Recap APICS 2011 International
Conference
Frank Hernandez
Brandon Holt
Scott Wilson
Sahir Jafri
Sponsored By:
Education
• Jim Donald (Former CEO of Starbucks & Wal-Mart)
– The 6 secrets to success.
• Alan Milliken (BASF Corporation)
– Creating Competitive Advantage with your existing
Data
• Resume and Interview Tips
• Reporting Sustainability: G3
Connections/Competitions
Met with the Operations Management Students
from across North America
Yes, even Canada.
• Head of the Class
• Scavenger Hunt
• Mid-Atlantic Case Competition
Research
Career/Networking
• Over 60 Trade vendors
• Numerous Operations Departments
– Duquesne University,
– ASU
– Michigan State University
• Career Fair
– Caterpillar Logistics
– Eaton
– PriceWaterhouseCoopers
APICS Intl. Conference 2012 – Denver, Colorado
APICS Head of the Class Competition
APICS Head of the Class Competition
Game Rules
How to start:
•
Each Player will have 2 cards
•
Card one will have A (true) on one side and
B (false) on the other side
•
Card two will have C on one side and D on
the other) for use in answering questions.
How to play:
…Rules Continued
• Everyone must stand
• Once a question is asked you must hold up the appropriate card.
• The card must face the front of the room
• The card must be held above your head and once it is above your head
that is your final answer and it can’t be changed.
• You will have 20 seconds to answer each question with a 5 second
warning.
…Rules Continued
• In each round a maximum of fifteen questions
will be asked. The questions will relate to the
operations/supply chain management field
…Rules Continued
• If you answer the question wrong you must sit down and if
you answer the question right you will remain standing.
• Questions will continue to be asked until there are less than
five people left standing or until we have asked the maximum
amount of questions for that round.
…Rules Continued
• The winners from the first, second and third
rounds will advance to the final round.
• The final round will be process of elimination.
Are You Ready to Begin?
APICS Head of the Class Competition
Questions
Finding out who performs a particular process
best and learning from it is an example of:
a. continuous improvement
b. benchmarking
c. serviceability
d. empowerment
APICS Head of the Class Competition
Questions
Quality certification refers to a process of 100
percent inspection to catch all defective
products before they leave the company
True
False
APICS Head of the Class Competition
Questions
Which of the following statements is true?
a. As long as the process is within the control limits,
it is in control.
b. Variable data is used in the construction of a PChart
c. A reduction in the variation of a process is an
indication the process has improved
d. Every process has a natural variation that can be
entirely eliminated
APICS Head of the Class Competition
Questions
Using the EOQ model, the higher an item's carrying
costs, the more frequently it will be ordered.
True
False
APICS Head of the Class Competition
Questions
Which of the following is exhibited by all forecasting
data and results?
a. Randomness
b. Seasonality
c. Trend
d. Cycles
APICS Head of the Class Competition
Questions
The basic purpose of supply chain management is to:
a. create an exclusive set of suppliers who will not
supply your competitors
b. reduce your firms inventory level through the
proper selection of customers and suppliers
c. synchronize the operations of all suppliers
with those of purchasing, production,
distribution and customers
d. coordinate purchasing and distribution activities in
order to maximize your firms revenues
APICS Head of the Class Competition
Questions
Which of the following is most true of cycle counting?
a. requires the checking of many items a few times
during the year
b. requires the checking of every item many times
during the year
c. it is used to identify and remove the root causes
of errors in inventory records
d. it is applied to all inventory items once a
year
APICS Head of the Class Competition
Questions
Approximately 99.7% of sample means will fall
within ± two standard deviations of the process
mean
True
False
APICS Head of the Class Competition
Questions
An assembly line is more appropriate for:
a. high volume, low variety production
b. large projects
c. customized products
d. none of the above
APICS Head of the Class Competition
Questions
Just-In-Time systems make demands on layouts,
including:
a. distance reduction
b. increased flexibility of equipment
c. cross-trained, flexible employees that can easily
move to new work areas
d. all of the above are JIT influences on layout
APICS Head of the Class Competition
Questions
Product storage is an example of waste, in the
sense that no value is added.
