2 Sep 2014

Smu mba advanced production planning and control sample paper set two

I have provided the collection of questions of practice paper, multiple choice question paper, model paper, guess paper, descriptive paper and sample paper. You can Download this paper for your practice before appearing in The exam of Sikkim Manipal University(smu). Really this paper will help not only passing the various smu exam like mba, mca, bsc it, bca exam but You will score more than 80 % in sort duration of time. I can understand that professional does not Having time to read the books. So just make practice of this paper. You can download this paper also  For future reference. Find the questions with answers chapter wise, which are asked in previous year’s paper for the subject:advanced production planning and control,OM0017.

Note: Two Square boxes in which one box is correct answer and others is wrong.
Unit 04-2 Mark 
1. State whether the following statements are True or False:
1. Forecasting is not reproducible; prediction is reproducible
2. Forecasting is relatively free from personal bias; prediction is governed by only by preferences
1T, 2T
Correct
1F, 2F
Feedback:
Right choice: Statement 1 is false las forecasting is reproducible; prediction is not reproducible. Statement 2 is false as forecasting is relatively is free from personal biases and preferences.
1T, 2F
1T, 2T

2. State whether the following statements are True or False:
1. Prediction is purely based on a managers skill, experience, and judgement.
2. Predictions involves estimating the level of demand of a product on the basis of factors that generated the demand in the past.
1T, 2F
Correct
1F, 2T
Wrong
1F, 2F
Feedback:
Not the right choice: Statement 1 is true as prediction is purely based on a managers skill, experience, and judgement. Statement 2 is false as forecasting is involves estimating the level of demand of a product on the basis of factors that generated the demand in the past.
1F, 2T

3. Which are the following affect the demand for a service.
1. The price of related goods
2. The number of consumers in the market
3. Design the best process to meet the long-term demand
4. Allow flexibility to cater for variables in demand
2,4
Wrong
3,1
Feedback:
Not the right choice: Statement 3 affect the demand for a service. Statement 1 is part of production planning.
Correct
1,2
1,4


4. Which of the following are the long term objectives of forecasting?
1. Budgetary control over expenditure
2. Regulating supply of labour
3. Man-power panning
4. Formulation of production schedule.
1, 2
2,4
Correct
3,1
Feedback:
Right choice: Both statements 3,1 are long term objectives of forecasting.
4,3
Unit 04-4 Mark1
State whether the following statements are True or False:
1. A matrix is generally maintained to determine which model is producing the most accurate forecast.
2. The demand does not depends on the seasons of the year.
3. The weather conditions does not affect to provide intermittent electric supply to its customers 
4. Forecasted pattern can cause the actual demand to increase or decrease.
1T, 2T, 3T , 4F
Correct
1T 2F, 3F ,4F
Feedback:
Right choice: Statement 1 is true as The forecasting group typically generates profiles and matrices. . Statement 2 is false as The demand also depends on the seasons of the year. Statement 3 is false as The weather conditions affect to provide intermittent electric supply to its customers. Statement 4 is false as A change in the local weather pattern that is different from the forecasted pattern can cause the actual demand to increase or decrease .
1T, 2T, 3T ,4T
1T, 2T, 3F ,4T
\Unit 05-1 Mark 
1. Components, subassemblies, or finished products are produced by manufacturing processes that use inventory are known as _____________.
Correct
Raw Material Inventory
Finished goods Inventory
Work in process inventory
Wrong
Purchased parts Inventory
Feedback:
Not the right choice: Purchased from outside suppliers instead of manufacturing them in the factory.

2. Inventories that are inventories in transit is known as_____________.
Perpetual Inventory Systems
Wrong
Safety Stock Inventory
Feedback:
Not the right choice: Safety stock is an organisation stock designed to buffer against uncertainty.
Correct
Movement inventories
Vendor-managed inventory

3. The cost involved in changing over a machine to produce a different component or item is called the _____________.
Correct
Capital Cost
Carrying Costs
Wrong
Ordering Costs
Feedback:
Not the right choice: The cost of preparing a purchase order for a supplier or a production order for the individual shops inside the production plant.
Shortage Cost

4. The development and administration of policies, systems, and procedures for minimising the total costs is known as_____________.
Inventory management information system
Correct
Inventory management
Feedback:
Right choice: Inventory management (IM) involves the development and administration of policies, systems, and procedures for minimising the total costs.
Minimum inventory
Inventory control

5. The inventories that are held to achieve some payoff from setting up the equipment is known as __________.
MRO Goods Inventory
Buffer Inventory
Correct
Cycle Inventory
Wrong
Anticipation Inventory
Feedback:
Not the right choice: Anticipatory inventory allows them to build inventory when the demand is low, such that the increased inventory is put into use when the demand increases and the production need not be increased to meet the demand.

