Production and Operations Management Objective Questions and Answers | Production and Operations Management MCQs

Questions
1 Buying according to the requirements is called
A Seasonal Buying
B Hand to mouth buying
C Scheduled Buying
D Tender Buying

Answer:Hand to mouth buying
2 Raw Materials and WIP can be classified under
A Indirect Material
B Direct Material
C Finished Material
D Standard Parts

Answer: Direct Material
3 ___________________ establishes the overall production, workforce, and inventory levels.
A Production activity control
B Distribution requirements planning
C Master production schedule
D Sale and operations planning

Answer:Sale and operations planning
4 The master production schedule requires all of the following input except
A Projected inventory levels
B Production quantities
C Forecasted demand
D All of the above are inputs into MSP.

Answer:All of the above are inputs into MSP.
5 In a distribution requirements planning environment, forecasted demand at the plant level is equal to __________________ in the distribution center level.
A Scheduled receipts
B Planned receipts
C Planned orders
D None of the above

Answer:Planned orders
6 The difference between a gross material requirements plan (gross MRP) and a net material requirements plan (net MRP) is
A The net MRP includes consideration of the inventory on hand, whereas the gross MRP does not.
B The gross MRP doesn't take taxes into account, whereas the net MRP includes the tax considerations.
C The gross MRP may not be computerized, but the net MRP must be computerized.
D The gross MRP includes consideration of the inventory on hand, whereas the net MRP does not.

Answer:The net MRP includes consideration of the inventory on hand, whereas the gross MRP does not.
7 An MRP system that provides feedback to the capacity plan, master production schedule, and production plans is called
A System nervousness.
B Closed-loop mrp.
C Lot-sizing.
D Load report.

Answer:Closed-loop mrp.
8 ___________________ determines when specific products will be produced, when specific customer orders will be fulfilled, and what capabilities remain available to satisfy unexpected demand.
A Sale and operations planning
B Material requirements planning
C Distribution requirements planning
D Master production schedule

Answer:Master production schedule
9 __________________ is the amount of new orders necessary to support production of the required output in the next higher level in the bill of materials.
A Scheduled receipts
B Available to promise
C Projected ending inventory
D Planning horizon

Answer:Scheduled receipts
10 __________________ allows a segment of the master schedule to be designated as "not to be rescheduled."
A Pegging
B Regenerative MRP
C Time fence
D System nervousness

Answer:Time fence