APICS BSCM

Introduction to Supply Chain Management 1. Which of the following manufacturing types would typically have the longest delivery time? A) Make-to-order B) Engineer-to-order C) Make-to-stock D) Assemble-to-order 2. Many different end items are made from a small number of components. What manufacturing environment would this be? A) Make-to-stock B) Make-to-order C) Assemble-to-order D) Engineer-to-order 3. The purpose of a strategic business plan is to: A) plan production by product family. B) plan for business changes which take a long time. C) establish customer requirements over the long term. D) establish order promising strategies. 4. A company which can adapt swiftly to changes in the volume and mix of their products is: A) good at sales and operation planning. B) forecasting accurately. C) process flexible. D) six sigma certified. 5. Made-to-order products are usually made to specification. The prices for these items: A) are based on grouping like items together. B) are based on the catalogue. C) are set by a marketplace. D) can generally be negotiated.

6. Process specifications can be best defined as a document which: A) Shows how the product will appear. B) Shows the steps needed to produce the end item. C) Details the capacity available at a work center. D) flow charts various processes.

7. Why is feedback necessary in a control system? A) Available capacity is accurate. B) Bills of materials will be current. C) Routing files will be accurate. D) Feedback allows planning to always remain current. 8. A closed loop MRP system can be best defined as: A) action taken by a planner to approve planned orders. B) re-planning of capacity to accommodate restraints. C) integrated planning and control system with feedback from the bottom-up. D) integrated systems which include financial software, finite capacity, and logistics. 9. In a certain manufacturing environment, routings are fixed, and work centers are arranged in the order of the routings. The production at each work center takes a similar amount of time. This would describe: A) Project manufacturing. B) Intermittent manufacturing. C) Flow manufacturing. D) Specialty manufacturing. 10. The attributes of the product or service that cause a customer to buy from a company are called the: A) order winners. B) order qualifiers. C) buyers criteria. D) order modifiers.

Demand Management 1. Forecasts are typically more accurate for the near future than they are for the longer future. This occurs because: A) the near term holds less uncertainty than the long term. B) more data is available in the near term. C) aggregate data is easier to forecast. D) the future is more dynamic in the near term. 2. In order to maximize profit, a company must have all of the following objectives except: A) Best customer service B) Most accurate production forecast C) Lowest inventory investment D) Lowest distribution cost 3. Over the past three months, the demand for a product has been 240, 260, and 280. Calculate the three month moving average forecast for month four. A) 240 B) 260 C) 280 D) 300 4. Which of the following would be included in demand management? I.Forecasted requirements II.Service parts requirements III.Branch warehouse requirements IV.Inter-plant orders A) I, II, and III B) II, III, and IV C) I, III, and IV D) I, II, III, and IV 5. Many companies will call themselves market driven. This would indicate that they: A) develop strong advertising campaigns. B) established a strong brand image in the market. C) respond to the customers needs. D) conduct market research.

6. A forecast analyst has just extracted the recent actual sales history and, in reviewing the data, notices several outliers. The analyst should most likely: A) Rerun the data to ensure there were no errors in the extract. B) Rerun the data but remove the outliers.

C) Ignore the outliers and use the forecasts as is. D) Refer to the tracking signal.

7. Which of the following does a tracking signal identify in a forecast? A) Mean absolute deviation B) Standard deviation C) Bias D) Aggregate summarization 8. Which of the following would most likely be a dependent demand item? A) Safety gloves B) Office supplies C) Purchased component D) Item being shipped to customer 9. Which of the following is the primary benefit of a customer partnership? A) Higher prices can be charged because the customer is not buying from other sources B) Reduced paperwork between the two parties C) Lower costs in the supply chain for both companies because of the mutual sharing of information D) Higher margins for the supplier 10. All of the following are principles of forecasting except: A) Forecasts are usually wrong B) Forecasts are more accurate for end items C) Forecasts should include an estimate of error D) Forecasts are more accurate in the near term 11. The following formula represents which forecasting technique? New forecast = (alpha)(latest demand) + (1-alpha)(previous forecast) A) Weighted moving average B) Double exponential smoothing C) Exponential smoothing D) Focus forecasting

Master Planning 1. Which of the following are inputs to a realistic MPS? I.Production plan II.Forecasts for end items III.Product costs for end items IV.Capacity constraints A) I, II, and III B) I, II, and IV C) II, III, and IV D) I, III, and IV 2. Production planning is generally a direct input to: A) material requirements planning. B) purchase order planning. C) capacity load at a work center. D) master production scheduling. 3. Which of the following are steps in developing a Master Production Schedule? I.Develop a preliminary MPS II.Check the schedule against the capacity available III.Check MPS against the production plan to ensure they are equal A) I and II B) I and III C) II and III D) I, II, and III 4. Available to promise can be best defined as: A) inventory and planned production not already committed. B) customer orders inside lead time which have been promised. C) inventory not already committed. D) capacity which is not used and therefore is available. 5. Which of the following are strategies to use in developing a production plan? I.Chase strategy II.Delphi strategy III.Level strategy IV.Backlog strategy A) I and II B) I and III C) II and IV D) III and IV

