Production Planning and Control Practice Exam - 1363 Verified Questions

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Production Planning and Control Practice Exam

Course Introduction

Production Planning and Control focuses on the systematic design, organization, direction, and control of all aspects of manufacturing and service operations in order to optimize resource utilization, meet production targets, and ensure quality standards. Students will explore key topics such as forecasting demand, inventory management, material requirements planning (MRP), scheduling, capacity planning, just-in-time systems, and workflow analysis. Emphasis is placed on the integration of modern techniques and software tools, enabling efficient coordination between various departments and supply chain partners to achieve timely and cost-effective production outcomes.

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Introduction to Operations and Supply Chain Management 5th Edition by Cecil B. Bozarth

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Chapter 1: Introduction to Operations and Supply Chain Management

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Sample Questions

Q1) This organization, ________, is a leader in education and all aspects of quality improvement.

Answer: ASQ or American Society for Quality

Q2) Which of these statements is best?

A)Supply chains are linked by two types of flows: physical and monetary.

B)An operations function contains several supply chains.

C)Very few organizations are actually members of a supply chain.

D)Every organization has an operations function.

Answer: D

Q3) A second-tier supplier is located ________ from a first-tier supplier. Answer: upstream

Q4) Customers are key interfunctional participants in the operations and supply chain activity of capacity planning.

A)True

B)False

Answer: False

Q5) Most organizations function as part of larger ________ that are linked through physical, monetary, and information flows.

Answer: supply chains

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Chapter 2: Operations and Supply Chain Strategies

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Sample Questions

Q1) What is a trade-off ? Offer a definition and provide an example.

Answer: A trade-off is a decision by a firm to emphasize one performance dimension over another, based on the recognition that excellence on some dimensions may conflict with excellence on others. Examples will vary - the authors provide the example of airlines scheduling more flights to increase flexibility at the expense of costs.

Q2) The phrase "closing the loop" means that strengths and weaknesses, as well as core competencies are fed back into the mission statement.

A)True

B)False

Answer: False

Q3) Before firms can think about progressing to the fourth stage of alignment (________), they must develop ________ within the operations and supply chain areas.

Answer: externally supportive; core competencies

Q4) A business is defined by its structural and infrastructural elements.

A)True

B)False

Answer: True

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4

Chapter 3: Process Choice and Layout Decisions in Manufacturing and Services

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Sample Questions

Q1) Refer to the scenario above. Operations managers and process engineers design a line that contains seven stations. What is the percentage of idle time?

A)21.9%

B)14.3%

C)25.6%

D)17.8%

Answer: A

Q2) Refer to the scenario above. How many workstations must be added to increase the output rate to one unit per minute?

A)1

B)2

C)3

D)4

Answer: C

Q3) In a service blueprint, the line of internal interaction falls between the customer and the onstage service provider.

A)True

B)False

Answer: False

Page 5

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Chapter 4: Business Processes

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Sample Questions

Q1) Which type of process map should be used to track the movement of a customer's complaint from one department to the next until it is resolved?

A)input process map

B)swim lane process map

C)entity process map

D)data flow process map

Q2) Describe continuous improvement and business process reengineering and compare their advantages and disadvantages in relation to each other.

Q3) Which of these continuous improvement tools would be best suited for showing all of the steps required to change your major to operations management?

A)process map

B)cause-and-effect diagram

C)Pareto chart

D)scatter plot

Q4) Why would a company choose to engage in benchmarking rather than design their own process or product?

Q5) ________ is the SCOR model process that addresses the movement of defective product from the customer.

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Chapter 5: Managing Quality

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Sample Questions

Q1) A barbecue sauce producer sells their product in a 20-ounce bottle. Their historical process mean has been 20 ounces with a standard deviation of 0.25 ounces. If their tolerance limits are set at 20 ounces plus or minus 1 ounce, what is the process capability ratio of the bottle filling process?

A)1.00

B)1.33

C)1.75

D)2.00

Q2) What is the difference between the traditional view of the cost of quality and the total cost of quality perspective?

Q3) On the first day of class at a new university you made judgments about the quality of the class before the professor had entered the room. You noted the comfort of the accommodations, the fine works of art in the halls and on the classroom wall and the soothing music piped in over the sound system. This dimension of quality is:

A)aesthetics.

B)performance.

C)features.

D)perceived quality.

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Chapter 6: Managing Capacity

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Sample Questions

Q1) The Theory of Constraints would support the statement that a chain is only as strong as its weakest link.

A)True

B)False

Q2) The first three rooms took The Painter a total of 9 hours to paint. If the learning curve rate is 85%, how long will it take The Painter to paint all 20 rooms in Stately Wayne Manor?

A)less than 20 hours

B)between 20 and 30 hours

C)between 31 and 40 hours

D)more than 40 hours

Q3) What is a virtual supply chain and how is it different from a traditional supply chain?

