Question 1

Which of the following best describe the function of MRP?

Options :

A : Planning and controlling of production and inventory

B : Planning and monitoring of inventory resources

C : Planning and controlling of production and finance

D : Planning and monitoring of production resources only

Answer: A

Question 2

Toll Group has thousands of end-of-life IT assets that need to be disposed of. The senior management of Toll Group is largely concerned about sustainability in waste management, especially electronic waste. Before selecting a supplier to manage the process, the procurement team is required to assess the environmental risks regarding disposal of the assets. Risk assessment is basically based on the measurement of which factors?

1. Impact

2. Reward

3. Surveillance

4. Likelihood

Options :

A : 1 and 3 only

B : 1 and 4 only

C : 2 and 4 only

D : 2 and 3 only

Answer: B

Question 3

In the periodic review system, the order quantity is the same for each order. Is this statement true?

Options :

A : Yes, the order quantity should be equal to economic order quantity

B : No, the inventory position at each review point differs from each other

C : Yes, in periodic review system items are reviewed when the Kanban is triggered

D : No, the next order quantity must be larger than the previous one

Answer: B

Question 4

One of the important outputs of an MRP system is the material requirement plan. This plan shows the net requirements for materials or components to make the final product. Which of the following best describes the net material requirements?

Options :

A : Gross requirements - Inventory level - Scheduled receipt

B : Total requirements - order releases + amount on-hand

C : On order + Inventory on-hand

D : Gross requirements + on-order - Inventory on-hand

Answer: A

Question 5

XYZ Ltd wants to determine the safety stock level of a strategic material for its new product - DMD. It needs to forecast the future demand for this product. It invites external consultants and cross-functional team members to a meeting. They answer questionnaires anonymously and see the "group response" as a statistical summary. They repeat this process until they reach a closer agreement. What forecasting method is XYZ Ltd using?

Options :

A : Time series analysis

B : Delphi method

C : Objective forecasting technique

D : Holt-Winters seasonal method

Answer: B

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