6. The lot size that minimises total annual inventory holding and ordering cost is called the _____________.
Back order costs
Correct
Economic order Quantity
Wrong
Ordering Cycle
Feedback:
Not the right choice: Time period between two successive orders is called ordering cycle.
Fixed order quantity

7. The __________ is a standard inventory system used in many small manufacturing industries.
Inventory management information system
Correct
Eyeball system
Brown Bag System
Wrong
Perpetual Inventory Systems
Feedback:
Not the right choice: The perpetual inventory systems could be manual, card-oriented, and computer operated systems.
Unit 05-2 Mark 
1. Which of the following statements are the building blocks of inventory management process and control activities ?
1. Demand Management and Inventory Reduction
2. Sales and Operations Planning.
3. Production and Material requirement planning
4. Processing and Carrying inventory.
2, 4,1
2, 3,4
Correct
1, 3,2
Feedback:
Right choice: Statements 1,3,2 are the building blocks of inventory management process and control activities.
3, 4,2

2. Which of the following are the various reasons for change in the inventory management process?
1. Global sourcing of material
2. Changes in market demand,
3. Increasing inventory turnover
4. New manufacturing technologies
Correct
1, 2,4
2,4,3
Wrong
3,1,2
Feedback:
Not the right choice: Statement 3 Inventory reduction involves increasing inventory turnover. Statement 1,2 are the various reasons for change in the inventory management process.
4,3,1


3. State whether the following statements are True or False:
1. The cost of placing purchase orders can be minimised by placing a single order to meet the company's needs for the entire year.
2. IM stresses on decision making and the need for integrated information flow.
Correct
1T, 2T
Feedback:
Right choice: Statement 1 is True as the cost on purchase order is reduced, but results in large working stock and increased carrying stock. Statement 2 is True as .Inventory Management (IM) involves the development and administration of policies, costs, production Schedule and purchasing.
1F, 2F
1T, 2F
1F, 2T

4. State whether the following statements are True or False:
1. If the minimum and maximum decided are based on an objective and rational basis, Two Bin the system will be effective.
2. If the rate of consumption is constant and the lead- time for items are well established, short and regular. Minimum - maximum is ideal.
Wrong
1T, 2T
Feedback:
Not the right choice: Statement 1 is False as if the minimum and maximum decided are based on an objective and rational basis, the Minimum and maximum system will be effective . Statement 2 is false as Two Bin system is ideal if the rate of consumption is constant and the lead- time for items are well established, short and regular.
Correct
1F, 2F
1F, 2T
1T, 2F
Unit 05-4 Mark 
1. State whether the following statements are True or False:
1. Inventory reduction has become quite important with the changes in the economic environment.
2. Customer service can be improved by higher levels of Reducing Inventory. 
3. The procurement, care, and disposition of materials are part of inventory control.
4.Inventory control helps to balance stock according to raw materials and finished goods.
1T, 2F, 3F, 4F
Correct
1T, 2F, 3T, 4F
Feedback:
Right choice: Statement 1 is true as Inventory reduction has become quite important with the changes in the economic environment.. Statement 2 is false as Customer service can be improved by higher levels of buffer inventory . Statement 3 is True as the procurement, care, and disposition of materials are part of inventory control. Statement 4 is false as Inventory control helps to balance stock according to value, style, and colour in proportion to demand.
1T, 2T, 3T, 4T
1T, 2T, 3F, 4T

2. Match the following sets:
Match
Correct Answer
User answer
Feedback

High, Medium and Low (HML) Classification
The items are classified according to their importance to the production process
The items are classified according to their unit cost rather than usage value
incorrect
Vital, Essential and Desirable (VED) Classification
The items are classified according to their unit cost rather than usage value
The items are classified based on availability
incorrect
Scared, Difficult, Easily (SDE) Classification
The items are classified based on availability
The items are classified according to their importance to the production process
incorrect
Always Better Control (ABC) Classification
The classification in this system is based on the usage in terms of monetary value
The classification in this system is based on the usage in terms of monetary value
correct

