MOD – 1 – CONCEPT OF PPC
Q1 – Which of the below is not the system of flexible manufacturing system
1. Fabrication
2. Drilling
3. Machining
4. Assembly
Q2 – Which of the following functions of the production planning and controlling is related to the time table of activities?
1. Routing
2. Scheduling
3. Dispatching
4. Expediting
Q3 – Which of the below is not a popular production system?
1. Continuous production
2. Job order production
3. Batch production
4. Project production
Q4 – Which of the following is not the function of Produciton, Planning &Control(PPC)?
1. Routing
2. Scheduling
3. Integration of processes
4. Expediting and follow-up
Q5 – Slope of production possibility curve is _________
1. a straight line
2. convex to the point of origin
3. concave to the point of origin
4. vertical line
Q6 – Which of the following is not a part of Five M’s?
1. Material
2. Machine
3. Motion
4. Method
Q7 – The correct sequence of operations in production planning and control is
1. Routing-Scheduling-Dispatching-Follow up
2. Scheduling-Routing- Dispatching-Follow up
3. Dispatching-Routing-Scheduling- Follow up
4. Routing-Scheduling-Follow up-Dispatching
Q8 – The most popular type of organisation used for Civil Engineering Constructions is
1. Line organization
2. Line and staff organization
3. Functional organization
4. Effective organization
Q9 – Bin card is used in
1. Administrative wing
2. Workshop
3. Foundry shop
4. Stores
Q10 – Which of the following organisation is preferred in automobile industry?
1. Functional organization
2. Line organization
3. Staff organization
4. Line and staff organizations
Q11 – Which of the below layouts is suited to job production?
1. Process layout
2. Product layout
3. Fixed position layout
4. Plant layout
Q12 – The allowed time for a job equals standard time plus
1. Policy allowance
2. Interference allowance
3. Process allowance
4. Learning allowance
Q13 – The procedure of modifying work content to give more meaning and enjoyment to the job by involving employees in
planning, organisation and control of their work, is termed as
1. Job enlargement
2. Job enrichment
3. Job rotation
4. Job evaluation
Q14 – Job evaluation is the method of determining the
1. Relative worth of jobs
2. Skills required by a worker
3. Contribution of a worker
4. Contribution of a job
Q15 – The interchangeability can be achieved by
1. Standardization
2. Better process planning
3. Bonus plan
4. Better product planning
Q16 – Steel, paper, paints, and chemicals are examples of products that use
1. mass production
2. continuous production
3. repetitive production
4. batch production
Production Planning and Control MCQ with Answers
MOD – 2 – FORECASTING, AGGREGATE & CAPACITY PLANNING
Q1 – Exponential smoothing constant
Q2 – Which one of the following methods can be best used for forecasting for the following data?
Year 1 2 3 4
Sales (rs in lakh ) 12 15 17 21
1. regression analysis
2. moving average
3. variance analysis
4. weighted moving average
Q3 – The demand for a product in the month of march turned out to be 30 units against an earlier made forecast of 30 units. The
acutal demand for April and may turned to be 35 and 36 units respectively. What will be the forecast for the month of June using
Exponential smoothing method and taking smoothing constant
1. 32
2. 30
3. 36
4. 38
Solution: FAPRIL = FMARCH + (DMARCH – FMARCH)
= 30 + 0.2 (30 – 30 ) = 30
FMAY = FAPRIL + (DAPRIL – FAPRIL)
= 30 + 0.2 ( 35 – 30 ) = 31
FJUNE = FMAY + (DMAY – FMAY)
= 31 + 0.2 ( 36-31) = 32
Q4 – What is the MAD for the following forecasting data?
Time 1 2 3 4 5
Demand 150 160 165 175 180
Forecast 165 165 165 165 165
1. 9
2. 1
3. 115
4. insufficient data
Q5 – Given an actual demand of 60 for a period when forecast of 70 was anticipated and an alpha of 0.3, what would be forecast
for next period be using simple exponential smoothing?
