This set of Production Planning and Control Multiple Choice Questions & Answers (MCQs) focuses on “Background and Links to the S&OP”.
1. The supply chain concept originated in what discipline?
a) Marketing
b) Operations
c) Logistics
d) Production
View Answer
Explanation: The concept of supply chain was made in the year 1982. However, it was of great importance long before. The main focus of supply chain concept is marketing. It is based on the exchange of goods and raw materials and selling the products to the people.
2. Which one of the following is not a key attribute of supply chain management?
a) Inventory control
b) Leveraging technology
c) Customer power
d) Production line
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Explanation: In supply chain management, the main involvement is between the company who supplies the raw materials and the company who does the production process and sells the product. There is no involvement of customer power.
3. The bullwhip effect _____
a) Is an ineffective way to motivate warehouse employees
b) Applies to rodeos and has nothing to with the supply chain management
c) Refers to the swaying motion associated with triple trailers
d) Refers to variability in demand orders among supply chain participants
View Answer
Explanation: The bullwhip effect is a phenomenon which the efficiency of supply chain is forecasted. It tells about the swings in the inventory in response to maintain the customer demand.
4. What is a perfect order?
a) Simultaneous achievement of relevant customer metrics
b) An order that arrives on time
c) An order that arrives undamaged
d) An order that is easy for the receiver to fill
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Explanation: Perfect order is the order in which everything is right starting from the percentage of orders delivered to the right place, with the right product, at the right time, in the right condition, in the right quantity and to the right customer.
5. Which one of the following would not generally be considered an aspect of operations management?
a) Work methods
b) Secure financial resources
c) Maintain quality
d) Product or service design
View Answer
Explanation: Operations management includes managing of different things like getting the right amount of raw material to the production environment and making sure if all the operation processes are in the proper manner.
6. Which came last in the development of manufacturing techniques?
a) Lean production
b) Mass production
c) Division of labor
d) Craft production
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Explanation: In development of manufacturing techniques, after completion of all the processes, the work is divided among the laborers for different purpose which is the last part of the manufacturing technique.
7. Which function typically employs more people than any other functional area?
a) Operations
b) Information system
c) Marketing
d) Finance
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Explanation: In a manufacturing system, the most numbers of people required are in the operations section. There are a lot of things like loading and unloading of the material, changing machines in between to switch to different process. So, most number of people is employed in the operation section.
8. Which one of the following is not a type of operations?
a) Goods production
b) Transportation
c) Entertainment
d) Price reduction
View Answer
Explanation: Price reduction is not a type of operation. It is a process which is carried out at the end of all the operations. It is done so that the product has its value in the market.
9. The inputs to the transformation process include all of the following except _____
a) Material
b) People
c) Information
d) Assembly
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Explanation: The input to the transformation process includes labor, capital, equipment, materials and information which are converted into goods which gives value to the customer.
10. Which one is not generally considered an advantage of using models for decision making?
a) Providing a systematic approach to problem solving
b) Emphasizing quantitative information
c) Requiring users to be specific about objectives
d) Providing an exact representation of reality
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Explanation: Some of the advantages of using models for decision making are providing a systematic approach to problem solving, providing an exact representation of reality and emphasizing on quantitative information. Users being specific about the objectives do not help in decision making.
11. A supply chain includes the chain of entities involved in the planning, procurement, production and _____ of products and services.
a) Distribution
b) Supply
c) Demand
d) Transport
View Answer
Explanation: The steps involved in a supply chain management are planning, production, procurement and distribution of products. After completion of the production process, the product needs to be supplied to the market and so distribution of products is done.
12. Lean production involves _____
a) Improvement of speed only
b) Improvement of quality only
c) Elimination of all types of waste
d) Elimination of cost only
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Explanation: Lean production is the production in which all types of waste are excluded right from the inventory to raw material and processing. It helps the company work more effectively and the amount of losses is eliminated.
13. Which of the following is not a factor affecting the supply chain?
a) Reduced number of suppliers
b) Increased competition
c) Longer product life cycles
d) Increased opportunities to strategically use technology
View Answer
Explanation: Product life cycle includes all the processes the product goes through during a production process and supply chain is the sequence of the processes. Longer product life cycle does not affect the supply chain as it increases the time period of supply chain but there is no change in the sequence of the processes.
14. Which one of the following is not a typical supply chain member?
a) Retailer’s creditor
b) Wholesaler
c) Reseller
d) Producer
View Answer
Explanation: Supply chain member includes the supplier, manufacturer and the customer. Producer use the raw material and sub assemblies made by other producers to make their own products.
15. Supply chain concept originated in what discipline?
a) Marketing
b) Operations
c) Logistics
d) Production
View Answer
Explanation: As the supply chain is a very complex operation which requires proper organization and implementation of all the processes which is referred as logistics.
Sanfoundry Global Education & Learning Series – Production Planning and Control.
To practice all areas of Production Planning and Control, here is complete set of Multiple Choice Questions and Answers.
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