The order-picking procedure where a number of people simultaneously pick for a specific order is

called Batch picking. 41. All of the following are good reasons for scheduling the warehouse except

a. Reducing or eliminating overtime costs

b. Increasing direct labor requirements

c. Increasing levels of customer service

d. Increasing visibility to future requirements

42. Warehousing exists in the distribution environment primarily because of

a. Discontinuity of demand

b. Transportation effectiveness

c. Competitive pressures

d. Customer service

43. You are the warehouse manager for a company that has decided to offer a promotion that is

expected to last for six months. What type of warehousing would you use to ensure that stock is

available?

a. Private

b. Public

c. Contract

d. In transit

44. In developing a warehouse network, perhaps the most critical factor is

a. Cost of inventory

b. Distance from the customer

c. Distance from supply warehouse or manufacturing plant

d. Cost of transportation

45. The type of work done in a warehouse is changing to include:

a. pricing of individual products for specific customers

b. product mixing on pallets for shipment to customers

c. labelling of products for customers

d. all of the above

SCM-523: Supply Chain Implementation and Operations [ASSIGNMENT # 2]

pg. 9 of 18

46. Poor performance in the receiving area can lead to all of the following except:

a. lost material

b. unhappy customers

c. inaccurate inventory records

d. improved supplier relations

e. difficulty in tracking errors

47. Which of the following is NOT typically a valid reason for keeping inventory?

a. improve customer service levels

b. reduce annual costs of ordering inventory

c. to buffer against erratic supply of goods

d. to improve cash flow by reducing inventory carrying costs

48. Which of the following would not be considered an advantage of having a safe workplace?

a) Managing blanket orders

b) Process order changes

c) Deal with out-of-stock situations

d) Staging orders prior to shipment

49. The order-picking procedure where a number of people simultaneously pick for a specific order is called:

a. Batch picking

b. Discrete order picking

c. Wave picking

d. Zone picking

50. Control systems such as bar coding are of most benefit to:

a. Getting more information faster, to data processing

b. Reducing writing and recording

c. Reducing operator errors

d. all of the above

51. Which of the following would be a result of order processing errors?

a. Wrong product

b. Missing product

c. Incorrect quantity

d. All of the above could be a result of order processing errors

SCM-523: Supply Chain Implementation and Operations [ASSIGNMENT # 2]

pg. 10 of 18

52. The order-picking procedure where one order picker fills each line on an individual order

is called:

a. Batch picking

b. Discrete order picking

c. Wave

d. Zone picking

53. Which type of warehousing is defined as “the property, facility, and accompanying storage and

material handling equipment are normally owned and operated by the firm”?

a. Private

b. Public

c. Contract

d. Storage-in-transit

54. Which type of Third Party Logistics (3PL) offers services related to: financial settlement, global

trade, consulting, logistics management, warehouse location, and supplier management?

a. Warehousing

b. Logistics

c. Transportation

d. Special services

55. What warehouse performance measure, is used to measure the “volume of product storage and

retrieval transactions completed in a given unit of time”?

a. Order picking accuracy

b. Shipping accuracy

c. Storage utilization

d. Throughput.

56. In the order shipping flow process, what step follows the order picking activity

a. Order posting

b. Order staging

c. Packaging

d. Order loading.

57. Which activity is not included in the warehouse stocking function?

a. Receiving put-away

b. Product movement between locations

c. Product balance count verification

d. Product delivery and unloading.

SCM-523: Supply Chain Implementation and Operations [ASSIGNMENT # 2]

pg. 11 of 18

58. If you are making up a production schedule using the lot-for-lot replenishment method, which of

the following equations would you use to determine the planned order receipt (assuming you

know the gross amount required and the amount of inventory on hand)?

a. Gross requirement alone

b. Gross requirement minus scheduled receipts

c. Gross requirement minus projected amounts on hand and scheduled receipts

d. Gross requirement plus projected amounts on hand and scheduled receipts

59. Which of the following constitutes a major, direct output of material requirements planning?

a. Rough-cut capacity planning

b. Master production schedule

c. Marketing plan

d. Planned production/purchase orders

60. Which of the following is an input to the material requirements plan (MRP)?

a. Gross to net calculations

b. Rough-cut capacity planning

c. Master production schedule

d. Resource planning

61. Which of the following production strategies allows for mass customization without long lead

times?

a. Assemble-to-order

b. Make-to-stock

c. Make-to-order

d. Lean production

62. Which of the following is the primary focus of master scheduling (MS)?

a. Production amounts for individual products

b. Aggregate production amounts for product components or ingredients

c. Aggregate production amounts for product families

d. Production amounts for individual product components or ingredients

63. How often, under normal circumstances, does a pre-S&OP meeting take place?

a. Weekly

b. Monthly

c. Quarterly

d. Annually

SCM-523: Supply Chain Implementation and Operations [ASSIGNMENT # 2]

pg. 12 of 18

64. The S&OP planning team might decide to adopt a chase production strategy because it offers

which of the following benefits?

a. Reduction of resource costs during demand periods

b. Protection against a sudden need to hire temp workers in production

c. More predictable production scheduling

d. Reduced inventory holding costs

65. When a restaurant pursues a chase production strategy, at the points of highest and lowest load,

capacity key performance indicators for hourly labor and perishable inventory should show that

there is

a. too little capacity at the highest load and just the right amount of capacity at lowest load.

b. just the right amount of capacity at both highest and lowest load.

c. the right amount of capacity at highest load and too much capacity at lowest load.

d. too much capacity at the highest and lowest load.

