CH5-7 QUIZZES

Supply planning uses requirements from demand management to develop a realistic manufacturing plan. Which one of the following represents the Basic Planning Formula? A. Beginning Inv +Production -Demand=Ending Inv B. Beginning Inv (BI) - Demand =Production C. Production - Demand = Ending Inv D. Demand-Production=End Inv

A. Beginning Inv +Production -Demand=Ending Inv

Which of the following terms is commonly used to describe the point where annual ordering costs and annual inventory carrying costs are equal? A. Economic Order Quantity (EOQ) B. Quantity Discounts C. Reorder Point D. Normal Distribution Curve

A. Economic Order Quantity (EOQ)

Which manufacturing strategy is described as a manufacturing process in which the product is designed, engineered, and built to specifications only after the order has been received? A. Engineer to Order B. Make to Order C. Assemble to Order D. Make to Stock

A. Engineer to Order

Which manufacturing strategy is described as a manufacturing process in which the product is designed,engineered, and built to specifications only after the order has been received? A. Engineer to Order B. Assemble to Order C. Make to Order D. Make to Stock

A. Engineer to Order

Which of the following is NOT a valid reason to hold inventory? A. Decouple dependencies in the supply chain B. Efficient utilization of warehouse space C. Buffering against uncertainty in demand or supply D. Decouple supply from demand

B. Efficient utilization of warehouse space

Which Inventory Metric measures how much it costs a company to store inventory over a given period of time? A. Inventory Days of Supply B. Inventory Carrying Cost C. Inventory Turnover D. Inventory Accuracy

B. Inventory Carrying Cost

Which one of the following is an intermittent (i.e., occurring at irregular intervals, not continuous or steady) manufacturing process? A. Continuous Flow Production Process B. Job Shop Production Process C. Line Flow Production Process D. Repetitive Production Process

B. Job Shop Production Process

Which of the following is NOT one of the elements of the Forecasting Process? A. Support System B. Order Fulfillment C. Techniques D. Administration

B. Order Fulfillment

Which one of the following is NOT a constraint on the practical use of EOQ? A. Storage Capacity B. Overproduction C. Unitization D. Transportation

B. Overproduction

In which facility layout are resources grouped by process, and then the product is moved between groupings based on need? A. Fixed Position Layout B. Process Layout C. Product Layout D. Cellular Layout

B. Process Layout

Inventory (i.e., total inventory) can be described as the difference between A. What we manufacture versus what we sell B. What we purchase and what we manufacture versus what we sell C. What we manufacture versus what we purchase D. What we sell versus what is returned

B. What we purchase and what we manufacture versus what we sell

Which of the following forecasting techniques "focuses entirely on historical patterns and pattern changes to generate forecasts"? A. Qualitative B. Time Series C. Casual D. Regression

B.Time Series

The production plan for any business must consider which of the following: A Processes B People C Packages D Programs A. A, B, and C only B. B,C, and D only C. A, B, and D only D. All of the above

C. A, B, and D only

Which of the following would be the most appropriate business practice/process to use if you were trying to analyze the implications of alternative decisions through "What If" scenarios, highlight problems, and consequences, and recommend the best overall solution that considers both material and resource availability? A. Collaborative Planning, Forecasting, and Replenishment B. Demand Planning and Forecasting C. Advanced Planning and Scheduling D. Sales & Operations Planning

C. Advanced Planning and Scheduling

Which of the following would be the most appropriate business practice/process to use if you were trying to analyze the implications of alternative decisions through "What If" scenarios, highlight problems, and consequences, and recommend the best overall solution that considers both material and resource availability? A. Collaborative Planning, Forecasting, and Replenishment B. Sales and Operations Planning C. Advanced Planning and Scheduling D. Demand Planning and Forecasting

C. Advanced Planning and Scheduling

Which of the following forecasting techniques uses one or more factors (i.e., independent variables) to predict future demand? A. Time Series B. Qualitative C. Casual / Cause & Effect D. Speculation

C. Casual / Cause & Effect

A steel manufacturing plant never allows its blast furnaces to stop or cool down. What type of manufacturing process is being used? A. Batch Production B. Line Flow Production C. Continuous Flow Production D. Job Shop Production

C. Continuous Flow Production

There are 8 keys to successful S&OP implementation. Which of the following is NOT one of them? A. Executing the process every month B. Process ownership and clarity of roles and responsibilities C. Focus of the short-term D. One plan that integrates the actions of the entire organization E. Senior management decision making (bottom up/ top down)

C. Focus of the short-term

Which of the following is NOT one of the 8 wastes described in Lean Production A. Transportation B. Excess Inventory C. Small Batch Scheduling D. Over Processing

C. Small Batch Scheduling

Inventory ordering cost components include all of the following EXCEPT? A. Order Receipt Processing B. Transportation C. Storage D. Material Handling

C. Storage

In which facility layout strategy are products grouped based on similar processing characteristics and workstations are arranged to form a number of small assembly lines? A. Cellular Layout B. Fixed Position Layout C. Process Layout D. Product Layout

Cellular layout

Which of the following is NOT one of the 8 dimensions of product quality? A. Performance B. Conformance C. Features D. Constraints

D. Constraints

Which of the following is the most common KPI used by managers in measuring the efficiency in the supply chain? A. Perfect Order Measurement B. Inventory Days of Supply C. Inventory Turnover D. Days of Supply

D. Days of Supply

Which Inventory Metric measures how much it costs a company to store inventory over a given period of time? A. Inventory Turnover B. Inventory Days of Supply C. Inventory Accuracy D. Inventory Carrying Cost

