sc final
backorder
A ______ is a customer order that a company accepts in one period but promises to deliver at a later point in time.
Capacity utilization is 60%, and capacity efficiency is 90%.
A bakery normally can make 100 loaves of bread per day even though it has the capacity to make 150 loaves of bread a day. The actual number made is 90 loaves per day. Which of the following can be concluded?
buyback
A bookstore enters into a contract with a book publisher that allows the bookstore to return unsold books to the publisher. This is an example of a ______ contract between the buyer and supplier.
5
A company's annual cost of goods sold is $200,000. Its beginning and ending inventories are 60,000 and 20,000, respectively. What is its inventory turnover?
chase strategy
A demand matching strategy in which production is geared toward producing whatever amount of goods are needed to meet demand is a _____
the firm is converting its inventory to profits faster
A high inventory turnover ratio indicates that ____
reduces investment in inventory and reduces space requirements
A just in time strategy ______
64
A local store expects to sell 200 pairs of designer shoes a year. The purchase price of each pair of shoes is $100. The annual holding costs for the shoes are 10% of the unit purchase price. The ordering cost is $40 per order. What is the time between orders (in days) if the store opens 320 days a year?
40
A local store expects to sell 200 pairs of specialty shoes a year. The annual holding costs for the shoes are $10 per pair, per year. The ordering cost is $40 per order. What is the economic order quantity?
stable; fixed-order
For products that have a ______ demand, the ______ lot-sizing techniques of are appropriate.
supply; demand
The sales and operations planning process attempts to match the company's ______ to ______.
master scheduling, material requirements planning, capacity requirements planning, detailed scheduling
The sequence of operational planning and control tasks that follow sales and operations planning is ______.
disaggregate products to end items *
To facilitate production, it is necessary to ______.
tracking
UPS uses a coding scheme known as MaxiCode 2-D in its package labels for ______.
50
Weekly demand for a company's filtered water is 50 bottles. The cost of ordering the water is $10 per order, and holding costs are $0.8 per bottle, per year. The company operates 50 weeks in a year. Lead time is 6 weeks. If demand and lead time are assumed to be constant, what is the reorder point?
to minimize the gap between the capacity available in the system and the capacity that is required to meet de mand
What is the goal of strategic capacity planning?
bottleneck
When workflow of an operation is limited, partially completed units will accumulate at the ______.
bill of materials
Which file contains data about materials, components, parts, and the assembling sequence of an end item?
trucks
Which mode of transportation provides great reach and flexibility?
Level strategy generates high costs of hiring, training, and laying off employees
Which of the following about level strategy is NOT true?
shortages are allowed
Which of the following is not an assumption of the EOQ model?
to increase shortages artificially
Which of the following is NOT a reason why companies hold inventory?
supplier human resource management
Which of the following is NOT a task in the supplier management process?
wormhole
Which of the following is NOT one of the basic modes of transportation?
higher costs of hiring, training, and laying off employees
Which of the following is a disadvantage of the chase strategy of sales and operations planning?
higher costs of hiring, training, and laying off employees
Which of the following is a disadvantage of the chase strategy of sales and operations planning?
back orders
Which of the following is an option to influence demand?
planned order releases
Which of the following is an output of MRP?
muri — waste and decreased productivity resulting from poor system design
Which of the following types of waste is correctly matched with it s description
muri—waste and decreased productivity resulting from poor system design
Which of the following types of waste is correctly matched with its description?
materials requirements planning *
Which system calculates materials, subassemblies, an d components required for end item production?
materials requirements planning *
Which system calculates materials, subassemblies, and components required for end item production?
1200 boxes
restaurant uses 300 boxes of napkins each month. They purchase napkins at a price of $10 per box and the cost to order napkins is $200 per order. The annual carrying cost for one box of napkins is 10% of its price. Assuming 12 months per year. The economic order quantity for napkins i s
holding; ordering
The optimal order quantity for companies should achieve a balance between ______ and ______ costs.
it must increase its safety stock by approximately 210 units.
