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Chapter 1: Introduction to Materials Management

1. Product life cycles for many products are ________, forcing companies to not only
become ________ in design but also to communicate changes and needs to suppliers and
distributors.

Your Answer: shrinking rapidly, less flexible

Correct Answer: shrinking rapidly, more flexible

2. All portions of the material production from __________ to ___________ are considered
to be a linked chain under the supply chain concept.

Your Answer: raw material, work in process

Correct Answer: raw material, final customer

3. To get the most profit, a company should:

Your Answer: Provide high production costs

Correct Answer: Provide the lowest inventory investment

4. Finance must keep investment and costs low. This can be done by:

Your Answer: Decreasing the number of plants and warehouses

5. Today the concepts of ______ manufacturing stress the need to supply customers with
what they want when they want it and to keep inventories at a _______.

Your Answer: Six Sigma, maximum

Correct Answer: JIT, minimum

6. The concept of having ____ department(s) responsible for the flow of materials, from
supplier through production to consumer, is relatively new.

Your Answer: multiple

Correct Answer: one
 7. Materials management is also called:

Your Answer: Control and logistics management

Correct Answer: Both of the above

8. Materials management is a coordinating function responsible for planning and controlling

materials flow. Its objective(s) is/are:

Your Answer: Provide the required level of customer service

Correct Answer: Both of the above

9. _______ and ______ are costs that increase or decrease with the quantity sold.

Your Answer: Direct labor, direct material

10. Inventory not only makes up a portion of the cost of goods sold but has to be purchased
at the beginning of production to be processed into finished goods. This type of inventory
is called _____________.

Your Answer: finished goods

Correct Answer: work-in-process

Chapter 2: Production Planning System

1. A good planning system must consider:

Your Answer: What does it take to make it?

Correct Answer: All of the above

2. _______ is the capability of manufacturing to produce goods and services.

Your Answer: Priority

Correct Answer: Capacity

3. ________ is responsible for analyzing the marketplace and deciding the firm's response,
the markets to be served, the products supplied, and desired levels of customer service.

Your Answer: Finance

Correct Answer: Marketing

4. ______ must satisfy the demands of the marketplace. It does so by using plants,
machinery, equipment, labor, and materials as efficiently as possible.

Your Answer: Finance

Correct Answer: Production
 5. The _____________________ is a plan for the production of individual end items.

Your Answer: JIT

Correct Answer: MPS

6. Purchasing and ___________ represent the implementation and control phase of the
production planning and control system.

Your Answer: material requirements planning (MRP)

Correct Answer: production activity control (PAC)

7. A _________ strategy means producing the amounts demanded at any given time.

Your Answer: chase

8. In the _____________ environment, several product options exist (e.g., automobiles)

and the customer is not willing to wait until the product is made. Therefore manufacturers
produce and stock standard component parts.

Your Answer: assemble-to-order

9. ____________ is the first step in a manufacturing planning and control system.

Your Answer: Achieving the forecast

Correct Answer: Production planning

10. The cost of a _________ that is too large equals the cost of turning away business.

Your Answer: backlog

Chapter 3: Master Scheduling

1. The MRP forms a vital link between sales and production as follows:

Your Answer: The MRP is a plan of what is to be produced and when.

Correct Answer: All of the above

2. The information needed to develop an MPR includes:

Your Answer: Forecasts for individual end items

Correct Answer: All of the above
 3. A schedule is satisfactory when:

Your Answer: It doesn't specify to the plant when to start production

Correct Answer: Capacity is consistent with the production plan

4. The objectives in developing an MRP include:

Your Answer: To make the best use of material, labor, and equipment
Correct Answer: All of the above

5. To reach its objectives, the master production schedule must:

Your Answer: Be outside the capacity of manufacturing

Correct Answer: Satisfy customer demand

6. The first step in preparing an MPS is:

Your Answer: Check the preliminary MRP against available capacity.

Correct Answer: Develop a preliminary MRP.

7. Critical resources in rough-cut capacity planning include:

Your Answer: Labor

Correct Answer: All of the above

8. It is possible to increase the available capacity by:

Your Answer: Scheduling overtime

9. In the __________________ environment, many different end items are made from a
small number of components.

Your Answer: make-to-order

10. In the __________________ environment, many end items can be made from
combinations of basic components and subassemblies.

