ISQS 3344-Test #2
If an online retail store has cost of goods sold equal to $2 million, has 200 operating days in a year, and has a total average on-hand inventory of $500,000, the cost of goods sold per day is ________.
$10,000
ProShopper, a sportswear store, held an average sportswear inventory of $10 million last year and reported an inventory turnover of 5 times per year. What was its cost of goods sold?
$50 million
An assignment problem with four jobs to be performed and four employees to do these jobs will have how many constraints?
8
At Blyrie Apparels, the apparel stocks in the firm's outlets are changed every week. This is based on the changing fashion preferences of its customers. Its managers also coordinate in real-time among its other stores and satisfy its customers' requirements. In this case, Blyrie Apparels most likely uses _________.
A responsive supply chain
Which of the following is a way to manage capacity by shifting and stimulating demand?
Adding peripheral goods and/or services
In the linear programming formulation of a transportation network, ________.
All of the above are correct.
The optimal solution for a linear programming problem will always occur ________.
At an extreme point
In the Theory of Constraints, a ________ is one that effectively limits the capacity of the entire process.
Bottleneck work activity
There are three components to any software application. Which resides completely in the application server?
Business logic management
A ________ is a strategy for expanding capacity that waits until demand has increased to a point where additional capacity is necessary.
Capacity lag strategy
Blyrie Inc., a sports goods manufacturing company, follows a policy that involves manufacturing only when the demand exceeds the amount of goods already manufactured. Given this information, Blyrie Inc. most likely uses a ________ to expand its capacity.
Capacity lag strategy
________ represent a restriction on decision variable values for a linear programming problem.
Constraints
Managing orders, transportation, and distribution to provide goods and services is part of the ________ function of the Supply Chain Operations Reference (SCOR) model.
Deliver
Unlike a focused factory, an unfocused factory is characterized by ________.
Dissimilar product lines
In the context of technology in value chains, customer relationship management (CRM) ________.
Exploits the vast amount of data that can be collected from consumers
__________is vertical expansion of job duties to give the worker more responsibility.
Job Enrichment
The objective of assembly-line balancing is to _______________.
Minimize the imbalance among workstations while trying to achieve a desired output rate.
The typical layout of facilities in a legal office would be an example of a ________ layout.
Process
Greyon Suits, a company that specializes in making hand-made suits, moved its sourcing and operations from Lumeria back to its home country. This led to easier management and decreased carbon footprint. In this case, Greyon Suits is involved in ________.
Reshoring
________ specialize in handling all aspects of customers giving back a manufactured good or delivered service and requesting their money back, repairing the manufactured good and giving it to the customer, and/or invoking the service guarantee.
Return facilitators
________ refers to managing the flow of finished goods, materials, or components that may be unusable or discarded through the supply chain from customers toward either suppliers, distributors, or manufacturers for the purpose of reuse, resale, or disposal.
Reverse logistics
_____ is an additional amount of inventory that is kept over and above the average amount required to meet demand.
Safety stock inventory
In location decision process, community location decision involves ________.
Selecting a specific city in which to locate.
In the context of the metrics used to identify improvements to the operation of supply chains, financial measures ________.
Show how supply chain performance affects the bottom line
Stable demand is usually called__________.
Static demand
The demand for bread in Ahoma City ranges from 100 to 120 tons per day, every day of the year. The demand is easily satisfied on a daily basis. This demand for bread can be categorized as _____.
Static demand
In the context of inventory management, a(n) _____ is a single item or asset stored at a particular location.
Stock-keeping unit
The traditional operations management definition of throughput is ________.
The average number of goods or services completed per time period by a process
Harlose Suits owns more equipment than required for manufacturing goods during periods of regular demand in order to tackle sudden demand surges. It also has a certain reserve of produced goods to tackle material shortages. In this case, the reserve of equipment and produced goods are examples of ________.
The capacity cushion
__________applies to inventory situations in which one order is placed for a good in anticipation of a future selling season where demand is uncertain.
The deliver-lag inventory model
Which of the following is true of radio-frequency identification (RFID) tags?
They can bring visibility and enhanced security to the handling and transportation of products.