True
False
APICS Head of the Class Competition
Questions
In an inventory management system Service Level is:
a. the probability demand will not always be satisfied
during the ordering lead time
b. the probability that demand is met from
inventory
c. the percentage of time during lead time that
demand is not satisfied
d. none of the above
APICS Head of the Class Competition
Questions
In the chase strategy of aggregate production planning,
variations in demand cannot be absorbed by which of
the following?
a. subcontracting
b. hiring/layoff
c. inventory/backordering
d. overtime/undertime
APICS Head of the Class Competition
Questions
What are two of the main principles of MRP?
a. capacity equals demand and planned orders
equals net requirements
b. low level coding and BOM coding
c. time phasing and netting of requirements
d. time phasing and low level coding
APICS Head of the Class Competition
Questions
The phrase “demand derived from the demand
for other products” describes:
a. independent demand
b. dependent variable
c. dependent demand
d. recursive demand
APICS Head of the Class Competition
Questions
“Preventive maintenance” is extra-special
maintenance done after a breakdown has
occurred to prevent any further breakdowns.
True
False
APICS Head of the Class Competition
Questions
A Master Production Schedule contains
information about:
a. quantities and required delivery dates of final
products (the build schedule)
b. quantities and required delivery dates of all subassemblies
c. inventory on hand for each final product
d. inventory on hand for each sub-assembly
APICS Head of the Class Competition
Questions
The greatest advantage of applying the “unit
load” concept is:
a. It is environmental friendly
b. It simplifies handling, movement, and transportation
c. It is value to companies that deal with small
products
d. Mechanical devices can be substituted for
manual labor
APICS Head of the Class Competition
Questions
Less-than-truckload (LTL) carriers:
a. Serve only regional markets
b. Operate through a series of terminals
c. Are exempt from hours-of-service regulations
d. Carry the shipment directly from the shipper to the
consignee
APICS Head of the Class Competition
Questions
A “free trade zone” refers to:
a. An area that is home to businesses that are owned and
operated by large concentrations of a particular ethnic group
b. An area in which products can be stored, exhibited, or processed
without being subjected to duties and quotas unless they enter the
customs territory of the zone country
c. An area in which the federal government disregards all import
and export quotas for products coming from, or destined to,
“favored” nations
d. An area outside of the legal jurisdiction of federal, provincial or
municipal governments where companies are free to do what they will
APICS Head of the Class Competition
Questions
Which of the following is the most effective way to
improve warehouse worker productivity?
a. Adding additional rules to dictate how each operation is to be
done
b. Provide materials handling equipment to replace heavy manual
labour
c. Install video cameras so that you can watch workers from your
office
d. Manage by randomly walking the warehouse area and
intimidating any worker you feel is not working hard enough
APICS Head of the Class Competition
Questions
Data mining:
a. Is illegal in Quebec
b. Is synonymous with margin analysis
c. Looks for patterns and relationships in relevant
data
d. Can only be done using advanced software
systems
APICS Head of the Class Competition
Questions
The purpose of safety stock is to:
a. Eliminate the possibility of a stockout
b. Eliminate the likelihood of a stockout due to
erroneous inventory records
c. Control the likelihood of a stockout due to the
variability of demand during lead time
d. Replace failed units with good ones
APICS Head of the Class Competition
Questions
When ordering materials where quantity discounts are
available, the most cost-effective solution:
a. Is to order the EOQ amount
b. Minimizes the sum of holding and ordering costs
c. Minimizes the sum of holding, ordering, and product
costs
d. Minimizes the unit purchase price
APICS Head of the Class Competition
Questions
The basic goal of aggregate planning is to
balance:
a.a. capacity and demand
a.b. capacity and costs
a.c. capacity and inventories
a.d. demand and backorders
APICS Head of the Class Competition
Questions
ABC analysis is based on the principle that:
a. All items in inventory must be monitored very closely
b. There are usually a few critical items, and many
items that are less critical
c. An item is critical if its usage is high
d. An item is critical if its unit price is high
APICS Head of the Class Competition
Questions
Firms in a responsive supply chain are expected
to have:
a. long delivery times
b. high inventory investments
c. low capacity cushions
d. flexible purchasing, production and distribution
systems
APICS Head of the Class Competition
Questions
Which of the following is not a major input to the
capacity requirements planning process?
