1.

In the context of Production Planning system, what is called, what products are needed, how many are needed and
when they are needed? Priority.
2. In terms of Production Planning System what do you mean the capability of manufacturing to produce goods and
services? Capacity.
3. What do you call a statement of the major goals and objectives of the company expects to achieve over the next 2 to 10
years or more? Strategic Business plan.
4. What is called a plan for the production of individual end items which breaks down the production plan to show, for
each period, the quantity of each end item to be made? Master Production Schedule.
5. Under which plan the production and purchase of the components used in making the items, which shows the
quantities need and when manufacturing intends to make or use than? Material Requirement Planning.
6. There are five major levels in the Manufacturing Planning and Control System. Which one of the following is not a Major
Level of this?
(a) Production Plan
(b) Material Requirement Plan
(c) Process Specification
(d) Master Production Schedule
(e) Strategic Business plan
(f) Available Facilities
7. Push manufacturing system is a : MRP-based system.
8. The strategic business plan is a statement of the major goals and objectives of the company expects to achieve over the
next 2 to 10 years or more.
9. In the context of Materials Management, MRP II stands for : Manufacturing Resource Planning.
10. The material requirement plan establishes when the components and parts are needed to make each end item. The
planning horizon is at least as long as the combined purchase and manufacturing lead times. As with the Master
Production Schedule, it usually extends from? 3 to 18 months.
11. In the context of Production Planning System, APICS an abbreviation for? American Production and Inventory Control
System.
12. What is called producing always at the level of minimum demand and meeting any additional demand through
subcontracting? Subcontracting.
13. Which one statement with regard to Resource Bill is not correct?
(a) It is a document acknowledging the receipt of certain specified goods for carriage.
(b) It specifies the port of shipment, the destination and the condition under which the goods are received for carriage.
(c) It possesses some characteristics of a negotiable instrument.
(d) it is the quantity of critical resources (materials, labour and bottleneck operations) needed to make one average
unit of the product group.
14. What is the definition of Production leveling? Producing continually an amount equal to the average demand.
15. Frozen Zone: Capacity and materials are committed to specific orders.
16. Slushy Zone: Capacity and Material are committed to less extent. It is an area for trade-offs that must be negotiated
between marketing and manufacturing.
17. Liquid Zone: Any change can be made to the MPS as long as it is within the limits set by the production plan.
18. The Demand Time Fence: the number of periods, begins with period 1, in which changes are not accepted due to
excessive cost caused by schedule disruption.
19. Which one of the following is not one of the steps in making an MPS?
(i) Production Plan
(ii) Develop a Preliminary MPS
 (iii) Check the Preliminary MPS against available capacity
(iv) Resolve differences between Preliminary MPS and Capacity availability.
20. What is called assembly to customer order? Final Assembly Schedule.
21. What is the purpose of “Final Assembly Schedule”? It is used when there are many options and it is difficult t of forecast
which combination the customers will want.
22. What is the ATP(Available to Promise)? It is that portion of a firm’s inventory and planned production that is not already
committed and is available to the customer.
23. What is time fence? It is the number of periods, beginning with period 1, in which changes are not accepted due to
excessive cost caused by schedule disruption.
24. In the context of material management, MRP II stands for what: Manufacturing Resource Planning.
25. Planned orders(Future) is one of the output information of the MRP
26. Priority planning and control is a function served by Master Production Schedule(MPS)
27. Material Requirement Planning establish a schedule(Priority Plan) showing the components required at each level of
the assembly and, based on lead times, calculates the time when these components will be needed.
28. What is a Bill of Material Processor in terms of Material Requirement Planning? The Computer Software program that
organizes and maintains the Bills structures and their linkages.
29. A statement of which end items are to be produced, the quantity of each, and the dates they are to be completed is
called…….? Master Production Schedule.
30. Which one of the following is correct?
(a) The information such as order quantities, lead times, safety stock and scrap are called “Planning Factors”
(b) The MRP systems needs to know how much is available or allocated or available for future demand, these data are
maintained in inventoy record file, also called a part Master File or item master file.
31. An assembly considered a parent, and the items that comprise it are called an assembly of component items
32. Multilevel Bills are formed as logical groupings of parts into subassemblies based on the way the product is assembled.
33. A Single-Level-Bill of Material contains only the parent and its immediate component, which is why it is called a Single-
Level Bill
34. The Bill uses indentations as a way of identifying parents from components is called “Indented Bill”
35. Planning Bills are an artificial grouping of components for Planning purposes.
36. Details of an item’s product buildup, including all component items, their buildup sequence, the quantity needed for
each and the work centers that perform the buildup sequence are described in: Bill of materials.