In service industries, capacity is often viewed as the ________.
Units of resource availability
Rues and West Inc. is an automobile manufacturing firm. It produces and assembles all the parts of automobiles in its factory and, later, ships the finished products to its storehouses. The managers at the storehouses distribute the goods to wholesalers. Customers then buy the products from the wholesalers. In this scenario, the push-pull boundary for Rues and West Inc. is at the ________.
Wholesalers
An assignment model ________.
Will have decision variables being binary
Compared to product layouts, process layouts:
require a lower investment in equipment.
A company produces product A and product B. Each product must go through two processes. Each A produced requires five hours in process 1 and two hours in process 2. Each B produced requires three hours in process 1 and six hours in process 2. There are 160 hours of capacity available each week in each process. Each A produced generates $9.00 in profit for the company. Each B produced generates $6.00 in profit for the company. If the company produces 10 units of A and 12 units of B the value of the objective function is equal to ________.
$162
Greyon Spinning Mills Inc. owns 600 spinning machines. Out of these, only 500 are used in a given year. Given this information, the utilization of spinning machines at Greyon Spinning Mills Inc. is ________.
0.83
Identify the most suitable layout for a facility that handles a wide variety of customized orders.
A process layout
Which of the following is true of customer relationship management (CRM)?
A typical CRM system includes market segmentation and analysis.
Using the following information about material volume shipped from a factory to four retail outlets, find the best location for the factory using the center-of-gravity method. RETAIL OUTLET LOCATION COORDINATES X, Y MATERIAL MOVEMENT 1 18, 6 1,500 2 12, 15 2,100 3 7, 10 1,900 4 7, 20 1,200 Which one of the following statements is TRUE for this set of center-of-gravity data?
Cx is more than 10.00 and Cy is more than 10.00.
Which of the following is a difference between firms that have high scalability and firms that have low scalability?
Firms with high scalability serve additional customers at extremely low incremental costs, whereas firms with low scalability serve additional customers at high incremental variable costs.
A(n) ________ is any entity—real or virtual—that coordinates and shares information between buyers and sellers.
Intermediary
Which of the following statements is true of a fixed-period system (FPS)?
It orders sufficient stock at the time of review to bring the inventory position up to the replenishment level (M).
________ occurs whenever one stage completes work and no units from the previous stage are awaiting processing.
Lack-of-work delay
In a revenue management system, forecasting, allocation, overbooking, and pricing must work in unison if the objective is to ________.
Maximize the revenue generated by a perishable asset
________ machine tools enable the machinist's skills to be duplicated by a programmable device that controls the movements of a tool used to make complex shapes.
Numerical control (NC)
In the general linear programming model of the assignment problem, ________.
One agent is assigned to one and only one task
Which of the following is considered economic factors in location decisions?
Operating costs
Which of the following is true of order amplification?
Order amplification in the supply chain leads to the bullwhip effect.
A _____ is an arrangement of physical facilities based on the sequence of operations that is performed during the manufacturing of a good or delivery of a service.
Product layout
________ is a measure of the contribution margin required to deliver a good or service as the business grows and volumes increase.
Scalability
A firm must make a choice between a manual and a semi-automatic production process for a new product line. The following are the costs for each process: Alternative Fixed Cost Variable Cost Manual $100,000 $75.00 Semi-Automatic $200,000 $50.00 If the forecast annual production volume is 5,000 units, which technology alternative should the firm choose?
Semi-Automatic
In location decision process, which of the following factors are considered in local site location decision?
Sustainability issues
Which of the following is not true regarding the linear programming formulation of a transportation problem?
The number of constraints is (number of origins) x (number of destinations).
In the linear programming formulation of the transportation problem, the cost of transporting one unit of the material from a supply point to a demand point appears in ________.
The objective function only
Fourlotts Corp. provide integrated services that include storing manufactured goods, packaging, and delivering it to the dealers or customers. Given this information, Fourlotts Corp. is most likely a ________.
