GkSeries.com

Production and Operations Management Multiple Choice Questions and Answers | Production and Operations Management MCQs

(1) Enterprise Resource Planning (ERP) has been criticised on a number of grounds. Which of the following is not a common criticism of ERP?
[A] It doesn't allow decisions and databases from all parts of the organisation to be integrated
[B] Implementation is expensive
[C] The effect it has on businesses is disappointing
[D] It can have a disruptive effect on the organisation's operations
Answer: It doesn't allow decisions and databases from all parts of the organisation to be integrated
(2) Demand for a given item is said to be dependent if
[A] the item has several children
[B] there is a deep bill of materials
[C] the finished products are mostly services (rather than goods)
[D] there is a clearly identifiable parent
Answer: there is a clearly identifiable parent
(3) In MRP (Materials Requirements Planning) the Bill of Materials is:
[A] The required output from a process over time
[B] A list of required safety stock items
[C] The sum of stock-on-hand and work-in-progress
[D] The product structure showing where common parts are used
Answer: The product structure showing where common parts are used
(4) What is measurementship?
[A] Trying to agree low objectives so as to look good later
[B] Discussing "the numbers" at every opportunity
[C] Surveying by naval architects.
[D] Collecting too much performance data
Answer: Trying to agree low objectives so as to look good later
(5) The outputs of a MRP II system are:
[A] Sales order priorities / Bills of Materials / Material Requirement Plans
[B] Material Requirement Plans / scheduled purchase orders / capacity requirement plans
[C] Stock quantities / Bills of Materials / Master Production Schedule
[D] Capacity requirement plans / stock quantities / stock locations
Answer: Material Requirement Plans / scheduled purchase orders / capacity requirement plans
(6) Three levels of planning. What are they?
[A] Top, middle and bottom
[B] Headquarters, divisional and local
[C] Operational, intermediate and strategic
[D] None of these
Answer: Operational, intermediate and strategic
(7) Three inputs for every MRP system are:
[A] Sales forecast, delivery costs, capacity plan
[B] Average replenishment time, re-order point, economic order quantity
[C] Stock on hand, Master Production Schedule, Bill of Materials
[D] Bill of Materials, sales forecast, sales history
Answer: Stock on hand, Master Production Schedule, Bill of Materials
(8) What three problems commonly hindering successful planning did we identify?
[A] An oversized planning department; poor co-operation between managers and planners; managers with little time to gather information.
[B] Procedures unsuited to change; negative organisational culture; poor interpersonal relationships.
[C] Lack of planning expertise; little top management support; misuse of planning specialists.
[D] Conflict among objectives; impossibility of measuring outcomes; confusion between means and ends.
Answer: Lack of planning expertise; little top management support; misuse of planning specialists.
(9) What is the more formal term for what is known as 'Plan B'?
[A] A contingency plan
[B] A circumstantial plan
[C] A catastrophe plan
[D] A convergence plan
Answer: A contingency plan
(10) What is the planning horizon?
[A] The time ahead for which there is no information.
[B] The time period within which uncertainty is very low.
[C] The maximum time for which managers can make plans.
[D] The time between making a plan and putting it into effect.
Answer: The time between making a plan and putting it into effect.