a. The planned order releases from the MRP
b. A routing file specifying machines or work centres
required to complete an order
c. A load profile for each work centre in the
process
d. An open order file showing status of in-process
jobs
APICS Head of the Class Competition
Questions
Which statement is best?
a. The largest element of manufacturing lead time is
queue
b. The larger the load, the longer the queue
c. If queue is reduced, the lead time and work-inprocess will be reduced
d. All of the above are true
APICS Head of the Class Competition
Questions
The cost of stopping a production line to fix a
quality problem is an example of a(n):
a. Quality appraisal cost
b. Quality prevention cost
c. External failure quality cost
d. Internal failure quality cost
APICS Head of the Class Competition
Questions
As waste is removed from daily operations
a. Productivity increases
b. Inventory increases
c. Cycle Time increases
d. All of the above
APICS Head of the Class Competition
Questions
Which of the following is not one of the
elements in Lean Operations?
a. Multi-functional workers
b. A limited number of suppliers
c. Scheduling production to maximize the output of all
work centers
d. Striving to reduce machine set-up times
APICS Head of the Class Competition
Questions
What type of production process would be
appropriate for a company that builds specialty
machine tools to match the customer’s
specifications?
a. project shop
b. continuous
c. job shop
d. none of the above
APICS Head of the Class Competition
Questions
In Six Sigma Quality Systems, the letters DPMO
mean:
a. Defects Produced by Manufacturing Operations
b. Defects Per Multifunctional Operator
c. Defects Per Million Opportunities
d. None of the above
APICS Head of the Class Competition
Questions
Process analysis can be applied to functions other than
operations and supply chain management.
True
False
APICS Head of the Class Competition
Questions
The cost of Operations and Supply Chain
Management activities primarily appear:
a. as an item on a company’s Balance Sheet.
b. as an item in a company’s working capital analysis.
c. as Cost of Goods Sold or Cost of Sales in a
company’s income statement.
d. after Gross Profit in a company’s income statement
APICS Head of the Class Competition
Questions
Companies should focus on process improvement activities, of
their critical processes, in order to lower costs, improve quality,
or both. In most cases, the best first step is to implement
computer controlled automation so that the process can run
faster to reduce per unit cost.
True
False
APICS Head of the Class Competition
Questions
Acme Products ships 75% of all orders “on-time” (which means,
by the customers’ original request date). When customers call-in
to follow-up on late shipments, Acme almost always manages to
get the late shipment our within 24 hours. From these facts, it is
safe to assume that Acme’s operations are effectively managed.
True
False
APICS Head of the Class Competition
Questions
Effective, contemporary management of the
supply chain is best described as
a. going for the lowest invoice price
b. managing the network of suppliers and customers as
a combined system
c. focusing on individual transaction points
d. independently optimizing each link in the chain
APICS Head of the Class Competition
Questions
Just-In-Time is a “push” system rather than a
“pull” system.
True
False
APICS Head of the Class Competition
Questions
The supply chain management concept would say that the
evaluation of cost should include:
I. Invoice price
II. Implications of late delivery
III. Implications of poor supplier quality
b. I and III only
c. II and III only
d. I, II, and III
APICS Head of the Class Competition
Questions
Which of the following pairs of terms best complete the
following sentence?
Under the concept of total quality management, increased focus
on ________________ can minimize the need for
________________.
a. process improvement; final inspection
b. product design; process design
c. process design; product design
d. final inspection methods; process design
APICS Head of the Class Competition
Questions
The JIT/Lean philosophy is best described by
which of the following?
a. management system of people and procedures to
fulfill all delivery deadlines
b. materials management system for removing all
inventories
c. integrated system of managing resources,
information, and decision processes to eliminate
waste.
d. management system that pushes inventory back to
suppliers.