A product's usage is normally distributed with a weekly average demand of 2,000 units and a weekly standard deviation of 125. The p roduct's lead time is 4 weeks. Currently, the reorder point for this product is 8,200. If the company would like to have a service level of 95% for this product then (the corresponding Z value is 1.64 for 95% service level)
that does not add value to the product or service
According to lean philosophy, we should eliminate any activity or process ____
balancing workload
An example of a short-term capacity planning decision is ______.
customer orders
An input to the master schedule is the ______.
level
An oil refinery with limited process flexibility but high steady output volume should choose a ______ strategy for sales and operations planning.
level; constant; inventories
By using a ______ production strategy, companies maintain ______ production and workforce levels, and they use ______ to bridge the gap between demand and supply.
maximum; output
Capacity is the ______ amount of ______ an operation is capable of producing in a given time period.
senior executive *
Changes to the master schedule during the frozen time fence may be requested only by the _____
senior executive
Changes to the master schedule during the frozen time fence may be requested only by the ______.
level
Companies that continuously produce the same quantity of goods every period, calculated based on the total demand for these goods, are best suited to a ______ strategy to create sales and operations planning plans.
he maximum rate of output achieved by an operation, a process, or a manufacturing or service facility that is producing under ideal conditions
Design capacity is ______.
the capacity that can be achieved given the actual changes in product mix, machines and equipment that require periodic maintenance, scheduling changes, and workers wh o take time off for lunch, absences, and other needs
Effective capacity is _____
higher; efficient
In general, the ______ a firm's inventory turnover ratio, the more ______ the firm's use of inventory.
making small fixes in a steady stream of improvements
In lean philosophy, the incrementalism refers to ______.
improvement may not come from any one big fix, but from a steady stream of small adjustments
In lean system, increamentalism holds that ______ .
Category A
In the ABC classification, continuous inventory review system is usually best suited for the products in
mixed time fence
In the time fencing approach, the master schedule time horizon is divided into three portions which include all the following EXCEPT for ______ .
holding costs
Insurance to protect inventory is a type of ______.
the practices used to ensure a continuous and uninterrupted flow of materials and products from suppliers to manufacturers to the final consumers
Integrated logistics management (ILM) refers to ______.
movement; materials and products
Integrated logistics management refers to the practices used to control the ______ of products (and the associated costs) so that there is a continuous and uninterrupted flow of ______ from suppliers to manufacturers to the final consumers.
holding
Interest costs on the money invested in the inventory is considered a ______ cost.
lower; chase; level
Inventory levels are ______ when using a ______ strategy as opposed to a ______ strategy to create a sales and operations planning plan.
the ratio of (Annual Cost of Goods Sold) to (Annual Average Inventory Investment)
Inventory turnover measured annually is ______
truck
The mode that represents the highest percentage of U.S. transportation cost in recent years is _____
in-house
Most small companies handle the order fulfillment process ______.
nonvalue adding activities
Muda means waste from ______.
aggregate planning
Sales and operations planning is also known as ______.
reorder point
The ______ is the amount to which the inventory of an item should fall before the firm places a new order to replenish it.
master; end products
The ______ schedule specifies what and how many ______ are to be produced and when.
available-to-promise
The availability of ______ inventory will enable the company's marketing function to generate new customer orders and commit to realistic delivery dates.
changes in consumer demand are magnified as one moves upstream in the supply chain
The bullwhip effect suggests that ______
vendor-managed inventory; lean logistics
The fact that Procter & Gamble manages inventory of the items it supplies to Walmart in all of its retail locations is known as using a ______ as an approach to ______.
just-in-time inventory system
The fact that the warehouses of Sony's suppliers are located in close proximity to its factories is an example of having a supplier management program for Sony to operate its ______.
customer satisfaction
The factors that affect service capacity include all of the following except ______.
balancing efficiency
The goals of supplier management include the following except ______.
pull
The lean philosophy is characterized by ______.
Cross docking warehouses
_____ are storage facilities where incoming shipments from various suppliers are sorted and batched and then delivered to buyers and spend little or no time in storage
Work-in-process
_____ inventory includes materials or semifinished goods that have had some work done on them but are not completed.
Cross-docking warehouses
______ are storage facilities where incoming shipments from various suppliers are sorted and batched and then delivered to buyers and spend little or no time in storage.
Design; ideal
______ capacity is the maximum rate of output achieved by an operation under ______ conditions.
Reverse logistics
______ is a warehouse function that deals with product returns and disposing or recycling of packaging materials.
Safety stock
______ is held to respond to the uncertainties in demand and supply levels.
