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

Questions
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.
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