1. A typical supply chain would include which of the following?
A. Suppliers
B. Manufacturers
C. Distribution
D. All of the above
E. None of the above
2. If the “cost of goods sold” for a company is $1,000,000 and the “average aggregate inventory value” is $25,000, which of the following is the “inventory turnover”?
A. 10
B. 25
C. 40
D. 50
E. None of the above
3. Which of the following “transportation modes” provides flexibility in delivery, timing and at reasonable rates for small quantities and over short distances?
A. Rail
B. Highway (trucking)
C. Water
D. Pipeline
E. Air
4. Which type of industry has only “medium” expected benefits from the use of MRP?
A. Assemble-to-stock
B. Fabricate-to-stock
C. Assemble-to-order
D. Fabricate-to-order
E. Process
5. Which of the following is an objective under an MRP system?
A. To improve customer service
B. Minimize inventory investment
C. Maximize production operating efficiency
D. All of the above
E. None of the above
6. Which of the following is one of the three main inputs into an MRP system?
A. BOM file
B. Exception report
C. Planning report
D. All of the above
E. None of the above
7. Which of the following are reasons why a Lot-For-Lot (L4L) method of lot sizing can be used in an MRP application?
A. Minimizes carrying costs
B. Sets planned orders to exactly match the net requirements
C. Produces exactly what is needed
D. Does not carry any units over into future periods
E. All of the above
8. In MRP, workload per work center can be determined. When the work capacity is exceeded, which of the following options can be implemented to correct the imbalance of workload?
A. Work overtime
B. Renegotiate the due date and reschedule
C. Subcontract to an outside shop
D. All of the above
E. None of the above
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