Final Exam 2.0
According to the DfM (Design for Manufacture) and DfA (Design for Assembly) guidelines, it is a good idea to
combine multiple parts into a single part whenever feasible
If process variation increases, process capability ________ 1. stays the same 2. decreases 3. increases 4. becomes negative
decreases
moving average
simple average of demand from some number of past periods
historical analogy
technique that assumes past demand is a good predictor of future demand
grassroots
technique that seeks input from people or customers
executive judgement
technique that uses input from those with experience
marketing research
techno pique that examines patterns of current customers
Unlike in manufacturing, a factor that designers of most service processes need to contend with is
the level of customer interaction in the process
A hybrid aggregate plan 1. is the same thing as a chase aggregate plan 2. uses a combination of level and chase approaches 3. constrains planned inventory to 0 in all planning peroids 4. is generally associated with poor quality of products and services produced
uses a combination of level and chase approaches
weighted moving average
assigns different weights to each period's demand based upon its importance
The ____ processes are those that have _____ Cp values 1. worst, skewed 2.best, double-peaked 3.best, average 4.best, high
best, high
Demand Planning
both forecasting and managing customer demand to reach operational and financial goals
Operations that transform something and that the customer is (or would be) willing to pay for are 1.Value adding 2. internal 3. external 4. processing
value adding
internal customer
A distribution center that is owned by company is you company's __________
Peanuts that have been shelled and roasted
Work in Process Inventory
Upstream Suppliers
_____ typically provide materials, components, and services directly related to manufacturing or service production processes.
Supply Chains
_______ typically consist of multiple customers and suppliers linked together
Supply chains
____________ typically consist of multiple customer and suppliers linked together
When you are building a hybrid aggregate plan, which of the following options do you have available? 1. Outsourcing to other companies 2. Building inventory ahead of planned demand 3. Working overtime 4. All of the above
all of the above
Stakeholders
"A group of people who have a financial or any other interest in the well-being of an operation," best describes _______
Stakeholders
"A group of people who have a financial or any other interest in well-being of an operation," best describes ____________
statistical models
(also known as quantitative forecasting)(use numerical data about past demand or about the value of a predictor variable)
A company has always employed an inspection department, which examines finished goods for defects after production is complete. Defective goods are scrapped or fixed in a special rework department. Problems with this approach include:
1)It is costly 2)It separates employees who make the product from the process of finding and fixing the root causes of poor quality 3)It is difficult to identify all defects (i.e. achieve 99.9% quality or better) by relying on inspection
Inventory carrying cost includes (Pick ALL that apply)... 1. Cost of capital 2. Cost of insuring inventory 3. Disposing of obsolete inventory 4. Order costs (costs of placing replenishment orders)
1. Cost of capital 2. Cost of insuring inventory 3. Disposing of obsolete inventory
Which of the following quality characteristics should be monitored with a p-chart, as opposed to an x bar & r chart 1. Number of squirmy worms that have too much or too little glitter in them 2. Weights of a package of squirmy worms 3. Number of squirmy worm packages with labels applied incorrectly 4. Number of misspellings on a batch of invoices from Tom's Squirmy Worms to its customers 5. Amount of time it takes Tom's to ship an order once it is received
3. Number of squirmy worm packages with labels applied incorrectly 4. Number of misspellings on a batch of invoices from Tom's Squirmy Worms to its customers
A company implements lean, which result are we most likely to observe 1. An increase in work in process inventory 2. A reduction in employee morale 3. Employees being required to work faster 4. A decrease in changeover time (set up time)
A decrease in changeover time (set up time)
SBU's, each focusing on one or more customer segments
A typical large company (or not for profit) consists of multiple _________ ___________
The Pareto Principle or 80/20 rule is the basis for which inventory management tool/concept 1. ABC 2. EOQ 3. Reorder Point 4. Safety Stock
ABC
Nets-R-Us Company has developed a new concept in fishing nets. Retails fishing shops order a components (handles, bags and hoops.... one of each is required to create a net) from Nets-R-Us and hold them in inventory Customers order their net at the retail shop by picking out a handle, bag and hoop that will best meet their needs (many combinations are possible). After the order is received, an employee in the shop assembles the combination of handle, bag and hoop that the customer has specified. The customer can pick it up the same day or the next day. This is an example of
ATO
MAD
Absolute value of each period's error divided by number of periods considered
The objective a pull system is to sync production at each work center with 1. Actual downstream usage 2. Off-peak demand 3. The forecast quantity 4. The size of the Poka Yoke
Actual downstream usage
seasonal index
Adjustment factor to account for seasonal changes or cycles in demand. A 'season' can be any time period.
