QN1. The 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 gross requirements for N are
a. 150
b. 170
c. 300
d. 320
Answer
Answer: : C
QN2. The MPS calls for 50 units of Product A and 60 ofb. There are currently 25 of Product B on hand. Each A requires 2 of Part C; each B requires 5 ofc. There are 160 units of C available. The net requirements for C are
a. 115
b. 175
c. 240
d. 690
Answer
Answer: : A
QN3. The MPS calls for 110 units of Product A, there are currently 60 of Product A on hand. Each A requires 4 of Part B, there are 20 units of B available. The net requirements for B are
a. 20
b. 120
c. 180
d. 240
Answer
Answer: : C
QN4. In MRP record calculations, the appearance of a negative value for the gross requirements of an end item in a specific time bucket
a. signals the need to purchase that end item in that period
b. implies that value was scheduled by the MPS
c. signals the need for a negative Planned Order Receipt in that period
d. is impossible
Answer
Answer: : D
QN5. A material requirements plan contains information with regard to all of the following except
a. quantities and required delivery dates of all sub-assemblies
b. quantities and required delivery dates of final products
c. the capacity needed to provide the projected output rate
d. inventory on hand for each final product
Answer
Answer: : C
QN6. The number of units projected to be available at the end of each time period refers to
a. net requirements
b. scheduled receipts
c. the projected usage of the item
d. the amount projected to be on hand
Answer
Answer: : D
QN7. Linking a part requirement with the parent component that caused the requirement is referred to as
a. net requirements planning
b. a time fence
c. pegging
d. Kanban
Answer
Answer: : C
QN8. In MRP, system nervousness is caused by
a. management’s attempt to continually respond to minor changes in production requirements
b. the use of the lot-for-lot approach
c. management’s marking part of the master production schedule as “not to be rescheduled”
d. the use of phantom bills of materials
Answer
Answer: : A
QN9. One of the tools that is particularly useful in reducing the system nervousness in the MRP system is (are)
a. modular bills
b. time phasing
c. time fences
d. lot sizing
Answer
Answer: : C
QN10. A major strength of MRP is its capability
a. to minimize labor hours used in production
b. for timely and accurate replanning
c. to reduce lead times
d. to maximize production throughput
Answer
Answer: : B
QN11. Material requirements plan specify
a. the quantities of the product families that need to be produced
b. the quantity and timing of planned order releases
c. the capacity needed to provide the projected output rate
d. the costs associated with alternative plans 6
Answer
Answer: : B
QN12. Which of the following statements is true about the MRP plan when using lot-for-lot ordering?
a. The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent.
b. The quantity of gross requirements for a child item is equal to the quantity of net requirements for its parent(s) multiplied by the number of child items used in the parent assembly.
c. The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent.
d. The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent.
Answer
Answer: : B
QN13. Which of the following lot-sizing-techniques results in the lowest holding costs?
a. lot-for-lot
b. EOQ
c. part-period-balancing
d. Wagner-Whitin algorithm
Answer
Answer: : A
QN14. 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
Answer
Answer: : A
QN15. For the lot-for-lot lot-sizing technique to be appropriate
a. future demand should be known for several weeks
b. setup cost should be relatively small
c. annual volume should be rather low
d. item unit cost should be relatively small
Answer
Answer: : B
QN16. MRP II is accurately described as
a. MRP software designed for services
b. MRP with a new set of computer programs that execute on micro-computers
c. MRP augmented by other resource variables
d. usually employed to isolate manufacturing operations from other aspects of an organization
Answer
Answer: : C
QN17. Enterprise Resource Planning (ERP) is
a. severely limited by current MRP computer systems
b. not related to MRP
c. an advanced MRP II system that ties-in customers and suppliers
d. not currently practical
Answer
Answer: :
QN18. The extension of MRP which extends to resources such as labor hours and machine hours, as well as to order entry, purchasing, and direct interface with customers and suppliers is
a. MRP II
b. Enterprise Resource Planning
c. the master production schedule
d. closed-loop MRP 7
Answer
Answer: : B
QN19. Distribution Resource Planning (DRP) is
a. a transportation plan to ship materials to warehouses
b. a time-phased stock replenishment plan for all levels of a distribution network
c. a shipping plan from a central warehouse to retail warehouses
d. material requirements planning with feedback loop from distribution centers
Answer
Answer: : B
QN20._ handling and sharing has become a vital process for efficient and effective working of any organisation.