APICS Head of the Class Competition
Questions
What are the costs being included in the total
cost concept for logistics?
a. Inventory Carrying Cost and Warehouse Cost
b. Lot Quantity Cost
c. Order Processing and information costs
d. all of the above
APICS Head of the Class Competition
Questions
Bill of materials (BOM) components are variable
costs
True
False
APICS Head of the Class Competition
Questions
One source of disruption caused by the external
supply chain is:
a.
b.
c.
d.
product or sales promotions
late deliveries
new product or service introductions
engineering changes
APICS Head of the Class Competition
Questions
The Business Plan, Financial Plan and Market
Plan are combined to produce the:
a. Final Assembly Schedule
b. Master Production Schedule
c. Production Plan
d. Materials Plan
APICS Head of the Class Competition
Questions
Which of the following plans has the longest
planning horizon and the least amount of detail?
a. business plan
b. production plan
c. master production schedule
d. all the above have the same level of detail
APICS Head of the Class Competition
Questions
A statement of a schedule of requirements for
individual end items is called:
a. master production schedule
b. material requirements plan
c. a production plan
d. none of the above
APICS Head of the Class Competition
Questions
For the purposes of production planning,
product groups should be established on the
basis of:
a.
b.
c.
d.
market segments
similarity of manufacturing process
the availability of materials
all the above
APICS Head of the Class Competition
Questions
Which basic production planning strategy will
build inventory and avoid the costs of peak
capacity?
a. demand matching
b. production leveling
c. subcontracting
d. available to promise
APICS Head of the Class Competition
Questions
If the opening inventory is 100 units, the sales
are 300 units and the ending inventory is 200
units then manufacturing must produce:
a.
b.
c.
d.
300 units
400 units
500 units
none of the above
APICS Head of the Class Competition
Questions
What important assumption is made about
statistical (quantitative) forecasting methods?
a. the past is a valid indicator of the future
b. demand trend is seldom linear
c. seasonal variations are small
d. random variations are small
APICS Head of the Class Competition
Questions
Assuming the cost per order is constant,
increasing the order quantity will cause annual
ordering costs to:
a. decrease
b. increase
c. remain the same
d. increase at a decreasing rate
APICS Head of the Class Competition
Questions
Quantity Discounts cause companies to:
a. Order sooner
b. Order less at a time
c. Increase their inventory
d. Increase ordering costs
APICS Head of the Class Competition
Questions
One of the success factors for Zara is
postponement.
True
False
APICS Head of the Class Competition
Questions
The triple bottom line refers to:
a. Growth, market share, profit
b. Profit, environmental, social
c. Profit, profit, profit
d. Capital, expense, revenue
APICS Head of the Class Competition
Questions
An advantage of having multiple suppliers is:
a. Buying components which are patented
b. Reliable Just-in-Time deliveries
c. Reduced invoicing
d. Reliability of supply
APICS Head of the Class Competition
Questions
Having a very low inventory is always good for
the Supply Chain.
True
False
APICS Head of the Class Competition
Questions
It is always necessary to have less vendors
True
False
APICS Head of the Class Competition
Questions
If a company always sends goods in full truck
loads, is it a good practice
True
False
APICS Head of the Class Competition
Questions
A job shop making very different types of products on a
set of machines has a very high utilization. Which of the
following also will be true
a. Product lead times will be high
b. Product cost will be low
c. Quality of output will be high
d. Production activity will be stramlined
APICS Head of the Class Competition
Questions
A manufacturer took the following steps to
reduce inventory. Which one is NOT a JIT
action?