37. What does “Bill of Material Structure” refer, in relation to Material Requirement Planning? It refers to the overall design
for the arrangement of Bills of Material Files.
38. What is called the capacity of a system or resource needed to produce a desired output in a given time period in relation
to Capacity Management? Capacity Required.
39. In relation to Capacity Management, what is called the determination of the capacity needed to achieve the priority
plans as well as providing, monitoring, and controlling that capacity so the priority plan can be met? Capacity
Management.
40. Whose definition is the process of determining the resources required to meet the priority plan and the methods
needed to make that capacity available, related to Capacity Management? Capacity Planning.
41. In terms of Capacity Management, the process of monitoring production output, comparing it with capacity plans and
taking corrective action when needed is called..? Capacity control.
42. Which one is correct related to Capacity Management?
(i) the process of monitoring production output, comparing it with capacity plans and taking corrective action when
need is called Capacity Management.
(ii) Capacity planning is the process of determining the resources required to meet the priority plan and the methods
needed to make that Capacity Available.
 (iii) The Capacity Required is the capacity of a system or resource needed to produce a desired output in a given time
period.
(iv) Capacity is the amount of work that can be done in a specified time period.
43. In Capacity Management, a Work Center File contains? Information on the capacity and move, wait and queue times
associated with the Center.
44. In capacity Management, demonstrated (measured capacity) is figured from….? Historical Data.
45. In the context of Capacity Management, the usual process is to start with the due and ,using the lead time, to work back
to find the start date for each operation is called….? Back Scheduling.
46. What does Project Manufacturing usually involve? The creation of one or a small number of Units.
47. What does Manufacturing Lead time (MLT) mean? It is the time normally required to produce an item in a typical lot
quantity.
48. What is a term that is closely related to Manufacturing Lead time? Cycle time.
49. What is overloaded workstation called? Bottleneck.
50. What will you say about the workstations where the required capacity is greater than the available capacity?
Bottleneck.
51. Which one of the following developed the section of “Scheduling Bottlenecks” in his Theory of Constraints? Eliyahu M.
Goldratt.
52. Which one is not correct in terms of Production Activity Control?
(a) Earliest job Due Date(EDD)
(b) Earliest Operation Due Date(ODD)
(c) Shortest Process Time(SPT)
53. CR(Critical Ration) = (due date – present date) / ( lead time remaining) = (actual time remaining) / (lead time remaining)
54. What do you call the first operation in the sequence of operations? Gateway operation.
55. Where few raw materials can be made into several end products is called? V-plant.
56. Where processing is done in a straight line, such as may be in an assembly line called….? I-plant.
57. What is called where numerous subassemblies merge into a single final assembly? A-plant.
58. What is called where multiple straight line can split into several assemblies? T-plant.
59. What is cumulative variance? The difference between the total planned for a given period and the actual total for the
period.
60. In relation to “Production Activity Control” FCFS stands for what? First Come, First Served.
61. What is the formula for Cumulative Variance? Cumulative variance = previous cumulative variance + actual – planned.
62. Which one followings is responsible for downtime losses? Setup and adjustment.
63. When an unpaid seller has made part delivery of the Goods, he may exercise his right……..? Of lien on the remainder.
64. Which one of the following statements with regard to Bill of Lading is Not correct?
(i) It is a document acknowledge the receipt of certain specified goods for carriage.
(ii) It specifies the port of shipment, the destination and the condition under which the goods are received for carriage.
(iii) It possesses some characteristics of a negotiable instrument.
(iv) It does not give its holder the title to the goods mentioned.
65. Which one of the following is a major function of purchasing?
(a) Quality control
(b) Inventory accounting
(c) Supplier negotiations
(d) Warehousing operations
66. The time elapsed between the receipt of a requisition and the receipt of goods required is defined as: Lead time.
67. The duration from recognition of need till the purchase order is triggered off is called: Administrative lead time.
68. What is break-even point in Purchasing? Where this line intercepts the total cost line, revenue equals total cost, and
profit is zero. This is called the break-even point.
69. Which one of following statement in the context of “Letter of Credit” is correct? It is an arrangement, whereby the
obligation to pay the seller is undertaken by a bank.
70. How many Parties are there to a “Promissory Note” and a “Bill of Exchange”? There are three parties to a “Promissory
Note” and four to a “Bill of Exchange”.
71. What is forecasting in the context of Material Management? It is inevitable in developing plans to satisfy future
demand.
72. What is demand management? It is the function of recognizing and managing all demands for products.
73. One out the following is not the major activity of Demand Management? Quality Assurance.
74. In terms of Material Management, housing starts and gasoline consumption are called….?Economic indicators.
75. There are many forecasting methods, but they can usually be classified into three categories. (i) Qualitative Technique
(ii) Extrinsic Technique (iii) Intrinsic Technique.