66. Which of the following features was a drawback in the early versions of MRP software?

a. Failed to include component lead times

b. Assumed infinite capacity

c. Lacked an automated bill of materials

d. Made extra work for the scheduler

67. Which one of the following conditions is a potential drawback of lot-for-lot replenishment when

items must be ordered frequently?

a. High inventory costs

b. Inventory build-up

c. High setup costs

d. Incompatibility with JIT

68. Which of the following is a process in which marketing must stay most involved in to prevent the

issue from transforming the organization’s product from an order qualifier or winner into an order

loser?

a. Increasing raw material quality

b. Increasing distribution centers

c. Reducing capacity to match load

d. Reducing manufacturing cycle times

69. The major purpose of the sales and operations plan (S&OP) is to

a. develop a single set of supply/demand numbers for all stakeholders.

b. balance sales and output of end items.

c. provide a binding contract between sales and operations.

d. obtain startup financing from bankers and investors.

SCM-523: Supply Chain Implementation and Operations [ASSIGNMENT # 2]

pg. 13 of 18

70. What is the rated capacity for a work site that has 80 hours of available time, has a utilization

rate of 90 percent, an efficiency rating of 80 percent, and a demonstrated capacity of 63.4 hours?

a. 57.6 standard hours

b. 62.9 standard hours

c. 64.0 standard hours

d. 72.0 standard hours

71. Which one of the following would appear in the routing file?

a. Work center efficiency

b. Work center ID

c. Work center capacity

d. Work center utilization

72. In distribution requirements planning (DRP), the key difference between a push system and a pull

system is whether

a. area warehouses are authorized to order inventory replenishment.

b. production orders are scheduled or triggered by demand.

c. distribution centers can order from each other or only from the plant.

d. materials are issued by job order or await a signal from an operator.

73. Which one of the following is an objective of production activity control (PAC)?

a. Minimize work in process

b. Develop the monthly production schedule

c. Provide input to rough-cut capacity plan

d. Execute S&OP

74. Which of the following would be a typical time horizon for sales and operations planning?

a. One week to one month

b. One month to one quarter

c. 12 to 18 months

d. 18 months to three years

75. Pegging refers to the ability to make a connection between the required numbers of a specific

component and which of the following?

a. Demand for the parent according to the MRP

b. Demand forecast according to the MPS

c. Specific work center according to the routing file

d. Capacity plan according to the MPS

SCM-523: Supply Chain Implementation and Operations [ASSIGNMENT # 2]

pg. 14 of 18

76. If you know the actual hours worked at a work center and want to calculate its efficiency, you

also need to know which of the following?

a. Available time

b. Standard hours of output

c. Number of workers or machines

d. Utilization

77. Which of the following would be included in a list of dependent demand items?

a. Computer hard drives delivered to the computer manufacturer for installation depending on

customer request

b. Computer audio subsystems delivered to a computer superstore for sale as upgrade items

c. Car mirrors delivered to an automotive dealership as repair parts

d. Shirts delivered to a retailer for stocking on shelves

78. A metal stamping company produces multiple items in their thin steel processing area. At a recent

S&OP meeting, a need for an additional stamping press was identified though resource planning.

Which of the following was an input to verify the need?

a. Bill of materials

b. Kanban

c. Action plan

d. Resource profile

79. Which of the following would provide a sound method for grouping products into product families

for the operations plan?

a. Appeal to a particular age group

b. Similar seasonality

c. Similarity of manufacturing processes

d. National market destination

80. Which of the following would not be an acceptable measurement of output for an operations plan

for use by operations managers?

a. Numbers

b. Tons

c. Euros

d. Liters

81. Which of the following would contain information such as machine setup and run time?

a. Order release form

b. Master production schedule

c. Component bill of materials

d. Route sheet.

SCM-523: Supply Chain Implementation and Operations [ASSIGNMENT # 2]

pg. 15 of 18

82. Which of the following meetings is typically used to arrive at a consensus between plant managers, logistics managers, schedulers, customer service managers, and other supply chain managers prior to involving executives in sales and operations planning (S&OP)?

a. S&OP meeting

b. Supply planning meeting

c. Demand planning meeting

d. Pre-S&OP meeting.

