Operations Management Flashcards
Which of the following is usually included as an inventory holding cost?
Breakage
What is the basic purpose of inventory analysis?
To specify when items should be ordered and how large the order should be.
ABC inventory classification schemes divide inventory items into three groupings. What are these groupings
usually based upon?
Dollar Volume
Under a periodic review system, enough inventory must be carried to protect against stock out for
the ___________.
Replenishment lead time plus the review period
Using the ABC classification system for inventory, which of the following is a true statement?
The “A” items are of high dollar volume
Which of the following is not necessary to compute the order quantity using the fixed-time period model with
safety stock?
Ordering cost
. Which of the following is not an assumption of the basic fixed-order quantity inventory model?
Diminishing returns to scale of holding inventory
Which of the following is a perpetual system for inventory management?
Fixed-order quantity
The master production schedule is typically stated as:
Specific finished goods
The next level down in the planning process after development of the aggregate plan is the ____________.
Master production schedule
In a level production plan, equipment capacity is set equal to
Average demand
An advantage of the chase aggregate plan is __________.
Minimizes finished goods holding costs
What type of aggregate plan keeps a stable workforce and uses backorders to compensate for
excess demand needs?
Level
Which of the following is not an input to the aggregate planning process?
Master production schedule
Which of the following is an input to the master production schedule (MPS)?
The aggregate plan
Which of the following is one of the main purposes of a MRP system?
To determine the amount of materials needed to produce each end item
Which of the following is an input file necessary to run an MRP system?
Bill of materials (BOM) file
MRP systems seek to achieve which of the following?
Determine the number of demand dependent items needed
Which of the following is considered a primary report in an MRP system?
Planned order schedules
Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we would expect which of the following?
Minimized carrying costs
A computer-based information system designed to manage dependent demand inventory is ____________.
Material requirements planning
The _________ is (are) checked for the materials on hand and those that need to be
procured.
Inventory records
In MRP, the starting points for each part and material needed to accomplish the master
production schedule are the ____________.
Gross requirements
The time interval necessary to either manufacture or purchase an item is its _____________.
Lead time
For any period the beginning inventory, plus any replenishment orders due, less the gross
requirement equals is called the ______________.
Projected available quantity
For every scheduled receipt in an MRP table, there is also in the organization a(n)
Order that has been placed but not received
The MRP file that contains data on specific materials used to make final products and their
correct quantities is the ____________.
Bill of materials file
