MGSC 346 LATEST 2026 EXAM TEST PAPER QUESTIONS
AND SOLUTIONS GUARANTEE A+
✔✔Which of the following can put pressure on a company to carry small levels of
inventory?
A. high ordering cost
B. the need to increase workforce productivity
C. the potential for stockouts and backorders
D. high cost of capital - ✔✔D. high cost of capital
✔✔Which of the following inventory classifications is one of the four forms that
represent how the inventory was created?
A. independent demand inventory
B. pipeline inventory
C. raw material inventory
D. service support inventory - ✔✔B. pipeline inventory
✔✔Which of the following is NOT a benefit of an MRP system?
A. Reduction of inventory levels
B. Improvement in customer service
C. Better utilization of labor and facilities
D. Forecasting of finished-goods demand - ✔✔D. Forecasting of finished-goods
demand
✔✔A component that has one or more parents and no components is most likely to be
A. an intermediate item.
B. a subassembly.
C. a purchased item.
D. an end item. - ✔✔C. a purchased item.
✔✔An end item "A" is assembled from two "B" components and two "C" subassemblies.
The "C" subassembly is composed of one of each component "B" and "D." If the gross
requirement for "A" is 100 units, what is the demand for component "B"?
A. 200
B. 400
C. 100
D. 300 - ✔✔B. 400
✔✔An enterprise process is a companywide process that cuts across
, A. suppliers and customers.
B. functional areas.
C. business units and geographic regions.
D. All of the above. - ✔✔D. All of the above.
✔✔The key inputs to an MRP include
A. engineering drawing of the product.
B. inventory record database.
C. personnel records.
D. process chart. - ✔✔B. inventory record database.
✔✔The concept of dependent demand is
A. not applicable to service firms.
B. that demand for an item is independent of the demand for all other items the
company produces.
C. that demand for an item is a function of the production plans for some other item the
company produces.
D. not applicable to manufacturing firms. - ✔✔C. that demand for an item is a function of
the production plans for some other item the company produces.
✔✔The goal of determining the timing and size of MPS quantities is to
A. minimize total inventory cost.
B. maximize on-hand inventory.
C. maintain a nonnegative projected on-hand inventory balance.
D. maintain positive available to promise. - ✔✔C. maintain a nonnegative projected on-
hand inventory balance.
✔✔The Bill of Resources (BOR) can be used to determine which of the following?
A. how much of a resource a firm will need
B. when resources will be needed by a firm
C. what resources a firm will need
D. All of the above. - ✔✔D. All of the above.
✔✔ERP revolves around a single comprehensive _________ that can be made
available across the entire organization.
A. set of modular applications
B. database
C. set of policies
D. All of the above. - ✔✔B. database
AND SOLUTIONS GUARANTEE A+
✔✔Which of the following can put pressure on a company to carry small levels of
inventory?
A. high ordering cost
B. the need to increase workforce productivity
C. the potential for stockouts and backorders
D. high cost of capital - ✔✔D. high cost of capital
✔✔Which of the following inventory classifications is one of the four forms that
represent how the inventory was created?
A. independent demand inventory
B. pipeline inventory
C. raw material inventory
D. service support inventory - ✔✔B. pipeline inventory
✔✔Which of the following is NOT a benefit of an MRP system?
A. Reduction of inventory levels
B. Improvement in customer service
C. Better utilization of labor and facilities
D. Forecasting of finished-goods demand - ✔✔D. Forecasting of finished-goods
demand
✔✔A component that has one or more parents and no components is most likely to be
A. an intermediate item.
B. a subassembly.
C. a purchased item.
D. an end item. - ✔✔C. a purchased item.
✔✔An end item "A" is assembled from two "B" components and two "C" subassemblies.
The "C" subassembly is composed of one of each component "B" and "D." If the gross
requirement for "A" is 100 units, what is the demand for component "B"?
A. 200
B. 400
C. 100
D. 300 - ✔✔B. 400
✔✔An enterprise process is a companywide process that cuts across
, A. suppliers and customers.
B. functional areas.
C. business units and geographic regions.
D. All of the above. - ✔✔D. All of the above.
✔✔The key inputs to an MRP include
A. engineering drawing of the product.
B. inventory record database.
C. personnel records.
D. process chart. - ✔✔B. inventory record database.
✔✔The concept of dependent demand is
A. not applicable to service firms.
B. that demand for an item is independent of the demand for all other items the
company produces.
C. that demand for an item is a function of the production plans for some other item the
company produces.
D. not applicable to manufacturing firms. - ✔✔C. that demand for an item is a function of
the production plans for some other item the company produces.
✔✔The goal of determining the timing and size of MPS quantities is to
A. minimize total inventory cost.
B. maximize on-hand inventory.
C. maintain a nonnegative projected on-hand inventory balance.
D. maintain positive available to promise. - ✔✔C. maintain a nonnegative projected on-
hand inventory balance.
✔✔The Bill of Resources (BOR) can be used to determine which of the following?
A. how much of a resource a firm will need
B. when resources will be needed by a firm
C. what resources a firm will need
D. All of the above. - ✔✔D. All of the above.
✔✔ERP revolves around a single comprehensive _________ that can be made
available across the entire organization.
A. set of modular applications
B. database
C. set of policies
D. All of the above. - ✔✔B. database
