1. Of the following choices, which would be the preferred method to minimize system nervousness?

A) Increase the order quantities B) Increase the lead time C) Use firm planned orders D) Ignore the exception messages 2. All of the following are basic grouping methods to store and locate stock in a warehouse except: A) Items related functionally B) Items in sequential SKU number C) Items which are physically similar D) Items which are fast moving 3. A company wants to produce 1000 units over the next four months using a level strategy. The months have 20, 21, 19 and 22 working days in each one. Based on this strategy, how much would be produced in the first month? A) 244 B) 254 C) 260 D) 262 4. The ABC Manufacturing company has cross functional teams that include manufacturing and design engineers, and representatives from marketing, finance, manufacturing, materials and suppliers. In this cooperative environment, the teams are rewarded according to their ability to bring market driven product designs to customers quickly and at a price that is possible only because they avoid unnecessary costs. This approach to new product design is known as: A) design for manufacturability. B) quality function deployment. C) voice of the customer. D) engineering change management. 5. The practice of giving non-managerial employees responsibility and decision making authority in their daily work is best defined as employee: A) productivity. B) empowerment. C) involvement. D) management. 6. Sometimes a periodic review system is the most effective method to manage inventory. For which of the following conditions would this method be used? I. Raw materials required in production

Basic Supply Chain Management

II. Small issues from inventory and transactions are expensive III. Order costs are small IV. Many items are ordered together A) I, II, and III B) I, III, and IV C) II, III, and IV D) I, II, and IV 7. If the critical ratio is less than 1, an order is: A) ahead of schedule. B) on schedule. C) behind schedule. D) already late. 8. Rough cut capacity planning can be best described as: A) checking to be sure that critical resources are available to support the preliminary MPS. B) making sure warehouse space is available for raw materials. C) making certain the load at each work center is less than capacity. D) ensuring resources are available by product family. 9. A supplier certification verifies that a supplier: A) has perfect quality built into each part manufactured. B) maintains, improves and documents effective procedures. C) has been ISO certified. D) has had a significant quality audit to verify its quality. 10. A closed loop MRP system can be best defined as: A) action taken by a planner to approve planned orders. B) re-planning of capacity to accommodate restraints. C) integrated planning and control system with feedback from the bottom-up. D) integrated systems which include financial software, finite capacity, and logistics. 11. Which of the following manufacturing types would typically have the longest delivery time? A) Make-to-order B) Engineer-to-order C) Make-to-stock D) Assemble-to-order 12. A very important aspect of lean manufacturing is a process called 5 S. 5 S can be best described as which of the following? A) A simple line design process B) An organization and clean up process C) A set up reduction process

Basic Supply Chain Management

D) A kanban calculation process 13. When a company has historical data available for use in forecasting future demand, the technique for utilizing this data is called: A) qualitative forecasting techniques. B) extrinsic forecasting techniques. C) intrinsic forecasting techniques. D) causal forecasting techniques. 14. Production activity control can be best described as a (an): A) planning system. B) execution system. C) scheduling system. D) ordering system. 15. Supplier partnerships can be an effective tool in lowering material costs. Which of the following is not the most effective way to use supplier partnerships? A) Work with suppliers to involve them early in the design process. B) Negotiate with two suppliers for the lowest landed price. C) Assist suppliers in reducing their internal costs and share the savings. D) Work together on a new product project to make the supply chain more efficient. 16. In a traditional MRP system, the production planner releases a requisition to purchasing who would create a purchase order from that release. In recent years, the concept of a buyer/planner has become common. The main reason for this change is a (an): A) changing schedule can be easily achieved by the supplier. B) improved communication with supplier personnel. C) smoother flow of information and materials between the supplier and the factory. D) reduction in headcount. 17. All of the following are principles of bottlenecks except: A) Using a non-bottleneck 100% of the time does not produce 100% utilization B) The capacity of the production process depends on the capacity of the bottleneck C) Time saved at the bottleneck saves nothing D) Capacity and demand must be considered together 18. A work center includes four machines working 16 hours per day, five days per week. What is the weekly available time? A) 80 hours B) 160 hours C) 320 hours D) Not enough information to determine 19. Demand on a work center is caused by the next work center. Product is not made unless signaled by the next work center. This is called:

Basic Supply Chain Management

A) push system. B) pull system. C) demand system. D) MRPII system. 20. A market boundary can be defined as the: A) geographic boundary of a region. B) line where the laid down cost is the same from two supply sources. C) line where shipments in one distribution center equals another. D) mileage boundary where shipment costs exceed the margin to be gained.

Basic Supply Chain Management