business logistics mid term

Which of the following basic production strategies works best with make-to-order manufacturing firms?

Chase Production Strategy

Given the following information, calculate the forecast (round to nearest whole number) for period three using exponential smoothing and α = 0.4. Period Demand Forecast 1 64 59 2 70

65

Which of the following would be a good reason to outsource (buy) versus making?

A firm lacks the technology or expertise to produce an item

Which of the following would be considered a third party provider?

A firm that leases storage warehousing

Which of the following is true of today's purchasing staff members?

All the above

A SRM strategy refers to a situation wherein a supplier's employee is permanently housed in the purchasing department of the buyer's organization.

False

According to the textbook, in the 1950's and 1960's, mass production techniques focused on creating supplier partnerships, improving process design and flexibility, and improving product quality.

False

According to the textbook, third-party logistics providers (3LPs) do not offer assistance with helping products clear customs.

False

An MRP system has a subassembly with a lot size of 500 units. In terms of filling future requirements, this would mean that planned order releases for the subassembly would always have to be exactly 500 units.

False

In a Total Cost of Ownership system, certification and training of suppliers would be considered post-transaction costs.

False

In a weighted-criteria evaluation system the weights of all the performance dimensions must add up to more than 1.00 and less than 100.

False

In general, single integrator ERP solutions are better suited to more intricate workplaces.

False

It is best for firms to learn through their own experiences the methods and tools that work the best, rather than benchmarking.

False

Quantitative forecasting methods are based on opinions and intuition, whereas qualitative forecasting methods use mathematical models and relevant historical data to generate forecasts.

False

The four categories of inventory are raw materials, intermediate assemblies, work-in-progress and finished goods.

False

The three basic production strategies for addressing the aggregate planning problem are the chase production strategy, the level production strategy, and the aggregate production strategy.

False

The true value of CPFR comes from the sophisticated forecasting algorithms that provide companies with highly accurate forecasts, not from the exchange of forecasting information.

False

The universally accepted definition of supply chain management is "the management and integration of the parties involved in producing the end items coveted by consumers."

False

Transactional SRM, allows the company to analyze the complete supplier base.

False

Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility

False

When demand and lead time are constant, the reorder point (ROP) is less than the demand during lead time.

False

Which of the following describes a global RFID challenge?

Globally, the RFID industry does not have its own UHF spectrum allocation.

Quantitative forecasts use mathematical techniques that are based on:

Historical data

Which one of the following statements regarding the economic order quantity (EOQ) is true?

If an order quantity is larger than the EOQ, then the annual holding cost will exceed the annual ordering cost.

Inaccurate forecasts can result in negative outcomes like:

Imbalances in supply and demand

The ___________ planning horizon is shorter than the aggregate production plan's, but must be longer than a firm's production lead time to ensure the end item can be completed within the planning horizon?

Master production schedule

One operational method for managing inventory is the implementation of a software system which can be referred to as:

Material requirements planning (MRP)

Which strategy uses overtime and subcontracting to cope with the high demand periods ?

Mixed Production Strategy

Blanket or open-end purchase orders are suitable for buying

Office supplies

Cyclical variations are longer than a year and can be influenced by:

Political factors

Field failures, loss of goodwill, a decreased reputation, and warranty costs can all be classified as:

Post-transaction costs

Direct benefits of ISO 14000 include:

Reduction of pollution emissions

Summers, Inc. needs to generate a list of good/services purchased per supplier. Which type software program can the manager consult to obtain this information?

SRM

When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT:

Select the key dimensions of performance based on what is important to the end consumer

Which of the following is an advantage of a centralized purchasing department?

Specialization

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as:

Supplier Certification

Legacy MRP systems typically utilized multiple software packages and databases which caused:

The same information to be stored in multiple locations

Which of the following is a reason small value purchases are handled differently?

To control unnecessary administrative costs

A reason for making items instead of buying them would include better quality control.

True

A seven-step approach to supplier development might include identifying critical suppliers not meeting performance requirements.

True

Blank check purchase orders, Corporate purchasing cards, Petty cash, and Open-end purchase orders are all possible alternatives to dealing with small value purchases such as those for office supplies.

True

CPFR is more likely to succeed if companies educate their employees on the benefits of the process changes and the disadvantages of maintaining the status quo.

True

Cost savings is an advantage of using an e-procurement system.

True

Creating strategic supplier alliances benefits firms by increasing the performance and value of suppliers as well as increasing brand awareness.

True

Demands by customers for companies to become more ethically and environmentally focused have placed added pressures on firms to improve their performance in supply chain management.

