Review questions

Review questions

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1. Question 1A standard finished product is stocked, the customer promise is two days, and shipping takes one. Which response meets the promise on the stated facts?

   Ship an unreserved finished unit from stock in one day Start two days of assembly and then ship for one day Treat average demand as proof of availability without checking stock Start four days of manufacture after the order
2. Question 2Common parts are stocked, assembly takes two days, shipping one, and the Custom promise is four days. What are the path and slack before capacity waiting?

   Seven days and a three-day miss because prior part manufacture is counted again Four days and no slack because there are four configurations Three days and one day of slack Two days and two days of slack because shipping is outside the promise
3. Question 3The original workshop makes 60 A and 20 B units; each needs five test minutes and testing has a 480-minute shift. What is the test load?

   80 minutes because unit count is the load 400 minutes, or 83.3% of the shift 500 minutes because the families use separate lines 180 minutes because drilling is faster than testing
4. Question 4A dedicated A line can make 70 A after setup; demand is 60 A and 20 B. The line lacks the coating station B requires. How should its spare capacity be read?

   It supports ten more A units only on the stated routing It proves shared testing cannot be constrained It removes the need for a flexible route for B It automatically makes ten B units because ten slots are spare
5. Question 5In a 120-order cohort, 101 orders jointly met the time, completeness, documentation and condition requirements. Which is the perfect-order rate?

   19/120 because nonperfect orders form the numerator 108/120 because timing is the only relevant condition 101/120, about 84.17% (108+112+114+116)/(4×120) because average compliance equals the intersection
6. Question 6Among 19 nonperfect orders, nine have a recorded component delay, eight a documentation fault, and three have both. How many have at least one of the two recorded causes?

   17 because nine plus eight needs no overlap check 14 because 9 + 8 − 3 11 because 19 − 8 Three because the overlap alone is the union
7. Question 7At 12,000 units, make costs five each +30,000; buy costs 7.4 each +6,000 first year. Which is lower?

   Buy 88,800 versus make 90,000 Tie at 90,000 Make 60,000 versus buy 84,000 Make 90,000 versus buy 94,800
8. Question 8What steady-state annual break-even volume solves 5Q+30,000=7.4Q?

   30,000 6,000 12,500 12,000
9. Question 9Consumption is 50/day and released stock 200. How many days does it cover?

   Four Five Six Ten
10. Question 10Alternate clears after end day six; stock covers four days at 50/day. What is the days-five-and-six gap?

    50 units Zero 300 units 100 units
11. Question 11Stage lead times are 2+3+2+1 days. What share is approval?

    12.5% 25% 50% 60%
12. Question 12Of 40 documented lost deals, 24 cite lead time. What inference is supported?

    Lead time is prominent in this sample and merits a measured pilot 60% of the entire market rejects the firm A six-day promise is certainly profitable No customer values price
13. Question 13Opening stock is 80, output 120 and demand 100 in month one. What closing stock becomes month two’s opening?

    300 because the three inputs are added 80 because opening stock never changes in S&OP 40 because demand is subtracted from output alone 100 because 80 + 120 − 100
14. Question 14The three-month table ends month three at 50 against a closing-stock target of 60. Before seeing within-month order timing, what is the correct description?

    A ten-unit surplus above target A confirmed ten-unit customer service deficit A ten-unit target gap with positive closing stock; the monthly table does not prove daily lateness No gap because stock is nonnegative
15. Question 15In the production exercise, level output closes at 40, 10 and 30; holding cost is two per unit at each month-end. What is carrying cost?

    160 because (40+10+30)×2 60 because only the final month is charged −160 because inventory is subtracted from demand 80 because the balance sum is already cost
16. Question 16Chase output is 60, 130 and 110, with a change cost of one per unit difference. What is within-horizon change cost?

    300 because all production is a change Zero because both plans end with 30 in stock 50 from comparing only last output with first 90 from |130−60|+|110−130|
17. Question 17Opening stock is 30, baseline output 390 and campaign demand 450. What is the aggregate balance with no added options?

