OMIS 320

The following is a term that refers to error- or mistake proofing

Poka-yoke

Which of the following consist of different products that share similar characteristics, components, or manufacturing processes?

Product family

Which of the following is not an assumption of the economic order quantity model

Production and use can occur simultaneously

Which of the following indices provided by the Institute for Supply Management (ISM) is considered the most important by economist because it is a composite of five weighted, seasonally adjusted indices?

Purchasing Mangers Index

According to the text, the ability to satisfy customers expectations can be referred to simply as:

Quality

One common Cause-and-Effect used is:

Regression analysis

According to the textbook, which of the following is considered a reason that ERP implementations fail?

The organization may lack the necessary workforce and expertise to properly implement the system

An RFID reader does not require direct line of sight to read the information stored in an RFID tag

True

As tighter control limits are instituted for the tracking signal, there is a greater probability of finding exceptions that require no action, but it also means catching charges in demand earlier

True

Cause-and-effect Models can have multiple independent variables.

True

Computer and information technologies MRP has evolved to because closed-loop MRP which can now take into account APP, MPS, and CRP

True

Examples of forecasting accuracy measures are Mean Absolute Deviation, Mean Absolute Percentage Error, and Mean Square Error.

True

Lack of communication between the implementing firm and its ERP software provider can become a major hindrance for a successful implementation

True

Lead Capacity Strategy is a proactive approach that adds or subtracts capacity in anticipation of future market conditions and demand

True

Manufacturing cells are often U-shaped to make operator and material movements easier within the cell

True

One of the goals of an effective CRFR system is to minimize the negative impacts of the bullwhip effect on supply chains.

True

Relaxing the instantaneous replenishment assumption of the EOQ model results in the economic manufacturing quantity model

True

Six sigma is a quality improvement concept developed by motorola

True

Some of the leading suppliers of CPFR solutions mentioned in the textbook are JDA software group, i2 Technologies, and Oracle

True

System nervousness is when even small changes to upper-level production plans cause major changes in lower-level production plans

True

The Chase Production Strategy relies on a constant output rate and capacity while varying inventory and backlog levels to handle the fluctuating demand pattern

False

The five S's refer to various safety activities practiced by toyota

False

The four broad categories of inventory are raw materials, work-in-progress, subassemblies, and finished goods

False

The goal of a good forecasting technique is to achieve 98.7% accuracy between the forecast and actual demand.

False

The process of converting a parent item's planned order releases into component gross requirements is referred to as the ERP Implosion

False

The total annual inventory cost is the sum of the annual purchase cost, the annual holding cost, the annual capacity cost, and the annual ordering cost

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 goal of a good forecasting technique is to minimize the deviation between actual demand and the forecast.

True

The optimal order quantity for the quantity discount model may exist at a price breakpoint

True

The periodic inventory review system reviews physical inventory at specific points in time

True

The primary design objective with lean layouts is to reduce wasted movements of workers, customers, and work-in-process

True

The resource and operations planning done by operations managers is intended to balance capacity and output

True

The term lean production essentially refers to the toyota production system in its entirety

True

The terms cycle counting is synonymous with physically counting inventory

True

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

True

Which company probably played the largest role in the development of the Toyota Production System?

Ford

Successful supply chains evolve through stages; the following stage is characterized by an emphasis on cost reduction

Functional integration

Efficient consumer response was initially developed in the 1990s for the following industry

Grocery

Common ERP models

Human Resource Management Customer Relationship Management Supply Chain Management

Lean thinking is the philosophy incorporating tools which seek to optomize

Human resources Assets Productivity

When the demand and lead time are constant, reorder point is the demand during lead time

True

Which of the following are among the most important elements of the lean production philosophy?

Waster reduction and continuous improvement

What inventory factor may be omitted from the basic EOQ derivation because it is a constant

Annual purchase cost of goods

The impact of poor communication and inaccurate forecasts resonates along the supply chain and results in the:

Bullwhip effect

CPRF stands for?

Collaborative planning, forecasting, and replenishment

The goal of resource planning is to minimize the discrepancy between capacity and?

Demand

Service parts sold to the repair shops are examples of dependent demand

False

If a tracking signal is positive, which one of the following is true?

