Chapman, Gatewood, Arnold & Clive | All Chapters Covered
,TABLE OF CONTENTS
1. Introduction to Materials Management
2. Production Planning System
3. Master Scheduling
4. Material Requirements Planning
5. Capacity Management
6. Production Activity Control
7. Fundamentals of Supply Chain Management
8. Purchasing
9. Forecasting and Demand Management
10.Inventory Fundamentals
11.Order Quantities
12.Independent Demand Ordering Systems
13.Physical Inventory and Warehouse Management
14.Physical Distribution
15.Products and Processes
16.Lean Production
17.Total Quality Management
,CHAPTER 1 — INTRODUCTION TO MATERIALS MANAGEMENT
1. What is the primary purpose of materials management?
A. Increase advertising
B. Manage the flow of materials
C. Eliminate production planning
D. Reduce employee training
Answer: B
Rationale: Materials management coordinates material flow from suppliers
through production and distribution.
2. Which activity is part of materials management?
A. Inventory management
B. Corporate taxation
C. Advertising design
D. Public relations
Answer: A
Rationale: Inventory management is a core materials-management activity.
3. What is a supply chain?
A. A single warehouse
B. A network involved in supplying and delivering products
C. A production machine
D. An accounting system
Answer: B
Rationale: Supply chains connect suppliers, organizations, operations, logistics,
and customers.
4. What does value-added mean?
A. Increasing unnecessary inventory
B. Increasing product value through useful activities
C. Increasing paperwork
D. Increasing supplier count
, Answer: B
Rationale: Value is added when an activity transforms or improves a product in a
way customers value.
5. Which is an order qualifier?
A. A minimum requirement for consideration
B. A guaranteed sale
C. A production error
D. A warehouse location
Answer: A
Rationale: Order qualifiers are characteristics necessary for a product to be
considered by customers.
6. An order winner is:
A. A supplier certificate
B. A characteristic that helps win the customer's order
C. A warehouse employee
D. A production schedule
Answer: B
Rationale: An order winner differentiates an offering sufficiently to secure
business.
7. Which strategy produces goods before receiving a customer order?
A. Make-to-order
B. Engineer-to-order
C. Make-to-stock
D. Assemble-to-order
Answer: C
Rationale: Make-to-stock products are produced based on anticipated demand.
8. Make-to-order means production begins primarily:
A. After customer demand is received
B. Before forecasting