregate planning
• C. Aggregate forecast
• D. Distribution Requirements Planning

Answer: A

NEW QUESTION 14

Which of the following typically would be the most economical mode of transportation for crude oil to an oil refinery?

• A. Water
• B. Pipeline
• C. Truck
• D. Rail

Answer: B

NEW QUESTION 15

Having the needed materials within easy reach of a subassembly process eliminates waste of:

• A. motion.
• B. transportation.
• C. making defects.
• D. stocks.

Answer: A

NEW QUESTION 16

Which of the following statements best describes an example of advance ship notice?

• A. An electronic data interchange communication indicating that an order has left the port of loading
• B. A person who handles international shipping documentation and transportation requirements
• C. A fee for material held at port longer than the standard unloading time
• D. A listing of the items included in an overseas shipment

Answer: A

NEW QUESTION 17

Which of the following documents or records typically is required by accounting, receiving, purchasing, and the supplier?

• A. Bill of lading
• B. Purchase requisition
• C. Receiving report
• D. Purchase order

Answer: D

NEW QUESTION 18

Which of the following types of layouts is most efficient in a lean production environment?

• A. Islands
• B. Connected islands
• C. Functional layout
• D. Cells

Answer: D

NEW QUESTION 19

Which of the following differences must be taken into consideration when dealing with a global distribution system?

• A. Culture
• B. Cost
• C. Carriers
• D. Computer systems

Answer: A

NEW QUESTION 20

Manufacturing overhead includes which of the following types of costs?

• A. Interest expense
• B. Supervision
• C. Direct labor
• D. Direct material

Answer: B

NEW QUESTION 21

The complete supply chain dedicated to the flow of products for returns, repair and remanufacturing is:

• A. reverse auction.
• B. reverse engineering.
• C. reverse flow scheduling.
• D. reverse logistics.

Answer: D

NEW QUESTION 22

Which of the following is a graphical representation of a frequency distribution?

• A. Cause-and-effect diagram
• B. Pareto analysis
• C. Scatter diagram
• D. Histogram

Answer: D

NEW QUESTION 23

An appropriate reason to carry safety stock is to protect against:

• A. demand fluctuations before the order point is reached.
• B. demand fluctuations after the order point is reached.
• C. price fluctuations before the order point is reached.
• D. price fluctuations after the order point is reached.

Answer: B

NEW QUESTION 24

Production activity control receives authorization to release work orders from:

• A. the material requirements plan.
• B. the master production schedule.
• C. production planning.
• D. input/output control.

Answer: A

NEW QUESTION 25

Characteristics that cause customers to consider a company's products or services are called:

• A. order qualifiers.
• B. order winners.
• C. product configurations.
• D. product specifications.

Answer: A

NEW QUESTION 26
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