Which of the following operations characteristics support low cost production
All/most products having the same basic flow pattern though the facility
A tennis ball line normally produces balls with an internal pressure between 10.9 and 11.1 pounds per square inch, with a mean of 11.0. Because of a faulty sensing device, balls coming off the line right now have internal pressure between 12.9 and 13.1 PSI. This situation would be detected by examining 1. An R-chart 2. An X-bar chart 3. A C-chart 4. A P-chart
An R-chart
A lighting manufacturer produces a model of lamp called the Magnifique. Each lamp consists of a shade and a base. To satisfy a variety of customer tastes, the manufacturer stocks 3 types of shades and 3 types of bases. The manufacturer does not make these into end products (finished lamps) until it has made a sale to a customer. This is referred to as
Assemble to Order
To calculate process capability, we need to know _____ and ______
amount of process variation; distance between the LSL and USL
At Subway, employees prepare meat, bake bread and cut-up vegetables in the morning. Employees do not combine these ingredients into finished sandwiches until customers arrive and tell the employees what they would like. This is an example of
Assemble to order
The state of Idaho is planning how it will manage COVID-19 vaccines. You are consulting on this project. Currently a group is debating whether to maintain one centralized inventory and distribution operation or have 5 of these operations located throughout the state. Demand at each of these locations is projected to be 1000 doses per day. The thinking is that under the decentralized model, the system will be able to provide a 95% service level 100 doses of safety stock at each location. Everyone agrees that if inventory is centralized, the same service level (95%) would have to be maintained. If you centralize the inventory 1. Average demand will be 5,000, But safety stock can be less than 500 2. Average demand will be 5,000, Safety stock will be 500 3. Average demand will be 5,000, Safety stock will need to be more than 500 4. The standard deviation of resupply lead time will decrease the square root of 5
Average demand will be 5,000, But safety stock can be less than 500
Average SI
Average of SI data for given time frame
Compared to front office processes, ________ tend to be ___________ Correct Answer
Back office, more efficient
cause-and-effect (fishbone) diagram
Branches have descriptive categories, such as reasons for late package delivery
Splitting shipments into individual orders and arranging them for local delivery to customers is: 1. Break-bulk. 2. Stockpiling. 3. Cross-docking. 4. Reverse logistics.
Break-bulk.
For items with high supply risk and high importance, a good strategy is You Answered Utilize e-commerce to increase purchasing process efficiency Utilize many suppliers to ensure availability of supply Obtain price discounts based on quantities purchased Correct Answer Build collaborative partnerships with one or a few suppliers
Build collaborative partnerships with one or a few suppliers
The statistic that quantifies the relationship between the distribution of process output and the specifications is the 1. Six Sigma 2. Sigma 3. Process Capability Index 4. Control Limit
Process Capability Index
Cross-docking: 1. Sorts items for production support. 2. Stores inventory to support seasonal demand. 3. Supports reverse logistics. 4. Combines break-bulk and consolidation activities.
Combines break-bulk and consolidation activities.
Operations Management
Concerned with inputs, resources, process, and outputs of one company
According to the 1516 Bavarian law, the only ingredients that beer are water, barley and hops. A chemist is analyzing a batch of beef to ensure that it meets this specification. The chemist is concerned with what dimension of quality
Conformance Quality
Jones Company decided to accumulate customer orders until it has a truckload's worth of orders. Then it ships a full truckload. This was done to to save on transportation. This is an example of: 1. Coordination 2. Inventory pooling 3. Consolidation. 4. Efficient frontier
Consolidation.
Political instability, concentration of suppliers in the same geographical region, and supplier labor disputes are all 1. Factors that diminish intellectual property protection 2. Factors that don't affect supply chains as much as they did in the 2010's 3. Supply management goals 4. Contributors to supply risk
Contributors to supply risk
A restaurant orders 16 ounce paper cups in cases of 1,000. But it only uses 50 day so most of the time it has much more than a days worth of inventory on hand
Cyle Stock
If we narrow the width of the specification (say from 100 +/- 10 to 100 +/-5) , then process capability ________ 1. stays the same 2. becomes negative 3. decreases 4. increases
Decreases
An example of a qualitative method is ________. A good reason to use such a method is ________ 1. Delphi method; Excess of historical data 2. Moving average; No sales history 3. Exponential smoothing; new product introduction 4. Gathering expert opinions; Lack of historical data
Delphi method; Excess of historical data
Angel is interviewing homeowners to see how well his company's kitchen cabinets match up to the homeowners' requirements (in terms of size, configuration, colors, etc.) . Fro this, we can conclude that he is interested in
Design Quality
A product design team is working on a design for a new vacuum cleaner. They are trying to avoid designs that require that plastics and metals be permanently bonded together (for example with glue). The team is probably using _____ methods
Design for the Environment
A product design team is working on the design of a new generation of handheld police radio These radios typically last about 3 years. The team is designing the product in such a way that at the end of each radio's useful life, it will be easy to disassemble each radio and sort its components based on the type of material they are made from. This kind of thinking is an example of
Design for the Environment (DfE)
intermediate customer
Diners in a restaurant are a good example of an __________
Below are 3 steps for making an SPC chart. In what order should the steps be performed? I. Draw the center line II. Compute the mean III. Plot data points 1. III, II, I 2. I, II, III 3. I, III, II 4. II, I, III 5. II, III, I
II, I, III
Design for Serviceability focuses on goals like
Easing product disassembly and maintenance
When employees have the authority and responsibility to make important process related decisions, ______ is present in the organization
Employee empowerment
Stakeholders
Employees, unions, local communities and governments are all examples of _____________
The manager at a coffee shop has developed a causal model based on weather. He uses the forecast high temperature for the day to forecast total hot drink sales (in dollars) each day. He has determined that the slope coefficient for temperature is -50. (In other words, y=a -50b, where y = hot drink sales and b = temperature.) This means... 1. Every degree increase reduces hot drink sales by 50 2.Every degree of temperature, creates $50 of hot beverage sales 3. For every dollar of hot beverage sold, temperature increases by .50 4. The correlation coefficient for the temperature -- hot beverage sales relationship is 50
Every degree increase reduces reduces hot drink sales by 50
Conformance quality
Factor X Logistics promises that it's trucks will arrive at customer facilities within no more than 15 minutes before or after the delivery time that its dispatcher has promised. A management team is looking at last month's performance reports in order to determine how often Factor X trucks failed to deliver within this 30 minute window. Which dimension of quality are they concerned with?