1. between 60&65
2. 66
3. 67
4. 69
Solution: Ft+1 = Ft + a ( Dt– Ft )
=70 + 0.3 ( 60-70)
= 67
Q6 – If N is the period of moving average the number of demand data to be stored for calculating the moving average for a period
is the demand of last:
1. (N+1) periods
2. (N-1) periods
3. (N) periods
4. (N-2) periods
Q7 – In exponential smoothing method of forecasting the forecast for higher values of the smoothing constant.
1. will be more sensitive to forecast of the previous period
2. will be more sensitive to changing patterns in demands
3. will not be affected by the forecast of the previous period
4. will not be affected by the changing patterns in demands
Q8 – Forecasting which assumes a static environment in the future is:
1. passive forecasting
2. active forecasting
3. long term forecasting
4. short term forecasting
Q9 – In exponential smoothing forecasting to give more weightage to recive demand data exponential smoothing constant must be
nearer to
1. 1
2. 0.5
3. zero
4. -1
Q10 – For a simple moving average forecasting method, as the length of average period increase, the sensitivity of forecast
1. increases but with lagging trend
2. decrease but with lagging trend
3. remains constant
4. had predictable and adverse trend
Q11- A shopkeeper for mobiles forecast the demand at the rate of 1200 per month for the next three months. The actual demand
turned out to be 1000,1420 and 1600. The bias of the forecast will be ________units.
1. 138
2. 140
3. 145
4. 150
Q12 – Choose the wrongly matched:
1. extra polative method: exponential
2. causal method : regression analysis
3. causal method : decomposition method
4. judgementalmethod :delphi method
Q13 – Choose the wrong statement:
1. Extrapolative method is based on past data to establish relation between factors affecting the demand
2. Delphi method is used for long term prediction
3. Adaptive method of forecasting is used when there is rapid demand shift with little randomness
4. Regression analysis is a causal method of forecasting
Q14 – For sales forecasting , pooling of expert opinion is made use of in
1. statistical correlation
2. delphi technique
3. moving average method
4. exponential smoothing method
Q15 – Which of the following is not attribute of moving average method of forecasting?
1. It require large storage of demand data
2. it is easy to install
3. it gives unequal weight to demand in each of the most recent periods
4. it is not capable of taking into account trend and seasonality
Q16 – Forecasts
1. become more accurate with longer time horizons
2. are rarely perfect
3. are more accurate for individual items than for groups of items
4. all of the above
Q17 – One purpose of short-range forecasts is to determine
1. production planning
2. research and development plans
3. facility location
4. job assignments
Q18 – A forecast with a time horizon of about 3 months to 3 years is typically called a
1. long-range forecast
2. medium-range forecast
3. weather forecast
4. strategic forecast
Q19 – Forecasts are usually classified by time horizon into three categories
1. short-range, medium-range, and long-range
2. finance/accounting, marketing, and operations
3. strategic, tactical, and operational
4. exponential smoothing, regression, and time series
Q20 – The three major types of forecasts used by business organizations are
1. strategic, tactical, and operational
2. economic, technological, and demand
3. exponential smoothing, Delphi, and regression
4. causal, time-series, and seasonal
Q21 – Which of the following is not a step in the forecasting process?
1. determine the use of the forecast
2. eliminate any assumptions
3. determine the time horizon
4. select a forecasting model(s)
Q22 – The two general approaches to forecasting are
1. qualitative and quantitative
2. mathematical and statistical
3. judgmental and qualitative
4. judgmental and associative
Q23 – Which of the following uses three types of participants: decision makers, staff personnel, and respondents?
1. executive opinions
2. . sales force composites
3. the Delphi method
4. consumer surveys
Q24 – Which of the following is not a type of qualitative forecasting?
1. executive opinions
2. sales force composites
3. the Delphi method
4. moving average
Q25 – The forecasting model that pools the opinions of a group of experts or managers is known as the
1. sales force composition model
2. multiple regression
3. jury of executive opinion model
4. consumer market survey model
Q26 – Which time series model below assumes that demand in the next period will be equal to the most recent period’s demand?
