Production and Operations Management

81. What are the four stages of Simon's model of decision making?

  1. Intelligence, design, choice, implementation
  2. Intelligence, design, computation, implementation
  3. Information, design, choice, implementation
  4. Intelligence, data, choice, implementation
Correct answer: (A)
Intelligence, design, choice, implementation

82. Which of the following best describes 'formal information'?

  1. Produced by standard procedures. Passed by word of mouth
  2. Produced by standard procedures. Objective
  3. Objective. Passed by word of mouth
  4. Subjective. Based on estimates
Correct answer: (B)
Produced by standard procedures. Objective

83. MRP stands for:

  1. Master Resources Production
  2. Management Reaction Planning
  3. Materials Requirements Planning
  4. Manufacturing Resource Planning
Correct answer: (C)
Materials Requirements Planning

84. A master production schedule contains information about

  1. Quantities and required delivery dates of all sub-assemblies
  2. Quantities and required delivery dates of final products
  3. Inventory on hand for each sub-assembly
  4. Inventory on hand for each final product
Correct answer: (B)
Quantities and required delivery dates of final products

85. Optimized production technology (OPT) is a computer-based technique and tool which helps to schedule production systems. Which of the following are not principles of OPT?

  1. Capacity is "king"
  2. Balance flow is what is required
  3. Process batch should be variable
  4. Bottlenecks govern throughput
Correct answer: (A)
Capacity is "king"

86. MPS stands for:

  1. Master Planning System
  2. Master Production Schedule
  3. Material Production Schedule
  4. Material Planning System
Correct answer: (B)
Master Production Schedule

87. A master production schedule contains information about

  1. Quantities and required delivery dates of all sub-assemblies
  2. Quantities and required delivery dates of final products
  3. Inventory on hand for each sub-assembly
  4. Inventory on hand for each final product
Correct answer: (B)
Quantities and required delivery dates of final products

88. Dependent demand and independent demand items differ in that

  1. For any product, all components are dependent-demand items
  2. The need for independent-demand items is forecasted
  3. The need for dependent-demand items is calculated
  4. All of the above are true
Correct answer: (D)
All of the above are true

89. A master production schedule specifies

  1. The financial resources required for production
  2. What component is to be made, and when
  3. What product is to be made, and when
  4. The labor hours required for production
Correct answer: (C)
What product is to be made, and when

90. Closed Loop MRP means:

  1. Actual inventory is counted regularly and adjustment made to the inventory records
  2. Capacity and resource planning is included in the MRP logic
  3. Unused materials are returned to stores and recorded back into the system
  4. Actual sales are netted off the forecasts in the MPS
Correct answer: (B)
Capacity and resource planning is included in the MRP logic
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