1) ____ is important and absolutely essential for a successful MRP system.

Multiple Choice

• Accuracy
• Completeness
• Management
• Forecasting
• Integrity

2)Which of the following are not types of inventory?

Multiple Choice

• work-in-progress
• customer orders
• raw materials
• tools
• goods in transit

3)

At the break-even point:

Multiple Choice

• variable cost equals fixed cost.
• total cost equals profit.
• total cost equals total revenue.
• output equals capacity.
• variable cost equals total revenue.

4)iven forecast errors of 4, 8, and 3, what is the mean absolute deviation?

Multiple Choice

• 4
• 3
• 12
• 6
• 5

5)

Capacity cushion can be determined by:

Multiple Choice

• capacity predicted demand
• capacity actual demand
• capacity strategic demand
• capacity estimated demand
• capacity expected demand

6)A managerial approach toward forecasting which seeks to actively influence demand is:

Multiple Choice

• reactive.
• protracted.
• influential.
• proactive.
• retroactive.

7)

Which of the following is not a reason why capacity decisions are so important?

Multiple Choice

• Capacity is a long-term commitment of resources.
• Capacity affects operating costs.
• Capacity limits the rate of output possible.
• Capacity chunks can be added or deleted quickly and inexpensively.
• Capacity is a major determinant of initial costs.

8)Which of the following is an example of a carryover effect?

Multiple Choice

• previous experience that is relevant to the current scenario
• capacity that was used on older products but that can be used on new products
• existing products that are still in the maturity phase of their life cycle
• forecasting errors from previous product lines
• old supplier contracts that must still be honore

9)Which one of the following is not common to product layouts?

Multiple Choice

• low unit costs
• special-purpose technology
• ability to adjust to changes in demand
• a high rate of output
• specialization of labor