Sample Questions

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Exam Questions

Question 1
Which is the main objective of material requirements planning?
A. Identifying material required
B. Calculating equipment testing time
C. Ascertaining quantity and timing of materials
D. Recognizing problems in operations
Correct Answer: C
Rationale: Material requirements planning (MRP) is a production planning and inventory control system designed to ensure materials are available for production and products are available for delivery to customers. Its core function is determining both the precise quantities of materials and their required delivery or usage schedules to align with production timelines, ensuring efficiency, minimizing inventory costs, and preventing delays. Identifying materials is too vague, equipment testing is unrelated, and recognizing operational problems is not MRP’s primary focus.
Question 2
Which type of demand helps to determine how much raw material is needed to produce a final product?
A. Independent demand
B. Dependent demand
C. Time-phased
D. Gross requirements
Correct Answer: B
Rationale: Raw material requirements are calculated based on the production needs of finished goods or higher-level assemblies, which defines dependent demand as it depends on the production schedule of other items. Independent demand refers to customer-driven demand for finished goods, not inputs. Time-phased and gross requirements are planning concepts within MRP, not types of demand.
Question 3
Which of the following is an estimate of the total cost of ownership of an ERP system?
A. Cost of hardware
B. Cost of software
C. Cost of hardware, cost of software, cost of professional services, and cost of internal staff time
D. Cost of hardware, cost of software, cost of quality, and cost of internal staff time
Correct Answer: C
Rationale: Total cost of ownership (TCO) for an ERP system includes all direct and indirect expenses over its lifecycle, such as initial hardware and software costs, implementation costs like consulting or professional services, and ongoing internal staff time for training, maintenance, and customization. Cost of quality is not a standard TCO component, as it relates more to manufacturing contexts.
Question 4
Which of the following is an estimate of the total cost of ownership of an ERP system?
A. Cost of hardware
B. Cost of software
C. Cost of hardware, cost of software, cost of professional services, and cost of internal staff time
D. Cost of hardware, cost of software, cost of quality, and cost of internal staff time
Correct Answer: C
Rationale: Total cost of ownership (TCO) for an ERP system encompasses all direct and indirect expenses incurred over its lifecycle, including hardware and software licenses, implementation costs such as professional services, and internal staff time for training and maintenance. Cost of quality is not a standard TCO component, being more relevant to product development.
Question 5
Which phase in the project life cycle includes the process of evaluation of cost, benefits, and risks?
A. Feasibility Analysis
B. Execution
C. Planning
D. Concept
Correct Answer: A
Rationale: The Feasibility Analysis phase evaluates cost, benefits, and risks to determine project viability, assessing technical, economic, legal, operational, and scheduling factors. The Concept phase identifies ideas, Planning focuses on scheduling and resources, and Execution implements the plan. Only Feasibility Analysis validates the project’s worth through cost-benefit-risk assessment.