NO.1 Which of the following statements about strategic planning is true?
A. It is focused on the master production schedule (MPS) and the material requirements plan.
B. It helps integrate the plans of marketing and production.
C. It involves primarily personnel development and acquisition of long-lead-time materials.
D. It is top-level planning that is not tied to other planning activities.
Answer: B

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NO.2 As a company moves from domestic to global distribution, it becomes increasingly critical to
control which of the following distribution costs?
A. Warehousing
B. Material handling
C. Protective packaging
D. Transportation
Answer: D

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NO.3 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.4 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.5 Which of the following statements best describes an example of advance ship notice?
A. An electronic data interchange communication indicating that an order has left the port of loading
B. A person who handles international shipping documentation and transportation requirements
C. A fee for material held at port longer than the standard unloading time
D. A listing of the items included in an overseas shipment
Answer: A

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NO.6 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.7 Which of the following information is the key output of rough-cut capacity planning?
A. Line balancing
B. Critical resource availability
C. Inventory objectives by product line
D. Capacity requirements plan
Answer: B

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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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