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

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

Question 3

Price negotiation is most appropriate when purchasing which of the following product categories?

Options :

A : Commodities

B : Standard products

C : Items of small value

D : Made-to-order (MTO) items

Answer: A

Question 4

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

Question 5

One advantage of adopting a supply network perspective Is that it:

Options :

A : protects global markets.

B : enhances understanding of competitive and cooperative forces.

C : defines the market relationships and partnerships.

D : encourages rivals to collaborate.

Answer: B