ACTUAL COMPLETE REAL EXAM QUESTIONS AND
100% CORRECT ANSWERS (VERIFIED ANSWERS)
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ABC analysis divides on-hand inventory into three classes,
generally based
upon which of the following? - ANSWER-Annual
dollar volume
The two most basic inventory questions answered by the
typical inventory
model are: - ANSWER-Timing of orders and
order quantity
When quantity discounts are allowed, the cost-minimizing
order quantity: -
ANSWER-Minimizes the sum of holding, ordering, and
product costs
The fixed-period inventory system requires more safety stock
than a fixedquantity system because: - ANSWER-A stockout
can occur during the review period as well as during the lead
time
, Which of the following best represents the relationship
between the master
production schedule (MPS) and the aggregate plan? -
ANSWER-The MPS
disaggregates the
aggregate plan
Which of the following is one of the benefits in MRP? -
ANSWER-Improved
utilization of facilities, labor, and
inventory
Which bottleneck principle states how work should be released
into the system?
- ANSWER-Release work at the bottleneck's
capacity pace
What determines the overall capacity of a system? - ANSWER-
The bottleneck
What happens if you increase capacity at a non-bottleneck? -
ANSWER-It does
not increase overall system
capacity
What is lost time at a bottleneck equal to? - ANSWER-Lost
system capacity