a. they required deliveries directly to the point of use
b. they worked to reduce in-transit inventory
c. they picked the supplier that offered volume
discounts
d. they produced in ever smaller lots
APICS Head of the Class Competition
Questions
High utilization generally means more WIP
True
False
APICS Head of the Class Competition
Questions
For very good shipping ports the targeted utilization is
only 60%. Higher utilization is avoided as;
a. It could cause equipment and labor fatigue
b. It could drastically increase the time ships have to
wait to get a berth
c. It could create confusion and mixing of unloaded
goods
d. It could reduce the ability of the port officials to verify
the nature of shipments
APICS Head of the Class Competition
Questions
Increasing the speed of trains ensures that more
trains can run on the same railway infrastructure
True
False
APICS Head of the Class Competition
Questions
Just-in-Time inventory management is a system
that focuses on:
a. Holding inventory at suppliers until needed.
b. Reducing lot sizes.
c. Reducing set-up times.
d. b & c
APICS Head of the Class Competition
Questions
A Just-in-Time inventory management system may
produce results superior to MRP/ERP because:
a. It is less dependent of accurate bills of material.
b. It is less dependent on accurate inventory records.
c. It is less dependent of accurate sales forecast.
d. All of the above
e. None of the above
APICS Head of the Class Competition
Questions
If a vendor is repeatedly late delivering product,
the first thing you should do is increase the lead
time to reflect the current reality.
True
False
APICS Head of the Class Competition
Questions
The EOQ calculation must include an adjustment
factor if:
a. the ratio of demand to production is very high
b. the ratio of demand to production is very low
c. never
d. always
APICS Head of the Class Competition
Questions
When considering all forms of transportation,
the highest “landed cost” will always be air.
True
False
APICS Head of the Class Competition
Questions
The main objective of the “cycle counting
program” is to reconcile the book versus onhand inventory.
True
False
APICS Head of the Class Competition
Questions
There are four most important elements in a supply
chain. Three of them are: Operations, distribution, and
integration; the fourth element is:
a.
b.
c.
d.
Transportation
Manufacturing
Quality and JIT
Purchasing
APICS Head of the Class Competition
Questions
Costs associated with field failures, goodwill
loss, reputation damage, and warranty are
classified as:
a. Pre-transaction costs
b. Transaction costs
c. Post-transaction costs
d. All of the above
APICS Head of the Class Competition
Questions
In selecting a location, consideration of the
territory and quadrant is one of the
recommended levels of decisions.
True
False
APICS Head of the Class Competition
Questions
CRM has made tremendous strides in the past
ten years and studies show that companies have
been very effective in building customer
relations.
True
False
APICS Head of the Class Competition
Questions
Which type of production process is most
suitable for oil refining?
a. Batch
b. Job Shop
c. Assembly Line
d. Flow
APICS Head of the Class Competition
Questions
Which of the following is NOT a characteristic of Job
Shop?
a. Produces highly specialized product in low volume on
customer-order basis
b. Equipment must be flexible enough to change with each new
job
c. Geared towards producing an exact custom product
d. Uses a connected line for production & moves the product
along the line
APICS Head of the Class Competition
Questions
Which of the following is NOT an input to
Materials Requirement Planning (MRP)?
a. Net Report
b. Master Production Schedule (MPS)
c. Inventory Record
d. Bill-of-Materials (BOM)
APICS Head of the Class Competition
Questions
One benefit of using exponential smoothing to
forecast demand is that, unlike other moving
averages, it does not lag behind data trends.
TRUE
FALSE
APICS Head of the Class Competition
Questions
The Cycle Counting Program can be
discontinued once the firm reaches it accuracy
objectives.
True
False
APICS Head of the Class Competition
Questions
Auditing firms typically allow firms (companies) to
discontinue the periodic (annual) inventory, once the
cycle count program has demonstrated that the
program has reached and maintained an agreed upon
minimum inventory accuracy level.
True
False
APICS Head of the Class Competition
Questions
Which of the following are probable causes of demand
variability?
a. Competition from rival companies
b. “No-interest” financing
c. Life cycle of the product
d. All of the above
APICS Head of the Class Competition
Questions
Time series models are used in __________.
a. Qualitative forecasting
b. Intrinsic forecasting
c. Associative forecasting
d. All of the above
APICS Head of the Class Competition
Questions
The 5 basic modes of transportation are
__________.
a. Rail, Motor, Container, Water, Air
b. Rail, Motor , Container, Air, Pipeline
c. Rail, Motor, Water, Air, Pipeline
d. Rail, Container, Water, Air, Pipeline
APICS Head of the Class Competition
Questions
Which statement below is TRUE about Water and Pipeline mode
of transport?
a. Both can transport fluids
b. Both can carry goods in containers
c. Both can only move through water
d. Both can move fluids overland
APICS Head of the Class Competition
Questions
Inventory is considered a liquid asset on the
balance sheet.
