1

1. Logistics grew from the _________ function of supplying troops in the field.
A. Airforce.
B. Military.
C. Commerce.
D. Distribution.
ANSWER: B
2. The logistics is derived from the _________ word.
A. Greek.
B. Latin.
C. Spanish.
D. American.
ANSWER: A
3. The word ‘Logistikos’ means skilled in
A. Transportation.
B. Documentation.
C. Calculation.
D. Warehousing.
ANSWER: C
4. The goal of logistics is
A. to achieve a target level of customer service at lowest possible cost.
B. to achieve a targeted level of customer service.
C. increase in the market share.
D. All of the above.
ANSWER: D
5. In the product life cycle, the emphasis in marketing mix during introduction stage is
A. Distribution.
B. Promotion.
C. Price.
D. Cost reduction.
ANSWER: B
6. In the product life cycle, the emphasis in marketing mix during growth stage is
A. Distribution.
B. Promotion.
C. Price.
D. Cost reduction.
ANSWER: B
7. In the product life cycle, the emphasis in marketing mix during maturity stage is
A. Distribution.
B. Promotion.
C. Price.
D. Cost reduction.
ANSWER: C
8. In the product life cycle, the emphasis in marketing mix during decline stage is
A. Distribution.
B. Promotion.
C. Price.
D. Cost reduction.
ANSWER: D
9. The concept of logistics has been systematically divided into
A. 2 phases.
B. 3 phases.
C. 4 phases.
D. 5 phases.
ANSWER: A
10. EDI stands for
A. Electronic Data Interface.
B. Electronic Data Interchange.
C. Electronic Distribution Intermediary.
D. Electronic Documentation Interchange.
ANSWER: B
11. The objective of independent business function stage is
A. Cost reduction.
B. Maximisation of profit by sales volume.
C. Core competency.
D. Maximisation of profitable sales volume and cost reduction.
ANSWER: B
12. The objective of limited integrated business function stage is
A. Cost reduction.
B. Maximisation of profit by sales volume.
C. Core competency.
D. Maximisation of profitable sales volume and cost reduction.
ANSWER: A
13. Form utility is created by
A. Operation function.
B. Logistics function.
C. Procurement function.
D. Distribution function.
ANSWER: A
14. Place utility is created by
A. Operation function.
B. Logistics function.
C. Procurement function.
D. Distribution function.
ANSWER: B
15. The strategic component of logistical mission
A. reflect the vision of top management.
B. deal with basic services required for delivering of goods.
C. refers to the value-added services offered.
D. reflects the ability of firm to exploit market.
ANSWER: A
16. The logistical component of logistics mission
ANSWER: B
17. Inbound and outbound logistics is _________ in the generic value chain of logistics.
A. a support activity.
B. a primary activity.
C. not an activity.
D. the only activity.
ANSWER: B
18. HRM is _________ in the generic value chain of logistics.
A. a support activity.
C. not an activity.
D. the only activity.
ANSWER: C
19. Competitive advantage can be created and achieved by logistics managers by
A. cost advantage.
B. Quality.
C. value advantage.
D. cost and value advantage.
ANSWER: D
20. Just in time is a practice followed in
A. Japan.
B. America.
C. Britain.
D. China.
ANSWER: A
21. The original sailing vessel were replaced by steam boats in
A. the early 1800s.
B. the late 1800s.
C. the early 1900s.
D. the late 1900s.
ANSWER: A
22. The diesel power was introduced in the
A. 1910s.
B. 1920s.
C. 1930s.
D. 1940s.
ANSWER: B
23. The range of tankers is from
A. 1000 to 2000 dwt.
B. 2000 to 5000 dwt.
C. 2000 to 50000 dwt.
D. 2000 to 500000 dwt.
ANSWER: D
24. One third of the world’s merchant fleet in dead weight capacity terms is represented
by
A. oil tankers.
B. product tankers.
C. LNG tankers.
D. Acid tankers.
ANSWER: A
25. VLCC is
A. Very large crude container.
B. Very large crude carrier.
C. Very large closed container.
D. Very large closed carrier.
ANSWER: A
26. VLCC are those vessels with dead weight
A. less than 200000 dwt.
B. exceeding 200000 dwt.
C. above 300000 dwt.
D. above 500000 dwt.
ANSWER: B
27. ULCC are those vessels with dead weight
A. less than 200000 dwt.
B. exceeding 200000 dwt.
C. above 300000 dwt.
D. above 500000 dwt.
ANSWER: C
28. OBO stands for
A. over bulk order.
B. Oil/Bulk/Ore.
C. Ore/Bulk/Order.
D. On bulk order.
ANSWER: B
29. Vessels designed to carry private cars are
A. OBO.
B. RO/RO.
C. SD 14.
D. Train ferry.
ANSWER: B
30. Vessel designed to carry traditional tramp bulk cargos are
A. OBO.
B. RO/RO.
C. SD 14.
D. Train ferry.
ANSWER: C
31. The route that helps trade between Western North America and Eastern Asia and
that between North America and Australia is
A. The Cape route.
B. The South Atlantic route.
C. The Panama route.
D. The North Pacific route.
ANSWER: D
32. The opening of Suez canal saved __________ nautical miles
A. 4000.
B. 4500.
C. 5000.
D. 5500.
ANSWER: B
33. The Panama canal was opened in
A. 1869.
B. 1914.
C. 1920.
D. 1934.
ANSWER: B
34. The first liner company was formed in
A. 1825.
B. 1835.
C. 1837.
D. 1840.
ANSWER: C
35. The department in the shipping company that ensures the seaworthiness of ship is
A. husbandry department.
B. finance department.
C. technical department.
D. operating department.
ANSWER: A
36. The department that aims to maximize the economic employment of the ship is
A. husbandry department.
B. finance department.
C. technical department.
D. operating department.
ANSWER: D
37. The UN convention on Liner code emphasis the right of any country to develop its
own
merchant shipping fleet to carry _________ of its own foreign trade.
A. 10%.
B. 20%.
C. 30%.
D. 40%.
ANSWER: D
38. The stability of liner freight rates extends for a period of not less than
A. 6 months.
B. 12 months.
C. 15 months.
D. 18 months.
ANSWER: C
39. General notice of any increase in rate of freight should not be less than
A. 60 days.
B. 120 days.
C. 150 days.
D. 180 days.
ANSWER: C
40. The document that is used to differentiate liner operations from tramp operations is
A. bill of entry.
B. charter party.
C. letter of credit.
D. shipping bill.
ANSWER: B
41. The document that is used in imports and not in exports is
A. bill of entry.
B. charter party.
C. letter of credit.
D. shipping bill.
ANSWER: A
42. ITIC stands for
A. Indian trade intermediaries co-operation.
B. Indian trade intermediaries corporation.
C. Indian trade intermediaries club.
D. Indian transport intermediaries club.
ANSWER: D
43. Indian companies including ship agents can operate as MTS on obtaining license
from
A. The ministry of commerce.
B. The chamber of commerce.
C. The DGFT.
D. The DG of shipping.
ANSWER: D
44. The document that is used for the MTO is
A. Bill of lading.
B. CTD.
C. ARE.
D. GR.
ANSWER: B
45. The freight broker’s duty of acting for the actual ship owner in finding cargo for the
vessel is
A. chartering duty.
B. sale and purchase.
C. owner broker.
D. cabling broker.
ANSWER: C
46. The freight broker’s duty of communicating with other international markets is
A. chartering duty.
B. sale and purchase.
C. owner broker.
D. cabling broker.
ANSWER: D
47. The shipping inetermediary who is called M 5.5% is
A. shipping agent.
B. freight broker.
C. freight intermediary.
D. clearing house broker.
ANSWER: C
48. The intermediary who commonly works for imports is
A. shipping agent.
B. freight broker.
C. freight intermediary.
D. clearing house broker.
ANSWER: D
49. If shipment is not effected within the permitted free days, the goods incur
A. Dead freight.
B. Rebate.
C. Demurrage.
D. Back freight.
ANSWER: C
50. The permitted free days for the goods to be kept in port for shipment is
A. 5 days.
B. 7 days.
C. 10 days.
D. 15 days.
ANSWER: B
51. Stevedores are appointed by

