12/27/2015 Wiley CMA Test Bank Part 1
Question 1:
(1D4-LS17)
When demand for a product or products exceeds production capacity, which one of
the following is the first step that managers should take?
Spend money to eliminate the bottleneck.
Change the throughput of operations.
Apply activity-based management to solve the problem.
Focus their efforts on constraint identification.
When faced with a product or products exceeding production capacity, managers
must consider how to make the production process more efficient to meet the
production capacity. Therefore, managers must first focus their efforts on identifying
any constraints within a system.
Question 2:
(1D4-LS16)
According to the theory of constraints, all of the following activities help to relieve the
problem of a bottleneck in operations except:
shifting products that do not have to be made on bottleneck machines to
nonbottleneck machines.
reducing setup time at the bottleneck operation.
eliminating idle time at the bottleneck operation.
increasing the efficiency of operations at nonbottleneck machines.
Eliminating idle time and reducing setup time at the bottleneck operations in
addition to shifting products that do not have to be made on bottleneck machines to
nonbottleneck machines are all activities to help to relieve the problem of a
bottleneck, according to the theory of constraints.
Question 3:
(1D4-AT10)
Well-implemented just-in-time (JIT) production and purchasing techniques:
increase reliance on long-term consumer forecasts.
reduce a company's competitive edge.
result in large stockpiles of inventory to keep production running.
result in improved quality control and less materials waste.
JIT production improves product quality and minimizes material waste and losses by
focusing management and worker attention on value-added activities and the
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, 12/27/2015 Wiley CMA Test Bank Part 1
maximization of throughput through work in process.
Question 4:
(1D4-LS07)
The benefits of materials requirement planning (MRP) systems include all of the
following except:
reduced retooling and machine setup time.
reduced inventory.
reduced coordination between functional areas.
increased bulk purchasing and price breaks.
In materials requirement planning systems, a master production schedule indicates
the quantities and timing of each part to be produced. Once the scheduled
production run begins, departments push output through a system. In contrast to a
JIT system, MRP requires more inventory on hand.
Question 5:
(1D4-AT03)
Starr Company uses material requirements planning and manufactures a product with
the following product structure tree.
Starr has just received an order for 100 units of X, the finished product. The company
has 20 units of X, 100 units of B, and 50 units of E in inventory. How many units of E
must Starr purchase in order to fill the order?
830
800
550
1,000
Product X needed to fill the order: (100 − 20) = 80.
Product B needed to fill the order: 80 × 5 = 400.
Product B to be manufactured: 400 − 100 = 300.
Product E needed to fill the order: 300 × 2 = 600.
Product E to be purchased: 600 − 50 = 550.
Question 6:
(1D4-AT04)
Three of the basic measurements used by the theory of constraints (TOC) are:
throughput (or throughput contribution), inventory (or investments), and
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Question 1:
(1D4-LS17)
When demand for a product or products exceeds production capacity, which one of
the following is the first step that managers should take?
Spend money to eliminate the bottleneck.
Change the throughput of operations.
Apply activity-based management to solve the problem.
Focus their efforts on constraint identification.
When faced with a product or products exceeding production capacity, managers
must consider how to make the production process more efficient to meet the
production capacity. Therefore, managers must first focus their efforts on identifying
any constraints within a system.
Question 2:
(1D4-LS16)
According to the theory of constraints, all of the following activities help to relieve the
problem of a bottleneck in operations except:
shifting products that do not have to be made on bottleneck machines to
nonbottleneck machines.
reducing setup time at the bottleneck operation.
eliminating idle time at the bottleneck operation.
increasing the efficiency of operations at nonbottleneck machines.
Eliminating idle time and reducing setup time at the bottleneck operations in
addition to shifting products that do not have to be made on bottleneck machines to
nonbottleneck machines are all activities to help to relieve the problem of a
bottleneck, according to the theory of constraints.
Question 3:
(1D4-AT10)
Well-implemented just-in-time (JIT) production and purchasing techniques:
increase reliance on long-term consumer forecasts.
reduce a company's competitive edge.
result in large stockpiles of inventory to keep production running.
result in improved quality control and less materials waste.
JIT production improves product quality and minimizes material waste and losses by
focusing management and worker attention on value-added activities and the
http://app.efficientlearning.com/pv5/v8/cmatb2015p1.html?u=bbde91ad06e8409cb57a2650e3c520ef#_assess_studyquestions 1/12
, 12/27/2015 Wiley CMA Test Bank Part 1
maximization of throughput through work in process.
Question 4:
(1D4-LS07)
The benefits of materials requirement planning (MRP) systems include all of the
following except:
reduced retooling and machine setup time.
reduced inventory.
reduced coordination between functional areas.
increased bulk purchasing and price breaks.
In materials requirement planning systems, a master production schedule indicates
the quantities and timing of each part to be produced. Once the scheduled
production run begins, departments push output through a system. In contrast to a
JIT system, MRP requires more inventory on hand.
Question 5:
(1D4-AT03)
Starr Company uses material requirements planning and manufactures a product with
the following product structure tree.
Starr has just received an order for 100 units of X, the finished product. The company
has 20 units of X, 100 units of B, and 50 units of E in inventory. How many units of E
must Starr purchase in order to fill the order?
830
800
550
1,000
Product X needed to fill the order: (100 − 20) = 80.
Product B needed to fill the order: 80 × 5 = 400.
Product B to be manufactured: 400 − 100 = 300.
Product E needed to fill the order: 300 × 2 = 600.
Product E to be purchased: 600 − 50 = 550.
Question 6:
(1D4-AT04)
Three of the basic measurements used by the theory of constraints (TOC) are:
throughput (or throughput contribution), inventory (or investments), and
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