How can the utilization of warehouse asset be measured?
Floor space used / floor space available
inventory turnover / investment
Cubic volume used /cubic volume available
inventory turnover / revenue
A business produces a product family with eight different products. The supplier lead times is three weeks for all components except one that has a six week lead time. Which of the following MPS formats should be employed in such situation?
What is distribution requirements planning used for?
The planning of material replenishment
The planning of transportation
The planning of manufacturing
The planning of warehouse space
A collaboration between an organization and its customers regarding forecast information has which of the following effects?
Increased product quality
Increased customer satisfaction
Improved forecast accuracy
Extended forecast timeframe
A logistics practice that eliminates or reduces the need for storage is called ..
Random location stocking
Using both an MPS and FAS which of the following environments is expected to reach the highest on-time customer performance level?
Which of the following is an activity where distributions and materials management should collaborate?
Determination of safety stock policies
A company produces personalized keychains. The delivery time is stated as eight days after order receipt. Which of the following elements of the sales and operations planning process will most likely be unimportant to management?
An organization that is not able to provide customers with information regarding product availability would benefit from which of the following activities?
Increasing forecast availability
Increasing frequency of inventory auditing
Providing customer service with capable-to-promise information
Providing customer service with available-to-promise information
What is safety stock used for at the MPS level?
A buffer for seasonal demand fuctuation
A buffer for production
A hedge against uncertain demand
A protection against systematical errors in the plannign process
A company plans to store 20,000 boxes in pallets stacked four high. Each pallet will hold 50 boxes. How many pallet positions will be required?
What does the total cost trade-off for distribution transportation costs compare the transportation cost with?
The risk of inventory loss
maintaining a large fleet of trucks
Esatblishing multiple transportation channels
”Which of the following manufacturing environments would have an order decoupling point that is closest to the customer? “
Assemble to order
Engineer to order
Which of the following techniques is usually employed in long-range forecasting?
Qualitative and extrinsic
Quantitative and Extrinsic
Intrinsic and Extrinsic
Qualitative and Quantitative
Which of the following would be the most likely outcome for a company that uses lot-for-lot ordering for its distribution center?
Reduction of material shortages
Decreased logistics cost
Erratic demand in the supplying warehouse
Distribution inventory faces the risk of …
Required relocation due to poor planning
Conflicts with the Shipping Schedule
A lack of qualified warehouse personal
A lack of storage space
Which of the following is a key element that influences the determination of the size of a new warehouse
Monthly maintenance costs for the facility
The number of product families produced
The knowledge of inventory and performance requirements necessary for providing customer service
Amount of shelves required to store the highest anticipated inventory level.
An organization that utilizes a level production strategy and increases inventory levels prior to a high demand season should expect which of the following inventory turns?
Constant before high demand season, decreasing during high demand season
Decreasing before high demand season, decreasing during high demand season
Increasing before high demand season, decreasing during high demand season
Decreasing before high demand season, increasing during high demand season
A company that employs a make-to-order strategy plans to introduce a new product family that will meet a broad range of market demands. Which production strategy should the organization apply in the introduction stage of the new product family?
An enterprise utilizes moving average forecasting. The process is conducted monthly, and the company has multiple customers with varying demands. In such situation, which of the following is most likely a reason for an outliner?
An order that is much larger than usual orders
An order that is much larger than usual orders
Actual demand is smaller than initially predicted
Actual demand is larger than initially predicted
The implementation of lean principles within distribution would include which of the following activities?
The reduction of employees in material handling to save money
Establishment of a company owned distribution fleet
Introduction of smaller lot sizes
The reduction of waste within material handling
Which of the following information is available in the MRP process to support the final assembly schedule?
A master scheduler struggles to maintain a balanced schedule due to randomly occurring overload conditions among multiple production units in a stable but maturing production line. Which of the following is a probable cause for such situation?
Late supplier shipments
Missed production schedules
Inacurate inventroy data
Late product shipments
Which of the following is not true regarding scheduled receipts and planned order releases?
Scheduled receipt explode to gross requirements for components
Planned orders are easier to change than scheduled receipts
The planned order release represents a plan
The scheduled receipt represents a commitment
The improvement of forecast accuracy supports which of the following actions?