76. Which one is not in relation to forecasting methods?
i) Intrinsic forecasting techniques use historical data to forecast.
ii) Qualitative techniques are projections based on judgment, intuition, and informed opinions
iii) Extrinsic forecasting techniques are projections based on external(extrinsic) indicators which relate to the demand
for a company’s product.
iv) Housing starts and gasoline consumption are called economic indicators.
77. Where is ‘moving average’ used in relation to Material Management?
It is used for forecasting products with stable demand where there is little trend or seasonality.
It is used to filter out random fluctuations also.
78. What is seasonal index in terms of forecasting under Material Management?
This index is an estimate of how much the demand during the season will be above or below the average demand for
the product.
79. When is ‘Tracking Signal’ used in terms of MM? It is used to monitor the quality of the forecast.
1. Production planning in the intermediate range of time is terms as: Aggregate Planning
2. In aggregate planning, one of the methods in modification of demand is: Differential Pricing.
3. In aggregate planning one of the methods used to modification of supply is: Hiring and lay off of employees depending on the
situation.
4. Which of the following is true about a chase strategy(as compared to a level strategy)? Labour utilization tends to be higher.
5. Which of the following is an advantage of a level approach ( as compared to a chase approach)? Less hiring.
6. The actual output to design capacity is called the: Utilization
7. Disaggregating the aggregate plan relates to: master scheduling.
8. Which of these is not considered to be a capacity option? Use of backorders
9. The term available-to-promise is most closely associated with: MPS
10. The maximum output rate or service rate that is possible is called the Design capacity.
11. The ratio of actual output to effective capacity is called the: Efficiency
12. The scope of Production Planning and Control is:
(a) Limited to Production of products only
(b) Limited to production of services only
(c) Limited to production of services and products only
(d) Unlimited, can be applied to any type of activity
13. Fixing the flow lines of materials in production is known as: Routing
14. Production planning deals with: What production facilities is required and how these facilities should be laid out in space available.
15. Production control concerned with: Passive assessment of plant performance.
16. One of the activities of expediting is: to record the actual production against the scheduled production.
17. Which of the following is true regarding forward scheduling? The forward scheduling is the scheduling of jobs as soon as the
requirements are known.
18. The most appropriate sequencing rule to use if the goal is to dynamically track the progress of jobs and establish relative priority on a
common basis is ? Critical Ration
19. Which of the following is true regarding services scheduling? The emphasis is on staffing levels, not materials
20. Assigning specific jobs to specific processing resources is known as: loading.
21. The total time required for some specific collection of jobs to be completely processed is called the: makespan.
22. Suppose there are six jobs to be done, and six processing resources available to do these jobs. How many possible assignments (ie., job-
resource matchups) are there? 720
23. Which one of these is an optimizing technique: Assignment method.
24. Which rule minimizes work-in-process inventory? SPT
25. A possible disadvantage of the SPT priority rule is that it: tends to make jobs with long processing times wait.
26. Which approach is not used for job shop sequencing? Assignment method.
27. In production management, dispatching includes:
(a) Giving work to machines and places
(b) Providing materials, tools etc. to works
(c) Issuing appropriate orders for the production process.
28. Which of the following steps is the first step in the production schedule? Routing
29. For data which closely follows the normal distribution, any single analytical result has a 95.5% probability of being within the range of: +-
2 standard deviation of the mean.
30. Which of the following is not one of the type of Variable Chart?
(a) Mean Chart (X chart)
(b) Range Chart (R chart)
(c) Defective per group chart (C – chart)
(d) Sigma chart
31. Cause and effect diagram was given by whom? Kaorv Ishikawa
32. In inventory control, the Re-order-point is given by
Average Daily Usage * Lead time + Safety Stock
33. Which of the following are underlying assumptions of EOQ?
(a) The ordering cost is constant.
 (b) The rate of demand is known and spread evenly throughout the year
(c) the lead time is fixed
(d) the purchase price of the item is constant ie. No discount is available
(e) the replenishment is made instantaneously; the whole batch is delivered at once.
(f) only one product is involved.
34. According to which of the following methods, the classification of inventory is done on the basis of speed of consumption of items like
fast movement or slow movement? FSN Analysis.
35. In A-B-C inventory analysis, the challenge is to clarify which items: have the highest total periodic cost.
36. A stock out occurs when demand during lead time is greater than the reorder point.
37. Suppose the EOQ model is in use. Which of the following would typically cause the optimal order quantity to decrease? An increase in
holding cost.
38. If a decrease in unit prices causes the average demand rate to increase, which one of these would not increase? Lead time.