True
False
APICS Head of the Class Competition
Questions
A firm with a positive balance sheet can go
bankrupt
True
False
APICS Head of the Class Competition
Questions
Firm Planned Orders (FPO) are considered WIP
True
False
APICS Head of the Class Competition
Questions
In which of the cases is moving average a good
method to use:
a. Trend
b. Seasons
c. Trend and Season
d. Random variation
APICS Head of the Class Competition
Questions
Among the basic modes of transport, air
transport offers the best results in terms of
reliability and transit time.
TRUE
FALSE
APICS Head of the Class Competition
Questions
Which of the following statements is most
accurate:
a. Forecasting is rarely 100% accurate
b. Long term forecast must have data of individual
product mix
c. Forecasting must always be done by manufacturing
function
d. Each department must individually and independently
forecast the needs
APICS Head of the Class Competition
Questions
Which of these is NOT an example of seasonality
in forecasting
a. Heavy rush in the canteen during lunch hours
b. Sale of gifts during Christmas
c. Heavy rush of calls during an emergency
d. Increased requirement of trucks towards the
end of the month
APICS Head of the Class Competition
Questions
Which of these is a limitation of extrinsic
regression technique
a.
b.
c.
d.
It is inaccurate at product mix level
It is mathematically a difficult technique
It cannot be used for medium term forecasting
It will always lag behind the trend
APICS Head of the Class Competition
Questions
Which of the following is NOT a good practice
for data used in forecasting
a. Lost sale data should be accounted for
b. Competitor promotions need to be factored in
c. Data has to be aggregated in time buckets of
one month (Jan sales, Feb sales, etc)
d. Data can be bought from market research
agencies
APICS Head of the Class Competition
Questions
You should consider changing your forecasting method
when:
a. There is an increase in the Mean Absolute
deviation
b. There is an increase in Mean square error
c. Tracking signal changes to beyond acceptable limits
d. Method should be reviewed and changed every
six months
APICS Head of the Class Competition
Questions
A firm plans to introduce a new product for
which it is unsure of the market acceptability.
What would be the ideal layout?
a.
b.
c.
d.
Product layout
Process layout
Project layout
New product layout
APICS Head of the Class Competition
Questions
Product layout would be best suited in which of
the following conditions
a. High demand with high product variety
b. Low demand with low product variety
c. High demand with low product variety
d. Low demand with high product variety
APICS Head of the Class Competition
Questions
Which of these is a disadvantage of the product
layout?
a. Capital cost is high
b. Total lead time is high
c. Scrap rate is high
d. Highly skilled manpower requirement
APICS Head of the Class Competition
Questions
In which of these cases would process layout
benefit the most
a. Product in the maturity stage in the product life cycle
b. Fast moving consumer goods
c.
Product configuration is more important than delivery
lead time
d.
The cost of manufacturing has to be kept low
APICS Head of the Class Competition
Questions
All of these are objectives of a good service
layout EXCEPT
a. Reduce travel for customers
b. Ensure that the facility does not look empty
c. Provide for privacy in work areas
d. Allow attractive display of merchandise
APICS Head of the Class Competition
Questions
One cell of a cellular layout would:
a.
b.
c.
d.
Consist of similar type of machines
Process similar parts needing similar operations
Have high internal changeover time
Create higher in process inventory
APICS Head of the Class Competition
Questions
Which of these is NOT a factor in selecting the
facility layout
a. Overall manufacturing strategy
b. The variety of products to be made
c. The country of operations
d. Availability of skilled man power
APICS Head of the Class Competition
Questions
Which organization represents suppliers,
retailers, industry associations, and wholesalers
representing 2.1 Trillion Euros of business
annually?
a.
b.
c.
d.