A. the shipper.
B. the consignee.
C. the shipping company.
D. the shipping agent.
ANSWER: C
52. The leading Mazdoor is assisted by
A. Tindal.
B. Winch driver.
C. Signal man.
D. Mazdoor.
ANSWER: A
53. The labourers are paid on the basis of
A. monthly wages.
B. daily wages.
C. Commission.
D. work shifts.
ANSWER: D
54. The term which covers the operation of shifting the cargo to or from the vessel is
A. Rigging.
B. Slinging.
C. Carnage.
D. Forced discharge.
ANSWER: B
55. The term used for loading or unloading of heavy cargo is
A. Rigging.
B. Slinging.
C. Carnage.
D. Forced discharge.
ANSWER: C
56. How many major ports are there in India?
A. 10
B. 12
C. 13
D. 15
ANSWER: C
57. The major ports are under the direct responsibility of
B. The ministry of shipping.
C. The central government.
D. The state government.
ANSWER: C
58. All the major ports are administered under the provisions of the major port and
trust Act
A. 1950.
B. 1956.
C. 1963.
D. 1965.
ANSWER: C
59. The tidal port is
A. Kandla.
B. Cochin.
C. New Mangalore.
D. Tuticorin.
ANSWER: A
60. The facilities for export of Kudremukk iron ore were specially developed at
A. Kandla.
B. Cochin.
C. New Mangalore.
D. Tuticorin.
ANSWER: C
61. The port that handles mainly coal traffic is
A. Kandla.
B. Cochin.
C. New Mangalore
D. Tuticorin.
ANSWER: D
62. The port which was formerly called Nhava Sheva is
A. New Mangalore.
B. Marmugao.
C. JNPT.
D. Vizhag.
ANSWER: C
63. The head quarter of shipping corporation of India is located at
A. Chennai.
B. Mumbai.
C. Delhi.
D. Kolkata.
ANSWER: B
64. FIB stands for
A. Freight In Board.
B. Freight Index Bureau.
C. Freight Investigation Bureau.
D. Freight In Bound.
ANSWER: C
65. The container vessels were formerly called
A. Vessels.
B. Trucks.
C. Vanships.
D. Ships.
ANSWER: C
66. GRP is a classification of container by
A. Raw material.
B. Size.
C. Use.
D. Cargo.
ANSWER: A
67. Insulated container is an example of
A. Container by raw material.
B. Container by size.
C. General cargo container.
D. Thermal container.
ANSWER: D
68. The container that has its base only is
A. Bulk container.
B. Flat container.
C. Garment container.
D. Special container.
ANSWER: B
69. OTL stands for
A. Over time lock.
B. One time lock.
C. One time lease.
D. On time landed.
ANSWER: B
70. The location of ICD and CFS is regulated by
B. The ministry of shipping.
C. The central government.
D. The state government.
ANSWER: A
71. The autonomous public sector undertaking under the Ministry of Railway is
A. ICD.
B. CFS.
C. CONCOR.
D. CWC.
ANSWER: C
72. The term used for carriage of goods when points of origin and destination are both
within the sovereignty of UK is
A. ULD.
B. Classification rate.
C. Valuation charge.
D. Cabotage.
ANSWER: D
73. The place in a harbour with gates through which water may be let in and out is
A. Berth.
B. Dock.
C. Board.
D. Wharf.
ANSWER: B
74. A specific place for a ship in harbour is called
A. Berth.
B. Dock.
C. Board.
D. Wharf.
ANSWER: A
75. A wooden or stone structure at which vessels are moored for (un)loading is
A. Berth.
B. Dock.
C. Board.
D. Wharf.
ANSWER: D
76. The charge that is levied by railways when a consignment received at destination is
not taken delivery of within the admissible free time is
A. Demurrage.
B. Wharfage.
C. Freight.
D. Rebate.
ANSWER: B
77. The cargo manifested but not loaded is referred to as
A. Short landed.
B. Short shipped.
C. Short of exchange.
D. Short load.
ANSWER: B
78. Conference system is an association of __________ shipowners.
A. Liner.
B. Tramp.
C. Tankers.
D. Container.
ANSWER: A
79. The first shipping company was established in
A. 1850.
B. 1865.
C. 1875.
D. 1885.
ANSWER: C
80. The immediate rebate system grants ___________ of rebate.
A. 1%.
B. 1.5.%
C. 2%.
D. 2.5.%
ANSWER: B
81. Charter party is a ______________ word ‘Charta Partitia’ meaning divided document.
A. Latin.
B. Greek.
C. Spanish.
D. Chinese.
ANSWER: A
82. The ship being chartered for a specific voyage between places is
A. Time charter.
B. Voyage charter.
C. Demise charter.
D. Tanker charter.
ANSWER: B
83. The chartering where the ship is chartered just as a hull is
A. Time charter.
B. Voyage charter.
C. Demise charter.
D. Tanker charter.
ANSWER: C
84. The international tanker nominal freight scale Association Ltd is located in
A. London.
B. New York.
C. Australia.
D. Germany.
ANSWER: A
85. The New York based American Tanker rate scale was set up in
A. 1962.
B. 1956.
C. 1969.
D. 1971.
ANSWER: B
86. BFI stands for
A. Buffer Freight Index.
B. Baltic Freight Index.
C. Better Freight Index.
D. Bombay Freight Index.
ANSWER: B
87. The freight charges that include the cost of depreciation and registration is
A. Fixed cost.
B. Semi-fixed cost.
C. Variable cost.
D. Semi-variable cost.
ANSWER: A
88. The cost of fuel, lubricating oil and accessories included in freight charges is
A. Fixed cost.
B. Semi-fixed cost.
C. Variable cost.
D. Semi-variable cost.
ANSWER: C
89. Contract of affreightment is the term used for the carriage of goods by
A. Air.
B. Sea.
C. Road.
D. Rail.
ANSWER: D
90. The freight amount that is paid before the delivery of goods is
A. Lumpsum.
B. Dead.
C. Advance.
D. Back.
ANSWER: C
91. The ship owner is entitled to claim _________ freight for unoccupied space.
A. Lumpsum.
B. Dead.
C. Advance.
D. Back.
ANSWER: B
92. The freight that is charged when cargo is assessed on a percentage of its value is
A. Lumpsum.
B. Dead.
C. Advance.
D. Back.
ANSWER: C
93. The freight for the goods that compress on voyage and expand on expand on
unloading is
charged on
A. Value.
B. Compressed nature.
C. Expanded nature.
D. Weight.
ANSWER: B
94. If the lien for freight is not discharged within _______ days, the wharfinger may sell
the goods
by public auction.
A. 30 days.
B. 45 days.
C. 90 days.
D. 120 days.
ANSWER: C
95. The delivery of a damaged product has
A. An increase in its value.
B. A decrease in its value.
C. No change in its value.
D. Better demand.
ANSWER: B
96. Unreliability of vendors leads to
A. Production uncertainty.
B. Process uncertainty.
C. Demand uncertainty.
D. Supply uncertainty.
ANSWER: D
97. The number of stages that the goods and services flow through
A. Add to the complexity of SCM.
B. Relaxes the complexity of SCM.
C. Brings no change in complexity of SCM.
D. Ensures better quality.
ANSWER: A
98. The business activity of farming out identified non-core activities to external
agencies is
A. Logistics.
B. SCM.
C. Outsourcing.
D. Distribution.
ANSWER: C
99. The warehouses managed by a public warehousing agency in the premises of a
factory is
A. Field warehouse.
B. Buffer storage warehouse.
C. Bonded warehouse.
D. Export and import warehouse.
ANSWER: A
100. The warehouses located near the port is
A. Field warehouse.
B. Buffer storage warehouse.
C. Bonded warehouse.
D. Export and import warehouse.
ANSWER: D
101. The warehousing function that combines the logistical flow of several small
shipments to a specific market area is
A. Break bulk function.
B. Operational function.
C. Stockpiling function.
D. Consolidation function.
ANSWER: D
102. The transportation model coordinated between railways and roadways is
A. Transship.
B. Airtruck.
C. Piggyback.
D. Fishyback.
ANSWER: C
103. The transportation system that is an outcome of the combination of air and
roadways is
A. Transship.
B. Airtruck.
C. Piggyback.
D. Fishyback.
ANSWER: B
104. Booking of shipping space in advance is helpful to an exporter in
A. Saving in freight charges.
B. Availing bank finance.
C. Getting priority on inland movement of cargo by all.
D. None of the above.
ANSWER: C
105. A mate’s receipt is
A. A draft bill of lading.
B. A substitute bill of lading.
C. Bill of lading evidencing goods carried on deck.
ANSWER: D
106. According to the Multimodal Transportation of Goods Act, a multimodal transport
document
cannot be
A. A bearer instrument.
B. An order instrument.
C. A non-negotiable instrument.
ANSWER: D
107. The following incoterm cannot be used for contracts providing for transportation
of goods by sea
A. CFR.
B. DDP.
C. DES.
D. DEQ.
ANSWER: B
108. The incoterm providing or least responsibility to seller is
A. EXW.
B. DDP.
C. FOB.
D. CIF.
ANSWER: A
109. The group of incoterms under which the seller’s responsibility is to obtain freight
paid
transport document for the main carriage is
A. E terms.
B. C terms.
C. D terms.
D. F terms.
ANSWER: B
110. The price quoted by the seller for the product
A. Will vary depending upon the incoterm chosen.
B. Is irrespective of the incoterm.
C. Will be the base price.
ANSWER: A
111. Packaging performs two functions. ___________ and logistics.
A. Distribution.
B. Store keeping.
C. Material handling.
D. Marketing.
ANSWER: D
112. The outcome of the independent business function era was
A. aggressive preaching skill.
B. price -based competition.
C. customer value and harmonious relation.
D. increased productivity, profitability and market share.
ANSWER: A
113. The outcome of limited integrated business function was
B. price based competition.
ANSWER: B
114. The outcome of internally integrated business function was
ANSWER: C
115. The outcome of externally integrated business function was
ANSWER: D
116. The period of existence of independent business function was
A. till 1950s.
B. 1960s to 1970s.
C. 1980s.
D. 1990s.
ANSWER: A
117. The non -logistical component of logistics mission
ANSWER: C
118. The service mission of logistics
A. reflects the ability of firm to exploit market.ment.
D. reflect the vision of top manage
ANSWER: A
119. Marketing and sales is ___________ in the generic value chain of logistics.
A. the only activity
C. not an activity.
D. a support activity.
ANSWER: A
120. A well defined corporate vision
A. reflects the capability of the management to think beyond the current way.
B. reflects the extent of use of logistical component for competitive advantage.
C. ensures effective implementation of logistics strategy.
D. deals with managing change.
ANSWER: A
121. The logistics strategic analysis
A. reflects the capability of the management to think beyond the current way.
B. reflects the extent of use of logistical component for competitive advantage.
C. ensures effective implementation of logistics strategy.
D. deals with managing change.
ANSWER: B
122. Vessels that carry railway passenger and freight rolling stock are
A. OBO.
B. RO/RO.
C. SD 14.
D. Train ferry.
ANSWER: D
123. Combination carrier is a unifixed cargo carrier combining container and
A. OBO.
B. RO/RO.
C. SD 14.
D. Train ferry.
ANSWER: B
124. The shipping route that lies between Western Europe, Eastern Canada and the
United States is
A. The North Atlantic route.
B. The Mediterranean – Red Sea -Indian Ocean route.
C. The Cape route.
D. The South Atlantic route.
ANSWER: A
125. The sailing route that connects North Western Europe with the Eastern
Europe,Southern and
Eastern Asia, Australia and New Zealand is
A. The North Atlantic route..
B. The Mediterranean -Red Sea – Indian Ocean route.
C. The Cape route.
D. The South Atlantic route.
ANSWER: B
126. The route connecting Western Europe, Africa and Australia is
A. The Cape route.
ANSWER: A
127. The route lying between South Eastern South America and North Western Europe
and
Mediterranean is
A. The Cape route.
ANSWER: B
128. An advantage of a channel of distribution over selling direct to consumers is that
each channel
member plays a ________ in the channel.
A. time-saving part.
B. disciplinary role.
C. specialized role.
D. informational role.
ANSWER: C
129. Historically, conventional channels have lacked the leadership to ________.
A. assign member roles and manage conflict.
B. attain efficiency and assign member roles.
C. set standard pricing and promotions.
D. set standard pricing and packaging.
ANSWER: B
130. A channel consisting of one or more independent producers, wholesalers or
retailers that are seeking to maximize their own profits even at the expense of profits
for the channel as a whole is a
________.
A. administered vertical marketing system.
B. conventional distribution channel.
C. vertical marketing system.
D. independent channel allocation.
ANSWER: A
131. A corporate VMS has the advantage of controlling the entire distribution chain
under
________.
A. single ownership.
B. a few intermediaries.
C. little control.
D. a profit-maximizing strategic plan.
ANSWER: B
132. A distinguishing feature of a contractual VMS is that coordination and conflict
management among the independent members of the channel are attained through
________.
A. working partnerships.
B. limited liability corporations.
C. natural competitive forces.
D. oral agreements.
ANSWER: A
133. ____________ is / are the basic tools for determining competitor costs.
A. Cost drivers.
B. A value chain.
C. Cost cutters.
D. A value analysis.
ANSWER: B
134. Cost efficiency is determined by which of the following drivers?
A. Supply Costs, Experience, Product/Process Design and Economies of Scale.
B. Supply Costs & Economies of Scale.
C. Product/Process Design and Economies of Scale.
D. Experience.
ANSWER: B
135. The value chain attempts to identify those activities which add value to:
A. The organisation’s stakeholders.
B. The senior strategic managers in the organization.
C. The organisation’s shareholders.
D. The customer or final user.
ANSWER: D
136. Adoption of incoterm is
A. Compulsory for all international contracts.
B. Compulsory for all letter of credit transactions.
C. Optional for the parties to the contract.
D. Mandatory for transactions with Europe.
ANSWER: C
137. Strategic stretch involves:
A. The fit between the organisation and its environment.
B. Creating new opportunities by stretching and exploiting capabilities in new ways.
C. The skills of the senior management.
D. Utilising all the resources of an organisation to their full capacity.
ANSWER: A
138. Incoterm is specific about the responsibility for marine insurance in case of
A. FOB and EXW.
B. FOB and CIF.
C. CIF and CIP.
D. CPT and DDP.
ANSWER: C
139. The price quoted by the seller for the product
A. Will vary depending upon the incoterm chosen.
B. Is irrespective of the incoterm.
C. Will be the base price.
ANSWER: A
140. The incoterm should indicate the place of shipment in case of
A. F terms.
B. E terms.
C. C terms.
D. D terms.
ANSWER: A
141. The group of terms arranged in order of increasing responsibility of exporter is
A. C,D,E and E terms.
B. D,E,F and C terms.
C. E,F,C and D terms.
D. F,C,E and D terms.
ANSWER: C
142. Incoterms cover
A. Trade in intangibles.
B. Ownership and transfer rights.
C. Contracts of carriage.
D. Rights and obligations of parties to contract of sales.
ANSWER: D
143. Airway bill is prepared in
A. three originals.
B. Quadruplicate.
C. As many copies as required.
D. One original only.
ANSWER: A
144. The following transport document is acceptable under a letter of credit
A. House airway bill.
B. House bill of lading.
C. Warehouse receipt.
D. Tramp bill of lading.
ANSWER: A
145. Freight to pay bill of lading is acceptable if
A. The contract term is CIF.
B. The contract term is CFR.
C. The contract term is FOB.
D. Goods are carried by a foreign vessel.
ANSWER: C
146. A transferable credit can be transferred
A. Once.
B. Twice.
C. Thrice.
D. Any number of times.
ANSWER: A
147. When goods are sent to an agent of an exporter in the importing country, the
method of payment adopted is
A. Open account.
B. Letter of credit.
C. Consignment sale.
D. Document against acceptance.
ANSWER: C
148. The best form of method of payment for an importer would be
A. Advance remittance.
B. Letter of credit.
C. Documents against payment.
D. Open account.
ANSWER: D
149. The internal process leads to
A. Supply uncertainty.
B. Process uncertainty.
C. Demand uncertainty.
D. Production uncertainty.
ANSWER: B
150. The flow of information that facilitates operational activities is
A. Forward information flow.
B. Backward information flow.
C. Upward information flow.
D. Downward information flow.
ANSWER: A
1. ______ is not a part of basic systems of codifications.
a. Alphabetical System
b. Numerical System
c. Colour Coding System
d. None of the above
View Correct Answer

