Basics of Supply Chain Management PracticeQuestions

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Acknowledgments
APICShasdevelopedthesepracticequestionsfortheBasicsofSupplyChain Managementexaminationprogram.Thistestiscomposedofquestionsthathave beendevelopedwiththehelpoftwoAPICSchaptersandsubjectmatterexperts. Itincludes60questionssimilartothosefoundinthecertificationexam.The questionswerereviewedandeditedtoensureaccuratecontentandconsistency bytheBasicsofSupplyChainManagementCommitteeoftheCurriculaand CertificationCouncil.Thetestisaccompaniedbyananswerkeyaswellastext referenceswithspecificpagenumbersforfurtherstudy. APICSacknowledgesthosewhoputinthetimeandefforttomakethesepractice questionspossible. BasicsofSupplyChainManagementCommittee SteveChapman,Ph.D.,CPIM TonyArnold,CFPIM,CIRM JohnH.Collins,CPIM DanielSteele,Ph.D.,CPIM JimCaruso,CPIM EileenGame,CFPIM,CIRM NancyAnnVarney,CPIM RichardL.Bragg,CPIM OrangeCountyChapter JerryWesserling,CPIM RolyWhite,CFPIM TorontoChapter AlBuckey,CFPIM,CIRM HarryPryer,CPIM,CIRM CPIMTestDevelopmentCommittee PaulBernard,CFPIM,CIRM

Basics of Supply Chain Management Practice Questions

1. Whichofthefollowingdemandfulfillmentapproachestypicallyprovides thelongestdeliverytime? (a) (b) (c) (d) engineertoorder maketoorder assembletoorder maketostock

2.

Whichofthefollowingisgenerallyacharacteristicofaproductfocused layout? (a) (b) (c) (d) largequeuesatworkstations fixedflowofwork productiontoaworkorder generalpurposeworkstations

3.

Whichofthefollowingisgenerallyafunctionofthephysicaldistribution system? (a) (b) (c) (d) productionactivitycontrol productionplanning packaging billofmaterial

4.

Aforecastistypicallymoreaccuratefor (a) groupsofitemsratherthanforindividualitems (b) dailyratherthanmonthlyperiodsoftime

(c) physicalunitsratherthanmonetaryunits (d) faroutinthefutureratherthannearertimeperiods

5.

Whichofthefollowingismostlikelytobeadependentdemanditem? (a) amanufacturedsubassembly (b) aniteminagrocerystore (c) aservicepart (d) anofficesupplyitem Themasterproductionscheduleisgenerallyadirectinputto (a) (b) (c) (d) productionplanning materialrequirementsplanning(MRP) purchasingplanning productionactivitycontrol(PAC)

6.

Item7isbasedonthefollowingdata. Beginninginventory=200units Endinginventory=200units Salesforecast: Month 1 2 3 4 Quantity 200 300 200 400

5 300

7.

Whatistherequiredmonthlyproductiontoachievelevelproduction? (a) (b) (c) (d) 220units 240units 280units 340units

8.

Whichofthefollowingidentifiesthedemandforcapacityataworkcenterin aspecifictimeperiod? (a) billoflabor (b) dispatchlist

(c) scheduledreceipts (d) workcenterload

Items9and10arebasedonthefollowingindentedbillofmaterial. Level 0 1 2 2 1 1 Part A B C E C G Quantityper notapplicable 2 2 2 4 4

9.

HowmanyunitsofpartCarerequiredtoproduceoneunitofpartA? (a) (b) (c) (d) 2 4 6 8

10. Whichoftheitemsinthebillofmaterialareparents? (a) (b) (c) (d) Aonly B,C,andGonly AandBonly A,B,C,andGonly

11. Thesetuptimeforanoperationistwohoursandtheruntimeis10minutes perpiece.Thescheduledoperationtimefor100unitsis (a) (b) (c) (d) 130minutes 1,000minutes 1,100minutes 1,120minutes

12. Materialrequirementsplanning(MRP)schedulesaplannedorderreceipt when (a) (b) (c) (d) agrossrequirementexists anetrequirementexists anexceptionisgenerated safetystockiszero

13. Whichofthefollowingbestdescribesschedulingofoperationsbeforea bottleneckworkcenter? (a) Operationsshouldbescheduledasearlyaspossible. (b) Workcentersfeedingthebottleneckshouldbescheduledtofull capacity. (c) Operationsshouldbescheduledtotherateofthebottleneck. (d) Setuptimeshouldbereducedforoperationsbeforethebottleneck.

