Question 1

Substituting capital equipment in place of direct labor can be economically Justified for which of the following scenarios?

Options :

A : Volumes are forecasted to increase

B : Material prices are forecasted to increase

C : Implementing a pull system in production

D : Functional layouts are being utilized

Answer: A

Question 2

Which of the following capacity planning methods uses the master production schedule (MPS) as its primary input?

Options :

A : Resource planning

B : Rough-cut capacity planning (RCCP)

C : Finite loading

D : Input/output analysis

Answer: B

Question 3

Forecast error typically triggers forecast revision when it is:

Options :

A : used in computing the tracking signal.

B : associated with the Introduction stage of the product life cycle.

C : continually increasing.

D : caused by random variation.

Answer: C

Question 4

Which of the following criteria is used to determine safety stock in a distribution center (DC)?

Options :

A : Economic order quantity(EOQ)

B : Seasonal index value

C : Alpha factor level

D : Probability of stocking out

Answer: D

Question 5

When the discrete available-to-promise (ATP) method is used, the master production receipt quantity is committed to:

Options :

A : any request for shipment prior to the planning time fence.

B : any request for shipment prior to the demand time fence (DTF).

C : requests only for shipment before the next master production schedule (MPS) receipt.

D : requests only for shipment in the period of the receipt.

Answer: C

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