Supplier financial problems, major increases in demand and political instability are all 1. Factors that create supply risk 2. Important purchase categories 3. Factors that diminish intellectual property protection 4. Ways to create supply chain resilience
Factors that create supply risk
Supplier financial problems, major increases in demand, and political instability are all 1. Factors that create supply risk 2. Ways to create supply chain resilience 3. Factors that diminish intellectual property protection 4. Important purchase categories
Factors that create supply risk
Jars that have been filled with peanut butter and topped with a lid
Finished goods inventory
Characteristics of adversarial relationships, as opposed to or collaborative relationships and full partnerships, are 1. Long term orientation, sharing risks & rewards 2. Focus on price, self-interest 3. Long term focus, information sharing 4. Interdependence, focus on total cost (rather than just price)
Focus on price, self-interest
Characteristics of adversarial relationships, as opposed to or collaborative relationships and full partnerships, are 1. Long-term orientation, sharing risks & rewards 2. Interdependence, focus on total cost (rather than just price) 3. Focus on price, self-interest 4. Long-term focus, information sharing
Focus on price, self-interest
In a hospital, drawing a blood sample from a patient is a ________ process; whereas analyzing the sample is a ________ process
Front office; back office
Total costs of ownership are usually _______ purchase price 1. Greater than 2. Less than 3. Unrelated to 4. The same as
Greater than
Total costs of ownership are usually _______ purchase price 1. The same as 2. Unrelated to 3. Less than 4. Greater than
Greater than
According to the product-process matrix, __________ is associated with ___________
Greater variety of outputs, lower volume production
One function of distribution centers (DC) is "consolidation." This means that the warehouse/distribution center is used to: 1. Hold inventory to buffer the system from variability in either supply or demand. 2. Group small inbound loads into larger outbound loads. 3. Collect products/packaging materials that are sent back for disassembly, reclamation, or disposal. 4. Hold inventory needed because of seasonal requirements.
Group small inbound loads into larger outbound loads.
SBU (strategic business unit)
Has a set of operational Capabilities
Key customer segment
Has order winners and order qualifiers
Production should be configured differently for different types of products. Generally, simple flows, high levels of automation, and material handling accomplished though robots or conveyors are best for
Higher volume products
Pareto Diagram
Horizontal axis has descriptive categorizes, such as reasons for late package delivery
Histogram
Horizontal axis has numerical data or numerical categories, such as 1-10, 11-20, 21-30...
An activity has an EF day of 7 and a LF day of 10. That means 1. If the activity finishes 3 days late, the completion time of the project will not be affected. 2. If we finish the activity as late as feasible, the project will be done on day 10 3. If we start the activity on day 10, the project will complete 7 days late 4. We can finish the activity up to 10 days late without imperiling the project
If the activity finishes 3 days late, the completion time of the project will not be affected.
value propisition
Implies the competitive priorities that the SBU must focus on
A Company has a large grain elevator in St Louis and a mill in New Orleans. Recently management has decided to change its shipping mode from truck to barge. Its transportation inventory levels will most likley: 1. Not change. 2. Decrease by 2x. 3. Increase. 4. Decrease by half
Increase
If we increase the width of the specification (say from 100 +/- 5 to 100 +/-10) , then process capability ________ 1. stays the same 2. decreases 3. becomes negative 4. increases
Increases
Centurion manufactures 200 different computer storage devices made from approximately 10,000 different parts. Centurion is beginning a program to reduce the number of different parts required to manufacture its products. As part of this program, when designing a new product, designers will be encouraged to use parts that are already being used in Centurion's exising products. This program....
Is a great example of Components Standardization
The element of operation strategy that links together the wants and needs of a key customer segment with the operational capabilities of the SBU
Is referred to as a value proposition
Ford Taurus is a great example of concurrent engineering approach (also known as integrated product/process design). The key take-away from this example is
It is a good idea to get stakeholders such as production workers and insurance companies, involved in new product design.