2. _______ and physical distribution are the two major operations of logistics.
a. Supply Chain Management
b. Materials Management
c. Logistics Management
View Correct Answer

3. Which of the following is not a component of 4PL?

a. Control Room (Intelligence)
b. Resource Providers
c. Information
d. Recycling
View Correct Answer

d. Recycling
4. Which of the following is not a part of Supply chain Management system?

a. Supplier
b. Manufacturer
c. Information Flow
d. Competitor
e. Customer
View Correct Answer

d. Competitor
5. _________ includes design and administration of systems to control the

flow of materials, WIP and finished inventory to support business unit
strategy.
a. Logistics Management
c. Bill of Materials
View Correct Answer

6. _______ is the time that elapses between issuing replenishment order and
receiving the material in stores.
a. Replenishment time
b. Lead time
c. Idle time
View Correct Answer

b. Lead time
7. ________ is the task of buying goods of right quality, in the right quantities,
at the right time and at the right price.
a. Supplying
b. Purchasing
c. Scrutinizing
View Correct Answer

b. Purchasing
8. ________ is the provision of service to customers before, during and after a

purchase.
a. Customer Service
b. Product Management
c. Purchase management
View Correct Answer

a. Customer Service
9. Buying according to the requirements is called ______

a. Seasonal Buying
b. Hand to mouth buying
c. Scheduled Buying
d. Tender Buying
e. Speculative Buying
View Correct Answer

1. ……………….includes design and administration of systems to
control the flow of materials, WIP and finished inventory to support
business unit strategy.
c. Bill of Materials
2. Which is not a part of basic systems of codifications?

a. Alphabetical System
b. Numerical System
c. Colour Coding System
3. ……………and physical distribution are the two major operations of

logistics.
a. Supply Chain Management
c. Logistics Management
4. …………is the time that elapses between issuing replenishment

order and receiving the material in stores.
a. Replenishment time
b. Lead time
c. Idle time
5. ……………is the task of buying goods of right quality, in the right

quantities, at the right time and at the right price.
a. Supplying
b. Purchasing
c. Scrutinizing
6. Which of the following is not a component of 4PL?

a. Control Room (Intelligence)
b. Resource Providers
c. Information
d. Recycling
7. Which of the following is not a part of Supply chain Management

system?
a. Supplier
b. Manufacturer
c. Information Flow
d. Competitor
8. …………is the provision of service to customers before, during and
after a purchase.
a. Customer Service
b. Product Management
c. Purchase management
9. Buying according to the requirements is called …………

a. Seasonal Buying
c. Scheduled Buying
d. Tender Buying
e. Speculative Buying
Q1. Which of the following is true for supply chain management?
a) The physical material moves in the direction of the end of chain
b) Flow of cash backwards through the chain
c) Exchange of information moves in both the direction
d) All of the above

Q2. The sequence of a typical manufacturing supply chain is
a) Storage–Supplier–manufacturing–storage–distributor–retailer–customer
b) Supplier–Storage-manufacturing–storage–distributor–retailer–customer
c) Supplier–Storage-manufacturing– distributor–storage–retailer–customer
d) Supplier–Storage-manufacturing–storage– retailer–distributor–customer

Q3. The purpose of supply chain management is
a) Provide customer satisfaction
b) Improve quality of a product
c) integrating supply and demand management
d) Increase production

Q4. Logistics is the part of a supply chain involved with the forward and reverse flow of
a) Goods
b) Services
c) Cash
d) all of the above

Q5. Due to small change in customer demands, inventory oscillations become
progressively larger looking through the supply chain. This is known as
a) Bullwhip effect
b) Netchain analysis
c) Reverse logistics
d) Reverse supply chain

Q6. VMI stands for
a) Vendor material inventory
b) Vendor managed inventory
c) Variable material inventory
d) Valuable material inventory

Q7. The major decision areas in supply chain management are
a) location, production, distribution, inventory
b) Planning, production, distribution, inventory
c) Location, production, scheduling, inventory
d) Location, production, distribution, marketing

Q8. Distribution requirement planning is a system for
a) Inventory management
b) Distribution planning
c) Both ‘a’ and ‘b’
d) None of the above