Actual value is higher than forecast

Which of the following is a Long Range Materials Plan

Aggregate Production Plan

Which of the following would most likely be considered a dependent demand item

Bicycle tires used to assemble a bicycle

Which of the following is an engineering document that shows an inclusive listing of all the component parts and assemblies making up the final product?

Bill of Materials

Which of the following basic production strategies used for addressing the aggregate planning problem would work best with make-to-order manufacturing firms?

Chase Production Strategy

Which of the following MRP terms represents the parts demanded by a parent?

Component

Lean production emphasize all of these:

Continuous improvement Reduction of waste Sychronization of material flows

Your company is conducting forecasting that revolves around the current recession and expansion of the US economy. This type of forecasting can be referred to as what component of a time series?

Cycle variations

ERP stands for

Enterprise Resource Planning

A lean system is also known as a push system

False

According to the text, a firm should always run its operations at 100% capacity to ensure changes affecting demand can be met

False

Associative forecasting methods are based on opinions and intuition.

False

Dependent demand must be forecasted based on market conditions

False

Efficient consumer response and Keietsu Relationships are supply chain concepts concerned with speed and flexibility

False

In the economic manufacturing quantity model the annual consumption rate must be higher than the production rate

False

Lean production and six sigma quality are essentially two terms that mean the same thing

False

MRP is the production planning system intended to develop long-range plans concerning product families manufactured by the organization

False

MRP systems are simply a more modern version of the ERP systems of the 1980s

False

One of the primary elements of lean is keiretsu relationships

False

Pareto Analysis is an inventory model used to determine the optimal order size that minimizes total annual inventory costs

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

Which of the following is a disadvantage of excessive inventory?

It hides production and other problems

The following are all common qualitative forecasting models:

Jury of executive opinion Delphi method Sales force composite

According to the textbook, which of the following companies is a leading forecasting software provider?

Just Enough Cloud Software JDA software

The quick response program developed in the 1990s was an offshoot of the following supply chain concept

Just in time

The element of lean involving firms working with buyers and customers with the mutual goal of eliminating waste, improving speed, and improving quality is referred to as:

Lean supply chain relationships

In the bill of materials, items at which level are independent demand items?

Level 0

Which of the following seeks to develop short range plans seeking to effectively and efficiently manage components and or subassemblies over time period of few days to few weeks?

MRP

According to the textbook, which of the following is not a way to closely match supply and demand?

Maintaining a rigid pricing system

_____, such as lubricants for machines, are used in the production process, but do not become parts of the final products

Maintenance, repair, and operating supples

According to the textbook, the top three challenges for CPFR implementation include:

Making organizational and procedural changes Trust between supply chain partners Cost

Which of the following layouts in primarily designed to process parts, components, or jobs requiring the same or similar processing steps, saving duplication of equipment and labor:

Manufacturing cells

To check the feasibility of the master production schedule, one would look to?

Rough-cut capacity plan

Type of qualitative forecasting:

Sales force composite Consumer survey Jury executive opinion

The following time-series approach to forecasting uses historical data to generate a forecast and works well when demand is fairly stable over time:

Simple Moving Average

Inaccurate forecasts can result in negative outcomes like:

Stockouts and poor responsiveness to market dynamics

Which of the following could be considered a master production schedule for a service firm?

The reservation book utilized by a restaurant

Which of the following best describes the five S's

These were originally Japanese words relating to industrial housekeeping

A Master Production Schedule is a medium-range materials plan

True

A Mixed Production Strategy uses a blend of chase and level strategies by striving to maintain a stable core workforce while using other means like temporary workers to manage short-term high demand

True

According to the text, in supply chain, the term learn has begun to replace the term JIT

True

According to the text, resource planning is the process of determining the production capacity required to meet demand

True

According to the text, the goal of resource planning is to minimize the discrepancy between an organization's capacity and demand results

True

According to the text, the ultimate goal of any forecasting endeavor is to have an accurate and unbiased forecast.

True

if an item is ordered at its economic order quantity, the annual carrying cost should be

equal to the annual ordering cost

The EOQ model with quantity discounts attempts to determine

how many units should be ordered

The primary purpose of the basic economic order quantity model is

to minimize the sum of setup cost and holding cost