An employee performs statistical process control on a process she is in charge of. Each day she collects sample data and adds a new point to the chart. For the first time in the months since she has been charting the process, the point she just plotted is below the lower control limit. Which of the following are true? 1. It is time to determine the cause of the point that was just observed 2. The point that was just observed is due simply to random variation 3. It would be better if the point that was just observed were above the Upper Control Limit 4. She must have made a mistake calculating the Lower Control Limit
It is time to determine the cause of the point that was just observed
Karen is in charge of the design and development of new wireless computer storage device. This design process is just beginning and she is calling meeting with representatives from marketing, product engineering, operations management, and procurement in order to seek their input and invite them to participate throughout the process. Based on this we can infer that
Karen plans to utilize concurrent engineering (also known as Integrated Product/Process Design)
The statistic that quantifies the relationship between the distribution of process output and the specifications is the 1. Control Limit 2. Sigma 3. Six Sigma 4. Process Capability Index
Process Capability Index
You operate a food truck selling Mexican-style food. Pick all of the dependent demand items from the list (you can pick more than one) 1. Taco 2. Burrito 3. Lettuce 4. Tortillas
Lettuce, Tortillas
MAPE
Like MAD but each period's error is expressed as % of actual sales. Good for "apple vs oranges" comparisons
Characteristics of full partnerships, as opposed to adversarial or arm's length relationships, are 1. Long term orientation, sharing risks & rewards 2. Focus on price, self-interest 3. Short term focus, hoarding information 4. Total independence, short term relationships
Long term orientation, sharing risks & rewards
A Value propositions that indicated the customer needs and want will be satisfied
Low Cost, timeliness, great quality, flexibility, sustainability
Utilizing vendor managed inventory giving end users purchasing credit cards reduces transaction costs by making it unnecessary for supply management personnel to get involved in inventorying and re-ordering items to be purchased. This is a good strategy when the value of the items to the firm is _____ and the supply risk is ________ 1. Low, Low 2. High, High 3. Low, High 4. High Low
Low, low
Which of the following is most likely to indicate a problem with the forecast? 1 Tracking signal 2. Seasonal Index 3. MFE 4. MAD
MAD
Lubricants that are needed to keep the roasting and jar filling equipment running smoothly
MRO inventory
Niel's Wheels creates expensive, high performance bicycle wheels. Based on a forecast of customer demand, Niel's manufactures various sizes and types of wheels in it's Portland factory. Customers order wheels through local and national bike retailers. Orders are filled from finished good inventory at these locations. This is an example of
MTS
An immunization clinic can serve 20 patients per hour under IDEAL conditions. However, due to no-shows, variations in process times and other real-world problems, the highest output we can actually expect is 16 per hour.
Maximum (or design) capacity is 20
When making a cause and effect diagram, put the ______ on the extreme right and the ______ on the branches 1. Problem, major causes 2. Root cause, symptoms 3. Problem, frequency 4. Process, defects
Problem, Major Causes
When making a cause and effect diagram, put the ______ on the extreme right and the ______ on the branches. 1. Problem, major causes 2. Root cause, symptoms 3. Problem, frequency 4. Process, defects
Problem, Major Causes
Company X can deliver computer printers with a wide variety of capabilities to its commercial customers by configuring them from various combinations of ready-made modules. The technique that is most closely linked to this capability is
Modular design
Which of the following best describes assemble to order production?
Modules and/or individual parts are produced and inventoried prior to receiving a customer order, but the final product is not created until after the customer order
Which of the following statements about modular design is accurate?