Q9. Reverse logistics is required because
a) Goods are defective
b) Goods are unsold
c) The customers simply change their minds
d) All of the above

Q10. 3-PL stands for
a) Three points logistics
b) Third party logistics
c) Three points location

Q11. Product life cycles for many products are ________, forcing companies to not only
become ________ in design but also to communicate changes and needs to suppliers and
distributors
a) shrinking rapidly, more flexible
b) Shrinking rapidly, less flexible
c) Growing rapidly, more flexible
d) Growing rapidly, less flexible

Q12. All portions of the material production from __________ to ___________ are
considered to be a linked chain under the supply chain concept
a) Work in process, final customer
b) Raw material, work in process
c) Work in process, raw material
d) raw material, final customer

Q13. To get the most profit, a company should________
a) Provide little customer service
b) Provide high production costs
c) Provide the lowest inventory investment
d) Provide the highest distribution costs

Q14. Finance must keep investment and costs low. This can be done by___________
a) Increasing inventory so inventory investment is at a maximum
b) Decreasing the number of plants and warehouses
c) Producing small quantities
d) Using short production runs

Q15. Today the concepts of ______ manufacturing stress the need to supply customers
with what they want when they want it and to keep inventories at a ______
a) TQM, maximum
b) Six Sigma, maximum
c) JIT, minimum
d) ISO 9000, minimum

Q16. The concept of having ____ department(s) responsible for the flow of materials,
from supplier through production to consumer, is relatively new
a) one
b) Multiple
c) Functional

Q17. Materials management is also called____________
a) Distribution planning
b) Control and logistics management
c) Both of the above
d) Neither of the above

Q18. Materials management is a coordinating function responsible for planning and
controlling materials flow. Its objective(s) is/are
a) Maximize the use of the firm’s resources
b) Provide the required level of customer service
c) Both of the above
d) Neither of the above

Q19. _______ and ______ are costs that increase or decrease with the quantity sold
a) Direct labor, indirect material
b) Direct labor, direct material
c) Indirect labor, indirect material
d) Indirect labor, direct material
Q20. Inventory not only makes up a portion of the cost of goods sold but has to be
purchased at the beginning of production to be processed into finished goods. This type
of inventory is called _____________
a) work-in-process
b) Finished goods
c) Raw materials

Q1. A good planning system must consider
a) What are we going to make?
b) What does it take to make it?
c) What do we have and need?
d) All of the above

Q2. ______ is the capability of manufacturing to produce goods and services
a) Capacity
b) Priority
c) Planning
d) Control

Q3. ________ is responsible for analyzing the marketplace and deciding the firm’s
response, the markets to be served, the products supplied, and desired levels of
customer service
a) Marketing
b) Finance
c) Production
d) Engineering

Q4. ______ must satisfy the demands of the marketplace. It does so by using plants,
machinery, equipment, labor, and materials as efficiently as possible
a) Marketing
b) Finance
c) Production
d) Engineering

Q5. The _____________________ is a plan for the production of individual end items
a) MPS
b) JIT
c) MRP II
d) MRP

Q6. Purchasing and ___________ represent the implementation and control phase of
the production planning and control system
a) production activity control (PAC)
b) Material requirements planning (MRP)
c) Just-in-time (JIT)
d) Marketing

Q7. A _________ strategy means producing the amounts demanded at any given time
a) Production leveling
b) chase
c) Subcontracting
d) TQM

Q8. In the _____________ environment, several product options exist (e.g., automobiles)
and the customer is not willing to wait until the product is made. Therefore
manufacturers produce and stock standard component parts
a) Make-to-order
b) assemble-to-order
c) Level production
d) Make-to-stock

Q9. ____________ is the first step in a manufacturing planning and control system
a) Production planning
b) Achieving the forecast
c) Maintaining the required inventory levels
d) Maintaining the planned backlog

Q10. The cost of a _________ that is too large equals the cost of turning away business
a) Production plan
b) backlog
c) Resource plan
d) Capacity plan

Q11. The MRP forms a vital link between sales and production as follows
a) The MRP makes possible valid order promises.
b) The MRP is a plan of what is to be produced and when.
c) The MRP is a contract between marketing and manufacturing.
d) All of the above

Q12. The information needed to develop an MPR includes
a) The production plan
b) Forecasts for individual end items
c) Actual orders received from customers and for stock replenishments.
d) All of the above

Q13. A schedule is satisfactory when
a) Capacity is greater than the production plan
b) It doesn’t specify to the plant when to start production
c) Capacity is consistent with the production plan
d) It doesn’t specify to the plant when to stop production

Q14. The objectives in developing an MRP include
a) To maintain the desired level of customer service by maintaining finished goods inventory
levels or by scheduling to meet customer delivery requirements
b) To make the best use of material, labor, and equipment
c) To maintain inventory investment at the required levels
d) All of the above

Q15. To reach its objectives, the master production schedule must
a) Satisfy customer demand
b) Be outside the capacity of manufacturing
c) Be outside the guidelines of the production plan
d) Be outside both the capacity of manufacturing and the guidelines of the production plan

Q16. The first step in preparing an MPS is
a) Resolve differences between the preliminary MPS and the capacity available.
b) Check the preliminary MRP against available capacity.
c) Develop a preliminary MRP.
d) Develop a rough-cut capacity plan.

Q17. Critical resources in rough-cut capacity planning include
a) Bottle-neck operations
b) Labor
c) Critical materials
d) All of the above

Q18. It is possible to increase the available capacity by
a) Using fewer workers
b) Scheduling overtime
c) Limiting subcontracting
d) Rerouting away from other work centers

Q19. In the __________________ environment, many different end items are made from
a small number of components
a) Make-to-stock
b) make-to-order
c) Assembly-to-order
d) Engineer-to-order

Q20. In the __________________ environment, many end items can be made from
combinations of basic components and subassemblies
a) Make-to-stock
b) Make-to-order
c) assembly-to-order
d) Engineer-to-order

Q1. The sides, ends, legs, and tops of tables are ________ demand items
a) dependent
b) Independent
c) Forecast
d) Calculated

Q2. Since _______ demand is not related to the demand for any other assemblies or
products, it must be ___________
a) Dependent, forecast
b) Dependent, calculated
c) Independent, forecast
d) independent, calculated

Q3. All major inputs to the MRP system include
a) Master production schedule and bill of material
b) Bill of material and inventory records
c) Inventory records and master production schedule
d) Master production schedule, inventory records, and bills of material

Q4. The ___________ is a statement of which end items are to be produced, their
quantity, and the dates they are to be completed
a) MRP
b) MPS
c) Inventory record
d) Bill of materials

Q5. The bill of materials shows all the parts required to make __________
a) one item
b) The MPR
c) Work-in-process inventory
d) Raw materials inventory

Q6. ___________ include hand tools, spare parts, lubricants, and cleaning supplies
a) Raw materials
b) Work-in-process
c) Finished goods
d) MRO supplies

Q7. Inventory serves as a buffer between
a) Supply and demand
b) Finished goods and component availability
c) Customer demand and finished goods
d) All of the above

Q8. __________ inventory is held to cover random unpredictable changes in supply and
demand or lead time
a) Anticipation
b) Fluctuation
c) Lot-size
d) Transportation

Q9. _______is a measure of customer service
a) Percentage of orders shipped on schedule
b) Percentage of line items shipped on schedule
c) Order-days out of stock
d) All of the above

Q10. Storing inventory requires ___________________ and as inventory increases, so do
these costs
a) Space and workers
b) Workers and equipment
c) Space and equipment
d) space, workers, and equipment

Q11. Liabilities are obligations or amounts owed by a company and include
a) Accounts payable
b) Wages payable
c) Long-term debt
d) All of the above

Q12. The risks in carrying inventory are
a) Obsolescence and damage
b) Damage and pilferage
c) Pilferage and deterioration
d) Obsolescence, damage, pilferage, and deterioration

Q13. ________ is the costs incurred in the process of making revenue
a) Income
b) Cost of goods sold
c) Expenses
d) Retained earnings

Q14. A(n) _____________ lists all the parts needed to make one complete assembly
a) summarized parts list
b) Indented bill
c) Multilevel bill
d) Single-level bill

Q15. ___________ is the process of multiplying the requirements by the usage quantity
and recording the appropriate requirements throughout the product tree
a) Offsetting
b) Planning orders
c) Lead time
d) Exploding

Q16. _______________ means that authorization is given to purchasing to buy the
necessary material or to manufacturing to make the component
a) Planned order release
b) Releasing an order
c) Scheduled receipts
d) Open orders

Q17. ____________ are orders placed on manufacturing or on a vendor and represent a
commitment to make or buy
a) Planned order releases
b) Releasing orders
c) Scheduled receipts
d) Open orders

Q18. ______________involves long-range capacity resource requirements and is directly
linked to production planning
a) Resource planning
b) MRP
c) Capacity requirements planning
d) Rough-cut capacity planning

Q19. Which of the following is true for supply chain management?
a) The physical material moves in the direction of the end of chain
b) Flow of cash backwards through the chain
c) Exchange of information moves in both the direction
d) All of the above

Q20. Resource planning involves changes in staffing, capital equipment, product design,
or other facilities that take a ________ time to ___________
a) Short, acquire and eliminate
b) long, acquire and eliminate
c) Short, utilize and change
d) Long, utilize and change

Q1. In the _________ run, capacity ________ be adjusted
a) short, can
b) Short, cannot
c) Long, cannot

Q2. If the workload in a manufacturing plan cannot be changed, an alternative is to
a) Schedule overtime
b) Schedule undertime
c) Adjust the workforce by hiring
d) All of the above

