Materials Management Quiz 2 - Production Planning & Forecasting

Which of the following statements is best regarding order winners?

• they persuade a company's customers to choose its product

• they are the same in every market

• they are the same as order qualifiers, only better

• they are present in every product

• all the above are true

Which of the following strategies has the shortest delivery lead time and the least customer input?

• engineer-to-order

• make-to-order

• assemble-to-order

• make-to-stock

Which of the following is NOT an activity of physical supply/distribution?

• transportation

• factory inventory

• warehousing

• packaging

• materials handling

Materials management can be considered a balancing act because:

I. There are trade-offs between customer service and the cost of providing the service.

II. Priority and capacity must be balanced.

• neither I nor II

• I only

• II only

• I and II

If the cost of manufacturing (direct labor and materials) is 50% of sales and profit is 15% of sales, what would the profit percentage be if the direct costs of manufacturing was reduced from 50% to 47%?

• 3%

• 6%

• 12%

• 15%

• 18%

Making a pizza at a fast-food restaurant would be considered a form of:

• Engineer to order

• Assemble to order

• Make to stock

• Make to order

• None of the above

If the manufacturing lead time of an item is reduced by 50% the work in process inventory:

• Does not change

• Is reduced by approximately 70%

• Is reduced by approximately 50%

• More information is needed for this problem

The ability of manufacturing to produce goods and services is called:

• scheduling

• production planning

• capacity

• routing

• none of the above

Which of the following is an input to the production plan?

• strategic business plan

• financial plan

• market plan

• engineering plan

• all of the above are inputs

Which of the following is a basic strategy in developing a production plan?

• hybrid strategy

• production leveling

• chase strategy

• a and b above

• b and c above