Modules may be combined in a number of ways to make a variety of end product configurations
A furniture plant has, up to now, made four models of desk in high volumes for commercial customers. Recently, top management has determined that there is a market for making specialty desks that are either one of a kind or sold in very small quantities. Management has leased a facility across the street for this new lower volume, higher cost product line. Management will implement a new process structure. The new facility is likely to employ
More of job shop process structure, less of a repetitive process
At a ski resort, demand for lift served mountain biking day passes has increased by 500 passes every summer for the past 10 years. However, demand for Nordic ski passes has stayed about the same (at 1500 per year) over the same 10 years. 1. Mountain bike passes display a trend. Nordic passes display a horizontal, stable pattern 2. Mountain bike passes display a horizontal, stable pattern . Nordic passes display a a trend 3. Mountain bike passes display seasonality . Nordic passes display a trend 4. Mountain bike passes display seasonality . Nordic passes display a horizontal, stable pattern
Mountain bike passes display a trend. Nordic passes display a horizontal, stable pattern
According to the lean paradigm higher execution and lower inventory are 1. mutually reinforcing 2. mutually exclusive 3. incompatible goals 4. common in services but rare in manufacturing
Mutually reinforcing
When buyer and seller need to discuss and resolve multiple aspects of the contract (e.g. price, technical specifications, deliver, service after the sale, delivery frequency), _______ is more effective than ________ 1. Negotiation, competitive bidding 2. Reverse Auctions, competitive bidding 3. Spend analysis, competitive bidding 4. Competitive bidding, supplier partnerships
Negotiation, competitive bidding
Qualitative sales forecasts are _______. A downside of using them is ________ 1.Non-mathematical; The possibility of having one person's opinion dominate the forecast 2. Good for predicting technological changes and scientific advances; Large number of calculations required 4. Computer intensive; Hard to obtain a consensus among experts 5. Opinion-based; Intensive in their use of historical sales data
Non-mathematical; The possibility of having one person's opinion dominate the forecast
You use a continuous review system to manage inventory of 16 ounce aluminum cans. The re-order point is 1,000. Today's inventory level is 1,200. What should you do 1. Nothing 2. Place an order for more cans with your supplier 3. Increase safety stock 4. Decrease buffer stock
Nothing
For items with high value to the organization but low supply risk a good strategy is 1. Obtain quantity discounts by consolidating purchases with a few suppliers 2. Obtain price discounts by having more competition in the supply base 3. Increase consistency of input materials that are purchased 4. Focus on availability of supply
Obtain quantity discounts by consolidating purchases with a few suppliers
When making a cause and effect diagram, put the ______ on the extreme right and the ______ on the branches 1. Problem, frequency 2. Process, defects 3. Problem, major causes 4. Root cause, symptoms
Problem, major causes
Kiesha is determining which car to buy. She is doing research on fuel usage (miles per gallon) of different models of cars because fuel economy is super important to her. Based on this, we can infer that
Order winners for Kiesha probably include cost, sustainabilty or both
Fewer governmental barriers to trade
Over recent years, Supply Chain Management has become a dominant business perspective in part because of
Advances in Technology
Over recent years, supply chain management has become a dominant business perspective in part because
_____ and _____ both provide a series of steps to be used in problem solving
PDCA and DMAIC
"80% of the problems come from 20% of the causes." This assumption underlies 1. Histograms 2. Pareto analysis 3. Cause and effect diagrams 4. Scatter diagrams
Pareto Analysis
"80% of the problems come from 20% of the causes." This assumption underlies 1. Pareto analysis 2. Histograms 3. Cause and effect diagrams 4. Scatter diagrams
Pareto Analysis
SI
Period actual demand/average period demand
Beringa Inc. is a whitewater oufitter that runs trips on several rivers in Alaska. The company has decided to increase the training received by new employees who are involved in customer reservations in order to reduce the number incorrectly booked trips (wrong dates, failure to note customers' dietary restrictions, etc). The expense of this training is an example of which of the following costs of quality?
Prevention costs
Compared to other operations, all of the following make projects unique EXCEPT 1. Projects use resources (machines, people, etc.) that must be scheduled effectively 2. Every project is unique 3. Projects often "borrow" employees from other functional groups, such as finance and operations 4. Projects are not ongoing. They have planned beginnings and ends
Projects use resources (machines, people, etc.) that must be scheduled effectively
Lean is a ___ system 1. Pull 2. Push 3. Preventive 4. Closed
Pull
Supply management can foster organizational environmental sustainability by 1. Utilizing online reverse auctions 2. Purchasing products with eco-labels, such as EPEAT 3. Conducting make vs. buy analysis 4. Ensuring the timely availability of resources
Purchasing products with eco-labels, such as EPEAT
Supply management can foster organizational environmental sustainability by 1. Purchasing products with eco-labels, such as EPEAT 2. Ensuring the timely availability of resources 3. Conducting make vs. buy analysis 4. Utilizing online reverse auctions
Purchasing products with eco-labels, such as EPEAT
An employee is dedicated full time to a special project for the next six months. She has moved her office to another floor to be with the other members of the team, all of whom are from different departments. They all will report to the same project manager for the life of the project. Based on this it's safest to conclude that there is a _________ structure in place. 1. Matrix 2. Cross-cultural 3. Pure project (automomous) 4. Functional
Pure project (automomous)