Q3. ______________is concerned with the production of high-volume standard products
a) Flow manufacturing
b) Intermittent manufacturing
c) Product manufacturing
d) All of the above

Q4. Routings are fixed and work centers are arranged according to the routing in
________________
a) flow manufacturing
b) Intermittent manufacturing
d) All of the above

Q5. Flow of work through the shop is varied and depends on the design of a particular
product. In _____________, as orders are processed, they will take more time at one
workstation than at another. Thus, the work flow is not balanced
a) Flow manufacturing
b) intermittent manufacturing
d) All of the above

Q6. An example of project manufacturing is
a) Gasoline
b) Automobiles
c) Appliances
d) Large shipbuilding

Q7. The __________________ contains a list of the single-level components and
quantities needed to assemble a parent item
a) Work center master file
b) Item master file
c) product structure file (bill of material file)
d) Routing file

Q8. The _________________ collects all of the relevant data on a work center
a) work center master file
b) Item master file
c) Product structure file (bill of material file)
d) Routing file

Q9. Each active manufacturing order has a record in the _____________________
a) Work center master file
b) Item master file
c) Product structure file (bill of material file)
d) shop order master file

Q10. _________ is the amount of time the job is waiting at a work center before an
operation begins
a) Queue time
b) Setup time
c) Run time
d) Wait time

Q11. The transit time between work centers is ____________
a) Setup time
b) Run time
c) Wait time
d) move time

Q12. _______________ is a method of reducing manufacturing lead time. The order is
split into two or more lots and run on two or more machines simultaneously
a) Operation overlapping
b) Operation splitting
c) Infinite loading
d) Backward scheduling

Q13. On average, manufacturing firms spend about ________ of their sales dollars on
the purchase of raw materials, components, and supplies
a) 20%
b) 50%
c) 30%
d) 40%

Q14. The objectives of purchasing include
a) Obtaining the goods and services at the highest price
b) Obtaining goods and services of the lowest quality
c) Ensuring the best possible service and prompt delivery by the supplier
d) Obtaining goods and services at any quantity

Q15. A ________________ is a legal offer to purchase
a) Quotation
b) purchase order
c) Receiving order
d) Supplier’s invoice

Q16. When the supplier’s invoice is received, the following should agree
a) The purchase order, the receiving report, and the invoice
b) The purchase order, the work order, and the production report
c) The receiving report, the quotation, and the material specification
d) The material specification, the purchase requisition, and the invoice

Q17. In purchasing an item or service from a supplier, which factor is not included
when specifications are being developed?
a) Delivery requirement
b) Quantity requirements
c) Price requirements
d) Functional requirement

Q18. ________ is the systematic use of techniques that identify a required function,
establish a value for that function, and finally provide the function at the lowest overall
cost
a) Cost analysis
b) Functional analysis
c) Value analysis
d) Functional specifications

Q19. _______ is most often used in wholesale or retail businesses but is also used
extensively in manufacturing
a) Description by brand
b) Description by specification
c) Description by function
d) Description by buyer

Q20. ___________specifications and standard specifications are the two major sources
of specifications or ways of describing a product
a) Functional
b) Buyer
c) Marketing
d) Production
Q1. ______ sourcing is the use of more than one supplier for an item
a) Single
b) Multiple
c) Sole
d) Engineering

Q2. Materials such as copper, coal, wheat, meat, and metals are
a) Standard products
b) Items of small value
c) Made-to-order items
d) Commodities

Q3. _______________ occurs when a customer’s order is received
a) Demand management
b) Forecasting
c) Random variation
d) Order processing

Q4. Trends
a) Are level
b) Have no change from period to period
c) Can rise or fall
d) All of the above

Q5. ______________ is usually thought of as occurring on a yearly basis, but it can also
occur on a weekly or even daily basis
a) Seasonality
b) Random variation
c) A cycle
d) A trend

Q6. Over a span of several years and even decades, wavelike increases and decreases in
the economy influence demand and are called _________
a) Seasonality
b) Random variation
c) cycles
d) Trends

Q7. ______________ demand items need to be forecast
a) Independent
b) Dependent
c) Both independent and dependent
d) Neither independent nor dependent

Q8. The near future holds _____ uncertainty than (as) the far future
a) less
b) More
c) The same
d) All of the above

Q9. _______________ techniques are projections based on judgment, intuition, and
informed opinions
a) Extrinsic forecasting
b) Quantitative forecasting
c) Intrinsic forecasting
d) Qualitative forecasting

Q10. The Delphi method
a) Uses a panel of experts who give their opinion on what is likely to happen
b) Consists of projections based on external indicators that relate to the demand for a
company’s products
c) Uses economic indicators, such as housing starts and gasoline consumption, to forecast
demand
d) Uses historical data to forecast demand

Q11. Products likely to have seasonal or periodic demand patterns include
a) Toilet paper and paper towels
b) Toothpaste and deodorant
c) Skis and lawnmowers
d) Milk and meat

Q12. ______________ exists when the cumulative actual demand varies from the
cumulative forecast
a) Forecast error
b) Random variation
c) Mean absolute deviation
d) Bias

Q13. Process which involves controlling, implementing and planning materials and final
goods to meet final customer at high profits is classified as
a) Exclusive distribution
b) Exclusive dealing
c) physical distribution
d) Supply chain management

Q14. Logistic network through which unwanted or excess products by resellers or
consumers is classified as
a) Inbound distribution
b) Outbound distribution
c) Forward distribution
d) reverse distribution

Q15. Logistic network which moves finished product from company to resellers and
then to end users is classified as
a) Risk averse distribution
b) Reverse distribution
c) Inbound distribution
d) outbound distribution

Q16. Logistic network which moves materials from suppliers to manufacturing unit is
classified as
a) inbound distribution
b) Outbound distribution
c) Forward distribution
d) Reverse distribution

Q17. Purpose of supply chain management is
a) Provide customer satisfaction
b) Improve quality of a product
c) integrating supply and demand management
d) Increase production

Q18. Logistics is the part of a supply chain involved with the forward and reverse flow
of
a) Goods
b) Services
c) Cash
d) all of the above

Q19. VMI stands for
a) Vendor material inventory
b) Vendor managed inventory
c) Variable material inventory
d) Valuable material inventory

Q20. Process of managing upstream and downstream of final goods, flow of raw
materials and information about resellers and final consumers is classified as
a) Marketing logistics network
b) supply chain management
c) Delivery network
d) Physical distribution network

Product life cycles for many products are ________, forcing companies to not only become
________ in design but also to communicate changes and needs to suppliers and distributors.
1. shrinking rapidly, more flexible
2. shrinking rapidly, less flexible
3. growing rapidly, more flexible
4. growing rapidly, less flexible
All portions of the material production from __________ to ___________ are considered to be a
linked chain under the supply chain concept.
1. work in process, final customer
2. raw material, work in process
3. work in process, raw material
4. raw material, final customer
To get the most profit, a company should________
1. Provide little customer service
2. Provide high production costs
3. Provide the lowest inventory investment
4. Provide the highest distribution costs
Finance must keep investment and costs low. This can be done by___________
1. Increasing inventory so inventory investment is at a maximum
2. Decreasing the number of plants and warehouses
3. Producing small quantities
4. Using short production runs
Today the concepts of ______ manufacturing stress the need to supply customers with what they
want when they want it and to keep inventories at a _______.
1. TQM, maximum
2. Six Sigma, maximum
3. JIT, minimum
4. ISO 9000, minimum
The concept of having ____ department(s) responsible for the flow of materials, from supplier
through production to consumer, is relatively new.
1. one
2. multiple
3. functional
4. none of the above
Materials management is also called____________
1. Distribution planning
2. Control and logistics management
3. Both of the above
4. Neither of the above
Materials management is a coordinating function responsible for planning and controlling materials
flow. Its objective(s) is/are:
1. Maximize the use of the firm's resources
2. Provide the required level of customer service
3. Both of the above
4. Neither of the above
_______ and ______ are costs that increase or decrease with the quantity sold.
1. Direct labor, indirect material
2. Direct labor, direct material
3. Indirect labor, indirect material
4. Indirect labor, direct material
Inventory not only makes up a portion of the cost of goods sold but has to be purchased at the
beginning of production to be processed into finished goods. This type of inventory is called
_____________.
1. work-in-process
2. finished goods
3. raw materials
A good planning system must consider:

1. What are we going to make?
2. What does it take to make it?
3. What do we have and need?
4. All of the above
_______ is the capability of manufacturing to produce goods and services.

1. Capacity
2. Priority
3. Planning
4. Control
________ is responsible for analyzing the marketplace and deciding the firm's response, the
markets to be served, the products supplied, and desired levels of customer service.
1. Marketing
2. Finance
3. Production
4. Engineering
______ must satisfy the demands of the marketplace. It does so by using plants, machinery,
equipment, labor, and materials as efficiently as possible.
1. Marketing
2. Finance
3. Production
4. Engineering
The _____________________ is a plan for the production of individual end items.

1. MPS
2. JIT
3. MRP II
4. MRP
Purchasing and ___________ represent the implementation and control phase of the production
planning and control system.
1. production activity control (PAC)
2. material requirements planning (MRP)
3. just-in-time (JIT)
4. marketing
A _________ strategy means producing the amounts demanded at any given time.
1. production leveling
2. chase
3. subcontracting
4. TQM
In the _____________ environment, several product options exist (e.g., automobiles) and the
customer is not willing to wait until the product is made. Therefore manufacturers produce and
stock standard component parts.
1. make-to-order
2. assemble-to-order
3. level production
4. make-to-stock
____________ is the first step in a manufacturing planning and control system.