83. The sales and operations plan would include which of the following?

a. Monthly production figures by product family

b. Weekly production figures by individual SKU

c. Monthly production figures by individual manufacturing center

d. Monthly production figures for individual SKUs

84. If a make-to-stock organization with stable demand is expanding plant capacity using an overlapping demand stepwise expansion strategy, when it has capacity in excess of demand, it should produce goods at

a. minimum capacity.

b. the average level of expected demand.

c. the current level of actual demand.

d. maximum capacity.

85. Which of the following provides a point of reference for formulating sales and operations planning?

a. Production forecast

b. Business plan

c. Marketing plan

d. Financial plan

86. Item A is constructed over one week using Parts B and C. Part B has a lead time of two weeks and Part C has a lead time of four weeks. A week after Part C was ordered, the scheduler discovers Part B will have an additional week of lead time. Which of the following should the scheduler do?

a. Order Part B in one week since offsetting has sufficient slack to meet the schedule.

b. Regenerate the entire plan since this will affect offsetting of the final deadline.

c. Order Part B as per the original schedule but issue a net change to delay the last task.

d. Immediately order Part B and issue a net change so no other rescheduling is needed.

SCM-523: Supply Chain Implementation and Operations [ASSIGNMENT # 2]

pg. 16 of 18

87. In distribution requirements planning, what is the net requirement for the central factory for a given week if its two distribution centers have planned order releases of 100 and 200 units respectively and the central factory has a projected available balance of 100 units, scheduled receipts of 200 units, and keeps 100 units of safety stock?

a. 0 units

b. 100 units

c. 200 units

d. 700 units

88. An organization’s business plan calls for directly competing in developing markets rather than working through intermediaries as before. Which of the following would identify this deficiency in capacity?

a. Capacity control

b. Capacity requirements planning

c. Cross-functional planning

d. Resource planning.

89. Which of the following could be subject to alteration as the result of decisions made in an executive S&OP meeting?

a. Debt versus equity levels

b. Weekly production schedules

c. Marketing plans

d. Product features

90. During rough-cut capacity planning (RCCP), a bottleneck resource has unused capacity during a planning week and too much load in the next week. Which of the following should the master scheduler do?

a. Reconcile the unused capacity by increasing production to stock

b. Send the plans forward to the MRP scheduler

c. Revise the schedule

d. Send the plans laterally to demand management

91. Which of the following production strategies sometimes meets resistance from distribution centers because of the increased demands for skill training and capacity expansion?

a. Make-to-stock

b. Assemble-to-order

c. JIT

d. Make-to-order

SCM-523: Supply Chain Implementation and Operations [ASSIGNMENT # 2]

pg. 17 of 18

92. For make-to-stock production, the master production schedule includes production dates for which of the following?

a. Components

b. Customer options

c. End items

d. Product families

93. Which of the following actions would be the best choice if the load scheduled for a work site exceeds its rated capacity?

a. Reduce the load by cancelling orders.

b. Require workers to work overtime.

c. Shift work to another work center with available capacity.

d. Order more safety stock.

94. DRP helps prevent shortages at supplying sites and overstocking at ordering sites by originating orders ___, evaluating them at ___ locations before being ___ to determine the actual need at the ordering location and availability of goods at receiving sites.

a. upstream; ordering; planned

b. upstream; supplying; released

c. downstream; ordering; planned

d. downstream; supplying; released

95. Which of the following internal operation financial measures can show when normal manufacturing processes are taking longer than usual?

a. Raw material inventory costs vs. standard

b. WIP value, labor, and overhead cost vs. standard

c. Financial results of modifying capacity related to labor or overhead variations

d. Maintenance costs per period or equipment downtime and cost of downtime

96. If a salesperson needs to expedite an order but the order would need to be filled by altering production of items inside a planning time fence, with whom would the salesperson negotiate this change?

a. Supply chain manager

b. Senior management

c. The salesperson can make this change without needing approval

d. Master scheduler.

SCM-523: Supply Chain Implementation and Operations [ASSIGNMENT # 2]

pg. 18 of 18

97. In a master scheduling grid, the planning horizon relates to the cumulative lead time in which of the following ways?

a. Planning horizon is always less than the cumulative lead time

b. Planning horizon is always equal to the cumulative lead time

c. Planning horizon is equal or greater than the cumulative lead time

d. Planning horizon is less than or equal to the cumulative lead time

98. A salesperson makes a delivery promise that is prior to the customer’s delivery request date because this customer is in the most valuable customer segment. If the order arrives instead at the delivery request date, the customer will most likely be

a. satisfied due to the perfect fill rate.

b. dissatisfied due to unacceptable speed of performance.

c. satisfied due to perfect order fulfillment.

d. dissatisfied due to heightened customer expectations.

99. The master schedule shows inventory on hand of 150 items, scheduled production of 500 items, and booked orders of 400 items. Which of the following is the correct number of available-to-promise items?

a. 150

b. 250

c. 500

d. 650

100. The prior period’s projected available balance (PAB) is 40 units. The master production schedule for the period plans 30 units. Customer orders are 20 units. The forecast is 30 units. What is the PAB if this period is within the slushy zone?

a. 40 units

b. 50 units

c. 60 units

d. 90 units