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NEW QUESTION 36
Which of the following lists all components, ingredients, and materials required to produce the final product?
- A. Bill of materials
- B. Purchase order
- C. Engineering change notice
- D. Master schedule
Master production schedule (MPS) plans items that have “direct” demand, or “independent de-mand.” With independent demand, the demand comes from sales orders, service orders, or fore-casts, and the demand comes directly from customer-or forecasted-requirements. It is the list that provides the timing of the production schedule and shows how much each machine can produce, how many shifts are used, etc.
A bill of materials (BOM) is a comprehensive inventory of the raw materials, assemblies, subas-semblies, parts and components, as well as the quantities of each, needed to manufacture a product.
LO 2, AC 2.3
NEW QUESTION 37
MRP software is applied to schedule which of the following?
- A. Executive meetings
- B. Human resource management
- C. Tax accounting
- D. Production processes
Material Requirements Planning (MRP) software manages material requirements for manufacturing processes.
LO 2, AC 2.3
NEW QUESTION 38
Which of the following are features of product codes?
1. Product codes link to products’ characteristics
2. A product code must comply with international standards
3. Many internal processes use the product codes as facilitators
4. There are no duplicate product codes
- A. 2 and 4 only
- B. 1 and 3 only
- C. 1 and 2 only
- D. 3 and 4 only
The product code is often the key to obtaining documentation relating to products.
Product codes are often use to link to internal processes. Some computerised inventory systems trigger alerts when specific items or volume are ordered – this could be an out-of-stock warning or potential volume errors.
In many cases, an organisation will use its own product code system. The organisation constructs a code that is effective and fits with its software and the variety of items covered. So these codes may or may not comply with any international standards (such as GS1 specifications, ISO standards, etc.). As organisations make up the code themselves, the codes may look identical to others. For example, SKU414675 reveals that it is used for many items, including the following:
– A UK wholesaler’s six-pack of branded cola
– An Australian snack food
– UK flower seeds
– An Italian desk sold in Japan
– A Brazilian light fitting
LO 1, AC 1.2
NEW QUESTION 39
Do all types of warehouses require access to daylight to reduce the cost of electricity?
- A. No, because some types of stock are sensitive to sunlight
- B. Yes, because organisation’s need for artificial lighting and heating will reduce
- C. Yes, because sunlight sterilises inventories in damp conditions
- D. No, because only ventilation can help to reduce the humidity in the warehouse
The design of a building should consider the advantages of natural light as this can reduce the cost of artificial lighting and improve the environmental performance of the building. Daylight entering the building can also help reduce heating costs. Unfortunately some stocks react badly to direct sunlight, and some stock reacts badly to extreme of temperature or may require a specific temperature for storage. Some stock may require a warmer temperature than the ambient temperature and other stocks may require cooler temperature. For example, fabric and garment are sensitive to direct sunlight as ultraviolet light catalyses a reaction between the water present in all fabrics and atmospheric oxygen to create hydrogen peroxide. This is a bleaching agent and breaks down the chemical bonds that give dyes their colour.
LO 1, AC 1.1
NEW QUESTION 40
Which of the following are subjective forecasting techniques? Select TWO that apply.
- A. Pareto principle
- B. Cycle counting
- C. Test marketing
- D. Delphi method
Weighted moving average
The most common subjective forecasting techniques include the following:
– Market surveys
– Employee surveys
– Expert knowledge (Delphi method is a method using expert knowledge)
– Test marketing
Cycle counting is a periodic analysis of inventory in a storage location which is conducted through the counting of samples instead of physically counting the entire inventory available, so as to quickly have an accurate estimate of the inventory available without causing a stop to the day to day working as is the case with physically counting every unit.
The Pareto principle (also known as the 80/20 rule, the law of the vital few, or the principle of fac-tor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes.
Weighted moving averages assign a heavier weighting to more current data points since they are more relevant than data points in the distant past. The sum of the weighting should add up to 1 (or 100 percent).
LO 2, AC 2.3
NEW QUESTION 41
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