1. Production planning
2. Achieving the forecast
3. Maintaining the required inventory levels
4. Maintaining the planned backlog
The cost of a _________ that is too large equals the cost of turning away business.
1. production plan
2. backlog
3. resource plan
4. capacity plan
The MRP forms a vital link between sales and production as follows:
1. The MRP makes possible valid order promises.
2. The MRP is a plan of what is to be produced and when.
3. The MRP is a contract between marketing and manufacturing.
4. All of the above
The information needed to develop an MPR includes:

1. The production plan
2. Forecasts for individual end items
3. Actual orders received from customers and for stock replenishments.
4. All of the above
A schedule is satisfactory when:

1. Capacity is greater than the production plan
2. It doesn't specify to the plant when to start production
3. Capacity is consistent with the production plan
4. It doesn't specify to the plant when to stop production
The objectives in developing an MRP include:

1. To maintain the desired level of customer service by maintaining finished goods
inventory levels or by scheduling to meet customer delivery requirements
2. To make the best use of material, labor, and equipment
3. To maintain inventory investment at the required levels
4. All of the above
To reach its objectives, the master production schedule must:

1. Satisfy customer demand
2. Be outside the capacity of manufacturing
3. Be outside the guidelines of the production plan
4. Be outside both the capacity of manufacturing and the guidelines of the
production plan
The first step in preparing an MPS is:

1. Resolve differences between the preliminary MPS and the capacity available.
2. Check the preliminary MRP against available capacity.
3. Develop a preliminary MRP.
4. Develop a rough-cut capacity plan.
Critical resources in rough-cut capacity planning include:

1. Bottle-neck operations
2. Labor
3. Critical materials
4. All of the above
It is possible to increase the available capacity by:

1. Using fewer workers
2. Scheduling overtime
3. Limiting subcontracting
4. Rerouting away from other work centers
In the __________________ environment, many different end items are made from a small number
of components.
1. make-to-stock
2. make-to-order
3. assembly-to-order
4. engineer-to-order
In the __________________ environment, many end items can be made from combinations of
basic components and subassemblies.
1. make-to-stock
2. make-to-order
3. assembly-to-order
4. engineer-to-order
The sides, ends, legs, and tops of tables are ________ demand items.
1. dependent
2. independent
3. forecast
4. calculated
Since _______ demand is not related to the demand for any other assemblies or products, it must
be ___________.
1. dependent, forecast
2. dependent, calculated
3. independent, forecast
4. independent, calculated
All major inputs to the MRP system include:

1. Master production schedule and bill of material
2. Bill of material and inventory records
3. Inventory records and master production schedule
4. Master production schedule, inventory records, and bills of material
The ___________ is a statement of which end items are to be produced, their quantity, and the
dates they are to be completed.
1. MRP
2. MPS
3. inventory record
4. bill of materials
The bill of materials shows all the parts required to make __________.
1. one item
2. the MPR
3. work-in-process inventory
4. raw materials inventory
A _________ is used when companies usually make more than one product and the same
components are often used in several products.
1. single-level bill
2. multiple bill
3. multilevel bill
4. product tree
Financially, inventories are very important to manufacturing companies and represent _________
of total assets on the balance sheet.
1. 10% to 45%
2. 25% to 40%
3. 20% to 60%
4. 50% to 80%
__________ are purchased items received that have not entered the production process. They
include purchased materials, component parts, and sub-assemblies.
1. Raw materials
2. Work-in-process
3. Finished goods
4. MRO supplies
___________ include hand tools, spare parts, lubricants, and cleaning supplies.
1. Raw materials
2. Work-in-process
3. Finished goods
4. MRO supplies
Inventory serves as a buffer between:

1. Supply and demand
2. Finished goods and component availability
3. Customer demand and finished goods
4. All of the above
__________ inventory is held to cover random unpredictable changes in supply and demand or
lead time.
1. Anticipation
2. Fluctuation
3. Lot-size
4. Transportation
_______is a measure of customer service.

1. Percentage of orders shipped on schedule
2. Percentage of line items shipped on schedule
3. Order-days out of stock
4. All of the above
Storing inventory requires ___________________ and as inventory increases, so do these costs.

1. space and workers
2. workers and equipment
3. space and equipment
4. space, workers, and equipment
Liabilities are obligations or amounts owed by a company and include:

1. Accounts payable
2. Wages payable
3. Long-term debt
4. All of the above
The risks in carrying inventory are:
1. Obsolescence and damage
2. Damage and pilferage
3. Pilferage and deterioration
4. Obsolescence, damage, pilferage, and deterioration
________ is the costs incurred in the process of making revenue.

1. Income
2. Cost of goods sold
3. Expenses
4. Retained earnings
A(n) _____________ lists all the parts needed to make one complete assembly.
1. summarized parts list
2. indented bill
3. multilevel bill
4. single-level bill
___________ is the process of multiplying the requirements by the usage quantity and recording
the appropriate requirements throughout the product tree.
1. Offsetting
2. Planning orders
3. Lead time
4. Exploding
_______________ means that authorization is given to purchasing to buy the necessary material or
to manufacturing to make the component.
1. Planned order release
2. Releasing an order
3. Scheduled receipts
4. Open orders
____________ are orders placed on manufacturing or on a vendor and represent a commitment to

make or buy.
1. Planned order releases
2. Releasing orders
3. Scheduled receipts
4. Open orders
______________involves long-range capacity resource requirements and is directly linked to

production planning.
1. Resource planning
2. MRP
3. Capacity requirements planning
4. Rough-cut capacity planning
Resource planning involves changes in staffing, capital equipment, product design, or other
facilities that take a ________ time to ___________.
1. short, acquire and eliminate
2. long, acquire and eliminate
3. short, utilize and change
4. long, utilize and change
The inputs needed for a CRP include:

1. Open shop orders
2. Planned order released
3. Routings
4. All of the above
The Gregorian calendar:

1. Has an equal number of days per month
2. Spreads holidays evenly throughout the year
3. Works on a decimal base
4. Presents problems for manufacturing planning and control
Capacity needs to be measured:

1. At the machine or individual worker level
2. At the work center level
3. At the plant level
4. All of the above
_____________ is the number of hours a work center can be used.

1. Demonstrated capacity
2. Rated capacity
3. Available hours
4. Utilization
Rated capacity is calculated by taking into account the work center ___________.
1. utilization and efficiency
2. utilization and demonstrated capacity
3. efficiency and production
4. efficiency and demonstrated capacity
The term _____________means that the work center is overloaded and the term
________________ means the work center is under loaded.
1. undercapacity, overcapacity
2. overcapacity, under capacity
3. overcapacity, utilization
4. utilization, under capacity
In the _________ run, capacity ________ be adjusted.

1. short, can
2. short, cannot
3. long, cannot
If the workload in a manufacturing plan cannot be changed, an alternative is to:

1. Schedule overtime
2. Schedule undertime
3. Adjust the workforce by hiring
4. All of the above
______________is concerned with the production of high-volume standard products.

1. Flow manufacturing
2. Intermittent manufacturing
3. Product manufacturing
4. All of the above
Routings are fixed and work centers are arranged according to the routing in ________________.
1. flow manufacturing
2. intermittent manufacturing
3. product manufacturing
4. all of the above
Flow of work through the shop is varied and depends on the design of a particular product. In
_____________, as orders are processed, they will take more time at one workstation than at
another. Thus, the work flow is not balanced.
1. flow manufacturing
2. intermittent manufacturing
3. product manufacturing
4. all of the above
An example of project manufacturing is:

1. Gasoline
2. Automobiles
3. Appliances
4. Large shipbuilding
The __________________ contains a list of the single-level components and quantities needed to
assemble a parent item.
1. work center master file
2. item master file
3. product structure file (bill of material file)
4. routing file
The _________________ collects all of the relevant data on a work center.

2. item master file
4. routing file
Each active manufacturing order has a record in the _____________________.

2. item master file
4. shop order master file
_________ is the amount of time the job is waiting at a work center before an operation begins.
1. Queue time
2. Setup time
3. Run time
4. Wait time
The transit time between work centers is ____________.

1. setup time
2. run time
3. wait time
4. move time
_______________ is a method of reducing manufacturing lead time. The order is split into two or
more lots and run on two or more machines simultaneously.
1. Operation overlapping
2. Operation splitting
3. Infinite loading
4. Backward scheduling
On average, manufacturing firms spend about ________ of their sales dollars on the purchase of
raw materials, components, and supplies.
1. 20%
2. 50%
3. 30%
4. 40%
The objectives of purchasing include:

1. Obtaining the goods and services at the highest price
2. Obtaining goods and services of the lowest quality
3. Ensuring the best possible service and prompt delivery by the supplier
4. Obtaining goods and services at any quantity
A ________________ is a legal offer to purchase.

1. quotation
2. purchase order
3. receiving order
4. supplier's invoice
When the supplier's invoice is received, the following should agree:

 The purchase order, the receiving report, and the invoice
 The purchase order, the work order, and the production report
 The receiving report, the quotation, and the material specification
 The material specification, the purchase requisition, and the invoice
In purchasing an item or service from a supplier, which factor is not included when specifications
are being developed?
1. Delivery requirement
2. Quantity requirements
3. Price requirements
4. Functional requirement
________ is the systematic use of techniques that identify a required function, establish a value for
that function, and finally provide the function at the lowest overall cost.
1. Cost analysis
2. Functional analysis
3. Value analysis
4. Functional specifications
_______ is most often used in wholesale or retail businesses but is also used extensively in
manufacturing.
1. Description by brand
2. Description by specification
3. Description by function
4. Description by buyer
___________specifications and standard specifications are the two major sources of specifications
or ways of describing a product.
1. Functional
2. Buyer
3. Marketing
4. Production
______ sourcing is the use of more than one supplier for an item.
1. Single
2. Multiple
3. Sole
4. Engineering
Materials such as copper, coal, wheat, meat, and metals are:

1. Standard products
2. Items of small value
3. Made-to-order items
4. Commodities
_______________ occurs when a customer's order is received.

