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1.

Which of the following best describes the strategic importance of short-term scheduling?
A) Effective scheduling, through lower costs, faster delivery, and more
dependable schedules, can provide a competitive advantage.
B) Effective scheduling is a tactical tool for increasing demand to meet
production.
C) Forward scheduling looks to future demand levels in order to increase
customer satisfaction.
D) Aggregate planning is a tactical action, but short-term scheduling is strategic
because of its immense impact on costs.
E) Short-term scheduling matches capacity to demand during the short term, three
to eighteen months into the future.

2.
The three components that can lead to competitive advantage through effective
scheduling are:
A) aggregate planning, intermediate scheduling, and medium-term planning.
B) forward scheduling, real-time scheduling, and backward scheduling.
C) the item master file, the routing file, and the work-center master file.
D) lower costs, faster delivery, and more dependable schedules.
E) Gantt charts, Johnson's rule and the Pareto principle.

3.
A firm uses graphical techniques in its aggregate planning efforts. Over the next twelve
months (its intermediate period) it estimates the sum of demands to be 105,000 units. The
firm has 250 production days per year. In January, which has 22 production days,
demand is estimated to be 11,000 units. A graph of demand versus level production will
show that:
A) the January requirement is below level production of 420 units.
B) level production is approximately 1000 units per day.
C) level production of 420 units per day is below the January requirement.
D) level production is approximately 420 units per month.
E) the firm must hire workers between December and January.

4.
Which of the following statements regarding finite capacity scheduling (FCS) is false?
A) Finite capacity scheduling allows delivery needs to be balanced against
efficiency.
B) Finite capacity scheduling overcomes the disadvantages of systems based
exclusively on rules.
C) Finite capacity scheduling allows virtually instantaneous change by operators.
D) Finite capacity scheduling software formalizes the same data needed in any
manual system.
E) None; all of the above are true.

5.
The number of kanbans is:
A) one.
B) the ratio of the reorder point to container size.
C) the same as EOQ.
D) one full day's production.
E) none of the above.

6.
Which of the following techniques is not a technique for dealing with a bottleneck?
A) Schedule throughput to match capacity of the bottleneck.
B) Increase capacity of the constraint.
C) Have cross-trained employees available to keep the constraint at full operation.
D) Develop alternate routings.
E) All are tools for dealing with bottlenecks.

7.
A master production schedule (MPS) calls for 110 units of Product M. There are
currently 30 of Product M on hand. Each M requires 4 of Component N. There are 20
units of N on hand. The net requirements for N are:
A) 150.
B) 170.
C) 300.
D) 320.
E) 440.

8.
Dependence on an external source of supply is found in which of the following aggregate
planning strategies?
A) Varying production rates through overtime or idle time
B) Subcontracting
C) Using part-time workers
D) Back ordering during high demand periods
E) Hiring and laying off

9.
Five jobs are waiting to be processed. Their processing times and due dates are given below.
Using the shortest processing time dispatching rule, in which order should the jobs be
processed?
Job Processing Time (days) Job due date (days)
A 4 7
B 7 4
C 8 11
D 3 5
E 5 8
A) A, B, C, D, E
B) C, E, A, D, B
C) B, D, A, E, C
D) D, A, E, B, C
E) C, E, A, D, B

10.
Enterprise resource planning (ERP):
A) seldom requires software upgrade or enhancement.
B) does not integrate well with functional areas other than operations.
C) is inexpensive to implement.
D) automates and integrates the majority of business processes.
E) all of the above.

11.
Which of the following aggregate planning strategies is a "capacity option"?
A) Influencing demand by changing price
B) Counterseasonal product mixing
C) Influencing demand by extending lead times
D) Changing inventory levels
E) Influencing demand by back ordering

12.
The probability that a product will function properly for a specified time under stated
conditions is:
A) functionality.
B) maintenance.
C) durability.
D) reliability.
E) fitness for use.

13.
What lot-sizing technique is generally preferred when inventory holding costs are
extremely high?
A) Lot-for-lot.
B) EOQ.
C) Part-period balancing.
D) The Wagner-Whitin algorithm.
E) All of the above are appropriate for the situation.

14.
MRP II is accurately described as:
A) MRP software designed for services.
B) MRP with a new set of computer programs that execute on microcomputers.
C) MRP augmented by other resource variables.
D) an enhancement of MRP that plans for all levels of the supply chain.
E) a new generation of MRP software that extends MRP to planning and
scheduling functions.

15.
Ten high-technology batteries are tested for 200 hours each. One failed at 20 hours; all
others completed the test. FR(%) is ________ and MTBF is ________.
A) 10%; 1/1820
B) 90%; 1/1820
C) 10%; 1820 hours
D) 10%; 1980 hours
E) Cannot calculate from information provided

16.
The typical time horizon for aggregate planning is:
A) less than a month.
B) up to 3 months.
C) 3 to 18 months.
D) over one year.
E) over 5 years.

17.
Which of the following aggregate planning strategies might direct your client to a
competitor?
A) Using part-time workers
B) Subcontracting
C) Changing inventory level
D) Varying production rates through overtime or idle time
E) Varying work force size by hiring or layoffs

18.
Which of the following statements regarding MRP in services is true?
A) MRP is for manufacturing only, and is not applicable to services.
B) MRP can be used in services, but only those that offer very limited
customization.
C) MRP does not work in services because there is no dependent demand.
D) Services such as restaurant meals illustrate dependent demand, and require
product structure trees, bills-of-material, and scheduling.
E) None of the above is true.

19.
Which of the following is an aid used to monitor jobs in process?
A) A Gantt load chart
B) The assignment method
C) A Gantt schedule chart
D) Johnson's rule
E) None of the above

20.
Which of the following is specifically characterized by a focus on continuous
improvement, respect for people, and standard work practices?
A) Just-in-time (JIT)
B) Toyota Production System (TPS)
C) Lean operations
D) Material requirements planning (MRP)
E) Kanban

21.
Which of the following costs tend to be ignored in determining the optimal maintenance
policy?
A) Expected breakdown costs
B) Preventive maintenance costs
C) The costs associated with various levels of commitment to maintenance
D) Cost of low morale
E) all of the above

22.
Which of these aggregate planning strategies adjusts capacity to match demand?
A) Back ordering.
B) Using part-time workers.
C) Counterseasonal product mixing.
D) Changing price.
E) None of the above is a capacity option.

23.
Which of these is among the demand options of aggregate planning?
A) Subcontracting.
B) Back-ordering during high-demand periods.
C) Changing inventory levels.
D) Varying workforce size.
E) All of the above are demand options.

24.
Which of these is not a characteristic that makes yield management attractive?
A) Demand can be segmented
B) Service can be sold in advance of consumption
C) Capacity is easily changed
D) Variable costs are low and fixed costs are high
E) Demand fluctuates

25.
Which one of the following statements about maintenance is true?
A) The optimal degree of preventive maintenance is associated with zero
breakdowns.
B) Breakdown maintenance is proactive.
C) Preventive maintenance is reactive.
D) Preventive maintenance is limited to keeping machinery and equipment
running.
E) Human resources are a major component of effective maintenance
management.