14. Apurposeofholdingextrainventoryisto (a) (b) (c) (d) allowproductiontoselectwhattorun minimizethebillofmateriallevels reducethenumberofpurchaseditems bufferproductionfromdemandvariation

15. Whichofthefollowingprovidesabufferforseasonaldemand? (a) (b) (c) (d) lotsizeinventory fluctuationinventory anticipationinventory decouplinginventory

16. Ownersequityis (a) (b) (c) (d) revenuelessliabilities revenuelessexpenses assetslessliabilities assetslessexpenses

Item17isbasedonthefollowingdata. Sales=$16million Costofgoodssold=$10million Generalandadministrativeexpenses=$4million Averageinventory=$2.5million

17. Theinventoryturnoverratiois (a) (b) (c) (d) 1.5 1.6 4.0 6.4

18. Anitemhasaleadtimeofsixweeksandanaveragedemandof150units perweek.Thesafetystockfortheitemis300unitsandtheorderquantityis 2,000units.Theorderpointfortheitemis (a) (b) (c) (d) 300units 900units 1,200units 2,000units

19. WhichofthefollowingismostconsistentwithABCanalysisandcontrol? (a) Allitemsshouldhavethesamelevelofcontrol. (b) Asmallnumberofitemsaccountforalargeportionofannualusage value.

(c) Itemsneedtightcontrol. (d) Perpetualinventoryrecordsarerequiredforallitems.

20. Inadecentralizeddistributionsystem,theroleofthecentralsupply organizationisto (a) (b) (c) (d) determinewhentoreplenishstockatthedistributioncenters respondtodemandsfromthedistributioncenters coordinatecommunicationsamongdistributioncenters forecastdemandateachdistributioncenter

21. Theprimarypurposeofacyclecountprogramisto (a) (b) (c) (d) correctinventoryerrors resultinfewercountsperyear requirelessskilledcounters identifycausesofinventoryerrors

22. Ifapurchasedpartorderislate,whichofthefollowingwouldbethemost likelysourcetodeterminewhichcustomerorderwouldbeaffected? (a) whereusedreport (b) planningbill (c) routing (d) peggingreport

23. Whichofthefollowingbestdescribestheuseofbillsofmaterialinplanning systems? (a) (b) (c) (d) fortheengineeringdesign forlotsizing theprocesstomaketheitem howtheproductisbuilt

Item24isbasedonthefollowingdata. Periods: Forecast: Actualdemand: 1 20 22 2 20 18 3 30 25 4 20 20 5 25 19

24. Themeanabsolutedeviation(MAD)forthedatagivenis (a) (b) (c) (d) 2.2 3 11 15

25. Howmanyofwhatproductsareneededandwhenproductsareneededare questionsofwhichofthefollowing? (a) (b) (c) (d) priority capacity revenue margins

26. Theenditemsandquantitiestobeproducedbyperiodaredefinedbywhich ofthefollowing? (a) (b) (c) (d) strategicbusinessplan productionplan masterproductionschedule dispatchlist

27. Aprimaryadvantageofelectronicdatainterchange(EDI)withsuppliersis thatit (a) reducespaperwork (b) bypassesthebuyer (c) employsthelatesttechnology

(d) supportsunlimitedformsofcommunications

28. Inmostcases,thefastestwaytoincreasecapacitytomeetashortterm requirementisto (a) (b) (c) (d) hireadditionalworkers useovertime acquiremoreequipment subcontractwork

29. ThedemandataworkstationinaJustinTimesystemtypicallycomesfrom (a) (b) (c) (d) apullsignal adispatchlist theproductionplan acontrolchart

30. Whichofthefollowingbestdescribesakanbansystem? (a) (b) (c) (d) aqualitycontrolsystem basicallyisapushproduction requiresoperatorflexibility basicallyisavisualreorderpoint

31. Themasterproductionschedule(MPS)is (a) (b) (c) (d) ananticipatedbuildschedule aninputtotheproductionplan astatementofforecastdemand drivenbymaterialrequirementsplanning

32. Thebalancesheetforafirmshowswhichofthefollowing?

(a) (b) (c) (d)

profitorlossfortheperiod sourcesandusesoffunds longandshorttermdebt costofproductssold

Item33isbasedonthefollowingdata. Month 1 Projection 100 Demand 95 2 100 102 3 100 105 4 100 98 5 100 101 6 100 103 Total 600 604