    20 because that was the pre-campaign baseline −30 because 30+390−450 −50 because the uplift alone is the deficit 30 because opening inventory covers all uplift
18. Question 18Add 25 internal and 15 in-month supplier units at incremental rates of six and nine per unit. What are campaign closing stock and added supply cost?

    Deficit 30 and cost 285 because options do not affect the balance Closing 20 and cost 240 because the two rates are added Closing 10 and cost 40 because added units equal cost Closing 10 and cost 285
19. Question 19Week-one forecast is 90 and orders 60; orders consume same-week forecast down to zero. What are residual and planned demand?

    Residual 60 and demand 90 Residual 30 and demand 90 Residual 90 and demand 150 Residual −30 and demand 60
20. Question 20Week-two forecast is 110 and orders 125. Why is planned demand 125 rather than 235?

    Any order always cancels the entire forecast Orders consume the 110 same-week forecast with no positive residual The extra 15 orders are ignored Week-one forecast is added in place of week two
21. Question 21At the end of week four, weeks three and four actuals are 90 and 110. What is the two-period moving-average forecast for week five?

    200 because the two periods are summed without division 110 because the last week alone is the average 100 120 because week-five actual later became known
22. Question 22Naive forecast for week five is 110, moving average 100 and actual 120. Which comparison is sound?

    Both methods tie because actual demand is 120 Naive error is ten versus average error 20, but one period cannot prove permanent superiority The moving average wins because 100 is smaller than 110 Naive error is 20 and average error ten
23. Question 23Actuals are 80,100,120,100 and forecasts 70,90,110,90. If error is actual minus forecast, what is CFE?

    40 because each period is +10 Ten because that is average error −40 because forecasts are below actuals Zero because absolute errors are equal
24. Question 24Each of four periods has absolute error of ten units. What is MAD?

    Four units because period count is the measure 10% because MAD is a percentage 40 units because errors sum to 40 Ten units because 40÷4
25. Question 25Old baseline is 100 and new baseline 80; a promotion adds 50 new and diverts 30 from old. What is revised family demand?

    230 by adding lift without diversion 180 because promotion cannot change family demand 200 because old is 70 and new 130 150 because diversion removes all new demand
26. Question 26The new-model distributor opens with 20, receives 130 and sells 90 to consumers, with no loss or return. What is closing stock?

    220 because receipts and sales are added 40 because 130−90 without opening stock 90 because point-of-sale volume equals stock 60 because 20+130−90
27. Question 27Prior forecast is 100, latest actual 120 and smoothing α is 0.25. What is the next forecast?

    95 105 115 120 because actual always fully replaces forecast
28. Question 28A new item has no sales history; service staff estimate 80–120 from installed base and an unverified failure rate. What is a disciplined start?

    Average prelaunch zeros and commit to a fixed purchase Use a conditional qualitative range, verify base and failure rate, then update after actual data Trust one AI output without training-data checks Treat 120 as a firm order because it is the range maximum
29. Question 29C opens with 12, receives 45 in MPS and has 50 orders. What is week-end PAB?

    57 50 7 −5
30. Question 30Testing load is 260 minutes; the nominal shift is 300 with 40 maintenance. What does RCCP show?

    A 260-minute gap because maintenance prevents all output A 40-minute gap because maintenance is added to product load No gap and no cushion because availability is 260 A 40-minute cushion because load is compared with nominal 300
31. Question 31Forty P are due week five, five usable P exist, and assembly lead time is one week. What are planned P receipt and release?

    Receive 40 in week five and release 40 in week four Receive 35 in week four and release 35 in week five Receive five in week five and release five in week four Receive 35 in week five and release 35 in week four
32. Question 32Releasing 35 P in week four needs two A each. A stock is ten and scheduled receipt 20 in week four. What is A net need and release week with two-week lead time?

    40 released week six by adding lead time 35 released week two because each P needs one A 70 released week four because that is gross need 40 released week two to arrive week four
33. Question 33Resource load is 320 minutes, shift 360, maintenance 40 and added outage 40. What is the gap?