Third-party logistics provider
CraftWare Inc., a furniture manufacturer, uses ABC analysis to define its inventory value. The inventory contains wood, cast iron, adhesive, and carbon fiber. If wood accounts for 50 percent of the items and 5 percent of the total dollar value; carbon fiber accounts for 10 percent of the items and 60 percent of the total dollar value; cast iron accounts for 25 percent of the items and 18 percent of the total dollar value; and adhesive accounts for 15 percent of the items and 17 percent of the total dollar value, _____ can be classified as a class C item.
Wood
Speedex, an automobile company, has an annual sales volume of $3 million, cost of goods sold equal to $2 million, total average on-hand inventory of $600,000, and 150 operating days in a year. What is the daily revenue earned by the company?
$20,000
Josh Smith, the materials manager at a retail store, has determined that a particular product experienced 5 turns last year, with an annual sales volume of $15 million. What was the average inventory value for this product last year?
$3 million
A company produces product A and product B. Each product must go through two processes. Each A produced requires five hours in process 1 and two hours in process 2. Each B produced requires three hours in process 1 and six hours in process 2. There are 160 hours of capacity available each week in each process. Each A produced generates $9.00 in profit for the company. Each B produced generates $6.00 in profit for the company. To maximize profit, the company's objective function is ________.
$9.00A + $6.00B
A transportation problem with four factories and four warehouses will have how many decision variables?
16
A company produces product A and product B. Each product must go through two processes. Each A produced requires five hours in process 1 and two hours in process 2. Each B produced requires three hours in process 1 and six hours in process 2. There are 160 hours of capacity available each week in each process. Each A produced generates $9.00 in profit for the company. Each B produced generates $6.00 in profit for the company. The capacity constraint for Process 2 is represented by ________.
2A + 6B <= 160
An assembly line with 30 activities is to be balanced. The total amount of time required for all 30 activities is 45 minutes. The line will operate for 480 minutes per day. Which of the following must be the cycle time to achieve an output rate of 160 units/day?
3.0 minutes
Scorla Corp. is an apparel manufacturing factory. Its average resource utilization per year is calculated as 70%. The average safety capacity of Scorla Corp. is ________.
30%
A firm must make a choice between a manual and a semi-automatic production process for a new product line. The following are the costs for each process: Alternative Fixed Cost Variable Cost Manual $100,000 $75.00 Semi-Automatic $200,000 $50.00 The breakeven volume is ________.
4000 units
Avexim Pharmaceutical Laboratories is an international group of companies that manufactures an antiepileptic prescription drug in huge volumes. The setup time for manufacturing the drug is 75 minutes, the processing time is 8 minutes, and the order size is 700 units. In this case, which of the following is the total time required to meet the given production volume?
5675 minutes
A company produces product A and product B. Each product must go through two processes. Each A produced requires five hours in process 1 and two hours in process 2. Each B produced requires three hours in process 1 and six hours in process 2. There are 160 hours of capacity available each week in each process. Each A produced generates $9.00 in profit for the company. Each B produced generates $6.00 in profit for the company. The capacity constraint for process 1 is represented by ________.
5A + 3B <= 160
TekSupply Inc., an automobile parts supplier, held an average automobile parts inventory of $4 million last year. Its cost of goods sold was $25 million. Therefore, the automobile parts experienced an inventory turnover of ________ turns last year.
6.25
A company produces product A and product B. Each product must go through two processes. Each A produced requires five hours in process 1 and two hours in process 2. Each B produced requires three hours in process 1 and six hours in process 2. There are 160 hours of capacity available each week in each process. Each A produced generates $9.00 in profit for the company. Each B produced generates $6.00 in profit for the company. If the company produces 10 units of A and 12 units of B the amount of slack (in hours) for process 1 is ________.
74 hours
ValueTrends Inc., a backpack manufacturing company, assembles backpacks in an assembly line using 15 workstations. The target output for an 8 hour workday is 100 bags. The sum of the task times is 1 hour/bag. The cycle time is 5 minutes/bag. The assembly-line efficiency is ________.
80%
Becky plans the facility layout of her new shop that would sell a variety of healthcare industry machines. She arranges the machines in a way that the machines are grouped according to their functions. Which of the following types of facility layouts has Becky used in her shop?
