Exam question with correct answers
(100% verified answers) plus rationales Q &A
2026 INSTANT DOWNLOAD PDF
1. What is the primary goal of production planning?
A. Increase marketing reach
B. Ensure efficient use of resources
C. Reduce employee salaries
D. Eliminate inventory completely
Answer: B
Rationale: Production planning focuses on optimizing resources like labor,
materials, and time to meet demand efficiently.
2. Which document forecasts future demand?
A. BOM
B. Master schedule
C. Demand forecast
D. Work order
Answer: C
Rationale: Demand forecasting predicts future customer requirements based on
historical data and trends.
3. What does MRP stand for?
,A. Manufacturing Resource Planning
B. Material Requirements Planning
C. Machine Running Process
D. Manual Resource Process
Answer: B
Rationale: MRP calculates material requirements for production based on demand
and inventory levels.
4. What is a BOM used for?
A. Employee scheduling
B. Listing product components
C. Financial auditing
D. Machine calibration
Answer: B
Rationale: A Bill of Materials lists all raw materials, parts, and assemblies needed
for production.
5. Which system integrates finance, HR, and production?
A. MRP
B. ERP
C. JIT
D. CRM
Answer: B
Rationale: ERP systems integrate multiple business functions into one unified
system.
6. What does JIT aim to reduce?
A. Production speed
B. Inventory waste
, C. Labor quality
D. Machine usage
Answer: B
Rationale: Just-In-Time reduces excess inventory and waste by producing only
what is needed.
7. What is capacity planning?
A. Hiring employees
B. Determining production capability
C. Designing products
D. Marketing strategy
Answer: B
Rationale: Capacity planning ensures production resources meet demand
requirements.
8. What is the master production schedule (MPS)?
A. Employee attendance record
B. Detailed production plan
C. Financial report
D. Maintenance log
Answer: B
Rationale: MPS defines what products will be made, when, and in what quantities.
9. Which factor affects production planning most?
A. Weather
B. Demand variability
C. Office decoration
D. Employee hobbies
Answer: B