In QRZ Company's aggregate plan, planned production and planned inventory both fluctuate from period to period. We can conclude that.... 1. QRZ is using a hybrid approach 2. QRZ is not using an assemble to order approach, instead of a make to stock approach 3. QRZ made a mistake when constructing its aggregate plan
QRZ is using hybrid approach
It normally takes between 3 and 4 minutes for our call center to answer a customer's inquiry (very few calls take less than 3 minutes or greater than 4 minutes to answer). However, over the past days the typical range has expanded to 1 to 5 minutes. Assuming we are doing SPC on the process, which type of chart would reveal this process change. 1. X BAR 2. P 3. R 4. C
R
It normally takes between 3 and 4 minutes for our call center to answer a customer's inquiry (very few calls take less than 3 minutes or greater than 4 minutes to answer). However, over the past days the typical range has expanded to 1 to 5 minutes. Assuming we are doing SPC on the process, which type of chart would reveal this process change. 1. R 2.P 3. X BAR 4. C
R
Jars and lids that have arrived from a supplier
Raw Materials and Components Inventory
If we _________, problems will become apparent and then we will be forced to solve them 1. Reduce Inventory 2. Increase buffers 3. Add extra quoted lead time 4. Increase set-up times
Reduce inventory
By focusing on_______ , we can produce small batches economically 1. Reducing set-up times 2. Increasing the need for changeovers 3. Supplier partnerships 4. Computerizing customer information
Reducing set-up times
ISO9000
Requires companies to develop and document their quality system
Cutting _______ reduces the uncertainty period, which reduces __________ 1. Resupply lead times, the amount of safety stock needed 2. Standard deviation of demand, the amount of safety stock needed 3. Buffer inventory, need for cycle stock 4. The square root of the safety stock quantity, inventory carrying cost
Resupply lead times, the amount of safety stock needed
A company is changing its logistics network design for spare parts. They are reducing their spare parts DC's from 12 to 1. Demand for spare parts is very difficult to predict because breakdowns are hard to predict. However, demand can be more accurately forecast for one centralized DC than for many DC's scattered throughout the country. Management has mandated that customer service levels (orders filled with 2 days) must not decline, even though the number of DC's is decreasing. We can safely predict that this decision will result in ________ and ________. 1. Better service to customers and less transportation cost 2. Confusion for customers or for the company 3. Savings on inventory carrying cost but higher transportation cost 4. Increased cost to customers and higher transportation cost
Savings on inventory carrying cost but higher transportation cost
A retailer is stocking up on eggs and colored dyes in anticipation of strong demand during the annual Easter holiday
Seasonal Stock
At your restaurant, average demand is 120 dinners per night. However, know that demand is highest on Fridays and Saturdays because your restaurant is popular with the date night / party crowds. On the other days of the week, demand is lower than average. This pattern is predictable--ocurring week after week, year after year. This is a good example of 1. Stable pattern 2. Trend 3. Error / random effect 4. Seasonality
Seasonality
You own a food truck that is popular with the downtown lunch crowd, average demand is 200 customers per day. However, know that demand is highest (well above average) on Wednesdays and Thursdays, average on Mondays, Tuesdays and Fridays and below average on Saturdays and Sundays. This pattern is predictable--ocurring week after week, year after year. This is a good example of 1. Seasonality 2. Stable pattern 3.Trend 4. Error / random effect
Seasonality
All of the following are 5s activities, except 1. Serve 2. Sort 3. Straighten 4. Scrub
Serve
Mama bear is laying down in a series of beds and classifying each one as "too hard", "too soft" or "Just right". Therefore we know: 1. She will be asleep soon 2. She is creating variables data 3. She is creating attribute data 4. She is a special cause
She is creating attribute data
Mama bear is laying down on a series of beds and classifying each one as "too hard," "too soft" or "just right." Therefore we know: 1. She is creating variables data 2. She is creating attributes data 3. She will be asleep soon 4. She is a special cause
She is creating attributes data
A researcher has just caught 100 snails in a trap. She is classifying each one as healthy or diseased and recording her results. 1. She is recording variables data 2. She is recording a new hit song 3. She is recording attributes data 4.She is recording continuous data
She is recording attributes data
A researcher has just caught 100 cutthroat trout in a trap. She is measuring the length of each trout (in millimeters) and recording her results. 1. She is recording attributes data 2. She is recording variables data 3. She is recording continuous data 4. She is recording a new hit song
She is recording variable data
At an outdoor store, demand for shotguns has stayed about the same (at 200 per year) over the the past decade. However, demand for fly rods has increased steadily by 25 per year every year over the same time period. Shotguns display seasonality. Fly rods display a trend 1. Shotguns display seasonality . Fly rods display a horizontal, stable pattern 2. Shotguns display a horizontal, stable pattern . Fly rods display a trend 3. Shotguns display a trend. Fly rods display a horizontal, stable pattern 5. Shotguns display seasonality. Fly rods display a trend
Shotguns display a horizontal, stable pattern . Fly rods display a a trend
When a company implements lean, batch sizes usually become____ 1. Larger 2. Smaller 3. Skewed 4. Random
Smaller
Cp is the ratio of the ________ to the _________ 1. Specification width, process variation 2. Process variation, process standard deviation 3. Random variation, non-random variation 4. Upper specification limit, lower specification limit
Specification width, process variation
Cp is the ratio of the ________ to the _________ 1. Upper specification limit, lower specification limit 2. Process variation, process standard deviation 3.Random variation, non-random variation 4.Specification width, process variation
Specification width, process variation
A buyer places an order for an extra truckload of supply because she hears a credible rumor that the supplier is going to increase prices 3% next month