ECR (Efficient Consumer Response)
GCI (Global Commerce Initiative)
CGF (Consumer Goods Forum)
ISM (Institute of Supply Management)
APICS Head of the Class Competition
Questions
Which of the following is the most important
component for successful adoption of
technology by organizations?
a. Training for employees
b. Interoperability for software
c. Well accepted by the industry
d. Internal agreement on goals to be accomplished using the
technology
APICS Head of the Class Competition
Questions
The term “fishy-back” comprises of ______
modes of transport.
a.
b.
c.
d.
Sea-air
Land-sea-land
Air-road
Sea-rail
APICS Head of the Class Competition
Questions
Which of the following are advantages of multimodal transport?
i) Reduced freight rates
ii) Speedy transfer
iii) Planned and coordinated transport mode
a. i only
b. i & ii
c. All of the above
d. None of the answers are correct
APICS Head of the Class Competition
Questions
What does “FEU” stand for?
a.
b.
c.
d.
Forwarder equivalent unit
Forty-foot equivalent unit
Freight equivalent unit
Foot equivalent unit
APICS Head of the Class Competition
Questions
Consolidation of different major transport
companies is one of the driving forces of
multimodal transportation
TRUE
FALSE
APICS Head of the Class Competition
Questions
Which types of cargoes are usually NOT carried
by air mode of transport?
a. Mail
b. Medicine
c. Fruits
d. Liquefied Natural Gas
APICS Head of the Class Competition
Questions
Basic Cost Trade-Offs method selects the lowest
total cost transport mode.
TRUE
FALSE
APICS Head of the Class Competition
Questions
Air-road combined mode of transport is also
known as “birdy-back”
TRUE
FALSE
APICS Head of the Class Competition
Questions
Master Production Schedule (MPS) is a sales
forecast representing a statement of demand.
TRUE
FALSE
APICS Head of the Class Competition
Questions
The functions of the Master Production
Schedule (MPS) over the short term horizon are:
I. Planning short term capacity requirements
II. Recommending production of components
III. Planning order priorities
a. Only I and II
c. None of the above
b. Only I and III d. All of the above
APICS Head of the Class Competition
Questions
Which of the following is NOT an input to
Materials Requirement Planning (MRP)?
a. Net Report
b. Master Production Schedule (MPS)
c. Inventory Record
d. Bill-of-Materials (BOM)
APICS Head of the Class Competition
Questions
All of the following occur in an MRP process
except
a. Setting of production lead-times
b. Adjustment to gross requirements
c. Calculation of component requirements
d. Timing of order release
APICS Head of the Class Competition
Questions
The Master Production Schedule (MPS) should
strive to:
I. Maintain a balance between scheduled load and available
productive capacity over the short term
II. Form basis for establishing planned capacity over the long
term
c. Both are correct
a. Only I is correct
d. Neither I nor II is correct
b. Only II is correct
APICS Head of the Class Competition
Questions
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
APICS Head of the Class Competition
Questions
The inventory turns ratio measures:
a. the amount of inventory needed to support
sales growth.
b. obsolete inventory as a percent of sales.
c. how effectively inventory is being used.
d. the amount of space needed to store
inventory
APICS Head of the Class Competition
Questions
A company's strategic plan:
a. provides the manufacturing plan for families
of end items.
b. outlines the sales plan for the next year.
c. is a statement of goals and objectives for a
long range period.
d. outlines new products for the next year.
APICS Head of the Class Competition
Questions
In which of the following manufacturing
environments would consumer products, such
as film, food, etc. be classified?
a. Assemble-to-order
b. Engineer-to-order
c. Make-to-order
d. Make-to-stock
APICS Head of the Class Competition
Questions
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
APICS Head of the Class Competition
Questions
Aggregate inventory management is
concerned with:
a. managing inventory items and how they are used.
b. establishing the production plan.
c. the cost and benefits of carrying the different
classes of inventory.
d. the distribution network and the movement of
inventory.