1. naive approach
2. moving average approach
3. weighted moving average approach
4. exponential smoothing approach
Q27 – Which of the following is not a characteristic of simple moving averages?
1. it smoothes random variations in the data
2. it has minimal data storage requirements
3. it weights each historical value equally
4. it smoothes real variations in the data
Q28 – A six-month moving average forecast is better than a three-month moving average forecast if demand
1. is rather stable
2. has been changing due to recent promotional efforts
3. follows a downward trend
4. follows an upward trend
Q29 – Increasing the number of periods in a moving average will accomplish greater smoothing, but at the
expense of
1. manager understanding
2. accuracy
3. stability
4. responsiveness to change
Q30 – A forecast based on the previous forecast plus a percentage of the forecast error (previous) is a(n)
1. qualitative forecast
2. moving average forecast
3. weighted moving average forecast
4. exponentially smoothed forecast
Q31 – Which of the following values of alpha would cause exponential smoothing to respond the most quickly to forecast errors?
1. 0.00
2. 0.10
3. 0.20
4. 0.40
Q32 – The primary purpose of the mean absolute deviation (MAD) in forecasting is to
1. estimate the trend line
2. eliminate forecast errors
3. measure forecast accuracy
4. seasonally adjust the forecast
Q33 – If the forecast is greater than actual demand than the bias is _____
1. negative
2. zero
3. positive
4. constant
Q34 – Operations generated forecasts often not to do with
1. Inventory requirements
2. Resource needs
3. Time requirements
4. Sales
Q35 – Delphi method is used for
1. Judgemental forecast
2. Time series forecast
3. Associative model
4. long term forecast
Q36- Which of the following is not a forecasting technique?
1. Judgemental
2. Time series
3. Time horizon
4. Associative
Q37 -Aggregate planning is concerned with determining the quantity and timing of production in the
1. next term.
2. intermediate term.
3. short term.
4. long term.
Q38 – Managers typically do not use sophisticated planning models for aggregate planning because
1. research has demonstrated that such models seldom work well.
2. the time periods addressed by such models are too long.
3. these models do not provide information pertinent to the decision at hand.
4. they view these models as overly complex and do not fully understand them.
Q39 – Which of the following aggregate planning strategies requires employing relatively unskilled personnel to be most
effective?
1. using part-time workers
2. varying production rates through overtime or idle time
3. subcontracting
4. back-ordering during high-demand periods
Q40 – Which of the following aggregate planning strategies is likely to have the least impact on quality?
1. varying production rates through overtime or idle time
2. subcontracting
3. changing inventory level
4. using part-time workers
Q41 – The aggregate planning strategies of (1) varying inventory level or (2) back ordering during periods of high demand have
which of the following disadvantages in common?
1. It is difficult to exactly match supply with demand.
2. holding costs
3. Customers may go elsewhere.
4. Quality of output may suffer
Q42 -In the service sector, aggregate planning for the production of high-volume intangible output is directed toward
1. finding the size of the workforce to be employed.
2. planning for human resource requirements and managing demand.
3. attempting to manage demand to keep equipment and employees working.
4. smoothing the production rate.
Q43 – Which of the following is NOT a mathematical approach to aggregate planning?
1. graphical and charting methods
2. transportation method
3. linear decision rule (LDR)
4. management coefficients model
Q44 – Which of the following is NOT a capacity option of aggregate planning?
1. varying production rates through overtime or idle time
2. back ordering during high-demand periods
3. changing inventory levels
4. subcontracting
Q45 – Which of the following is NOT a demand option of aggregate planning?
1. counterseasonal product and service mixing
2. back ordering during high-demand periods
3. using part-time workers
4. influencing demand
Q46 – Which aggregate planning technique is a trial and error approach that permits many solutions?
1. the linear decision rule
2. Bowman’s management coefficients model
3. graphical and charting methods
4. the transportation method of linear programming
Q47 -The transportation method of aggregate planning requires that
1. cost factors be linear and positive.