True

ERP provides the mechanism for supply chain members to share information so that scarce resources can be fully utilized to meet demand, while minimizing the bullwhip effect and supply chain inventories.

True

Firms assess their sourcing capabilities because the sourcing function is one of the most value-enhancing functions in an organization.

True

Given the following information, the forecast for period two using exponential smoothing and α = 0.3 is 60.5. Period Demand Forecast 1 64 59 2 70

True

Highly valued customers with large purchasing budgets who achieve moderate supply chain management success have been known to lower purchasing and inventory carrying costs, and create better quality products with higher levels of customer service.

True

Individual biases could negatively impact the effectiveness of the Sales Force Composite forecasting approach, due to the proximity of the sales personnel to the consumers.

True

It is important for firms to addresses the impact of ethical and sustainable sourcing on other facets of the organization and its trading partners.

True

Legacy systems were designed to perform a very specific operational function.

True

MRO supplies are a type of indirect costs.

True

One of the assumptions of the economic order quantity model (EOQ) is that purchase price must remain constant.

True

Procurement credit cards can be used for small purchases including meals, lodging, and travel expenses.

True

Successful supplier relationships involve equal decision-making control.

True

The assembly or production of finished products, producing the right amount of product, and ensuring that finished products meet specific quality, cost, and customer service requirements can all be considered elements of operations.

True

The calculated forecast for May is 46, using the actual demand shown in the table below, and a 3-month weighted moving average with weights 0.1, 0.4, 0.5 (the heaviest weight applied to the most recent period). Nov. 39 Dec.36 Jan. 40 Feb. 38 Mar. 48 Apr. 46

True

The goal of a good purchasing system is to ensure efficient information transitions between the materials users, the purchasing personnel, and the suppliers.

True

The total cost analysis demonstrates how other costs besides the unit cost can affect purchase decisions.

True

When both the demand and lead time of a product are variable, firms must keep a higher safety stock level compared to variations in just demand, to offer the same service level.

True

Without supply chain trading partners collaborating and exchanging information, the supply chain will always be suboptimal and contain excess inventories, resulting in less-than-maximum supply chain profits.

True

Which of the following terms refers to an act that creates the greatest good for the greatest number of people:

Utilitarianism

If an item is ordered using its economic order quantity, the annual carrying cost should be:

equal to the annual ordering cost.

Classify the following inventory items as either A, B, or C items using the ABC inventory control system: Item # Annual Sales Unit Cost 1 130 units $ 4.00 2 400 units 15.30 3 25 units 17.00 4 1320 units 1.25 5 90 units 2.10

item 1 (C), item 2 (A), item 3 (C), item 4 (B), item 5 (C)

Which of the following is considered a disadvantage of utilizing an ERP system?

ERP systems are very complex and have proven difficult to implement

Which of the following can happen as a result of the bullwhip effect?

Excess costs for each firm in a supply chain

The real value of Collaborative Planning, Forecasting and Replenishment (CPFR) comes from:

Exchange of forecasting information

Complete the following MRP record and provide the planned order releases for Week 1. Lead time is 2 weeks. Safety stock is 3. Use LFL lot sizes. ​Part X Week 1 2 3 4 Gross Requirement 32 16 34 40 Scheduled Receipts 10 Projected On-Hand inventory 46 Planned Order Releases

29

The College Bookstore sells a unique calculator to college students. The demand for this calculator has a normal distribution with an average daily demand of 20 units and a standard deviation of 4 units per day. The lead time for this calculator is 9 days. Compute the statistical reorder point that results in a 95 percent in-stock probability. Choose the closest answer.

200

A company using a weighted-criteria evaluation system has established these 3 categories and the appropriate weight in parentheses: Quality(0.30), Delivery(0.40), Cost(0.30).

All companies scored the same.

Which of the following results from using the chase production strategy?

Both A & B

According to the text, which of the following is considered a current trend in supply chain management?

Both A and B

Developed in the 1990's as a popular way of developing radically new business processes in an effort to reduce waste and increase performance is referred to as:

Business process reengineering

Which of the following activities would fall under the foundational element of operation?

Demand management

The primary goals of purchasing include all EXCEPT:

Ensure the highest quality raw materials are purchased

Promoting diversity by intentionally buying from small firms or ethnic minority businesses is an example of:

Ethical sourcing

______________ considers the public consequences of organizational buying.

Ethical sourcing

Which of the following is NOT a form of countertrade?

Kaizen blitz

Which of the following should NOT be used as assessment criteria to evaluate the purchasing department's performance?

Lowering inventory turnover rates