33. Theprojectionfortheseventhmonthusingathreemonthmovingaverage wouldbe (a) (b) (c) (d) 100 101 103 105

34. Whichofthefollowinglinksproductfamilyplanningandcomponent planning? (a) (b) (c) (d) productionplanning masterscheduling materialrequirementsplanning resourcerequirementsplanning

35. Whichofthefollowingproductionprocessesismostappropriateforhigh volumebulkproducts? (a) (b) (c) (d) project jobbing batch continuous

36. Whichofthefollowingdetectsbiasinaforecastmodel? (a) (b) (c) (d) trackingsignal meanabsolutedeviation(MAD) demandfilter standarddeviation

Item37isbasedonthefollowingdata. Onhand Week Forecast ProjectedAvail. MPSReceipts 100 1 200

100

2 200 300

3 200 300

4 200 300

37. TheprojectedavailableattheendofWeek4is (a) (b) (c) (d) zerounits 100units 200units 300units

38. Whichofthefollowingisthemostlikelyimpactofdoublingtheordering costs foranitem? (a) (b) (c) (d) Theorderquantitywillincrease. Theorderpointwillincrease. Theorderquantitywilldecrease. Theorderpointwilldecrease.

39. Workinprocessinventoryservestodecouplewhichofthefollowing?

(a) (b) (c) (d)

productionfromsuppliers finishedgoodinventoryfromcustomerdemand anoperationfromsucceedingoperations productionfromdistributionchannels

40. Whichofthefollowingdefinesthesequenceofoperationstobeperformed tomanufactureapart? (a) (b) (c) (d) itemmaster billofmaterial routing shopcalendar

Items41and42arebasedonthefollowinginformationforasingleworkcenter. Numberofmachines=4 Numberofshifts=1 Shiftlength=40hours Efficiency=90% Utilization=90% Actualoutput Week1=160hours Week2=140hours Week3=150hours Week4=150hours

41. Whichofthefollowingistheratedcapacityfortheworkcenter? (a) (b) (c) (d) 130hours 144hours 150hours 160hours

42. Whichofthefollowingisthedemonstratedcapacityfortheworkcenter? (a) (b) (c) (d) 130hours 144hours 150hours 160hours

43. Whichofthefollowingisusedtomanagequeuesandleadtimes? (a) (b) (c) (d) forwardscheduling roughcutcapacityplanning materialrequirementsplanning input/outputcontrol

44. Whichofthefollowingisusedtorankthefrequencyofproblems? (a) (b) (c) (d) Paretoanalysis causeandeffectdiagram processflowdiagram rootcauseanalysis

45. Thecapacityofwhichofthefollowingdeterminesthethroughputofa manufacturingprocess? (a) (b) (c) (d) initialworkcenters finishingworkcenters overloadedworkcenters underloadedworkcenters

46. Whichofthefollowingisusedtodeterminethefeasibilityofthematerial requirementsplan? (a) (b) (c) (d) resourcerequirementsplanning roughcutcapacityplanning capacityrequirementsplanning workcentercapacitycontrol

47. Whichofthefollowingcombinationsisbestsuitedfordevelopingcustomer promisedatesinthemaketoorderenvironment? (a) (b) (c) (d) forwardschedulingandinfiniteloading forwardschedulingandfiniteloading backwardschedulingandinfiniteloading backwardschedulingandfiniteloading

48. Whichofthefollowingisabenefittothesupplierofalongtermcustomer supplierrelationship? (a) (b) (c) (d) animprovedabilitytoplan improvedproductquality morefrequentshipments reducedtransportationcosts

49. Manufacturinghasprimaryresponsibilityforwhichofthefollowing dimensionsofquality? (a) (b) (c) (d) productperformance aesthetics conformance aftermarketservice

50. Whichofthefollowingisanadvantageofpointofuseinventoryover centralstorage? (a) (b) (c) (d) theeaseofcontrol reducedmaterialhandling theeaseofmaintaininginventoryrecords reducedsafetystock

51. Animportantmeasureofaneffectivequalitymeasureshouldbewhichof thefollowing?

(a) (b) (c) (d)

easyfortheusertounderstand basedonaccountinginformation developedbytheQualityDepartment usedtoevaluateindividualperformance

52. Totalemployeeinvolvementwillresultinanincreaseinwhichofthe followingrolesforfirstlinesupervision? (a) (b) (c) (d) controlling coaching disciplining reporting