    Zero because 320 equals 360−40 40 because availability is 280 80 because downtime itself equals the load gap −40 because outage raises capacity
34. Question 34Eight C units can move to a qualified alternate taking five minutes each with 40 minutes free. What happens to original load?

    It falls by eight because units equal minutes It stays 320 because alternate routing never counts It falls by 80 because the alternate has 40 minutes It falls by 40 to 280, conditional on transfer, quality and due date
35. Question 35Common bases available are 15+30, with orders 20 red and 15 blue. What is base ATP before checking covers?

    −2 because red lacks two covers Ten units 45 because orders never consume bases Five because only spare blue covers count
36. Question 36Red needs 20 covers and has 18; blue needs 15 and has 20. What does FAS show before expediting?

    All configurations are feasible because base ATP is ten Red lacks two while blue has five spare; covers cannot be swapped without approval Blue lacks five because 20 exceeds 15 Red has two spare because 18 is close to 20
37. Question 37There are 80 old parts, 60 firm old-version needs before cutoff and book value four each. How should the remainder be described?

    60 parts valued 240 must be written off No stock remains because revision change erases it 20 parts with 80 book exposure, not an executed write-off 80 parts with certain loss 320
38. Question 38New revision needs 45 parts, has five on hand, and supplier MOQ is 50. What are net need, order and stock after production?

    Net 40, buy 40, close at zero despite MOQ Net 40, buy 50, close at ten Net 45, buy 45, close at five Net 50, buy 40, close at five
39. Question 39Production needs 150; 40 are available and supplier packs 30. What order size is feasible?

    110 150 90 120
40. Question 40Long supplier production takes 11 days, transit four and inspection two; units are needed on day 30. What is the latest cautious release?

    Day 19 Day 30 Day 13 Day 16
41. Question 41For 500 units, C and D each have landed cost 6,500; complete on-time rates are 95% and 90%. Which decision follows?

    Landed costs tie; C is favored if comparable late loss is positive and historic rates predict the next lot D is cheaper because its freight is lower C costs more because its unit price is 12 The rates prove D's next lot will be late
42. Question 42What is C's landed cost per unit for 500 at 12 each plus 250 freight, 100 inspection and 150 expected defects?

    12 12.5 6,500 13
43. Question 43A job needs 180, has 30 on hand; 110 of a 150-unit receipt are released and 40 quarantined. What shortage remains?

    10 40 0 150
44. Question 44An alternate arrives late day four and needs a full inspection day; production starts day-five morning. What is its status?

    It cannot cover start of day five before inspection finishes It covers day five because it arrived earlier A shipment notice resolves the shortage Booking its invoice makes it available
45. Question 45Need is 140, stock 30 and alternate MOQ 120. What remains after use if primary is cancelled?

    120 110 10 0
46. Question 46Alternate lead time is five days and need is day 18. What is latest release?

    Day 23 Day 13 Day 12 Day 18
47. Question 47Count 198 includes 30 customer-owned and 12 quarantined; 95 released company units are reserved. How many can serve a new order now?

    93 91 156 61
48. Question 48Company ERP shows 200; total count 198 includes 30 customer-owned. What is company book-versus-count variance?

    30 book shortage No variance 32 book excess 2 book excess
49. Question 49Daily mean 30, deviation eight, fixed lead four days and z=1.5. What is ROP with whole-unit safety?

    144 132 120 48
50. Question 50On hand is 80, confirmed open order 70 and backorders ten. What is inventory position?

    80 150 160 140
51. Question 51With D=10,000, S=40 and H=2, what is approximate EOQ?

    400,000 632 500 750
52. Question 52With MOQ 500 and packs of 250, which lot minimizes order-plus-carry cost among 500, 750 and 1,000?

    750 at about 1,283.33 500 at 1,300 1,000 at 1,400 250 at a lower cost
53. Question 53Book A 45/B 35; count A 33/B 47 with documented transfer 12 A-to-B. What entry is appropriate?

    Ignore because aggregate ties Move 12 from B to A Post transfer of 12 from A to B Scrap 12 at A and add 12 purchased at B
54. Question 54After posting A-to-B transfer, C's book is 20 and count 19. What remains?

