Which of the following is one of the inputs of MRP?

• A) Master schedule plan
• B) Bills of records
• C) Planned orders
• D) Inventory schedule plan

Series of time intervals during which order changes are allowed or restricted is known as:

• A) Capacity requirements planning
• B) Closed-loop MRP
• C) Time fences
• D) Load reports

Which of the following is Not a requirement for effective inventory management?

• A) Forecast of demand
• B) Determination of suppliers
• C) Knowledge of lead time
• D) Classification system

Which of the followings is not the requirement of MRP?

• A) Bills of materials
• B) Lot sizing
• C) Master schedules
• D) Accurate and up-to-date

When operations manager focuses on their organization’s competitive advantage they aim for consistent quality with reductions in inventory and:

• A) Employee motivation
• B) Flexibility
• C) Low cost of production
• D) Decreases in productivity

Key lean manufacturing principles include:

• A) Continuous improvement
• B) Waste minimization
• C) All of the given
• D) Pull processing

Which of the following is a common feature of inventory models?

• A) Profit maximization
• B) Cost minimization
• C) Minimizing setup times
• D) Lead time minimization

Which one of the following refers to inventory turnover?

• A) A ratio of work in process to the average inventory investment
• B) A ratio of cost of carrying cost to the average inventory investment
• C) A ratio of cost of goods sold to the average inventory investment
• D) A ratio of cost of assets to the average inventory investment

Organizations following JIT philosophy require encouraging ________ concept between organization’s purchasing department, supplier, management and labor.

• A) Flexibility
• B) Re engineering
• C) Partnership
• D) Good housekeeping

Aggregate plans are updated

• A) Twice a year
• B) Periodically
• C) At project end
• D) Once a year

If a firm subcontracts 300 units of a product ‘A’, with the subcontracting cost of Rs. 3 per unit. What would be the total subcontracting cost?

• A) Rs. 297
• B) Rs. 900
• C) Rs. 100
• D) Rs. 303

Identify the set of factors that affect the choice of a strategy for aggregate planning.

• A) Cost and corporate profits
• B) Cost and location analysis
• C) Cost and training of employees
• D) Cost and capacity constraints

Which of the following is Not an assumption of economic order quantity model?

• A) No constraints on size of each lot
• B) No quantity discounts
• C) Demand is always variable
• D) No uncertainty in lead time or supply

There is no inventory buildup when:

• A) Usage and production rates are equal
• B) Orders are frequently placed
• C) Production rate exceeds usage rate
• D) Usage rate exceeds production rate

MPS stands for which of the following?

• A) Master Planning Schedule
• B) Material Production Schedule
• C) Material Planning Schedule
• D) Master Production Schedule

A rule of lot size that maintains the same order quantity each time an order is issued is known as

• A) Economic order quantity model
• B) Lot for lot ordering
• C) Part period model
• D) Fixed period ordering

Capacity options are usually of __________ range in nature

• A) Long
• B) Intermediate
• C) Periodical
• D) Short

Which of the following is not the distinctiveness of just in time suppliers?

• A) Short term contract agreements
• B) The purchaser actually helping the supplier to meet the quality requirements
• C) Scheduling inbound freight
• D) Minimal release paperwork

If a firm subcontracts 600 units of a product ‘A’, with the subcontracting cost of Rs. 6 per unit. What would be the total subcontracting cost?

• A) Rs. 3600
• B) Rs. 594
• C) Rs. 606
• D) Rs. 100

Which of the following mathematical expressions can be employed to compute backorder cost?

• A) Backorder cost per unit × number of backordered units
• B) Backorder cost per unit + number of backordered units
• C) Backorder cost per unit - number of backordered units
• D) Backorder cost per unit /number of backordered units