53. Whichofthefollowinggroupsshouldbethefirsttoreceiveeducationon totalqualitymanagementconcepts? (a) (b) (c) (d) seniormanagement qualityinspectors productionoperators productionsupervision

54.Whichofthefollowingistypicallycharacterizedasanelementofthesupply chain? (a) (b) (c) (d) finance distribution qualitycontrol engineering

55.Whichofthefollowingwouldmostlikelyserveasaneffectivemeasureof supplierperformance? (a) componentprice (b) internalscraprate (c) transportationmode

(d) deliverytime

56. Inprojectingdemandforastandarddesigncommodity,whichofthe followingfactorsistypicallymostimportant? (a) (b) (c) (d) postsalesservice productfeatures qualitycontrols competitivepricing

57. Providingcustomerswithwhattheywantatlowcostdescribesthe relationshipbetweenwhichofthefollowing? (a) (b) (c) (d) JITandTQM TQMandproductionplanning MRPIIandJIT TQMandCRP

58. Whichofthefollowingisagoodmeasureofcustomerfocus? (a) (b) (c) (d) highorganizationalturnover highqualitylevels manyperformancemeasures manysuppliercontacts

59. Whichofthefollowingisamajorconsiderationwhenselectingasupplier? (a) (b) (c) (d) supplieremployeebenefits supplierforecastaccuracy suppliermanufacturingreliability supplierpresalesmarketingsuccess

60. Whichofthefollowingistypicallythelargestelementofphysical distributioncosts? (a) (b) (c) (d) orderprocessing materialhandling transportation protectivepackaging

Answer Key and References

Note:Thecontentcodereferstotheappropriatesectionoftheoutlineinthe2000Exam ContentManual. Question Answer ContentCode IB4 Reference IntroductiontoMaterials TonyArnold,3rdedition, 1997,pp.34 APICSDictionary,ninthedition Arnold,pp.328329 Arnold,p.195 Arnold,pp.194195 Arnold,pp.1920 Arnold,pp.3032 Arnold,pp.125127 Arnold,pp.7279 Arnold,pp.7279 Arnold,pp.124125 Arnold,p.82 Arnold,p.154 Arnold,p.226 Arnold,pp.226228 Arnold,pp.234236 Arnold,pp.237238

1 a Management,J.R. PrenticeHall, 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 b c a a b c d d c d b c d c c c

IIIA1 IVC IID2 IID1 ID IIIC2 IIIB3 IIIA3 IIIA3 IIID3 IIIC4 IIIB4 IVA2 IVA2 IC1 IC3

18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

c b b d d d b a c a b a d a c b b d a c a c c a c d a c c b a c b a b

IVA5 IVA4 IVC IVA4 IIIC4 IIIA2a IID2 ID1 ID2 IVB4 IIIB1 IE2 IE2 IIIC3 IC1 IID2 ID IIIA1 IID2 IIIC3 IVA6 IVA2 IIIA3 IIIB2 IIIB2 IIID4 IF2 IIIB4 IIIC4 IIID1b IE2 IF2 IVA4 IIID5 IE2

Arnold,pp.272275 Arnold,pp.239242 Arnold,pp.290292 Arnold,pp.316320 Arnold,p.79 Arnold,p.73 Arnold,pp.209211 Arnold,p.16 Arnold,p.19 Arnold,p.187 Arnold,p.130 Arnold,pp.401402 Arnold,p.402 APICSDictionary,ninthedition Arnold,pp.234239 Arnold,pp.199201 Arnold,pp.1625 Arnold,pp.365367 Arnold,pp.207209 Arnold,pp.4849 Arnold,pp.251257 Arnold,pp.224226 Arnold,pp.117120 Arnold,pp.120123 Arnold,pp.120123 Arnold,pp.157159 Arnold,pp.374376 Arnold,pp.151155 Arnold,pp.116117 Arnold,pp.146148 Arnold,pp.404406 Arnold,pp.415416 Arnold,pp.309310 Arnold,pp.419420 Arnold,pp.405406

53 54 55 56 57 58 59 60

a b d d a b c c

IF2 IA IIIE IIA IG IIC IVB IVC1

Arnold,pp.416418 Arnold,p.5 Arnold,pp.419420 Arnold,p.185 Arnold,p.439 Arnold,p.418 Arnold,p.405 Arnold,pp.328330