Exam 3 Key B - EXAMINATION 3, Version B Use a Scantron Form...

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EXAMINATION 3, Version B Use a Scantron Form No. 886-E to record your choice of the best answer to each of the following questions. You have the full period to answer the questions. The following questions are worth three (3) points each . 1. Even though loss of customer goodwill is an intangible cost, it is considered a type of shortage cost. a) True b) False 2. Under a periodic review system, enough inventory must be carried to protect against stockout for the replenishment lead time plus the review period. a) True b) False 3. The chase aggregate plan maintains a constant workforce and produces the same amount of product in each time period. a) True b) False 4. The backlog at a work center increases when the work center receives more work than it finishes. a) True b) False 5. What are purchased items or extracted materials that will be transformed into components or products called? a) work-in-process inventory b) finished goods inventory c) raw materials inventory d) distribution inventory e) MRO inventory 6. If a company carries 13 weeks of supply , what is the inventory turnover ? a) 0.077 b) 4 c) 7.77 d) 676 e) 0.25 7. What costs are considered in the quantity discount model? a) annual ordering costs + annual holding costs b) annual purchasing costs + annual holding costs + annual ordering costs c) annual ordering costs + annual holding costs + annual shortage costs d. annual purchasing costs + annual ordering costs + annual holding costs + annual shortage costs e. ordering costs per order + annual holding costs 1
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8. A company’s plan is a statement of the resources available to the operations group during the next 6 to 18 months. a) aggregate b) master c) strategic d) project e) tactical 9. For the level aggregate plan, fluctuations in demand are absorbed by ______________________. a) inventory and subcontracting b) back orders and price changes c) inventory and back orders d) price changes and subcontracting e) subcontracting and back orders 10. Evaluating an aggregate plan in terms of number of back orders is using what perspective? a)
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This note was uploaded on 10/17/2011 for the course MNGT 368 taught by Professor Curthurds during the Spring '08 term at Nicholls State.

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Exam 3 Key B - EXAMINATION 3, Version B Use a Scantron Form...

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