Question 1

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 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

If the total part failure rate of a machine is 0.00055 failures per hour, what would be the mean time between failures (MTBF) in hours?

Options :

A : 1,818.2

B : 59.99945

C : 1.98

D : 0.99945

Answer: A

Question 4

In a make-to-stock (MTS) environment, the master production schedule (MPS) Is usually a schedule of which of the following types of items?

Options :

A : Phantom items

B : Finished goods items

C : Component/subassembly items

D : Raw material items

Answer: B

Question 5

Which of the following systems would be the most cost-efficient for inventory management of a low value item?

Options :

A : Order point

B : Material requirements planning (MRP)

C : Periodic review

D : Economic order quantity(EOQ)

Answer: C

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