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                                    Quiz # 3 MGT613

1) Which of the following is an example of an output of aggregate planning?

Facilities layout

Demand forecast

Projected inventory

Overtime cost

2) Demand options are focused on which of the following?

Hiring / layoff options



Matching demand period by period

3) Which of the following is the cost of holding inventory for some specific time?

Ordering cost

Carrying cost

Shrinkage cost

Inventory cost

4) Which one of the following concepts refers to achieve the lowest average total cost per unit when a large quantity is ordered?

Economic order quantity

Economies of scale

Material requirements planning

Master production schedule

5) For production plans, the demand requirement represents the demand for _________________?


Raw material

Work in process

Finished goods

6) The relationship between quality and probability of acceptance is:


Not linear

Directly proportional

Inversely proportional

7) Quality control is concerned with:

Quality development

Quality deployment

Quality of design of process

Quality of conformance of the process

8) Which of the following is NOT an assumption of EOQ model?

Delivery lead time does not vary

Annual demand requirements are known

There are no quantity discounts

Multiple products are involved

9) Increase in inspection results in the increase of which cost?

Prevention costs

Appraisal costs

Inspection costs

Rework costs

10) Management of ABC service providing organization wants to improve the gap between manager’s expectations of service quality and its specifications. For removing this difference; what the managers are supposed to do first?

Quality of service should be determined

Customer’s perception of service should be determined

Customer’s needs and wants should be determined

Marketability of service should be determined

10) Which one of the following is a key benefit of process plant strategy?


Economies of scale

Diseconomies of scale

Product variety

Task specialization

11) The chances of the batch containing acceptable level of quality will be rejected is known as?

Acceptance risk

Consumer risk

Producer’s risk

Rejection risk\

12) Ali dialed Customer Service Representative of WARID who very friendly and sociably responded his queries. Which dimension of service quality is referred to in this example.







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