NO.1 What document or record is used to inform others of the receipt of purchased goods?
A. Advance shipping notice
B. Invoice
C. Receiving report
D. Packing slip
Answer: C

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NO.2 Which of the following factors most likely will impact the demand for a firm's products or
services?
A. Forecast accuracy
B. Order processing system
C. Competition
D. Planning horizon
Answer: C

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NO.3 Which of the following items is a source of independent demand?
A. Customer orders for finished products
B. Subassembly requirements from material requirements planning
C. Raw material requirements from material requirements planning
D. Protective packaging for shipping customer orders
Answer: A

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NO.4 A manufacturer's market is highly dependent upon customers selecting standard options at the
time of placing an order. Which of the following manufacturing strategies is best suited to compete in
this market?
A. Engineer-to-order
B. Make-to-order
C. Assemble-to-order
D. Make-to-stock
Answer: C

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NO.5 What is the long-term effect of reducing the number of distribution centers between a
manufacturer and its customers?
A. Total stock quantity increases.
B. Transport costs from factory to distribution centers only decrease.
C. Transport costs from distribution centers to customers only decrease.
D. Transport costs from factory to distribution centers and from distribution centers to customers
decrease.
Answer: B

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NO.6 Economic order quantity (EOQ) is best applied when the:
A. product is make-to-order.
B. product shelf life is short.
C. production process is continuous.
D. consumption rate is uniform.
Answer: D

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NO.7 Which of the following techniques is best for monitoring loads and capacities?
A. Exponential smoothing
B. Discrete lot sizing
C. Input/output control
D. Rough-cut capacity planning
Answer: C

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NO.8 Which of the following plans is translated into synchronized functional plans through the sales
and operations planning process?
A. Strategic
B. Marketing
C. Business
D. Financial
Answer: C

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