Decreasing delivery lead times
Decreasing manufacturing lead time
A difference between infinite and finite capacity planning is that finite capacity planning …
Considers how much can be produced in a certain time period, taking limitations of different resources into consideration
Leaves the decision-making with the management rather than issuing schedules without visibility of all the decision variables
Utilizes a larger planning time frame
Does not consider resource constraints
Which of the following production planning systems is employed by a company that monitors orders and inventory levels daily, generates manufacturing orders weekly, and processes these orders the following week to keep stock at a steady level?
Which of the following results would be expectable when an organisation follows a chase strategy?
Low inventory and many capacity changes
High inventory and few capacity changes
High inventory and many capacity changes
Low inventory and few capacity changes
How does CRM support lean principles?
It excludes wasteful customers
It enables lean production
It creates demand for the lean process
It embraces quality at the source
A company has an annual demand of 600 units and plans to cut its backlog from six to three month. What is the number of units that should be included in the production plan?
TQM and CRM support each other because …
Both concepts focus on customer satisfaction
Both are tools to manage the relationship between a company and its customers
Both approaches are based on ISO 9001
Both philosophies are fundamental concepts that focus on product quality
An order approach where planned orders are exploded through MRP to become gross requirements and input for the master production schedule is …
Time-phased order point
Material requirements planing
Distribution resource planning
Within forecasting decomposition could be described as …
The use of multiple sets of forecast data to make outcomes more reliable
A validation method that specifies the degree too which forecast data represents actual demand
The analysis and evaluation of forecasting methods
The separation of time series data into trend, seasonality, and cyclical data
Which of the following is a reason for the use of public warehouses rather than private distribution centers?
Lower capital investment
Better utilization rate
Better customer service
Which of the following forecasting methods utilizes the average demand for a particular number of periods before the period forecasted?
What is the purpose of having inventory at a distribution center?
Improved customer service
Decresased safety stock
Decreased warehousing cost
It acts as hedge inventory
Which of the following planning functions are carried out at the same frequency
Strategic planning and distribution requirements planning
Business planning and sales and master scheduling
Production planning and marketing planning
Business planning and production scheduling
What does cycle time in a distribution network refer to?
The time it takes to manufacture one standard unit
The time from order receipt to product shipment
The time from customer need to product delivery
The average time it takes to manufacture one order
What are the four concerns of S&OP planning?
Volume, mix, production, inventory
Demand, mix, sales, supply
Volume, mix, sales, supply
Volume, mix, demand, supply
What would be the best reason to develop a manpower plan as part of the S&OP process in a make-to-stock environment?
Management can determine the workforce efficiency necessary for future investments
So that employees are well informed about their working times and can prepare for the requirement of shift work
Increases in production volume may cause overtime and the need for temporary workers
It provides a general overview of the workload of each work center
A company that produces large amounts of a product family which includes standard and custom sizes, as well as unique designs, would use which of the following measures to validate the production plan?
Amount of material used
Standard units produced
Which of the following is not a typical task of an MRP planner?
Rescheduling of due dates
Production input/output control
Elimination of root causes of errors
Which of the following information is required, during the strategic operations planning process?
Historical statements of financial position
Workforce efficiency rate
The company’s purpose
A business that utilizes a central location to make decisions and fulfill its distribution network employs which of the following system?
Three warehouse employees work eight hours shifts seven days a week. If utilization during the last 30 days was 90%, what was the amount of time spent processing orders?
Which of the following is the most likely result of an overloaded master schedule with three weeks of past due orders?
Mistakes in the concurrent engineering process that lead to delays
The supplier delivers parts earlier than needed
Occurrence of a new bottleneck
The supplier has trouble keeping up the quality which leads to product rejection
In a make-to-stock environment where a company produces plenty of product families, which of the following is the most challenging planning activity?
What are two risks that are related to international distribution?
Operational profitability and cultural issues
Differing market needs and local competition
Global competition and transportation cost
Differing market needs and language barriers
What most significant factor that affects the number of assemblies in an assemble-to-order environment?
Amount of end products produced
What is considered to be the best time to measure master scheduling performance?
At the same time inventory counts are performed
After the first productio run
MSP performance should be measured constantly
At a time where actual production can be compared to planned targets
What are the main elements of advanced planning and scheduling?
