MQM Final Exam Questions With Complete Solutions
Regarding the bullwhip effect, which of the following
statements is incorrect?
a. There is variability in the orders received by each entity from
period to period.
b. As one moves farther and farther back from the end user, the
lesser the variability in the orders.
c. Suppliers may have to forecast demand (as compared to being
shown end user market demand).
d. When the forecast does not match demand, organizations
have either too much or too little inventory.
e. If products cannot be produced until purchased parts are
received, a company may be forced to hold extra inventory (if
more orders) or halt supplier parts until existing inventory goes
down (if less orders). Correct Answers b. As one moves farther
and farther back from the end user, the lesser the variability in
the orders.
Which of the following items is not an element of an MRP
system?
a. Master Scheduling
b. Bill of Materials
c. Inventory Planning
d. Capacity Planning
e. Purchasing
f. Shop-Floor Control Correct Answers c. Inventory Planning
Which of the following items pertaining to common types of
supply chain metrics is incorrect?
a. Serviceability
,b. Quality
c. Flexibility
d. Cost Correct Answers a. Serviceability
Which of the following statements is incorrect?
a. A common delivery metric is the percent of orders delivered
complete and on the date requested by the customer.
b. A common delivery metric is the percent of orders filled
completely from inventory.
c. A common delivery metric is the time it takes from taking an
order to its delivery to customer.
d. A common delivery metric is the performance of the product
or service based on customer perceptions. Correct Answers d.
A common delivery metric is the performance of the product or
service based on customer perceptions.
Which of the following statements is incorrect?
a. A Management Requirements System represents a
pushsystem while a JIT system represents a pullsystem.
b. In an MRP system, a master schedule is created that
represents future forecasts/orders and that determines which
components and parts are to be ordered and pushedthrough
production.
c. Materials in a JIT system are pulledthrough production by
subsequent (using) work centers only when these work centers
need the parts.
d. The master schedule specifies the end items (or output) to be
produced in an MRP system. Correct Answers a. A
Management Requirements System represents a pushsystem
while a JIT system represents a pullsystem.
, Which of the following statements is incorrect?
a. A primary reason for carrying inventory is to provide for
transit from the one location to the next.
b. Safety capacity is inventory that is maintained to protect
against these uncertainties.
c. Safety stocks of finished goods are maintained to absorb
changes in demand so that production can maintain a separate,
more even pace.
d. Safety stocks of raw materials are maintained to absorb
uncertainties in acquiring purchased materials from suppliers in
terms of both the quantity and the time of delivery. Correct
Answers b. Safety capacity is inventory that is maintained to
protect against these uncertainties.
Which of the following statements is incorrect?
a. A typical inventory record contains the part number (a unique
identifier), the lead time, standard cost, and other relevant
information.
b. The purpose of capacity planning is to aid management in
checking on the validity of the master schedule.
c. Finite capacity scheduling establishes a production schedule
while factoring in relevant limitations of resources.
d. The purpose of the BOM is to release orders to the shop floor
and manage the orders on their way through the factory to
ensure that they are completed on time.
e. An ERP system is a souped-up MRP system that controls not
only materials purchasing, manufacturing, inventory, and
capacity management; it integrates the information subsystems
within the firm including accounting systems, sales and
marketing systems, human resource systems, and financial
systems. Correct Answers d. The purpose of the BOM is to
Regarding the bullwhip effect, which of the following
statements is incorrect?
a. There is variability in the orders received by each entity from
period to period.
b. As one moves farther and farther back from the end user, the
lesser the variability in the orders.
c. Suppliers may have to forecast demand (as compared to being
shown end user market demand).
d. When the forecast does not match demand, organizations
have either too much or too little inventory.
e. If products cannot be produced until purchased parts are
received, a company may be forced to hold extra inventory (if
more orders) or halt supplier parts until existing inventory goes
down (if less orders). Correct Answers b. As one moves farther
and farther back from the end user, the lesser the variability in
the orders.
Which of the following items is not an element of an MRP
system?
a. Master Scheduling
b. Bill of Materials
c. Inventory Planning
d. Capacity Planning
e. Purchasing
f. Shop-Floor Control Correct Answers c. Inventory Planning
Which of the following items pertaining to common types of
supply chain metrics is incorrect?
a. Serviceability
,b. Quality
c. Flexibility
d. Cost Correct Answers a. Serviceability
Which of the following statements is incorrect?
a. A common delivery metric is the percent of orders delivered
complete and on the date requested by the customer.
b. A common delivery metric is the percent of orders filled
completely from inventory.
c. A common delivery metric is the time it takes from taking an
order to its delivery to customer.
d. A common delivery metric is the performance of the product
or service based on customer perceptions. Correct Answers d.
A common delivery metric is the performance of the product or
service based on customer perceptions.
Which of the following statements is incorrect?
a. A Management Requirements System represents a
pushsystem while a JIT system represents a pullsystem.
b. In an MRP system, a master schedule is created that
represents future forecasts/orders and that determines which
components and parts are to be ordered and pushedthrough
production.
c. Materials in a JIT system are pulledthrough production by
subsequent (using) work centers only when these work centers
need the parts.
d. The master schedule specifies the end items (or output) to be
produced in an MRP system. Correct Answers a. A
Management Requirements System represents a pushsystem
while a JIT system represents a pullsystem.
, Which of the following statements is incorrect?
a. A primary reason for carrying inventory is to provide for
transit from the one location to the next.
b. Safety capacity is inventory that is maintained to protect
against these uncertainties.
c. Safety stocks of finished goods are maintained to absorb
changes in demand so that production can maintain a separate,
more even pace.
d. Safety stocks of raw materials are maintained to absorb
uncertainties in acquiring purchased materials from suppliers in
terms of both the quantity and the time of delivery. Correct
Answers b. Safety capacity is inventory that is maintained to
protect against these uncertainties.
Which of the following statements is incorrect?
a. A typical inventory record contains the part number (a unique
identifier), the lead time, standard cost, and other relevant
information.
b. The purpose of capacity planning is to aid management in
checking on the validity of the master schedule.
c. Finite capacity scheduling establishes a production schedule
while factoring in relevant limitations of resources.
d. The purpose of the BOM is to release orders to the shop floor
and manage the orders on their way through the factory to
ensure that they are completed on time.
e. An ERP system is a souped-up MRP system that controls not
only materials purchasing, manufacturing, inventory, and
capacity management; it integrates the information subsystems
within the firm including accounting systems, sales and
marketing systems, human resource systems, and financial
systems. Correct Answers d. The purpose of the BOM is to