Q4) A traditional university classroom has room for 30 students and is scheduled for use during 12 consecutive one hour periods from 8:00 a.m. to 8:00 p.m. in the spring semester. Its theoretical capacity is therefore half of its rated capacity.

A)True

B)False

Q5) Describe the three capacity strategies and the advantages of each.

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Chapter 6: S: Advanced Waiting Line Theory and Simulation

Modeling

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Sample Questions

Q1) Anxious cruise vacationers besiege Tatiana, their excursion coordinator, and her fourteen assistants at the Port of Cozumel when they realize that all water excursions have been cancelled for no reason in particular. It takes them 4 minutes to find the customers an alternative excursion activity and customers cluster around them at the rate of 200 per hour. About how long does a customer wait in line to receive their valuable service if the service times are exponentially distributed and the arrivals follow a Poisson distribution?

A)6.50 minutes

B)5.00 minutes

C)2.13 minutes

D)1.36 minutes

Q2) One of the differences between a waiting line system with a constant service time and one with exponentially distributed service times. Customers using the system with the constant service time will have half the waiting time of the customers using the system with Poisson distributed service times.

A)True

B)False

Q3) One assumption in most waiting line analyses is that the number of customers is

Page 9

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Chapter 7: Supply Management

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Sample Questions

Q1) Portfolio analysis begins with assignment to a quadrant before a sourcing strategy is formulated.

A)True

B)False

Q2) What is portfolio analysis and how is it accomplished? Provide an example of a purchased product or service that would fall in each area for a university applying portfolio analysis.

Q3) Authorization to a supplier to deliver a product is done through a(n)________, and released using the form of technology known as ________.

Q4) Cross sourcing is a strategy in which two suppliers are used for the same purchased product or service.

A)True

B)False

Q5) A supplier that has previously demonstrated its performance capabilities through purchase contracts may well receive:

A)maverick status.

B)a request for description.

C)preferred supplier status.

D)a request for proposal.

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Chapter 8: Logistics

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Sample Questions

Q1) A producer of action figures is in a quandary about where to locate a central warehouse that will serve all of their regional centers for the coming millennium. They have predicted average annual demands for the following locations in the table.

\[\begin{array} { | l | c | c | c | }

\hline { \text { Location } } & \text { Demand } & \text { X-Coordinate } & \text { Y-Coordinate } \\

\hline \text { Gotham City } & 200 & 9 & 8 \\

\hline \text { Metropolis } & 500 & 7 & 5 \\

\hline \text { Central City } & 800 & 5 & 5 \\

\hline \text { Gateway City } & 600 & 0 & 5 \\

\hline \text { Capitol City } & 150 & 8 & 6 \\

\hline

\end{array}\] Where should they locate their central warehouse?

Q2) The difference between a contract carrier and a common carrier is that the common carrier handles shipments on a case-by-case basis while the contract carrier handles shipments based on long-term contracts.

A)True

B)False

Q3) What are the key challenges of implementing a reverse logistics system?

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Page 11

Chapter 9: Forecasting

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Sample Questions

Q1) A model with a positive mean forecast error suggests that, on average, the model underforecasts.

A)True

B)False

Q2) In order to indicate ________ in a forecast model, you should use the mean forecast error approach rather than the mean absolute deviation approach.

Q3) Which of these forecasts is the BEST?

A)the one with a MAD of zero

B)the one with the tracking signal of +4

C)the one with the tracking signal of -4

D)the one where the tracking signal times the MAD equals zero

Q4) A qualitative forecasting technique well-suited for demand forecasts of a new product or service is the:

A)Delphi method.

B)build-up forecast.

C)life cycle analogy method.

D)patronage survey.

Q5) ________ is unpredictable movement from one time period to the next.

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Chapter 10: Sales and Operations Planning Aggregate Planning

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Sample Questions

Q1) Create a minimum cost chase plan for the forecast shown in the table. There is no beginning inventory and regular production capacity is 350 units. Overtime costs $20 extra and is limited to 50 units per month and subcontracting is limited to 100 units per month and costs $15 per unit. Back orders cost $40 per unit and there is a cost of $5 per month to hold a unit in inventory. There is room for only 100 units in inventory. What is the total plan cost above regular production cost?

\[\begin{array} { | l | c | l | l | l | l | }

\hline { \text { Month } } & \text { Forecast } & \text { Regular } & \text { Overtime } &

\text { Subcontracting } & \begin{array} { c }

\text { Ending } \\

\text { Inventory }

\end{array} \\

\hline \text { January } & 250 & & & & \\

\hline \text { February } & 400 & & & & \\

\hline \text { March } & 500 & & & & \\

\hline \text { April } & 350 & & & & \\

\hline

\end{array}\]

Q2) A(n)________ is a formula that is the goal of an optimization model for S&OP.