A process layout
A doctor's office charges no-show patients $30 if they do not cancel their appointment 24 hours prior to the appointment. In this scenario, which of the following can be used by the doctor's office to handle the risk of idle service capacity?
A revenue management system
Which of the following statements is true about enterprise resource planning (ERP) systems?
All of these alternatives are true about enterprise resource planning (ERP) systems.
Magnira Hotels is a leading chain of hotels. Its managers reserve 30% of the rooms available only to the members of its club. They also provide the rooms at subsidized prices to these members. In this scenario, which of the following components of revenue management system is most likely used by Magnira Hotels?
Allocation
In the context of strategies for expanding capacity, which of the following statements is true of one large capacity increase?
An advantage of using this strategy is that the fixed costs of construction and operating system setup need to be incurred only once.
A(n) ________ is an example of soft technology.
Artificial intelligence program
__________is a technique to group tasks among workstations so that each workstation has—in the ideal case—the same amount of work.
Assembly-line balancing
The Pharmaceutical Manufacturers Association defines a ________ as one that, after extensive investigation, is found to provide material of such quality that routine testing on each lot received is unnecessary.
Certified supplier
Valuetronics, an electronics company, is currently in the preproduction stage of launching one of its new stereo systems. In order to analyze the feasibility of the product, Valuetronics adopts an integrated system that allows it to manufacture the product before it physically exists, that is, the system allows Valuetronics to finalize the design of the stereo, analyze it, and do a test-run. In this context, Valuetronics is using a(n) ________.
Computer-aided engineering (CAE) System
A firm that specializes in certain types of goods-producing activities, such as customized design, manufacturing, assembly, and packaging, and works for end users is called a ________.
Contract manufacturer
Customer relationship management systems change the focus from managing products to managing ________.
Customers
__________is the interval between successive outputs coming off the assembly line.
Cycle Time
________ occur when the average unit cost of a good or service begins to increase as the capacity and/or volume of throughput increases.
Diseconomies of scale
________ refers to using the Internet and technology to provide facilities that create and deliver time, place, information, entertainment, and exchange value to customers and support the sale of goods.
E-service
The difference between the transportation and assignment problems is that ________.
Each supply and demand value is 1 in the assignment problem
________ integrate all aspects of a business into a unified information system.
Enterprise resource planning (ERP) systems
__________is concerned with improving productivity and safety by designing workplaces, equipment, instruments, computers, workstations, and so on that take into account the physical capabilities of people.
Ergonomics
The area that contains the values that satisfies all the constraints in a linear programming problem is known as the ________ space.
Feasible solution
The production of large goods such as ships is best accomplished using a _____.
Fixed-position layout
________ usually require a high level of planning and control compared with other types of
Fixed-position layouts
We Create Inc. is an electronics company. It designs, produces, and assembles desktop gadgets. The entire process is controlled by programmable robots, which are in turn linked to computers. These computers direct the robots to the appropriate task. In this context, We Create Inc. uses a(n) ________ to produce its goods.
Flexible manufacturing system
________ refers to acquiring capabilities toward distribution, or even customers.
Forward integration
In a cellular layout, the procedure of classifying parts with similar processing requirements into families is called _____.
Group technology
Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is:
Half of the order quantity.
In the context of measuring supply chain performance, the goal of sustainability measures is to ________.
Have a carbon-neutral supply chain
In the context of assembly-line balancing, _____ is the difference between total time available and the sum of the actual times for productive tasks.
Idle time
Network models like the transportation and transshipment problems are known to have ________.
Integer solutions
At Rues and West Bros., a spare parts manufacturing company, the most important competitive priority is quality. Only a few key spare parts are produced using similar process designs. In this scenario, Rues and West Bros. ________.
Is a focused factory
Which of the following statements is true of Inditex's supply chain?
It can deliver most goods in 24 hours in Europe and the United States.
Which of the following is true of purchasing?
It can have a significant impact on total supply chain costs.
In the context of supply chain design trade-offs, which of the following is true of a push system?
It has an advantage of immediate availability of goods to consumers.
Which of the following is a limitation of a process layout?
It has higher worker skill requirements.