a. Material
b. Resource
c. Information
d. Database
Answer
Answer: : c
QN21.__ became the fundamental concept of production management and control.
a. BOM
b. MRP
c. ERP
d. MRP II
Answer
Answer: :b
QN22. In the _, ERP packages were targeted at the manufacturing industry.
a. 1970’s
b. 1990’s
c. 1980’s
d. 1960’s
Answer
Answer: :b
QN23.The _ should plan well and execute perfectly the implementation of ERP.
a. Organisation
b. System developers
c. Vendors
d. Top Management
Answer
Answer: :b
QN24.Which is one of the most critical steps in the ERP implementation?
a. Creation of Organisational Model
b. Creation of Integrated Data Model
c. Creation of Business Model
d. Creation of Data Model
Answer
Answer: :b
QN25. What is one of the key resources of every organisation, in today’s competitive business environment?
a. Employee
b. Information
c. ERP
d. Database
Answer
Answer: :b
QN26. When a customer needs to check the performance of the company before he places an order, which department has to be in a position to provide the necessary information?
a. Production
b. Quality
c. Marketing
d. Finance
Answer
Answer: :c
QN27. In an integrated data model, what gives a snapshot of the organisation at any given time?
a. ERP
b. Database
c. Management
d. MIS
Answer
Answer: :b
QN28. OLAP stands for:
a. On-Line Analytical Processing
b. On-Line Account Processing
c. On-Line Arithmetic Processing
d. On-Line Application Processing
Answer
Answer: :a
QN29. Data mining is the process of identifying valid, new, potentially useful, and ultimately clear __ from databases.
a. Decision
b. Strategies
c. Information
d. Account
Answer
Answer: :c
QN30. EIS stands for:
a. Executive Interaction System
b. Executive Interconnecting Systems
c. Executive Information Systems
d. Executive Instrumental Systems
Answer
Answer: :c
QN31. DSS is quite ___ and is available on request.
a. Structured
b. Non-structured
c. Semi-structured
d. Unstructured
Answer
Answer: :d
QN32. ERP system is built on a __ utilising a common computing platform
a. Centralised database
b. Individual databases
c. Modular databases
d. Centralised layout
Answer
Answer: :a
QN33. Which of the following is an example for commercial ERP
a. ERP5
b. Microsoft Dynamics AX
c. Compiere
d. Fisterra
Answer
Answer: :b
QN34. NPV is the abbreviation of
a. Net Present Variation method
b. Net Present Value method
c. Neutral Present Value method
d. Net Preventive Value method
Answer
Answer: :c
QN35. ERP vendors usually design their systems around standard business processes, based upon ________
a. Business standards
b. Global standards
c. Best business practices.
d. Best profitable standards
Answer
Answer: :c
QN36. The _ module’s internal functions do not directly interact with the data or processes of other modules.
a. Finance
b. Quality Management
c. Sales and Distribution
d. Plant Maintenance
Answer
Answer: :b
QN37. Which among the following systems can be assigned to a cost centre directly which illustrates the interface to the cost accounting system?
a. FAPA
b. Purchasing
c. Sales and Distribution
d. CASO
Answer
Answer: :d
QN38. Which system provides the foundation for creating concurrent business processes across the supply chain and achieving Return on Assets (ROa. improvement?
a. Finance
b. Inventory
c. Manufacturing
d. Sales
Answer
Answer: :c
QN39. The processes described in the quality manual can be implemented and automated in the EDP system. Here what does EDP stand for?
a. Electronic Data Processing
b. Electronic Dictionary Project
c. Electrical Data Processing
d. Employee Development Plan
Answer
Answer: :a
QN40. What is the key to MRP?
a. Quantity of requirements for components are based upon the structure of the Bill of Material.
b. Production of requirements for components are based upon the structure of the Bill of Material.
c. Time-phasing of requirements for components are based upon the structure of the Bill of Material.
d. Capacity of requirements for components are based upon the structure of the Bill of Material.
Answer
Answer: :c