3. Assume that you are the manager of a production plant and list out the various inventories based on their functions
1. The anticipation of a future event often leads a company to purchase and hold inventory in excess of Increase in price.
2. The goods that have been inspected and have passed the inspection can be transferred from work in progress to finished goods inventory.
3. Purchases are usually made in lots rather than for exact amounts, which may be needed at a point of time.
4. In a production facility, it is very rare to see that all machines produce at the same rate .
Wrong
3,2,1
Feedback:
Not the right choice: As Statement 3 is Cycle Inventory and Statement 3 is Anticipation Inventory the various inventories based on their functions and Statement 2 is Finished goods Inventory . A product that is ready for customer is known as finished good
3,4,2
4,2,1
Correct
3,4,1

Unit 06-1 Mark 
1. Buying huge quantities may result in heavy build up of inventory and hence the inventory carrying cost, which has to be managed by the _____________.
Operation managers
Correct
Inventory managers
Wrong
Investment analyst
Feedback:
Not the right choice: Investment analysts examine the actual performance, the forecasts expectations, and any deviations which might be inappropriate for the company and its stock price.
Stock holder

2. Economic Order Quantity can be calculated by using a _______.
Correct
Mathematical equation
Time series
Market research
Wrong
Theorem
Feedback:
Not the right choice: Economic Order Quantity is not calculated using a theorem.

3. In inventory management, _________ are undesirable and avoided as far as possible.
Correct
Shortages
Wrong
Replenishments
Feedback:
Not the right choice: Replenishment ensures that goods are in stock when customers want them.
Lead times
Discounts

4. The classification of ________ is based on the salient features of inventory.
Correct
Inventory models
Manufacturers
Wrong
Inventory management
Feedback:
Not the right choice: Inventory management helps in maintaining the inventory.
Stock

5. The quantity of raw materials procured in a single order is known as order quantity or ________.
Demand rate
Lead time
Correct
Lot size
Feedback:
Right choice: The quantity of raw materials procured in a single order is also known as lot size.
Replenishment

6. The _______ is the cost for storage, handling and insurance.
Back ordering cost
Correct
Holding cost
Wrong
EOQ
Feedback:
Not the right choice: EOQ identifies the spot for minimum inventory holding and ordering costs.
Capital cost

7. Which of the following models assumes that demand is known and is consumed at a uniform rate?
Model 1
Model 4
Correct
Model 1
Wrong
Model 3
Feedback:
Not the right choice: Model 3 does not assume that demand is known and is consumed at a uniform rate
Unit 06-2 Mark 
1. State whether the following statements are True or False:
1. The inventory should be purchased and stocked at such a level that production is not interrupted and the cost remains optimal.
2. Shortage costs is the cost incurred due to build up of stocks.
1T, 2T
1F, 2F
Correct
1T, 2F
Wrong
1F, 2T
Feedback:
Not the right choice: Statement 1 is not false as inventory should be purchased and stocked at such a level that production is not interrupted and the cost remains optimal. Statement 2 is not true as shortage costs is the cost incurred due to stock out.


2. The inventory models are broadly classified as:
1. Deterministic model
2. Analytical model
3. Probabilistic model
4. Mathematical model
1, 2
2,4
Correct
1,3
Feedback:
Right choice: Deterministic model is a classification of inventory models. Probabilistic model is a classification of inventory models.
3,4

3. Which of the following assumptions, when satisfied, ensures optimal EOQ?
1. The rate of demand rate is constant
2. The lead time is fixed
3. Instantaneous production
4. Finite production
2,4
Wrong
1,3
Feedback:
Not the right choice: The assumption that rate of demand is constant ensures optimal EOQ when satisfied. Instantaneous production is a classification of elementary model.
Correct
1,2
1,4

4. State whether the following statements are True or False:
1. The determination of EOQ identifies the spot for minimum inventory holding and ordering costs.
2. Every business and industry does not calculate EOQ.
1T, 2F
Correct
1T, 2T
1F, 2F
Wrong
1F, 2T
Feedback:
Not the right choice: Statement 1 is not false as determination of EOQ identifies the spot for minimum inventory holding and ordering costs. Statement 2 is true as every business and industry does not calculate EOQ.
Unit 06-4 Mark 
1. Match the following sets:
Match
Correct Answer
User answer
Feedback

