EXAM 4 GSC UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question 1.
A company that orders at their economic order quantity should experience a decline in the number
of orders per year as their order quantity increases if their annual demand stays constant
ANSWER
true
Question 2.
The longer the production and supplier lead times, the longer the master scheduling record's
planning horizon needs to be.
ANSWER
true
Question 3.
On the master schedule record, the amount of product that will be finished and available for sale
each week given those units have already been promised to customers is the:
ANSWER
available to promise (ATP)
Question 4.
In the water and rocks analogy for Lean:
ANSWER
water represents inventory
, Question 5.
In order to find the lowest cost ordering policy in a quantity discount model, you must compare the
holding cost, ordering cost, and the price per unit for various order quantities.
ANSWER
true
Question 6.
Which of the following statements regarding master production scheduling calculations is BEST?
ANSWER
If ending inventory is greater than or equal to zero, there is no master production schedule
quantity for that period
Question 7.
Liversuch Industries uses a kanban system to manage production of the J-15 subassembly. They
have an hourly demand for 250 units and use containers that can hold 50 units each. It takes 90
minutes to fill and move a container of parts to the right place on the J-15 line that is currently rated
at a 20% safety factor. How many production cards are needed?
ANSWER
9
Question 8.
Tata Motors assembles cars from their own parts and subassemblies and also controls the mining
and fabrication of the materials used to create those parts. When Anand ordered his luxury sedan
with the platinum dashboard he knew he wouldn't be taking delivery of his dream car the next week.
Rather, he would be waiting a while thanks to:
ANSWER
a mismatch between supply chain lead time and customer demand.
Question 9.
The just-in-time philosophy applies only to the production floor of a manufacturing company.
ANSWER
false
CORRECT ANSWERS
Question 1.
A company that orders at their economic order quantity should experience a decline in the number
of orders per year as their order quantity increases if their annual demand stays constant
ANSWER
true
Question 2.
The longer the production and supplier lead times, the longer the master scheduling record's
planning horizon needs to be.
ANSWER
true
Question 3.
On the master schedule record, the amount of product that will be finished and available for sale
each week given those units have already been promised to customers is the:
ANSWER
available to promise (ATP)
Question 4.
In the water and rocks analogy for Lean:
ANSWER
water represents inventory
, Question 5.
In order to find the lowest cost ordering policy in a quantity discount model, you must compare the
holding cost, ordering cost, and the price per unit for various order quantities.
ANSWER
true
Question 6.
Which of the following statements regarding master production scheduling calculations is BEST?
ANSWER
If ending inventory is greater than or equal to zero, there is no master production schedule
quantity for that period
Question 7.
Liversuch Industries uses a kanban system to manage production of the J-15 subassembly. They
have an hourly demand for 250 units and use containers that can hold 50 units each. It takes 90
minutes to fill and move a container of parts to the right place on the J-15 line that is currently rated
at a 20% safety factor. How many production cards are needed?
ANSWER
9
Question 8.
Tata Motors assembles cars from their own parts and subassemblies and also controls the mining
and fabrication of the materials used to create those parts. When Anand ordered his luxury sedan
with the platinum dashboard he knew he wouldn't be taking delivery of his dream car the next week.
Rather, he would be waiting a while thanks to:
ANSWER
a mismatch between supply chain lead time and customer demand.
Question 9.
The just-in-time philosophy applies only to the production floor of a manufacturing company.
ANSWER
false
