MQM 227 Actual Questions and Correct Answers
Q1
Which of the following statements is incorrect? Aggregate planning involves planning at a
specific product/service level not a product family level. Scheduling decisions allocate available
capacity or resources (equipment, labor, and space) to jobs for a given period of time.
Aggregate planning seeks to determine the resources needed while scheduling allocates the
resources made available through aggregate planning in the best manner to meet operational
objectives. Aggregate planning is done on a time frame of about one year; scheduling is done
on a time frame of a few months, weeks, or hours.
Answer: a. Aggregate planning involves planning at a specific product/service level not
a product family level.
Q2
Which of the following statements is incorrect? The purpose of forecast accuracy is to
determine when the forecasting method is no longer tracking actual demand and should be
reset. Forecasting is only used to predict future events. Through planning, we consciously
attempt to alter future events. Whenever demand is not constrained by capacity, inventory, or
other management policies; the forecasting of demand should be the same as the forecasting
of sales. The purpose of forecast accuracy is to monitor predictable demand observations or
outliers (which should be carefully evaluated and perhaps excluded from data analysis).
Answer: e. The purpose of forecast accuracy is to monitor predictable demand
observations or outliers (which should be carefully evaluated and perhaps excluded
from data analysis).
Q3
Which of the following statements is incorrect? Batch and job shop processes generally have
even lower utilization. Assembly-line processes may set planned utilization at 80% to allow for
flexibility to meet unexpected demand. In considering economies of scale, larger facilities are
generally more economical because fixed costs can be spread over more units of production. A
product-focused facility produces one family or type of product or service. In considering
economies of scale, larger facilities are generally more economical because the cost of
buildings and equipment increases linearly with volume.
Answer: e. In considering economies of scale, larger facilities are generally more
economical because the cost of buildings and equipment increases linearly with
volume.
, Q4
Which of the following options is not listed as a method of adding capacity to bottlenecks?
adding machine time (e.g., coverage during breaks) reducing setup time subcontracting using
different equipment if equally efficient
Answer: d. using different equipment if equally efficient
Q5
Which of the following statements is incorrect? A project is a permanent endeavor undertaken
to create a unique product or service. Large objects such as ships, buildings, and custom-made
equipment are manufactured on a project basis. A project completion date and intermediate
milestones are frequently established at the outset. The budget might impact the schedule if
the company has a tight budget and is unwilling to pay additional money to expedite critical
components of the project.
Answer: a. A project is a permanent endeavor undertaken to create a unique product
or service.
Q6
6. Which of the following
Answer: e. An aggregate plan should be the basis for final
Q7
Which of the following statements is incorrect? In the Delphi method, a forecast is developed by
a panel of experts answering a series of questions on successive rounds. Exponential smoothing
is well adapted to small number of items to be forecast. In a Life-Cycles Analogy method,
predictions are based on the life cycles of similar products. In the Box-Jenkins method,
autocorrelation methods are used to identify underlying time series. In the regression method,
least squares are used to obtain a best fit between the variables.
Answer: b. Exponential smoothing is well adapted to small number of items to be
forecast.
Q8
Which of the following tasks do not occur during the scheduling phase of a project? Finish all
work Develop a detailed work-breakdown structure Estimate the time required for each task
Develop a detailed budget for each task
Answer: a. Finish all work
Q1
Which of the following statements is incorrect? Aggregate planning involves planning at a
specific product/service level not a product family level. Scheduling decisions allocate available
capacity or resources (equipment, labor, and space) to jobs for a given period of time.
Aggregate planning seeks to determine the resources needed while scheduling allocates the
resources made available through aggregate planning in the best manner to meet operational
objectives. Aggregate planning is done on a time frame of about one year; scheduling is done
on a time frame of a few months, weeks, or hours.
Answer: a. Aggregate planning involves planning at a specific product/service level not
a product family level.
Q2
Which of the following statements is incorrect? The purpose of forecast accuracy is to
determine when the forecasting method is no longer tracking actual demand and should be
reset. Forecasting is only used to predict future events. Through planning, we consciously
attempt to alter future events. Whenever demand is not constrained by capacity, inventory, or
other management policies; the forecasting of demand should be the same as the forecasting
of sales. The purpose of forecast accuracy is to monitor predictable demand observations or
outliers (which should be carefully evaluated and perhaps excluded from data analysis).
Answer: e. The purpose of forecast accuracy is to monitor predictable demand
observations or outliers (which should be carefully evaluated and perhaps excluded
from data analysis).
Q3
Which of the following statements is incorrect? Batch and job shop processes generally have
even lower utilization. Assembly-line processes may set planned utilization at 80% to allow for
flexibility to meet unexpected demand. In considering economies of scale, larger facilities are
generally more economical because fixed costs can be spread over more units of production. A
product-focused facility produces one family or type of product or service. In considering
economies of scale, larger facilities are generally more economical because the cost of
buildings and equipment increases linearly with volume.
Answer: e. In considering economies of scale, larger facilities are generally more
economical because the cost of buildings and equipment increases linearly with
volume.
, Q4
Which of the following options is not listed as a method of adding capacity to bottlenecks?
adding machine time (e.g., coverage during breaks) reducing setup time subcontracting using
different equipment if equally efficient
Answer: d. using different equipment if equally efficient
Q5
Which of the following statements is incorrect? A project is a permanent endeavor undertaken
to create a unique product or service. Large objects such as ships, buildings, and custom-made
equipment are manufactured on a project basis. A project completion date and intermediate
milestones are frequently established at the outset. The budget might impact the schedule if
the company has a tight budget and is unwilling to pay additional money to expedite critical
components of the project.
Answer: a. A project is a permanent endeavor undertaken to create a unique product
or service.
Q6
6. Which of the following
Answer: e. An aggregate plan should be the basis for final
Q7
Which of the following statements is incorrect? In the Delphi method, a forecast is developed by
a panel of experts answering a series of questions on successive rounds. Exponential smoothing
is well adapted to small number of items to be forecast. In a Life-Cycles Analogy method,
predictions are based on the life cycles of similar products. In the Box-Jenkins method,
autocorrelation methods are used to identify underlying time series. In the regression method,
least squares are used to obtain a best fit between the variables.
Answer: b. Exponential smoothing is well adapted to small number of items to be
forecast.
Q8
Which of the following tasks do not occur during the scheduling phase of a project? Finish all
work Develop a detailed work-breakdown structure Estimate the time required for each task
Develop a detailed budget for each task
Answer: a. Finish all work