D. Inventory Carrying Cost

The forecasting model component that includes random or unpredictable quantities that do not fit other components is known as? A. Seasonal Component B. Cyclic Component C. Promotional Component D. Irregular Component

D. Irregular Component

Which of the following is NOT one of the constraints evaluated by Advanced Planning and Scheduling? A. Machines B. Methods C. Money D. Management

D. Management

Which forecasting techniques uses multiple variables to create a forecast where each variable depends on its past values, and also has some dependency on other variables? A. Exponential Smoothing B. Regression C. Weighted Moving Average D. Multivariate

D. Multivariate

Which one of the following is NOT once of the primary objectives of Lean Manufacturing? A. Produce products with methods that reinforce the occupational development of workers B. Produce products with perfect quality C. Produce products only as quickly as customers want them D. Produce products with a variety of features and options

D. Produce products with a variety of features and options

Which dimension of product quality involves the likelihood that the product will perform throughout its expected life? A. Conformance B. Performance C. Durability D. Reliability

D. Reliability

Which of the following would be the most appropriate business practice/process to use if you were trying to determine the need to increase or decrease major resources in the near to intermediate-term in support of demand, and then gain senior management approval to implement the necessary changes? A. Advanced Planning and Scheduling B. Demand Planning and Forecasting C. Collaborative Planning, Forecasting, and Replenishment D. Sales & Operations Planning

D. Sales & Operations Planning

Which of the following is NOT once of the three drives of effective supply chain planning? A. Simultaneous Resource Considerations B. Efficient Resource Utilization C. Supply Chain Visibility D. Sales and Operations Planning

D. Sales and Operations Planning

Which of the following inventory types is characterized as "inventory bought to hedge a currency exchange or to take advantage of a discount"? A. Safety stock B. Cycle stock C. Pipeline inventory D. Strategic stock

D. Strategic stock

If you successfully implemented Lean Manufacturing, you would expect your overall manufacturing leadtime to?" A.Decrease B.Increase

Decrease

Which one of the following is NOT one of the Key Dimensions of Product Quality? A. Durability B. Delivery C. Aesthetics D. Conformance

Delivery

Which of the following is NOT a benefit of Integrated Operations Planning? A. Greater Integration with enterprise financial plans B. Increased inclusion of strategic initiatives and activities C. Improved simulation and modeling of alternatives D. Easier translation between aggregate and detailed planning levels E. Only A,B, and D are benefits of Integrated Operations Planning F. All of the above are benefits of Integrated Operations Planning

F. All of the above are benefits of Integrated Operations Planning

Assuming that all other variables remain the same, if the cost per unit of an item increases, the EconomicOrder Quantity (EOQ) for that item will also increase True False

False

If a company practices Total Quality Management (TQM), all quality processes are managed exclusively by the company's Quality Department True False

False

Improving the accuracy of forecasting requires error measurement followed by analysis, and the best method for measuring forecast accuracy is to calculate the simple average error True False

False

The Sales and Operations Planning (S&OP) process is typically executed (or conducted) about every 3 to 18months. True False

False

The process of physically counting a defined portion of the total inventory items on a regular/cyclical basis describes the Inventory Turnover Ratio. True False

False

True/False: "Days of Supply" is the term used to describe the level of inventory which triggers an action to replenish the inventory for an item. It is typically calculated as the demand during the replenishment lead time plus safety stock

False

True/False: A Project Process (aka Job Shop) is an inflexible manufacturing process that requires high capital investment.

False

True/False: CPFR improves customer service by driving inventories up through collaboration with customers on their demand

False

True/False: Companies using a make-to-order manufacturing strategy typically maintain safety stock for independent demand items.

False

True/False: In the context of Total Cost of Manufacturing; in general terms, the manufacturing, procurement, and transportation COSTS PER UNIT all go down as volume goes down.

False

True/False: Safety Time is defined as discrete increments of time used to facilitate planning activities

False

In which facility layout strategy are resources arranged in a sequence, and work is divided into a series of standardized tasks, to enable efficient production? A. Product Layout B. Cellular Layout C. Process Layout D. Fixed Position Layout

Product Layout

Mean Absolute Deviation (MAD) is a measure of forecast error calculated by dividing the sum of the absolute error in each time period by the number of time periods being measured. True False

True

The desired level of customer service (for example, case fill rate or order fill rate) can have a direct impact on the amount of safety stock that is carried for a particular product True False

True

True/False: Improving the accuracy of forecasting requires error measurement followed by analysis, and some of the best methods for measuring forecast accuracy are to calculate the Mean Absolute Deviation or the Mean Absolute Percentage Error

True

True/False: Inventory Ordering Cost components include the cost of material handling

True

True/False: Manufacturing processes that are designed to facilitate the rapid switch in production from one product to another while retaining efficiency, are said to provide economies of scope.

True

True/False: The desired level of customer service (for example, case fill rate or order fill rate) can have a direct impact on the amount of safety stock that is carried for a particular product

True

True/False: The goals of LEAN are the elimination of waste and the minimization of all of the resources used in the manufacture of a company's products

True

True/False: The methods and tools that companies use to create a forecast for their products can and frequently do change over the life cycle of the product

True

True/False: The objective of Mass Customization is to increase variety for customers while also realizing the cost advantages of high volume continuous and line flow processes?

True

True/False: While demand uncertainty can be mitigated by maintaining safety stock, supply uncertainty can only be mitigated by maintaining flexibility and responsiveness

True