1. Demand management
2. Forecasting
3. Random variation
4. Order processing
Trends:
1. Are level
2. Have no change from period to period
3. Can rise or fall
4. All of the above
______________ is usually thought of as occurring on a yearly basis, but it can also occur on a
weekly or even daily basis.
1. Seasonality
2. Random variation
3. A cycle
4. A trend
Over a span of several years and even decades, wavelike increases and decreases in the
economy influence demand and are called _________.
1. seasonality
2. random variation
3. cycles
4. trends
______________ demand items need to be forecast.

1. Independent
2. Dependent
3. Both independent and dependent
4. Neither independent nor dependent
The near future holds _____ uncertainty than (as) the far future.
1. less
2. more
3. the same
4. all of the above
_______________ techniques are projections based on judgment, intuition, and informed opinions.
1. Extrinsic forecasting
2. Quantitative forecasting
3. Intrinsic forecasting
4. Qualitative forecasting
The Delphi method:

1. Uses a panel of experts who give their opinion on what is likely to happen
2. Consists of projections based on external indicators that relate to the demand for a
company's products
3. Uses economic indicators, such as housing starts and gasoline consumption, to
forecast demand
4. Uses historical data to forecast demand
Products likely to have seasonal or periodic demand patterns include:

1. Toilet paper and paper towels
2. Toothpaste and deodorant
3. Skis and lawnmowers
4. Milk and meat
______________ exists when the cumulative actual demand varies from the cumulative forecast.
1. Forecast error
2. Random variation
3. Mean absolute deviation
4. Bias
Which of the following is true for supply chain management?
a. The physical material moves in the direction of the end of chain
b. Flow of cash backwards through the chain
c. Exchange of information moves in both the direction
d. All of the above
(Ans:d)

The sequence of a typical manufacturing supply chain is
a. Storage–Supplier–manufacturing–storage–distributor–retailer–customer
b. Supplier–Storage-manufacturing–storage–distributor–retailer–customer
c. Supplier–Storage-manufacturing– distributor–storage–retailer–customer
d. Supplier–Storage-manufacturing–storage– retailer–distributor–customer
(Ans:b)

The purpose of supply chain management is
a. provide customer satisfaction
b. improve quality of a product
c. integrating supply and demand management
d. increase production
(Ans:c)

Logistics is the part of a supply chain involved with the forward and reverse flow of
a. goods
b. services
c. cash
d. all of the above
(Ans:d)

Due to small change in customer demands, inventory oscillations become progressively larger looking
through the supply chain. This is known as
a. Bullwhip effect
b. Netchain analysis
c. Reverse logistics
d. Reverse supply chain
(Ans:a)

VMI stands for
a. Vendor material inventory
b. Vendor managed inventory
c. Variable material inventory
d. Valuable material inventory
(Ans:b)

The major decision areas in supply chain management are
a. location, production, distribution, inventory
b. planning, production, distribution, inventory
c. location, production, scheduling, inventory
d. location, production, distribution, marketing
(Ans:a)

Distribution requirement planning is a system for
a. Inventory management
b. Distribution planning
c. Both ‘a’ and ‘b’
(Ans:c)

Reverse logistics is required because
a. Goods are defective
b. Goods are unsold
c. The customers simply change their minds
d. All of the above
(Ans:d)

3-PL stands for
a. Three points logistics
b. Third party logistics
c. Three points location
(Ans:b)
1. The costs of inventory at various levels and cost of logistics form the total cost of
___.
Ans. Distribution network
2. Distributors and retailers often rely on storage warehouses. (True/False)

Ans. True
3. At ___ level, the decisions are made with long-term objectives. (Pick the right
option)
a) Performance
b) Strategic
c) Tactical
d) Operational
Ans. b) Strategic
4. A company can understand the customer only if it identifies the needs of the ___.
Ans. Customer segment
5. What is demand uncertainty?

Ans. Demand uncertainty is the uncertainty of customers who demand the product.
6. A new product developed will have low supply uncertainty because the design and
production processes will not be fully developed. (True/False)
Ans. False. A new product developed will have high supply uncertainty because the
design and production processes will not be fully developed.
7. Companies that intend to increase the performance level must move their
competitive strategy and supply chain strategy towards the ___.
Ans. Zone of strategic fit
8. Each functional area creates its own independent strategy with the objective of
optimizing its ___.
Ans. Performance
9. The intracompany – intraoperative scope is a scope of strategic fit which is limited

to two operations in a functional area within a company. (True/False)
Ans. False. The intracompany – intraoperative scope is a scope of strategic fit which is
limited to one operation in a functional area within a company.
10. In intracompany – intra-functional scope, different functions have conflicting ___.

Ans. Objectives
11. In intercompany – inter-functional scope, the two parties work together to

minimize the amount of ___ required.
Ans. Inventory
12. Just-In-Time delivery (JIT) is a service provided by ___.

Ans. Package carriers
13. Truck Load shipping is best suited for transportation between manufacturing
facilities and warehouses or between suppliers and manufacturers. (True/False)
Ans. True
14. Rail services are considered as an ideal model for carrying large, heavy, or high-
density products over long distances. (True/False)
Ans. True
15. ___ modes of transportation suit high quantity shipments. (Pick the right option)
a) Air transportation
b) Water transportation
c) Rail transportation
d) Intermodal transportation
Ans. b) Water transportation
16. ___ are mostly used to transport liquid and gases.
Ans. Pipelines
17. Intermodal transportation is a combination of at least two or more modes of

transportation. (True/False)
Ans. True
18. Mass transportation is expensive than transporting goods in small quantities.

(True/False)
Ans. False. Mass transportation is cheaper than transporting goods in small
quantities.
19. Trip-related cost and quantity-related costs remain the same with all carriers.
(True/False)
Ans. False. Trip-related costs and quantity-related costs differ from carrier to carrier.
20. ___ cost includes administrative costs, rent of an office building, and so on.
Ans. Overhead
21. Which of the following is the cost involved in holding goods in a warehouse?
a) Facility cost
b) Processing cost
c) Inventory cost
d) Transportation cost
Ans. c) Inventory cost
22. Facility costs include the fuel of a vehicle used in transportation. (True/False)
Ans. False. Facility cost does not include the fuel of a vehicle used in transportation.
23. ___ cost is the cost involved in direct labor.

Ans. Processing
24. Higher service levels and fast delivery cost more. (True/False)
Ans. True
25. Which of the following are true with respect to traffic assignment?
a) Estimating the volume of traffic on a network
b) Estimating the turning movements at intersections
c) Both a) and b)
Ans. c) Both a) and b)
26. All-or-none assignment model deals with different paths for every O-D pair.
(True/False)
Ans. False. The all-or-none assignment model deals with a single path for every O-D
pair.
27. ___ implements the all-or-none assignment model in steps.

Ans. Incremental assignment
28. The following traffic assignment model tries to estimate an equilibrium solution
based on the all-or-none assignment model.
a) Capacity restraint assignment
b) User equilibrium assignment
c) Incremental assignment
d) System optimum assignment
Ans. Capacity restraint assignment
29. ___ is based on Wardrop’s first principle.

Ans. User equilibrium assignment
30. System optimum assignment model is based on Wardrop’s second principle.

(True/False)
Ans. True
31. For a high value-to-weight ratio shipment, increasing inventories is important.

(True/False)
Ans. False. For a high value-to-weight ratio shipment, decreasing inventories is
important.
32. As the degree of inventory aggregation increases, the cost of transportation goes
up. (True/False)
Ans. True
33. Temporal aggregation of demands in a limited amount reduces the cost of

transportation effectively. (True/False)
Ans. True
34. Which of the following is the approach that is learned and mastered by
experience and self-learning?
a) Heuristic approach
b) Exact approach
c) Interactive approach
d) Combination approach
Ans. a) Heuristic approaches
35. ___ approach is also known as the Optimal approach.

Ans. Exact
36. Interactive approach is approaching that use tools like simulation, cost
calculation, and graphics. (True/False)
Ans. True
37. Combinational approach focuses on time and money-saving as a result of

decreasing vehicle operating expenses, giving better services to customers, and
improving productivity in fleet management. (True/False)
Ans. True
38. ___ modes of transportation best suit time-sensitive and emergency shipments.
(Pick the right option)
a) Air
b) Truck
c) Pipeline
d) Water transportation
Ans. Air
39. To minimize the supply and demand imbalances in the supply chain, firms utilize
various methods of ___.
Ans. Inventory management
40. ___ represents an investment in a product or material.

Ans. Inventory
41. ___ provides a low-cost service for export production. (Pick the right option)
a) Source facility
b) Offshore facility
c) Contributor facility
d) Outpost facility
Ans. b) Offshore facility
42. Source facilities need to be established in places where production cost is

relatively high. (True/False)
Ans. False. Source facilities prefer to be established in places where production costs
are relatively low.
43. A server facility is established as a result of tax incentives,___, and tariff barriers.
Ans. Local market requisites
44. ___ is established to gain the knowledge and skills of a certain region.
Ans. Outpost facility
45. If facilities have lower fixed costs many local facilities can be established because
this reduces ___
a) Fixed costs
b) Exchange rates
c) Transportation costs
d) Taxes
Ans. c) Transportation costs
46. The availability of good infrastructure is an important pre-condition to locate a

facility in a region. (True/ False)
Ans. True
47. Taxes and ___ affect the profits of a firm.