Speculative Stock
_________ reduce the need for performing incoming inspections on materials on materials received from suppliers. 1. Supplier certifications 2. Weighted point models 3. Online reverse auctions 4. Spend analyses
Supplier certifications
_________ reduce the need for performing incoming inspections on materials on materials received from suppliers. 1. Supplier certifications 2. Weighted point models 3. Spend analyses 4. Online reverse auctions
Supplier certifications
_________ reduce the need for performing incoming inspections on materials on materials received from suppliers. 1. Supplier certifications 2.Weighted point models 3. Online reverse auctions 4. Spend analyses
Supplier certifications
_________ are a tool to manage ongoing supplier relationships 1. Spend analyses 2. Weighted point models 3. Supplier scorecards 4. Online reverse auctions
Supplier scorecards
__________ influence quality by selecting the right suppliers and managing interactions with suppliers
Supply Managers
___________ influence quality by selecting the right suppliers and managing interactions with suppliers
Supply Managers
Franklin Company claims that its processes result in fewer greenhouse gases than those of its primary competitors. This suggests that Xanadu has a focus on:
Sustainability
After constructing and analyzing a process control chart, There is still variation from point to point, with the points scattered at random between the control limits. We can conclude that 1. The chart is displaying the natural variation that is a part of every process 2. Someone should intervene now to find and fix the causes of variation 3. The process is not capable of meeting specifications 4. Operator error is the most likely cause for the variation
The chart is displaying the natural variation that is a part of every process
Stakeholders
The demand of __________ often differ from the demands of customers and suppliers
In the vending machine at the Micron Business and Economics Building, inventory turnover for Jalepeno Crispy Cheeto's is 52. This means that if the person who manages that machine stopped placing replenishment orders.. 1. The machine would be empty in roughly one week 2. The machine would run out in 52 days 3. Many professors would be 52 pounds lighter at the end of the year 4. The sum of carrying costs and order costs would exceed 52
The machine would be empty in roughly one week
Operations Management
The management of processes used to design, supply, produce, and deliver valuable goods and services to customers
In any project, the critical path is 1. The one who's task times sum up to the greatest amount of time 2. The one with the greatest number of tasks 3. The one with the most slack 4. The one with the greatest number of shared activities (activites that are common to multiple paths)
The one who's task times sum up to the greatest amount of time
The value that compares process variation to specifications is 1.The sample range 2.The process capability index 3.The process standard deviation 4.The sample size
The process capability index
A key aspect of "fit" in an operations strategy is alignment between ___________
The value proposition and the order winners desired by key customers
Consider the following two statements "We provide same day emergency loans at low cost to low income clients" "We provide private one on one private banking services to high wealth individuals who understand the value of premium service"
These are examples of value propositions. It looks like cost is an order winner for the customer segment in the first statement
Historically, Acme Co's customer service response time (the time from when customers report a problem until that problem is solved) has been 8 days on average--give or take 1 day. Over the past few months, there have been quite a few reports of response times over 9 days and under 7 days. If Acme were using statistical process control to monitor response time... 1. This change in response time could only be detected using an R Chart 2. This change could not be detected 3. This change could only be detected using a p chart 4. This change in response time could only be detected using an X Bar chart
This change in response time could only be detected using an R Chart
According to the introduction of your text, logistics is strategic because it affects performance in (Pick ALL that apply) 1. Timeliness 2. Cost 3. Sustainability 4. Flexibility
Timeliness Cost Sustainability Flexibility
Which of the following is most consistent with a process-oriented focus
To get good products, create good processes
Quality Function Deployment
Translates the voice of the customer in to technical process requirements
Logistics professionals need to understand the greenhouse gas (GHG) emissions of freight modes because _________ is the business activity that produces the most GHG. The modal differences are large--for example air produces ______ GHG per ton of freight than long haul trucks. 1. Transportation, 10x more 2. Warehousing, 7x more 3. Manufacturing, 10x more 4. Transportation, 2x less
Transportation, 10x more
As the ______ increases , the need for __________ increases 1. Uncertainty about demand, safety stock 2. Quantity demanded during lead time, safety stock 3. Number of order intervals, seasonal stock 4. Product cost, seasonal stock
Uncertainty about demand, safety stock
he interval of time during which we are vulnerable to a stock out is 1. Uncertainty period 2. Buffer Period 3. Speculative interval 4. Economic Order Interval (EOI)
Uncertainty period
For items with low supply risk and low importance, a good strategy is 1. Utilize e-commerce to increase purchasing process efficiency 2. Build collaborative partnerships with one or a few suppliers 3. Find substitute materials and multiple sources 4. Utilize many suppliers to ensure availability of supply
Utilize e-commerce to increase purchasing process efficiency
For items with low supply risk and low importance, a good strategy is 1. Utilize many suppliers to ensure availability of supply 2. Find substitute materials and multiple sources 3. Build collaborative partnerships with one or a few suppliers 4. Utilize e-commerce to increase purchasing process efficiency
Utilize e-commerce to increase purchasing process efficiency
The ___________ technique gathers data about customer wants, likes, dislikes, etc.