Total annual inventory cost, T (Q)
Annual holding cost + Annual ordering cost
Annual holding cost + Annual ordering cost
correct
Total annual ordering cost, O (Q)
Frequency of order + Cost per order
(Q/2)*h
incorrect
Total Annual Holding Cost, H (Q)
(Q/2)*h
[(D/Q)*A] + [(Q/2)*h]
incorrect
Total cost equation for Model 1, T (Q)
[(D/Q)*A] + [(Q/2)*h]
Frequency of order + Cost per order
incorrect

2. Assume that you are the Inventory Manager in PNT Ltd. Your company supplies diesel engines to a generator manufacturer at the rate of 12 units per day with a holding cost of the complete unit at Rs. 25 per month. The engines are produced in batches with a set up cost of Rs. 17000 each time when the set up is changed. The production capacity is 45 engines per day and works for 300 days in a year. Cost of material inputs per engine is Rs. 2600.
Calculate:
1. Most economical numbers that can be produced in one batch
2. How frequently should the batches be started in a day
3. What will be the minimum average inventory cost and production time
Wrong
EBQ = Economic Batch Quantity = EPQ = 1210engines, Number of set ups in a year = 5, Time per order = 50 days, Production Time = 32.5 days, Total inventory cost = Rs. 1319475 per annum.
Feedback:
Not the right choice: It is not the correct calculation
Correct
EBQ = Economic Batch Quantity = EPQ = 1917engines, Number of set ups in a year = 2, Time per order = 150 days, Production Time = 42.6 days, Total inventory cost = Rs. 319475 per annum.
EBQ = Economic Batch Quantity = EPQ = 2117engines, Number of set ups in a year = 2, Time per order = 30 days, Production Time = 22.6 days, Total inventory cost = Rs. 410575 per annum.
EBQ = Economic Batch Quantity = EPQ = 1700engines, Number of set ups in a year = 4, Time per order = 100 days, Production Time = 52.6 days, Total inventory cost = Rs. 1500475 per annum.

3. State whether the following statements are True or False:
1. In model 1, it is assumed that the entire quantity ordered is received in a single lot.
2. Model 2 is applicable to situations where the item is procured from outside.
3. Uniform demand indicates that the stocked material goes on increasing at a uniform rate.
4. Model 2 is suitable for manufacturing organisations where there is a simultaneous production and consumption.
1T, 2T, 3T , 4F
Correct
1T, 2F, 3F ,4T
1T, 2T, 3T ,4T
Wrong
1T, 2T, 3F ,4T
Feedback:
Not the right choice: Statement 1 is true as in model 1, it is assumed that the entire quantity ordered is received in a single lot. Statement 2 is not true as model 2 is applicable to situations where the item is produced internally rather than being procured from outside. Statement 3 is false as uniform demand indicates that the stocked material goes on decreasing at a uniform rate. Statement 4 is true as Model 2 is suitable for manufacturing organisations where there is a simultaneous production and consumption.
Unit 07-1 Mark 
1. The planning process that determines the best route for manufacturing the products is known as _____________.
Correct
Routing
Loading
Scheduling
Wrong
Dispatching
Feedback:
Not the right choice: It is the process of selecting and sequencing jobs to be done at individual work centres and subsequently assigning the work to be done.

2. A level of human intelligence transferred to automated machinery is known as_____________.
Correct
Autonomation
Jidoka
Wrong
Automate
Feedback:
Not the right choice: Automate means to make a process in a factory or office to be operated completely by machines, in order to reduce the amount of work done by humans and the time taken to do the work.
Autonomy

3. A _____________can develop the production schedule in small firms.
Operation Manager
Correct
Line Supervisor
Feedback:
Right Choice: A production scheduler or a line supervisor can develop the production schedule in small firms
Production Manager
Quality Manager

4. Determining the job to be performed and allocating resources and operators with the required skill is known as _____________ .
Labour scheduling
Correct
Operation scheduling
Wrong
Construction scheduling
Feedback:
Not the right choice: A project can be the construction of a residential building.
Production scheduling

5. Monitoring and revising the schedules is known as _____________.
Forward Scheduling
Correct
Controlling
Shop loading
Wrong
Production Scheduling
Feedback:
Not the right choice: A derivative of the production plan is the production schedule.

6. Operations scheduling can be considered as the heart of a _____________.
Capital Cost
Correct
Manufacturing excellence system
Materials requirement planning
Wrong
Production Scheduling systems
Feedback:
Not the right choice: Production Scheduling systems are used to streamline the scheduling process. .