6. The primary reason for a time fence is to: A) Determine how to use the forecast. B) Manage schedule changes most effectively. C) Provide a stable schedule for the suppliers. D) Maintain a steady shipment schedule. 7. The "frozen" zone within the time fence is usually: A) before the final assembly schedule. B) closest to the due date. C) furthest from the due date. D) in the middle of the zones. 8. For a sales and operations planning process, which of the following would most likely be the level of detail used? A) Each stockkeeping unit B) Each model within a product family C) Major product groups D) Total resource hours 9. Based on the following data, what should the monthly production be to achieve level production? Beginning inventory = 300 units Ending inventory = 400 units Sales forecast Month 1 2 3 Quantity 300 400 200

4 300

5 200

A) 200 B) 250 C) 300 D) 350 10. Which of the following are objectives when establishing the MPS? I.Efficient use of resources II.Efficient final assembly III.High customer service levels IV.Efficient use of inventory A) I, II, and III B) I, II, and IV C) I, II, III, and IV D) I, III, and IV 11. A company wants to produce 1000 units over the next four months using a level strategy. The months have 20, 21, 19 and 22 working days in each one. Based on this strategy, how much would be produced in the first month?

A) 244 B) 254 C) 260 D) 262

Material Requirements Planning 1. Which of the following equals manufacturing lead time? A) Queue, setup, run, wait, and move times B) Setup, run, wait, and move times C) Queue, run, wait, and move times D) Queue, setup, run and move times 2. A firm planned order is used to: A) freeze the planned order against changes in quantity and time. B) convert the planned order to a scheduled receipt. C) simulate the projected inventory balance. D) manipulate the data and quantity of the customer order. 3. A manufactured component is going to be late. Which of the following would a planner review to ensure a customer will not be affected? A) Indented bill of materials B) Pegging inquiry screen C) Open purchase order report D) Work order routing 4. The Bill of Materials is used quite frequently in manufacturing. All of the following are uses of the BOM except: A) Product costing B) Planning C) Calculating capacity D) Engineering change control 5. A where-used report provides a list of all: A) work centers where a part is run. B) parents where a component is used. C) components where a parent is used. D) planning bills. 6. The MRP system has generated a planned order for a purchased part. It takes 1 day to approve the planned order, 1 day to approve the requisition created by the approved planned order, 2 days to turn the requisition into a purchase order and have it signed, and 10 days for the supplier to create the product after the receipt of the purchase order. What would the supplier lead time be? A) 10 days B) 12 days C) 13 days

D) 14 days

7. All of the following are part of manufacturing lead time except: A) Queue time B) Wait time C) Move time D) Purchasing time 8. The decision of when to order raw materials is the responsibility of: A) manufacturing planning. B) purchasing. C) engineering. D) sales. 9. The MRP system is set for lot ordering. As a result, it is generating many orders for small quantities. Which of the following will best alleviate the large quantities of purchase orders being generated while keeping inventory levels low? A) Change the lot size to increase the quantity ordered. B) Use period of supply instead of lot for lot. C) Establish a long term contract for the item and release against the contract. D) Keep releasing small lot for lot orders to keep inventory low. 10. The MRP system has given you, the planner, the message, " Expedite Order 45367" which happens to be for a purchased part. You should: A) Immediately change the order to the recommended date. B) Move the order to a later date. C) Contact the supplier to see if they can meet the new delivery date. D) Leave the order as is. 11. Which of the following best describes an exception message? A) A message to the planner that a problem needs attention B) A message that the MRP system is done running C) A message that the system is in balance D) A message to order within lead time 12. A bill of materials contains: I.Components used to make a product II.Labor needed to build the product III.Asemblies at various stages of production IV.Safety stock by item A) I and II B) I and III C) II and III D) III and IV

13. Which of the following are inputs to the Material Requirements Planning system? I.Master Production Schedule II.Inventory records III.Production plan IV.Bill of materials A) I, II, and III B) I, II, and IV C) II, III, and IV D) I, II, III, and IV 14. Which of the following would best describe the purpose of a shop calendar? A) Lets all the workers know when the holidays occur B) Provides time clarity to the shop workers C) Identifies the available capacity on the shop floor D) Provides the manufacturing system with the valid shop days for planning 15. In addition to calculating requirements, the major objective of MRP is to: A) Keep the order priorities current. B) Maintain the bill of material. C) Calculate the inventory needed. D) Ensure forecasted demand is to be used.