2. the number of rows be greater than the number of columns.
3. beginning inventory be zero.
4. ending inventory be zero.
Q48 – Which statement is characteristic of a mixed strategy for aggregate planning?
1. Mixed plans are less complex to develop than a chase plan.
2. Mixed plans are less complex to develop than a level plan.
3. Mixed plans seek a minimum cost via a combination of eight planning options
4. Mixed plans typically yield a worse strategy than a pure plan.
Q49 – Advanced planning systems for aggregate planning rely heavily on ________ to deliver their full potential.
1. forecasting
2. constraints
3. data accuracy
4. the supply chain
Q50 – Aggregate planning is concerned with determining
1. the production level, sales level, and capacity for each period.
2. the demand level, inventory level, and capacity for each period.
3. the production level, inventory level, and capacity for each period.
4. the production level, staffing level, and capacity for each period.
Q51 – Aggregate planning solves problems involving
1. aggregate decisions or stock keeping unit (SKU) level decisions.
2. stock keeping unit (SKU) level decisions rather than aggregate decisions.
3. aggregate decisions rather than stock keeping unit (SKU) level decisions.
4. aggregate decisions and stock keeping unit (SKU) level decisions.
Q52 – Aggregate planning, to be effective, requires inputs from
1. throughout the supply chain.
2. all customers.
3. all departments
4. all suppliers.
Q53 – Which of the following is an approach a company can use to create a buffer for forecast error using safety inventory?
1. Build and carry extra inventories
2. Overtime
3. Carry extra workforce permanently
4. Subcontracting
Q54 – When formulating aggregate plans,
1. forecast accuracy is assumed.
2. forecast accuracy is not a factor.
3. forecast errors must be taken into account.
4. forecast errors have no impact.
Q55 – What is the name of the plan that breaks apart the aggregate plan into distinct product families?
1. Master production schedule
2. SKU aggregate plan
3. Rough cut capacity plan
4. Process plan
Q56 – What information does a master production schedule provide that an aggregate plan does not?
1. Revenue information for the planning period
2. Specific product family production information
3. Expense information for the planning period
4. A specific machine schedule for each order
Q57 – The strategy where workforce (capacity) is kept stable but the number of hours worked is varied over time in an effort to
synchronize production with demand is the
1. chase strategy.
2. flexibility strategy.
3. mixed strategy.
4. level strategy.
Q58 – The quality of the aggregate plan can be improved by using information from
1. only the local firm.
2. only upstream partners.
3. all parts of the supply chain.
4. only downstream partners.
Q59 -The planning horizon is
1. the length of time required to produce the aggregate plan.
2. the duration of each time period in the aggregate plan.
3. the solution to the aggregate plan.
4. the time period over which the aggregate plan is to produce a solution.
Q60 – The goal of aggregate planning is to
1. satisfy demand in a way that maximizes profit.
2. dissatisfy customers in a way that maximizes profit.
3. dissatisfy customers in a way that minimizes profit.
4. satisfy demand in a way that minimizes profit
Q61 – The fundamental trade-offs available to an aggregate planner are between
1. capacity, inventory, and backlog costs.
2. capability, inventory, and backlog costs.
3. capacity, inventory, and sales costs.
4. capability, inventory, and sales costs.
Q62 – The aggregate plan should be communicated to
1. all supply chain partners who will be affected by it.
2. only downstream partners.
3. only the local firm.
4. only upstream partners
Q63 – Much of aggregate planning has traditionally been focused
1. on customer relationship management.
2. beyond enterprise boundaries.
3. on short-term production scheduling.
4. within an enterprise
Q64 – A poor aggregate plan can result in
1. appropriate inventory levels
2. efficient use of capacity.
3. lost sales and lost profits.
4. better sales and lost profits
Q65 – The typically time horizon for aggregate planning is
1. less than a month
2. 3 – 18 months
3. upto 3months
4. over a decade