Ans. Tariffs
48. The goal of the network design models is to maximize the profit with the ___.
a) Reduction in transportation cost
b) Increased plant capacity
c) Suitable location
d) Satisfaction of the customer needs
Ans. d) Satisfaction of customer needs
49. The variable costs are the costs that are gained without considering the quantity
produced or shipped from a facility. (True/False)
Ans. False. The variable costs are the costs that are gained as a result of the quantity
produced or shipped from a facility.
50. The main objective of the ___ model is to minimize the transportation cost of
both raw materials and finished goods.
Ans. Gravity location
51. The factors such as ___, costs, and also the situations of technology change must
be considered while selecting a location. (Pick the right option)
a) Future demand
b) Cultural independence
c) Taxes
d) Workforce
Ans. a) Future demand
52. It is difficult in most of the supply chains, to change ___ than storage facilities.
Ans. Production facilities
53. The performance of the available workforce and its morale has a great impact on
the quality of life supported in the selected location. (True/ False)
Ans. True
54. The selection of international locations is often decided on the basis of___.
Ans. Tax incentives
55. Physical inventory needs to be done at least once a year, and as often as once a
month, depending on the probability of loss of items. (True/False)
Ans. True
56. The basic equation used for ordering and re-ordering goods by all firms is ___.
Ans. Economic Order Quantity
57. ___ is the total cost of holding inventory.

Ans. Carrying Cost
58. Demand forecasting involves techniques including both informal methods such
as educated guesses and quantitative methods such as the use of historical sales
data or current data from test markets. (True/False).
Ans. True
59. By combining inventory at a single location, the amount of safety stock that is
necessary for a service level ___.
a) Decreases
b) Increases
c) Remains fixed
d) Halves
Ans. a) Decreases
60. Unlike other systems, Thrive Demand Forecasting automatically detects seasonal
patterns where they exist and projects them in the forecast using proprietary
harmonic soothing science. (True/False).
Ans. True
61. ___ is designed to leverage today’s computing power, efficiently crunching the
math required to calculate fresh forecasts.
Ans. Thrive Demand Forecasting
62. Risk pooling involves the use of centralized inventory to gain benefits when
demand is higher than average at some retailers and lower than average at others.
(True/False)
Ans. True
63. Higher the ___, greater the benefit obtained from risk pooling.
Ans. Coefficient of variation
64. ___ bulk shipping has been a part of inventory management for a long time.
Ans. Bulk shipping
65. The fixed order interval models are used when the supply is uniform at uniform
intervals, such as 10 meters of cloth per week. (True/False)
Ans. True
66. The accounts department receives the invoice from the vendor. (True/False)
Ans. True
67. What are routine commodities?

Ans. Routine commodities are many standard items at a low price.
68. Leverage occurs when there is low-to-high expenditure. (True/False)

Ans. False. Leverage occurs when there is medium-to-high expenditure.
69. A ___ adds details to the mission.

a) Business strategy
b) Corporate strategy
c) Functional strategy
d) Vision
Ans. b) Corporate strategy
70. The strategic decision made by the purchasing department is considered as the
___ made in an organization.
Ans. Broader decision
71. For designing a purchase strategy, it is necessary to understand the ___ that in
turn helps to identify what purchasing has to achieve.
Ans. Business objectives
The initial stage of the supply chain process is the _____________.
 Sourcing Stage
 Organizing Stage
 Planning stage
 Directing Stage
View Answer
Planning Stage
The term supply chain management was first coined by ______.
 Frankel & Paulraj
 Peter Drucker
 Keith Oliver
 Philip Kotler
View Answer
Keith Oliver
In supply chain management, after planning, the next step involves
______________.
 Developing
 Building a strong relationship with suppliers
 Sourcing
 All of the above
View Answer
All of the above
In Supply Chain Management, ATP stands for _________.
 Acquire Track & Perform
 Available To Promise
 Active Transport Protocol
 Access To Point
View Answer
Available To Promise
The purpose of supply chain management is to_______.
 increase the production level
 manage and integrate supply and demand management
 enhance the quality of a product and services
 provide satisfaction to the customer
View Correct Answer
To integrate supply and demand management
________is the primary activity of supply chain management.
 Demand Management
 Supply Planning i.e matching assets with demand
 Analytics Workbench
 All of the above
View Correct Answer
All of the above
Another important purpose of supply chain management is to ___________.
 make inventory readily available
 delight customers and suppliers
 create warehouses at various locations
 to promote supply chain process
View Answer
make inventory readily available
________is mainly deals with all activities associated with the flow and
transformation and information of goods from the stage of raw material to the
end user i.e. consumption.
 Marketing Channel
 Production Line
 Supply Chain
 Inventory management
View Answer
Supply Chain
In supply chain management, Inspection, scrap and repair are examples of
________.
 Societal Costs
 External Costs
 Costs of dissatisfaction
 Internal Costs
View Answer
Internal Costs
____________ is a Japanese term meaning continuous improvement.
 JIT
 Kaizen
 TQM
 Taguchi Map
View Answer
Kaizen
EOQ stands for ____
 Electronic Obtained quantity
 Electronic Ordered Quantity
 Economic Order Quality
 Economic Order Quantity
View Answer
Economic Order Quantity
Organisations or companies manage their supply chains through _______.
 Transportation modes
 The internet
 Information
 Skilled Operators
View Answer
Information
The concept and philosophy of supply chain management evolved or emerged
in _______
 The 1960s
 The 1970s
 The 1980s
 The 1990s
View Answer
The 1980s
Full form of MRP in operations and SCM is ___________
 Material Return Process
 Material Requirement Planning
 Machinery Repairing Planning
 Material Retention Planning
View Answer
Material Requirement Planning
The concept of supply chain management originated in ________________
discipline.
 Production Management
 Logistics Management
 Marketing
 Operations Management
View Answer
Logistics
In operations & supply chain management, Kaizen is a Japanese term meaning
__________.
 Change for the better
 Continuous Performance
 Top-level quality
 Use of Kaizala app
View Answer
Change for the better
According to Frankel, Bolumole, Eltantawy, Paulraj& Gundlach, (2008), these
are the four functions identiﬁed as foundational – operations, logistics, supply
management, __________.
 Marketing
 Production
 Materials
 Procurement
View Answer
Marketing
Positive long-term relationships between supply chain participants refer to
______
 Supply chain management
 Partnerships
 Cooperations
 Co-alliances
View Answer
Partnerships
Supply chain management is the management of the ____________.
 Storage Raw Materials
 Flow of goods and services
 Fullfillment of order
 Satisfaction of customer
View Answer
Flow of goods and services
______ is not a part of flows involved in supply chain management.
 Information Flow
 Title Flow
 Physical Flow
 Virtual Flow
View Answer
Virtual Flow
___________ involve the transformation, movement, and storage of goods and
materials.
 Virtual Flow
 Physical Flow
 Title Flow
 Information Flow
View Answer
Physical Flow
A supply chain is a sequence of firms that perform activities
required to ______
 to facilitate wholesalers inventory selections
 to create synergy in their training programs
 to find products that are similar
 to create and deliver goods to consumers
View Answer
to create and deliver goods to consumers

1

Uploaded by

Copyright:

Available Formats

1

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

1

Uploaded by

Copyright:

Available Formats

1. Logistics grew from the _________ function of supplying troops in the field.

51. Stevedores are appointed by

c. Colour Coding System

d. None of the above

View Correct Answer

d. None of the above

View Correct Answer

3. Which of the following is not a component of 4PL?

View Correct Answer

4. Which of the following is not a part of Supply chain Management system?

View Correct Answer

5. _________ includes design and administration of systems to control the

d. None of the above

View Correct Answer

d. None of the above

View Correct Answer

d. None of the above

View Correct Answer

8. ________ is the provision of service to customers before, during and after a

d. None of the above

View Correct Answer

9. Buying according to the requirements is called ______

b. Hand to mouth buying

View Correct Answer

2. Which is not a part of basic systems of codifications?

3. ……………and physical distribution are the two major operations of

4. …………is the time that elapses between issuing replenishment

5. ……………is the task of buying goods of right quality, in the right

6. Which of the following is not a component of 4PL?

7. Which of the following is not a part of Supply chain Management

9. Buying according to the requirements is called …………

A good planning system must consider:

_______ is the capability of manufacturing to produce goods and services.

The _____________________ is a plan for the production of individual end items.

____________ is the first step in a manufacturing planning and control system.

The information needed to develop an MPR includes:

A schedule is satisfactory when:

The objectives in developing an MRP include:

To reach its objectives, the master production schedule must:

The first step in preparing an MPS is:

Critical resources in rough-cut capacity planning include:

It is possible to increase the available capacity by:

All major inputs to the MRP system include:

Inventory serves as a buffer between:

_______is a measure of customer service.

Storing inventory requires ___________________ and as inventory increases, so do these costs.

Liabilities are obligations or amounts owed by a company and include:

________ is the costs incurred in the process of making revenue.

____________ are orders placed on manufacturing or on a vendor and represent a commitment to

______________involves long-range capacity resource requirements and is directly linked to

The inputs needed for a CRP include:

The Gregorian calendar:

Capacity needs to be measured:

_____________ is the number of hours a work center can be used.

In the _________ run, capacity ________ be adjusted.

If the workload in a manufacturing plan cannot be changed, an alternative is to:

______________is concerned with the production of high-volume standard products.

An example of project manufacturing is:

The _________________ collects all of the relevant data on a work center.

In the _ run, capacity be adjusted.