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Last Updated: Aug 28, 2026
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| Section | Objectives |
|---|---|
| Detailed Scheduling and Planning | - Material requirements planning (MRP)
|
| Execution and Control of Operations | - Shop floor control
|
| Continuous Improvement and Quality Management | - Lean and quality improvement principles
|
| Strategic Sourcing and Supplier Relationship Management | - Supplier selection and evaluation
|
| Master Planning of Resources | - Sales and operations planning (S&OP)
|
| Strategic Management of Resources | - Alignment of operations with organizational strategy
|
Question 1
An advantage of activity-based costing (ABC) is:
A. it is easier to establish standard costs.
B. it enables overhead costs to be allocated evenly across all products.
C. it allows raw material costs to be allocated on a per unit basis.
D. it uses cost drivers to allocate costs to products.
Question 2
The sales and operations planning (S&OP) process in an assemble-to-order (ATO) production environment focuses oncontrol of:
A. finished goods inventory.
B. end product backlog.
C. raw material inventory.
D. key intermediate part inventory.
Question 3
A planner has chosen to increase the order point for a raw material. Which of the following costs is most likely to increase?
A. Ordering
B. Product
C. Carrying
D. Landed
Question 4
Which of the following tools is used for monitoring a capacity plan?
A. Demonstrated capacity
B. Resource planning
C. Dispatch report &
D. Input/output control (I/O)
Question 5
What is a result of effective production activity control (PAC)?
A. Fewer machine hours are required for production
B. Less scrap and rework on the shop floor
C. Available capacity is increased
D. Actual input/output matches planned input/output
Solutions:
| Question 1 Answer: D | Question 2 Answer: D | Question 3 Answer: C | Question 4 Answer: D | Question 5 Answer: D |
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