S&OP Exam 2 Chapters 6-10

T/F A primary advantage for motor carriers is the weather.

False

T/F A weakness of lean systems is that none of its practices are related to the environment or sustainability.

False

T/F Air Carriers compete most favorably when the distance is long and the shipments are heavy or bulky

False

T/F Lead Capacity Strategy is a reactive approach that adjusts its capacity in response to demand

False

T/F Pareto Analysis means that 20 percent of the items get about 80 percent of the safety stock.

False

T/F Sales force automation products manage a sales person's accounts, business opportunities, and communications.

False

T/F Segmenting customers on the basis of things like products purchased, sales history, demographic information, and desired product features can dilute the results of a CRM program.

False

T/F The EOQ equation is derived by setting the annual purchase cost equal to the annual holding cost.

False

T/F The best-of-breed solution picks all the desired applications from a single vendor for the ERP system.

False

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

False

T/F The objectives of any CRM initiative should be focused on what the company can reasonably achieve.

False

T/F The optimal order quantity for the quantity discount model is always at one of the price breakpoints.

False

T/F When web sites suggest other items for purchase based on already purchased items, this is an example of Clickstream Selling.

False

___________________ are for-profit organizations that contract out or lease a wide range of light manufacturing, warehousing, and distribution services to other companies.

Public Warehouses

Which of the following legislative acts is NOT in support of transportation deregulation?

Staggers Rail Act

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

The same information to be stored in multiple locations

T/F Small data is the data that was around before big data.

True

______________ creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized.

Logistics

Which tool is useful for presenting data in an organized fashion, indicating process problems from most to least severe:

Pareto Charts

Your company allows customers to "opt-out" of receiving email advertisements. This is referred to as:

Permission marketing

The element of a CRM program involved with the use of data-mining software and customer behavior analytics is:

Predicting customer behaviors

What MRP term represents a committed order awaiting delivery for a specific period?

Scheduled receipt

Which person was a key figure in developing the Toyota Production System and also developed the concept of poka-yoke?

Shingo

The ___________ solution picks all the desired applications from a single vendor for the ERP system.

Single integrator

Which of the following is TRUE regarding the EOQ figure below: - Where G & C intercept - K is in diagonal line - J is in a J curve - L is in an L curve

The EOQ is at lot size G, and curve K is the annual holding cost curve.

T/F Two reasons ERP implementations have been known to fail include: lack of top management commitment and lack of communication between the firm and its ERP software provider.

True

T/F MRO supplies are a type of indirect costs.

True

T/F Safeguarding customer information is a legal and ethical responsibility for any company collecting, processing, and transmitting sensitive customer data.

True

T/F When lean firms share their best practices with supply chain members, this is referred to as yokoten.

True

T/F When mistakes occur in deliveries along the supply chain, more safety stocks must be held, adversely impacting both customer service levels and costs.

True

T/F The Malcolm Baldrige National Quality Award recognizes firms for their quality achievements but is only given to U.S. firms.

True

T/F The mixed strategy uses overtime and subcontracting to cope with the high demand periods.

True

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

True

T/F The term "lean production" essentially refers to the Toyota Production System in its entirety.

True

T/F Today, successful CRM applications will be measured by the personal value created for the users.

True

T/F Toyota initially designed their JIT program on Ford's manufacturing system.

True

Calculate the final discrete available-to-promise quantity for Week 1 using the following table. - MPS (BI=30) Week 1; 10 - Committed Customer Orders; 20

ATP1 = 10

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

Annual purchase cost of goods

Which of the following is considered an advantage/benefit of utilizing an ERP system? A. Fairly inexpensive to purchase and implement. B. Enables the company to utilize a single centralized database system, thus eliminating duplicate data entries. C. Flexible enough that it allows different companies with different business models to mold the new ERP system to fit the company's business model. D. All of the above

B. Enables the company to utilize a single centralized database system, thus eliminating duplicate data entries.

For integrated supply chains, logistics is considered:

Critically Important

Your top sales executive leaves your company to work for a competitor. Fortunately, all of her notes regarding prior dealings with customers have been captured in a:

Knowledge management system

T/F An ERP system is generally a multi-module application software for managing an enterprise's internal functional activities, as well as its suppliers and customers.

True

T/F Con-way Multimodal and BNSF Logistics are both considered third-party logistics providers

True

T/F Deming, Crosby, and Juran are all prominent quality professionals whose ideas were vital to the development of Six Sigma.

True

T/F In Europe, rail transportation tends to be much more prevalent and reliable than rail transportation in the U.S., because European track, facilities, and equipment are newer and better maintained.

True

If your company had an annual purchase cost of items equal to $2,000,000, an annual holding cost of $150,000 and an annual ordering cost of $50,000 this scenario would reveal that:

Your order lot size was higher than the EOQ

The EOQ model with quantity discounts attempts to determine:

how many units should be ordered.

The College Bookstore sells a unique calculator to college students. The demand for this calculator is constant at 20 units per day. The lead time for this calculator is variable at an average of 9 days with a standard deviation of 2 days. Compute the statistical reorder point that results in a 95 percent in-stock probability.

