Production and Operations Management

131. __________________ calculates the timing and quantities of material orders needed to support the master schedule.

  1. Sale and operations planning
  2. Distribution requirements planning
  3. Material requirements planning
  4. Master production schedule
Correct answer: (C)
Material requirements planning

132. Which of the following lot-sizing techniques is likely to prove the most complex to use?

  1. Part period balancing (PPB)
  2. The Wagner-Whitin algorithm
  3. Economic order quantity (EOQ)
  4. Lot-for-lot
Correct answer: (B)
The Wagner-Whitin algorithm

133. __________________ is a time phased approach to managing the physical distribution environment with dependent demand logic.

  1. Master production schedule
  2. Distribution requirements planning
  3. Sale and operations planning
  4. Material requirements planning
Correct answer: (B)
Distribution requirements planning

134. The list of quantities of components, ingredients, and materials required to produce a product is the

  1. Bill-of-materials.
  2. Engineering change notice.
  3. Purchase order.
  4. Master schedule.
Correct answer: (A)
Bill-of-materials.

135. When a bill-of-materials is used in order to assign an artificial parent to a bill-of-materials, it is usually called a

  1. Phantom bill-of-materials.
  2. Planning bill-of-materials.
  3. Modular bill-of-materials.
  4. Pick list.
Correct answer: (B)
Planning bill-of-materials.

136. __________________ can be seen as the amount of new inventory created by production.

  1. Scheduled receipts
  2. Gross requirements
  3. Planning horizon
  4. Available to promise
Correct answer: (D)
Available to promise

137. A lot-sizing technique that generates exactly what was required to meet the plan is

  1. The Wagner-Whitin algorithm.
  2. Economic order quantity.
  3. Lot-for-lot.
  4. Part period balancing.
Correct answer: (C)
Lot-for-lot.

138. The operations manager has several tools available to deal with MRP system nervousness. Those tools are

  1. Pseudo bills and kits.
  2. Time fences and pegging.
  3. Buckets with back flush.
  4. Net and gross requirements.
Correct answer: (B)
Time fences and pegging.

139. __________________ is the amount of materials necessary to support production of the required output in the next higher level in the bill of materials.

  1. Planning horizon
  2. Available to promise
  3. Net requirements
  4. Gross requirements
Correct answer: (D)
Gross requirements

140. Breaking up the order and running part of it ahead of schedule is known as

  1. Operations splitting.
  2. Lot splitting.
  3. Pegging.
  4. Overlapping.
Correct answer: (B)
Lot splitting.
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