    Twelve short at A One-unit shortage at C No variance because A and B balanced One-unit overage at C
55. Question 55Of 80 returns, 25 passed resale inspection and 20 await repair. How many are available now?

    45 80 20 25
56. Question 56What does 25/80=31.25% measure here?

    Historic supplier defect rate Material recycling share Released share of this return lot Customer return rate across all sales
57. Question 57Jobs Y two hours due four, X four due five, Z three due eight. What total tardiness does EDD produce?

    Two hours Zero Four hours Nine hours
58. Question 58EDD delays two jobs by two hours total; SPT delays one job by four hours. Which minimizes total tardy hours?

    SPT They tie Different runtimes prohibit comparison EDD
59. Question 59A job is 240 units; 180 components are released and 60 held. What is safe initial release?

    Always zero 180 240 60
60. Question 60At 60 units/day, held 60 are released end of day two. What is the earliest day for the fourth 60 in continuous sequence?

    Day four Day two Day one Necessarily day five
61. Question 61Stable average WIP is 240 units and good throughput 80/day. What is implied flow time?

    0.33 day 240 days Three days 80 days
62. Question 62Average WIP falls from 240 to 160 while throughput stays 80/day. What happens to implied flow time?

    240 to 160 days Three to two days, about 33.33% lower Three to three days Two to three days
63. Question 6380 of 200 were good by end day two, day three is down and day-four capacity 60. What is good total at end day four?

    200 60 80 140
64. Question 64Alternate makes 30 on day three, primary 60 day four, with 80 already good. What shortfall remains at day-four end?

    Zero 90 30 60
65. Question 65Branch B needs 70, has ten, targets ten ending and ships in multiples of 20. What dispatch is required?

    80 70 60 90
66. Question 66Goods are needed at start day 15 and transit plus release takes three days. What is latest dispatch?

    Day 15 Day 18 Day 14 Day 12
67. Question 67Released stock 100; A 60 full-priority, C 40 before B 50. What is today's allocation?

    A60, C40, B40 A60, C40, B0 A40, C30, B30 A60, B40, C0
68. Question 68100 of 150 demanded units are served today. What is immediate unit fill?

    About 66.67% 100% 50% 150%
69. Question 69Order B for 60 receives 50 by due date and ten tomorrow. Does order-level OTIF pass?

    Yes; warehouse dispatched it Unverified despite receipt evidence No; all 60 did not arrive on time Yes; most units arrived
70. Question 70A40 and B50 are confirmed by due date, total demand 200; D80 is disputed. What is confirmed on-time unit share now?

    100% 45% 85% 25%
71. Question 71Specification 98–102 and control limits 97–103; what does reading 102.5 mean?

    In specification but outside control Inside both Outside both Out of specification but inside control limits
72. Question 72Reading 96.5 against specification 98–102 and control 97–103. What is initial judgment?

    Only normal variation because it is one sample Immediately move lower limit to 96.5 Nonconforming with process signal needing investigation Acceptable because mean is 100
73. Question 73Weld defect rate is 8% before and 5% after. What is relative reduction?

    37.5% 3% 62.5% Five percentage points
74. Question 74Cracks are 4/800 before and 20/1,000 after. What numerical conclusion follows?

    Rate stayed constant because sample sizes differ Rate fell from 2% to 0.5% Only counts can be compared because denominators are unknown Rate rose from 0.5% to 2%
75. Question 75Upfront 180,000, annual cash saving 90,000 and running cost 30,000. What is simple payback?

    Twelve years Three years Two years Six years
76. Question 76Only half the expected benefit is realized: 45,000 yearly, running cost 30,000. What follows under a four-year screen?

    Twelve-year payback; fails screen Four-year payback; passes Three-year payback; passes Net benefit cannot be calculated
77. Question 77A demand 100, released 20 and quality-held 30. What is correct net requirement now?

    70 100 80 50
78. Question 78Systems agree for B and C but disagree for critical A due to quality status. What about automated launch?

    Set A demand to 50 Reject until status mapping and A retest pass Accept because two of three match Accept if alert color changes

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