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Chapter 11: Managing Inventory Throughout the Supply Chain

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Sample Questions

Q1) A local barbecue joint makes one massive batch of potato salad each day. If they run out of this savory side before the end of the day, their last few customers are less than satisfied, but if they make too much, they sell it to the local hog farmer for feed. Every serving costs an equivalent of $0.23 to make, but can be sold for $2.50 to customers and for $0.12 to the hog farmer. The average daily demand is for 400 servings with a standard deviation of 40 servings. How many servings should be made each day? One day the hog farmer cancels the contract - evidently there are some things that even hogs won't eat. With no fallback position, how many servings of potato salad should the barbecue joint make? Discuss the discrepancy between the two numbers.

Q2) The ________ is an extreme change in the supply position upstream generated by a small change in demand downstream.

Q3) Gordon went to the grocery store and bought a bag of carrots. He needed only three for his cottage pie recipe, but they came twelve to a bag so he diced three and tossed the rest in the crisper compartment of his stainless steel refrigerator. As he screamed his insults at his children and sous chefs they reminded themselves that he wasn't upset with them, rather he was concerned about the high level of ________ stock he was holding.

Q4) Describe any four types of inventory and the drivers that spur their need.

Page 14

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Chapter 12: Managing Production Across the Supply Chain

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Sample Questions

Q1) Given the forecast and booked orders shown in the table, and a beginning inventory of 120, what is the projected ending inventory for period 4? The company operates with a lot size of 144. \[\begin{array} { | l | c | c | c | c | }

\hline \text { Period } & 1 & 2 & 3 & 4 \\

\hline \text { Forecasted Demand } & 500 & 450 & 400 & 600 \\

\hline \text { Booked Orders } & 520 & 400 & 325 & 450 \\

\hline \text { Projected ending inventory } & & & & \\

\hline \text { Master production schedule } & & & & \\

\hline \text { Available to Promise } & & & & \\

\hline

\end{array}\]

Q2) Cow Company used the master schedule to monitor key resource requirements, such as determining how many workers and the number of machine hours would be needed for each production period. This approach is known as ________.

Q3) Confirmed demand for products is called ________ in master scheduling.

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Page 15

Chapter 12: S: Supply Chain Information Systems

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Sample Questions

Q1) Which of these is an essential characteristic of the cloud model?

A)distributed intelligence

B)third normal form

C)on-demand self-service

D)hierarchical functionality

Q2) Computer-based information systems that allow users to analyze, manipulate, and present data in a manner that aids higher-level decision making are called ________.

Q3) What are the functions and relationships between both customer and supplier relationship management and internal supply chain management?

Q4) Sketch the supply chain and indicate which information systems address which areas of the supply chain.

Q5) Design collaboration is a typical customer relationship management application.

A)True

B)False

Q6) Why are information flows a necessary part of the supply chain?

Q7) What functions do warehouse management and transportation execution systems perform? What capabilities or services do you think they might possess ten years from now?

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Chapter 13: Jitlean Production

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Sample Questions

Q1) Lean thinking in the production environment has received considerable attention in the last decade, but tools such as kanbans cannot be used in all production environments.

A)True

B)False

Q2) Inflexible or unreliable processes cause organizations to produce goods before they are required; this is called:

A)excess motion.

B)inappropriate processes.

C)overproduction.

D)defects.

Q3) For a kanban system to work properly, demand rates must be relatively stable, and interruptions must be minimized or quickly resolved.

A)True

B)False

Q4) ________ combines the focus on waste reduction with the discipline of define, measure, analyze, improve, and control.

Q5) Companies that use MRP and kanban together use the ________ of MRP and the ________ of kanban.

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Chapter 14: Managing Projects

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Sample Questions

Q1) There are more resources required during the performance phase of a project than the project definition phase.

A)True

B)False

Q2) Refer to the scenario above. The project's duration is:

A)32 weeks.

B)33 weeks.

C)36 weeks.

D)38 weeks.

Q3) A performance or time target for each major group of activities in a project is a(n)________.

Q4) What are the phases of a project and the activities within each?

Q5) Refer to the scenario above. What is the earliest start time for activity H?

A)Week 14

B)Week 15

C)Week 16

D)Week 17

Q6) The actual work gets done during the ________ phase of a project.

Q7) A(n)________ is a graphical tool used to show a project's progress as time elapses.

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Chapter 15: Developing Products and Services

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Sample Questions

Q1) The unexpected expenses associated with overhead and engineering change notices are ________.

Q2) Your supplier works closely with you to jointly design a product in:

A)gray box design.

B)black box design.

C)white box design.

D)red box design.

Q3) The left side of the quality function deployment house of quality contains:

A)product characteristics.

B)relationships between product characteristics.

C)customer requirements.

D)product specifications.

Q4) The development funnel demonstrates that while initial conceptual development takes a long time, product design can progress quickly through the final phases of development.

A)True

B)False

Q5) The roof of the quality function deployment house of quality displays synergies among the ________.

Page 19

Q6) What is value analysis and how is it typically conducted?

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