246 units

Complete the following MRP record and provide the planned order releases for Week 1. Lead time is 2 weeks. Safety stock is 3. Use LFL lot sizes. - Gross Requirements; Week 1 = 32, Week 2 = 16, Week 3 = 34, Week 4 = 4- - Scheduled Receipts; Week 2 = 10 Projected On-Hand Inventory = 46

29

Use the information below to calculate the number of orders per year when using the EOQ: - Annual demand for an item is 43,000 units - The cost to place an order is $200 - The per unit cost of the item is $50.00 -The annual holding rate is 35%

49

Calculate the inventory container size required given the following: Demand rate = 10 parts per hour, Safety stock required = 16% Number of containers = 14, Time to cycle through entire system = 6 hours

5 parts

All of the following are recommended for designing and implementing a successful CRM program EXCEPT: A. Support from the firm's top executives B. Expect employees to 'learn on the job' and adapt their way of working C. Knowledge of the tools available to aid in CRM D. Continuous awareness of customers' changing requirements

B. Expect employees to 'learn on the job' and adapt their way of working

Which of the following is true under the Periodic Review System? A. a lower level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, compared to the EOQ system B. a higher level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, compared to the EOQ system C. the only uncertainty is the magnitude of demand during the delivery lead time

B. a higher level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, compared to the EOQ system

Which of the following is a direct benefit from the adoption of NAFTA? A. A reduction in illegal immigrants crossing the border from Mexico B. An increase in manufacturing job opportunities in the U.S. C. An increase in trade between U.S., Canada, and Mexico D. An increase in trade between U.S. and China

C. An increase in trade between U.S., Canada, and Mexico

An advantage/benefit of utilizing an ERP system includes which of the following? A. ERP systems are designed to take advantage of Internet technology B. ERP systems enable the firm to automate some of the steps of a manufacturing process C. Both A & B D. None of the above

C. Both A & B

Firms can safeguard customer information by doing which of the following? A. Allow customers to opt-in and out of mailing lists B. Allow customers to access their accounts online to view information collected about themselves C. Both A & B D. None of these

C. Both A & B

Which of the following results from using the chase production strategy? A. The workforce fluctuates in response to the demand pattern B. Finished goods inventories remain constant C. Both A & B D. None of these

C. Both A & B

Which of the following is NOT consistent with the lean philosophy? A. Cross-training employees to increase processing flexibility. B. Developing a culture of continuous improvement within the organization. C. Increasing batch sizes to take advantage of economies of scale. D. Positioning WIP inventories near each processing center.

C. Increasing batch sizes to take advantage of economies of scale.

Which of the following is NOT one of the three basic methods used to calculate the available-to-promise quantities? A. Discrete available-to-promise B. Cumulative available-to-promise without looking ahead C. Indiscrete available-to-promise D. Cumulative available-to-promise with looking ahead

C. Indiscrete available-to-promise

A firm offers group discount for orders exceeding 15. Two firms are taking advantage of this offer. Sales to Company A averages $15, 000 of annual sales, has a 22% profit margin and an expected lifetime of 8 years. Company B averages $11, 000 of annual sales, has a 25% profit margin and an expected lifetime of 9 years. Which is the more important customer based on the higher expected lifetime value? Assume a 7% discount rate.

Company A because its' NPV = $19705

The online retailer Ecatalog.com has decided to send consumers of the new John Grisham book an e-mail with suggestions for books with similar themes and has also offered them a 20% discount if those suggested books were purchased. This type of marketing/promotion is an example of:

Cross-Selling

The acts of receiving shipments, breaking down shipments, repackaging shipments, and distributing components to a manufacturing location or finished products to customers by a distribution center is referred to as:

Crossdocking

Which of the following are intermodal transportation alternatives? A. Truck trailer-on-flatcar B. Roll-on-roll-off C. Piggyback service D. All of the above

D. All of the above

Independent demand is the:

Demand for a firm's end products.

The primary purpose of the basic economic order quantity (EOQ) model is to: A. Calculate the reorder point, so that replenishments take place at the proper time. B. Minimize the sum of purchase cost and holding cost. C. Maximize the customer service level. D. Calculate the optimum safety stock level. E. None of the above

E. None of the above

The acronym ERP is short for:

Enterprise Resource Planning

T/F A cause-and-effect diagram is a useful tool for presenting data in an organized fashion, indicating process problems from most to least severe.

False

T/F A private carrier is subject to economic regulation and typically transports goods for the company owning the carrier.

False

T/F A small LTL shipment that originates on a truck in San Francisco and is moved from San Francisco to Las Vegas where it is unloaded and put onto another truck for final shipment to Phoenix would be considered an intermodal shipment since it utilizes more than one vehicle during shipment.

False

Why do so many CRM programs fail?

Firms concentrate more on the CRM software instead of taking care of customers

The first major transportation regulation in the U.S. was:

Granger Laws

Efficient Consumer Response was initially developed in the 1990's for the following industry:

Grocery

The Quick Response program, developed in the 1980's, was an offshoot of the following supply chain concept:

Just-in-Time