Voice of the Customer
Customers in our target market will choose the Ramen restaurant with the biggest portions, assuming the expected wait time to get a table is less than 15 minutes. These customers will not even consider any restaurant with a a wait time greater than 15 minutes. For these customers
Wait time is an order qualifier
Humans who contract SMOVID generally don't require hospitalization - i.e. the length of stay is 0. More than 50% of people who do require hospitalization are only admitted for 1 day. About 25 percent of admitted patients stay 2 days. 15% stay 3 days and 10% stay longer than 3 days, sometimes up to 10 days. If we create a histogram of length of stay with the values on the horizontal axis ranging from 0 to 10 1.We would see a uniform distribution 2. We see a positive skew (tail extending to the right) 3. We would see a comb distribution 4. We would see a negative skew (tail extending to the left)
We see a positive skew (tail extending to the right)
Very few Americans retire before age 60. Most retire between 60 and 70 with a few retiring after 70. If we create a histogram of retirement age, what would we see?(Assume the values on horizontal axis range from 1 to 80) 1. We would see a comb distribution 2. We would see a uniform distribution 3. We would see a negative skew (tail extending to the left) 4. We see a positive skew (tail extending to the right)
We would see a negative skew (tail extending to the left)
Very few Americans retire before age 60. Most retire between 60 and 70 with a few retiring after 70. If we create a histogram of retirement age, what would we see?(Assume the values on horizontal axis range from 1 to 80) 1. We would see a negative skew (tail extending to the left) 2. We would see a comb distribution 3.We see a positive skew (tail extending to the right) 4. We would see a uniform distribution
We would see a negative skew (tail extending to the left)
Tiny Chef Company manufactures baby food. Recently the company received a contaminated batch of apple puree from a supplier. The lowest cost point in the process to detect and act on this problem is
When the puree is delivered from the supplier
Special matinee pricing and "early bird discounts" are examples of 1. Demand management 2. Capacity based aggregate planning 3. Intermittent operations 4. Big data
demand management
Time series models
discern a historical data pattern and project it into the future. using past demand to predict future demand
Delphi method
forecast developed by asking a panel of experts to individually and repeatedly respond to a series of questions
Causal models
identify a variable that seems to drive demand and then use the value of the variable to make a prediction
Demand Management
influencing either pattern or consistency of demand -Sales/pricing -advertising -contra- seasonal products and services
Sharing demand information with suppliers with practices such as CPFR... 1. can decrease the quality of the make-buy decision 2. is one way to diminish the bullwhip effect 3. will increase supply risk 4. is likely to result in losses of intellectual property
is one way to diminish the bullwhip effect
Sharing demand information with suppliers with practices such as CPFR... 1. is one way to diminish the bullwhip effect 2. will increase supply risk 3. is likely to result in losses of intellectual property 4. 5678 can decrease the quality of the make-buy decision
is one way to diminish the bullwhip effect
cost of inaccurate forecasts when it is too low
lost sales, overused capacity, overworked employees, lower product availability
cost of inaccurate forecasts when it is too high
money is lost in holding inventory that is never sold, lost capacity, lost wages spent paying workers
Which of the following would cause a company to pursue a chase aggregate planning approach I High Recruiting and training costs II High costs of idling and restarting equipment 1. I 2. II 3. Neither I nor II 4. There is no such thing as a chase aggregate planning approach
neither I or II
Product design problems...
often stem from product designers having insufficient interaction with other functions, such as operations and marketing
The SBU with its set of operational capabilities
order winners and order qualifiers that are important to a customer segment
Components of demand
patterns of demand over time
demand forcasting
predicting future customer demand
Employee training is an example of a
prevention cost
Which of the following is an example of demand management? 1. Providing customers with information about expected wait times 2. Using simulation programs to simulate production scenarios 3. Comparing multiple forecast models' performance on historical data 4. Using panels of experts to provide data on projected demand
providing customers with information about expected wait times
Beliefs that help define the Lean philosophy include all of the following except 1. Simplicity 2. Error proofing 3. Push Production 4. Continuous Improvement
push production
A manufacturer of commercial cooking equipment has recently completed a two year initiative that reduced the number of fasteners (nuts, bolts, screws, rivets, etc) used in its products from 150 down to 35. The most likely short term result will be
reductions in inventory management costs
Calculating Ending Inventory
reg production-demand+1st period ending inventory
judgment based forecast
rely on human judgment rather than mathematical/statistical models
Supply management can foster organizational sustainability by 1. Adopting a "don't ask, don't tell" attitude when it comes to suppliers'' business practices 2. Increasing the size of eco-labels on their packages 3. requiring that suppliers have codes of conduct dealing with fair labor practices 4. taking an "arms length" approach when it comes to supplier relationships
requiring that suppliers have codes of conduct dealing with fair labor practices
Supply management can foster organizational sustainability by 1. Adopting a "don't ask, don't tell" attitude when it comes to suppliers'' business practices 2. Increasing the size of eco-labels on their packages 3. requiring that suppliers have codes of conduct dealing with fair labor practices 4. taking an "arms length" approach when it comes to supplier relationships
requiring that suppliers have codes of conduct dealing with fair labor practices