Demand planning, material requirements planning, production scheduling, distribution planning, distribution requirements planning
Demand planning, material requirements planning, master production scheduling, distribution planning, distribution requirements planning
Demand planning, material requirements planning, production scheduling, distribution planning, transportation planning
Demand planning, production planning, production scheduling, distribution planning, transportation planning
What is the overall purpose of the production planning process?
The integration of business and operations plan
It acts as a basis for demand forecasting
Check the production mix developed in the sales and operation plan meeting.
Communicating the business plan throughout the entire organization
The amount of items shown in the MPS should be …
Higher than the amount on the production plan
Less than the amount on the business plan
Equal to the amount on the business plan
Equal to the amount on the production plan
What is not included in the available-to-promise calculation?
Safety stock quantity
Which of the following does an extensive backlog symbolize in an engineering-to-order environment?
Not enough engineers
Missed production schedules
What kind of demand benefits from aggregation?
Which of the following refers to the average of a group of numbers?
Which of the following information could result in the most severe errors within the master production schedule?
Production lead time
An items low-level code represents which of the following?
The planning detail in which material requirements of an item are planned
The importance of the item in an assembly
The frequency of inventory auditing for the item
The lowest level on which the item is used in an assembly
The objective of a modular BOM is amongst others …
the facilitation of forecasting
the support of the master production schedule
the reduction of parts on stock
the increasing of product flexibility
The best option for organizing the movement of goods through a network composed of warehouses, distribution centers, and a manufacturing facility is …
Capable-to-promise is most useful in which of the following production environments?
Make-to-stock and assemble-to-order
Make-to-order and make-to-stock
Engineer-to-order and assemble-to-order
Assemble-to-order and make-to-order
In the planning hierarchy, what comes after the business plan?
Master production schedule
Sales and operations plan
What could be a cause of error in a sales forecast based entirely on shipment history?
Changes in marketing
Changes in product features
Changes in demand
A production plan that measures operational performance requires that management …
Provides every employee with a paper copy of the plan
Sticks to the plan once it is developed
Clearly communicates the expectations of the plan
collaborates with customers in the development of the plan
A method that is used to analyze and plan logistics as well as manufacturing is …
Advanced planning and scheduling
Additional warehouses in a distribution network usually cause … ?
Increased shipping cost to the warehouses
Increased shipping cost to the customer
Decreased warehousing cost
Increased total transportation cost
The sales and operations demand management process would not be concerned with which of the following matters?
Determination of appropriate forecasting methods
Manual override of forecasts
Changes in customer demand
New product assembly line capacity
To streamline the sales and operations planning review process, a company should employ which of the following methods?
Only review part of the period under consideration
Assign the review to lower level employees
Create reports with the highest possible level of detail to assure that all problems are reviewed
Identify and assess out of tolerance conditions only
The demand of a distribution center is 20,000 TV units a year. The distribution center operates 251 days a year, the lead time from the central warehouse is ten days, and the safety stock is 300. Which of the following numbers represents the order point for the tv’s?
A product sells at a much higher rate as initially projected. To make the smoothed forecast used to predict future sales as responsive as possible which of the following alpha factors should be used?
Whch of these tasks is part of the physical distribution system?
Ordering subassemblies for the final assembly
Transporting material between work centers
Training of distribution management personnel
What would be the result if the demand would exceed the forecast for multiple periods?
Larger safety stock requirements
Bottlenecks in manufacturing
Unnecessary high inventory levels
A company that provides warehousing, freight forwarding and distribution to other businesses is called …
Third party logistics provider
A sales forecast for a particular period can be described as a companies …
Expected sales for that period
Expected sales for the next period
What is the benefit of storing high demand items together in a distribution center?
Reduction of picking times
Reduced storage space requirements
Increased inventory turnover
Simplified inventory auditing
When making order promises which of the following should be considered?
Availability of material and capacity
On-hand inventory cost
What does PLC analysis focus on?
Production rates under laboratory conditions
Product sales within life cycle stages
Product liability claims
Product life changes and hence factors that influence the lifespan of a product
Which of the following functions encompasses accounting for a finishing lead time of a product?
Master production scheduling
Lead time scheduling
Final assembly scheduling
Which of the following is not criucial to physical distribution planning?
Customer delivery promises
Inventory resupply shipments
Inventory turnover ratio