Which of the following statements is true of a work order?
It includes processing requirements for a type of work.
Which of the following best defines inventory turnover?
It is a measure of how quickly goods are moving through the supply chain.
Which of the following statements is true of setup time?
It is independent of order size for manufacturing work orders.
Which of the following is true of a cellular layout?
It is not designed according to the functional characteristics of equipment.
Which of the following is a disadvantage of vendor-managed inventory (VMI)?
It often results in higher customer inventories than necessary.
Which of the following statements is true of a responsive supply chain?
It works best when product life cycles are short and change often because of innovation.
Which of the following statements is true of the transportation problem?
Its objective is to satisfy all destination demands with a minimum transportation cost.
The ________ function of a supply chain is responsible for selecting transportation carriers and managing company-owned fleets of vehicles.
Logistics
________ is the discipline of managing the flow of materials and transportation activities to ensure adequate customer service at reasonable cost.
Logistics
Unlike firms that outsource, firms engaged in offshoring ________.
Maintain ownership of the facility in another country.
A firm must make a choice between a manual and a semi-automatic production process for a new product line. The following are the costs for each process: Alternative Fixed Cost Variable Cost Manual $100,000 $75.00 Semi-Automatic $200,000 $50.00 If the forecast annual production volume is 2,500 units, which technology alternative should the firm choose?
Manual
A single-period inventory problem can be solved using a technique called:
Marginal economic analysis.
There are three components to any software application. Which of the following is not one of the three?
Module management
ision Toys uses a fixed-quantity system to manage its inventories. The inventory includes plastic and LED bulbs. It was observed that the company often faces stockout of plastic. The average weekly demand for plastic is 100 pounds, and historical data show that the standard deviation of weekly demand is about 7. The lead time from the plastic supplier is 2 weeks. If the company's acceptable service level is 95 percent and the number of standard deviations necessary to achieve the acceptable service level is 1.645, the reorder point for plastic with safety stock is:
More than 175 pounds but less than or equal to 225 pounds.
In an assignment problem, ________.
None of the alternatives is correct.
________ is the process of having suppliers provide goods and services that were previously provided internally.
Outsourcing
A buyer for a department store orders sweaters about 6 months before the winter season. The store plans to hold a March clearance sale to sell any surplus goods by February 29. Each piece costs $100 per pair and sells for $120 per pair. At the sale price of $60 per pair, it is expected that any remaining stock can be sold during the March sale. Assume that a uniform probability distribution ranging from 250 to 450 items describes the demand. The expected demand is 300. In the context of the single period inventory system, the optimal order size Qmust satisfy the condition _____.
P(demand ≤ Q*) = 1/3
________ is inventory that has been ordered but is in transit.
Pipeline inventory
________ is the supply chain function responsible for acquiring raw materials, component parts, tools, services, and other items required from external suppliers.
Procurement
A ________ produces only what is needed at upstream stages in the supply chain in response to customer demand signals from downstream stages.
Pull system
The center-of-gravity method is often used to locate ________.
Service Facilites
Which of the following is a way to manage capacity by adjusting short-term capacity levels?
Shifting work to slack periods
In the context of inventory costs, _____ can reflect backorders or service interruptions for external customers.
Stockout costs
Identify a benefit of adopting technology.
Technology helps restructure old and less productive industries.
Which of the following is a challenge of adopting technology?
Technology leads to job shift and displacement.
Which of the following is true of fixed-position layouts?
The automation potential is moderate.
__________applies to inventory situations in which one order is placed for a good in anticipation of a future selling season where demand is uncertain.
The single-period inventory model
In the context of ABC inventory analysis, which of the following statements is true of class C items?
They can be managed using automated computer systems.
Which of the following is an advantage of pull systems?
They minimize inventory and production costs.
In the context of ABC inventory analysis, which of the following statements is true of class A items?
They require close control by operations managers.
Which of the following is a disadvantage of push systems?
They result in higher costs when forecasting sales is difficult.
The assignment problem is a special case of the ________.
Transportation problem
The problem which deals with the distribution of goods from several sources to several destinations is the ________.
Transportation problem