APICS Head of the Class Competition
Questions
Which of the following are objectives of
inventory?
I. Maximize customer service
II. Efficient transaction
III. Low cost plant operations
IV. Minimum inventory investment
a. I, II, and III
c. I, II, and IV
b. I, III, and IV
d. II, III, and IV
APICS Head of the Class Competition
Questions
Which of the following would be included in the
cost of carrying inventory?
I. Heating and lighting a warehouse
II. Obsolete inventory
III. Labor to move material
IV. Damaged inventory
c. I, III, and IV
a. I, II, and III
d. I, II, III, and IV
b. II, III, and IV
APICS Head of the Class Competition
Questions
A company makes all decisions regarding
forecasting and orders centrally for its
distribution network. This company is using
which of the following systems?
a. Pull system
b. Push system
c. Just-in-Time
d. Time phased order point
APICS Head of the Class Competition
Questions
The Just-in-Time philosophy can be best defined
as:
a. Delivering goods just before they are needed
b. Fulfilling customer orders just as they are
needed
c. Manufacturing without inventory
d. Elimination of waste
APICS Head of the Class Competition
Questions
The Toyota Motor Company identified seven sources of
waste in manufacturing. Which of the following
represent those sources of waste?
I. Process
II. Overproduction
III. Wait-time
IV. Movement
c. II, III, and IV
a. I, II, and III
d. I, II, III, and IV
b. I, II, and IV
APICS Head of the Class Competition
Questions
To achieve necessary quality levels in a JIT
environment, quality must be:
a. built into the product by operators.
b. inspected at multiple points.
c. ensured by the quality control lab.
d. an inspectors function.
APICS Head of the Class Competition
Questions
In order to reduce the number of transactions
which occur in a JIT environment, companies
use a system called:
a. transaction prevention.
b. pre-deduct.
c. backflushing.
d. bar coding.
APICS Head of the Class Competition
Questions
The annual cost of goods sold for a company is $40
million and the average inventory is $10 million. By how
much would the inventory need to be reduced to have
annual inventory turns equal 20 turns?
a. $2 million
b. $4 million
c. $6 million
d. $8 million
APICS Head of the Class Competition
Questions
A component has a fixed cost of $1,000 and a
variable cost of $5.00 per unit to produce. What
would the average cost per unit be if the company
produces 4,000 units?
a. $5.00
b. $5.10
c. $5.25
d. $5.50
APICS Head of the Class Competition
Questions
Even in an intermittent manufacturing shop, certain JIT
principles can be applied. Which of the following
principles can be used in an intermittent manufacturing
shop?
I. Employee involvement
II. Total preventive maintenance
III. Inventory reduction
IV. Continuous flow lines
a. I and III
b. II and IV
c. I, II, and III
d. I, II, III, and IV
APICS Head of the Class Competition
Questions
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
APICS Head of the Class Competition
Questions
Which of the following statements would be true
regarding the delivery time in an engineer to order
company?
a. Delivery time is shorter than a make-to-order company.
b. It would be the same as a make-to-stock item.
c. It would be longer than an assemble-to-order company.
d. It would be shorter than an assemble-to-order company.
APICS Head of the Class Competition
Questions
An income statement of a company will show
which of the following?
a. Inventory levels
b. Long term debt
c.
d.
Cost of products sold
Net cash available
APICS Head of the Class Competition
Questions
Which of the following is a reason to maintain
inventory?
a.
Improve customer service
b.
c.
d.
Reduce transportation costs
Increase machine operating time
Reduce costs
APICS Head of the Class Competition
Questions
A supervisor's primary role in a total employee
involvement company is:
a. controlling.
b. cheerleading.
c. coaching.
d. quality control.
APICS Head of the Class Competition
Questions
Conformance can be best described as:
a. making the highest quality products.
b. meeting the specified requirements.
c. working together as a team.
d. flowing product through cells.
APICS Head of the Class Competition
Questions
Which of the following best defines the term
break even point?
a. The point at which a product fails
b. Current assets = current liabilities
c. Required capacity = available capacity
d. Revenues = total costs