39. Setup costs are analogous to which one of these costs? Ordering.
40. The term bullwhip effect is most closely related to: demand variations.
41. Cross-docking results in cost savings associated with: storage space.
42. Which one of these is not necessarily a requirement of effective supply chain management? Low cost.
43. The term 3PL is most closely associated with? Outsourcing
44. Which one of these would tend to lead to increased inventory costs? Bullwhip effect.
45. Which one is not a reason for increased emphasis on supply chain management? The need to improve internal operations.
46. Which one of the following best describes disintermediation? Elimination of supply chain middlemen.
47. Which one of the following related to avoiding warehousing and holding costs? Cross docking.
48. Which one refers to reverse logistics? Returned goods.
49. The Bill of Lading is a document given by the shipping agency for the goods shipped for transportation from one destination to another
and is signed by the representatives of the carrying vessel.
50. Which of the following is an arrangement, whereby a bank ( the issuing bank) acting at the request an on the instruction of a customer (
the applicant ) or on its own behalf, to make a payment to or to the order third party ( the beneficiary ) or is to accept bills of exchange
(drafts ) drawn by the beneficiary. Letter of Credit.
51. A receipt issued by the commanding officer of the ship when the cargo is loaded on the ship is known as: Mate receipt.
52. To document containing the guarantee of a bank to honour drafts drawn on it by an exporter is: letter of credit
53. MRP is used for: Dependent demand item
54. Which of these describes lot sizing? Determining how much to order.
55. In MRP, the listing of all the subassemblies and components needed to produce a unit of an end item is called the: bill of materials.
56. Details of an item’s product buildup, including all component items, their buildup sequence, the quantity needed for each and the work
centres that perform the buildup sequence are described in : Bill of materials.
57. Most suitable layout for Continuous production is: Line layout
58. One of the disadvantages of standardization is: early freezing of product design
59. Deciding to pay another organization to produce a good or provide a service is an example of: outsourcing.
60. Which of the following costs is not relevant when considering the closure of a department within a factory? Fixed overheads
61. In a make versus buiy decision which of the following factors is not relevant? Fixed production costs
62. In a product mix decision, which is the most important factor to consider in order to try to maximize profit? Contribution per unit of a
scarce resource used to make the product.
63. Which one of the following is not fall under the qualitative forecasting method?
(a) Market research
(b) Delphi method
(c) Judgmental methods
(d) Moving average methods
64. In which of the following forecasting technique, date obtained from past experience is analyzed? Time serried forecast.
65. In the context of distinguishing between forecasting and prediction, which one of the following is true? No objectivity is found in the
case of forecasting.
66. Which of the following is a type of Causal methods of demand forecasting? Linear regression
67. The mean of the deviation of the forecast demand from the actual demand is: Mean forecast error.
68. Decomposing a time series refers to breaking down past into the components of: trends, cycle, season and random variation
69. With regard to a regression-based forecast, the standard error of the estimate gives a measure of? The variability around the
regression line.
70. Time series pattern the repeat themselves after a period of days or weeks are called? Seasonality
71. Which of the following in NOT a time-series model? Linear regression.
72. The Business Process Reengineering is the fundamental rethinking and radical redesign of processes to achieve dramatic improvement.
73. Which of the following is not an example of ERP? (a) MS office (b) SAP (c) PeopleSoft (d) MS dynamics
74. The practice of buying materials in a quantity exceeding current requirements but NOT beyond actual foreseeable requirements is
called: Forward buying
75. Which one of the following is a major function of purchasing: Supplier negotiations.
76. Which of the following is not one of objectives of the Purchase Managers;
(a) Obtaining goods and service of the required quantity and quality.
(b) Obtaining goods and services at the lowest price
(c) Ensuring the best possible inventory management practices
(d) Developing and maintaining good supplier relations and developing potential suppliers.
77. Preventive maintenance is used to ensure that breakdown: are reduced.
78. In regards to maintenance, breakdown maintenance is reactive, while preventive maintenance is proactive.
79. Predictive maintenance is used to determine: when preventive maintenance should be performed.
80. Which of the following would not typically be a consideration in the equipment replacement question? Expertise workers had on the
old equipment.
81. Predictive maintenance involves: determining the best time to perform preventive maintenance on equipment.
82. Obsolescence refers to a decrease in the quality of the product produced by the machinery due to availability of better technology for
production.
83. In the context of maintenance, the spare parts repaired, reconditioned and put to use are categorized as: rotable spares.
84. Which of the following statement are correct
(a) All obsolete items are non-moving in nature, while all non-moving items are not obsolete.
(b) The problem of obsolete items is more acute with reference to spare parts.
(c) Obsolete items cannot be used economically