Your Answer: make-to-order

Correct Answer: assembly-to-order

Chapter 4: Material Requirements Planning

1. The sides, ends, legs, and tops of tables are ________ demand items.

Your Answer: independent

Correct Answer: dependent

2. Since _______ demand is not related to the demand for any other assemblies or
products, it must be ___________.

Your Answer: dependent, calculated

Correct Answer: independent, calculated

3. All major inputs to the MRP system include:

Your Answer: Bill of material and inventory records

Correct Answer: Master production schedule, inventory records, and bills of material

4. The ___________ is a statement of which end items are to be produced, their quantity,
and the dates they are to be completed.

Your Answer: MPS

5. The bill of materials shows all the parts required to make __________.

Your Answer: the MPR

Correct Answer: one item

6. A _________ is used when companies usually make more than one product and the same
components are often used in several products.

Your Answer: multiple bill

7. A(n) _____________ lists all the parts needed to make one complete assembly.

Your Answer: indented bill

Correct Answer: summarized parts list

8. ___________ is the process of multiplying the requirements by the usage quantity and
recording the appropriate requirements throughout the product tree.

Your Answer: Planning orders

Correct Answer: Exploding
 9. _______________ means that authorization is given to purchasing to buy the necessary
material or to manufacturing to make the component.

Your Answer: Releasing an order

10. ____________ are orders placed on manufacturing or on a vendor and represent a

commitment to make or buy.

Your Answer: Releasing orders

Correct Answer: Scheduled receipts

Chapter 5: Capacity Management

1. ______________involves long-range capacity resource requirements and is directly linked

to production planning.

Your Answer: MRP

Correct Answer: Resource planning

2. Resource planning involves changes in staffing, capital equipment, product design, or

other facilities that take a ________ time to ___________.

Your Answer: long, acquire and eliminate

3. The inputs needed for a CRP include:

Your Answer: Planned order released

Correct Answer: All of the above

4. The Gregorian calendar:

Your Answer: Spreads holidays evenly throughout the year

Correct Answer: Presents problems for manufacturing planning and control

5. Capacity needs to be measured:

Your Answer: At the work center level

Correct Answer: All of the above

6. _____________ is the number of hours a work center can be used.

Your Answer: Rated capacity

Correct Answer: Available hours
 7. Rated capacity is calculated by taking into account the work center ___________.

Your Answer: utilization and demonstrated capacity

Correct Answer: utilization and efficiency

8. The term _____________means that the work center is overloaded and the term
________________ means the work center is underloaded.

Your Answer: overcapacity, undercapacity

9. In the _________ run, capacity ________ be adjusted.

Your Answer: short, cannot

Correct Answer: short, can

10. If the workload in a manufacturing plan cannot be changed, an alternative is to:

Your Answer: Schedule undertime

Correct Answer: All of the above

Chapter 6: Production Activity Control

1. On average, manufacturing firms spend about ________ of their sales dollars on the
purchase of raw materials, components, and supplies.

Your Answer: 50%

2. The objectives of purchasing include:

Your Answer: Obtaining goods and services of the lowest quality

Correct Answer: Ensuring the best possible service and prompt delivery by the supplier

3. A ________________ is a legal offer to purchase.

Your Answer: purchase order

4. When the supplier's invoice is received, the following should agree:

Your Answer: The purchase order, the work order, and the production report
Correct Answer: The purchase order, the receiving report, and the invoice

5. In purchasing an item or service from a supplier, which factor is not included when
specifications are being developed?
 Your Answer: Quantity requirements
Correct Answer: Delivery requirement

6. ________ is the systematic use of techniques that identify a required function, establish a
value for that function, and finally provide the function at the lowest overall cost.

Your Answer: Functional analysis

Correct Answer: Value analysis

7. _______ is most often used in wholesale or retail businesses but is also used extensively
in manufacturing.

Your Answer: Description by specification

Correct Answer: Description by brand

8. ___________specifications and standard specifications are the two major sources of

specifications or ways of describing a product.

Your Answer: Buyer

9. ______ sourcing is the use of more than one supplier for an item.

Your Answer: Multiple

10. Materials such as copper, coal, wheat, meat, and metals are:

Your Answer: Items of small value

Correct Answer: Commodities