7. Taking up jobs with a number of tasks and assigning resources in reverse order is known as_____________ .
Forward scheduling
Labour scheduling
Correct
Backward scheduling
Feedback:
Right choice: Backward scheduling can be associated with taking up jobs with a number of tasks and assigning resources in reverse order.
Operation scheduling
Unit 07-2 Mark 
1. State whether the following statements are True or False:
1. Schedule preparation can be affected by system problems.
2. Scheduling can be improved by using computer-based tools.
1T, 2T
1F, 2F
Correct
1T, 2F
Wrong
1F, 2T
Feedback:
Not the right choice: Statement 1 is True as Schedule preparation can be affected by system problems Statement 2 is False as Scheduling can be improved by using computer-based tools and software.

2. State whether the following statements are True or False:
1. The production of defective products is completed when autonomation is implemented.
2. Service is associated with close customer contact and long lead times.
Correct
1T, 2F
1F, 2F
Wrong
1F, 2T
Feedback:
Not the right choice: Statement 1 is True as in the production of defective products is completed when autonomation is implemented. Statement 2 is false as Service is associated with close customer contact and long lead times.
1T, 2T


3. Which of the following are the benefits of production scheduling?
1. Reduces the holding costs of inventory
2. Efficient scheduling is disturbed by organisational problems
3. Enhances throughputs and utilisation of machine and man hours
4. Enables minimal impact on production activities by maintenance of schedules
Correct
4,3,1
Feedback:
Right choice: Statements 4,3,1 are the benefits of production scheduling.
2,4,3
3,1,2
1,2,4

4. Which of the following are the External Factors affecting scheduling?
Correct
Customer demand and Customer delivery dates
Availability of materials and Finished goods inventory
Availability of equipment and Process intervals
Wrong
Manufacturing facilities and Economic production runs
Feedback:
Not the right choice: The internal factors affecting scheduling.
Unit 07-4 Mark 
1. Match the following sets:
Match
Correct Answer
User answer
Feedback

Machining centres
Infinite forward scheduling and limited labour process.
The scheduling method is Finite forward.
incorrect
Full automation and low labour
The scheduling method is Finite forward.
The scheduling method is Infinite loading, priority control and JIT or MRP systems.
incorrect
Fully automatic machines with auto handling of parts
Finite forward and parts are pulled for JIT system.
Infinite forward scheduling and limited labour process.
incorrect
Cellular layout (group technology)
The scheduling method is Infinite loading, priority control and JIT or MRP systems.
Finite forward and parts are pulled for JIT system.
incorrect

2. Assume that your the manager of operations manager at a Nayak private limited firm dealing with scheduling action plan. Which among the following options would follow to make it successful.
1. Dealing with the information needed for stock control and managing suppliers both their own stock and those held further down the supply chain.
2. Assigning jobs to work centres, determining the best route for manufacturing the products.
3. Setting operation start dates for jobs, selecting and sequencing jobs to be done so that they can be completed within their due dates. .
4. A measure to understand customer satisfaction for the delivered goods.
Wrong
4,3,1
Feedback:
Not the right choice: Statement 1 elements of inventory control that is Inventory management system that deals with the information needed for stock control vendor managed inventory that has the suppliers managing both their own stocks and those held further down the supply chain. Statement 4,3 are elements of scheduling action plan.
3,1,2
Correct
2,4,3
1,2,4

3. State whether the following statements are True or False:
1. A production plan is not a forecast of demand, but it is a plan for production based on forecast.
2. Scheduling is usually the first step in the transformation process for the output produced by the manufacturing unit.
3. Ranking for the dispatch list can be decided by due date and critical ratio.
4. The scheduler begins with the delivery date, and plans forward to calculate the date for order release
Correct
1T, 2F, 3F , 4F
1T 2F, 3T ,4F
1F, 2F, 3F ,4T
Wrong
1T, 2T, 3F ,4T
Feedback:
Not the right choice: Statement 1 is True A production plan is not a forecast of demand, but it is a plan for production based on forecast.Statement 2 is false as Scheduling is usually the final step in the transformation process for the output produced by the manufacturing unit. Statement 3 is false as Ranking for the dispatch list can be decided either by due date or by critical ratio.Statement 4 is false as the scheduler begins with the delivery date, and plans backward to calculate the date for order release.


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