CIOP Practice Questions

ACME’s team of procurement professionals were evaluating a Crankshaft supplier for its product suitability to use in the marine engines. The procurement team is quite comfortable with the product parameters for use in their engines, but there were no differentiating factors over the competitors. Choose the right statement that describes this scenario.

A-Order Qualifiers and Order Winners are fine.
B-Order Qualifiers is not fine, but Order Winners is fine.
C-Order Qualifiers is not fine, and Order Winners is also not fine.
D-Order Qualifiers is fine, but not Order Winners.

KCPEE, a manufacturing firm mastered the art of inventory optimisation and achieved significant benefits. Now to take the inventory optimisation to the next level, the management is working on a new strategy. Which one of the following strategies will be helpful to them?

A-Shift from ETO to MTS
B-Shift from ATO to MTS
C-Shift from MTS to ATO
D-Shift from ETO to MTO

KCPEE, a manufacturing firm mastered the art of inventory optimisation and achieved significant benefits. Now to take the inventory optimisation to the next level, the management is working on a new strategy. Which one of the following strategies will be helpful to them?

A-Management + Strategic Business Plan
B-VP, Manufacturing + S&OP
C-Material Planner + MRP
D-Management + S&OP

You are an SCM Consultant and part of a business plan meeting where they are deliberating about the organisational design. The founder of the proposed business explains that the product is costly, but the capacity is cheap. The demand has ups and downs across the months and the product is perishable in nature. Unskilled workers make a major part of their employee role. IPR is crucial. At a first glance, what would be your recommendation about the manufacturing strategy for this proposed organisation?

A-Level
B-Chase
C-Subcontracting
D-Hybrid

Scissors Private Limited manufactures industrial quality scissors and distributes across Asia. One of its scissors models is AX. The forecasts (in UoM) for this model for the next 6-weeks are 2000, 2500, 2200, 2100, 4000 and 3200. The Unit of Measure (UoM) is boxes, and each box contains 1000 scissors. In one setup this company can manufacture 500 boxes of scissors. The closing inventory of the previous period is 1100 boxes of scissors. The safety stock for MPS is 700 boxes of scissors. Which one of the following Week-MPS pair meets the above conditions?

A-(1-100) (2-100) (3-400) (4-300) (5-300) (6-100)
B-(1-2000) (2-2500) (3-2000) (4-2000) (5-4000) (6-3500)
C-(1-900) (2-2500) (3-2200) (4-2100) (5-4000) (6-3200)
D-(1-2000) (2-2500) (3-2200) (4-2100) (5-4000) (6-3200)

Turbo Jet Propulsion specialises in Aircraft Engines and have four major sales regions and headed by Regional Sales Directors. The regions are Asia, Africa, Americas and Europe. The MPS and ATP for the current planning bucket is 1200 and 800 respectively. During the same period last year the sales in the above regions are 300, 400, 600 and 300 respectively. Which one of the following combinations represents a logical numbers that each of the sales directors can commit in their geographies for new orders?

A-(Asia, 75) (Africa-100) (Americas-150) (Europe-75)
B-(Asia, 300) (Africa-400) (Americas-600) (Europe-300)
C-(Asia, 225) (Africa-300) (Americas-450) (Europe-225)
D-(Asia, 150) (Africa-200) (Americas-300) (Europe-150)

For a particular component, the planner is calculating the numbers required based on the Bill of Materials and then places that calculated number in the appropriate bucket in the MRP Grid. Which one of the following best describes his actions?

A-Gross to Net Calculation
B-Offsetting then Exploding
C-Exploding then Offsetting
D-Order Release and Order Receipt

In an Automobile Assembly plant the number of Cars under MPS for a given period is 1000. It is a 6 cylinder petrol engine and each cylinder requires one spark plug. Number of engines already finished is 500, Opening Stock of the spark plug for the given period is 500 and minimum Projected Available must be 250. The spark plug supplier delivers in MOQ of 375 and its multiples. Which one of the following options represents spark plug MRP for the given MPS?

GR          – Gross Requirements
NR          – Net Requirements
POR       – Planned Order Receipt
PA           – Projected Available

A-(GR = 6000) (NR = 5500) (POR = 6000) (PA = 500)
B-(GR = 6000) (NR = 5500) (POR = 5000) (PA = 250)
C-(GR = 1000) (NR = 500) (POR = 60) (PA = 50)
D-(GR = 1000) (NR = 500) (POR = 250) (PA = 250)

Which one of the following is not an input to Capacity Requirements Planning (CRP) in an MTS environment?

A-Open Orders
B-Customer Orders
C-Routings
D-Work Centres

A Gear Cutting Machine is available for 24 hours but operated in one shift by skilled machinist. One shift is for 8 hours and this factory works 6 days a week. The manufacturing calendar has 250 days per year. During a shift, the worker takes a total break for 60 minutes. The preventive maintenance for about 30 minutes is carried out every day after the shift is completed. As the operator is an experienced machinist, he completes 100 standard hours work in 95 hours. Calculate the Rated Capacity of this Gear Cutting Machine for a year?

A-44 Standard Hours
B-1711 Standard Hours
C-1842 Standard Hours
D-41 Standard Hours

American Machinist is a leader in building special purpose machines. It’s VP, Manufacturing and Operations is on a mission to improve the productivity of its work centres. In one such project, he bought additional chucks (that holds the rotating part to be machined) for the lathe machines. Which one of the following statements better explains his action

A-He converted the external setup time to internal setup time.
B-He provided additional parts so that it helps during maintenance.
C-Chuck is a consumable in a lathe machine.
D-He converted the internal setup time to external setup time.

Nishant Motors is a Tier-1 supplier of several leading OEM Automakers. They paint the car chassis (C) and doors (D), which goes through the same painting station. Each car has 1 chassis and 4 doors. Each chassis requires 15 minutes of setup time and 60 minutes of painting time. Two doors can be painted at a time with a total setup time of 10 minutes and total operation time of 50 minutes. The available capacity of the painting station is 160 hours. Which one of the following equations best expresses the calculation to determine the number (X) of Chassis + Door Sets (i.e. 4 doors)?

A-15+120X+10+200X = 9600
B-15+60X+10+200X = 9600
C-15+60X+10+100X = 9600
D-15+120X+10+200X = 160

The 3Rs of environmentally responsible purchasing are.

A-Return, Refurbish and Repair.
B-Reduce, Reuse and Recycle.
C-Risk, Reduce and Repair.
D-Repurpose, Repair and Responsible Landfill.

Which one of the following is NOT a good source to identify the suppliers?

A-CRM Software
B-Trade Magazines and Trade Directories
C-Internet and Catalogues
D-Sales People of Your Company, Supplier Company, and Industry Associations

Which one of the following is NOT one of the principles of forecasting?

A-Every forecast should include an estimate of error.
B-Forecasts should be correct at all times.
C-Forecasts are more accurate for families or groups.
D-Forecasts are more accurate for nearer time periods.

Royal Inn is a popular chain of hotels in Bengaluru City in India. The Demand Planner of this hotel chain grapples with an issue of festive, weekend and holiday booking rush. This scenario explains the which of the following characteristics of demand?

A-Random Variation
B-Trend
C-Seasonality
D-Cycle

1. D; 2. C; 3. A; 4. B; 5. B; 6. D; 7. C; 8. A; 9. B; 10. C; 11. D; 12.C; 13. B; 14. A; 15. B; 16. C