SCM FINAL EXAM

Match the steps in the PDCA process with the descriptions: 1)Plan: 2)Do: 3)Check: 4)Act: Choices: a) Implementation of the plan b) compare implementation results against the plan c) analyze situation, make schedule, assign responsibility d) close gaps between "plan" and "do" + standardize and repeat continuous improvement cycle

1) A 2) C 3) D 4) B

Please match the following team types and objectives: a) customer relationship b)product development c) supplier development d) inventory control 1)Paul recently was assigned to a new team that is dealing with a key account for his company. They are in charge of reacting to any request of this account in less than 6 hours. 2)Paul's new team recently embarked on a trip to Myanmar in order to help a new supplier with their quality control process. 3)Paul's last team assignment was charged with reworking the ordering schedules in an effort to accommodate the new lean goals of operations management. 4)Paul just received an invitation to join a team that is charged with evaluating the viability of Graphene for their new water filtration solution.

1) a 2) c 3) d 4) b

Match the symbols from the following equation with the correct descriptions. a) as soon as inventory drops below this level, a new order is placed b) the expected total demand time between when an order is placed with the supplier and and the time the order from the supplier c) the chosen number of standard deviations away from the expected lead time demand d) the standard deviation of the lead time demand R = L T D + z ⋅ s L T D R LTD z s_LTD

1)a 2)b 3)c 4)d

The formula for calculating the EOQ is: EOQ= sqrt [(2*D*K) / (H)] Match the symbols in the equation with the correct descriptions a) the optimal quantity to order each time an order is placed b) annual (or monthly or daily) demand c) the fixed cost associated with placing an order d) annual (or monthly or daily) holding cost for a single unit in inventory 1) EOQ 2) K 3) D 4) H

1)a 2)c 3)b 4)d

Please match the following service descriptions to the services they describe. a) repair or refurbish b) free trade zone DC c) breakbulk d) returns processing 1)Unload large shipments and breakdown the contents to go into smaller shipments. Taking a full truckload of laundry detergents and shipping out pallets full of detergent. 2)Place to store imported goods so you don't have to pay customs/duties until they are removed from the DC. If re-exported, you can avoid duties altogether. 3)Accepting, processing, and sorting customer returns via ecommerce so the customer does not need to visit a store 4)Doing basic repairs on returned items or trade-ins, like cellphones, and creating refurbished units for resale or warranty replacement

1)c 2)b 3)d 4)a

The formula for calculating the EOQ is: EOQ= sqrt{(2*D*K)/(H)} Krispy Dunkin Kreamy Donuts sells 500 donuts/day. It costs them $10 to place an order of donuts. Inventory holding costs are $0.07/donut/week. What is the Economic Order Quantity? 100 donuts 707 donuts 378 donuts 1000 donuts

1000 donuts

What percentage of potential consumers for American companies live outside of the U.S.? 65% 75% 85% 95%

95%

The formula for calculating the EOQ is: EOQ= sqrt{(2*D*K)/(H)} Match the symbols in the equation with the correct descriptions EOQ= D= K= H=

EOQ= the optimal quantity to order each time and order is placed D=Annual (or monthly or daily) demand K= the fixed cost associated with placing an order H=annual (or monthly or daily) holding cost for a single unit in inventory

Match the symbols from the following equation with the correct descriptions. R = L T D + z ⋅ s L T D R LTD z s_LTD

R= as soon as inventory drops below this level, a new order is placed LTD= the expected total demand between the time an order is placed with the supplier and the time from the order from the supplier z= the chosen number of standard deviations away from the expected lead time s_LTD= the standard deviation of the lead time demand

Desi DeSimone, previous CEO of 3M said, "The most interesting _______ are the ones that people need but can't articulate that they _______." a. Products, need b. Ideas, want c. Companies, need d. Advertisements, feel e. Products, want

a

Imagine you want to start up a company to manufacture and sell sporty polarized sunglasses designed in university colors and featuring university logos. You've done your homework and estimate the variable costs (including trademark privileges) will be $87 a pair and the fixed costs to be $278,000. If you sell the sunglasses for $99 a pair and forecast annual sales to be 20,000 pairs, how much money will you make? a. -38,000 b. -28,000 c. 0 d. 38,000 e. My calculator says TILT every time I put in the numbers...

a

One of the scary things about implement lean is: a. It requires management to give up some control b. It is really hard to implement for services c. It is usually more harmful for the environment d. All of the above are true e. Only a and b are true

a

The "flow the process" step of lean production includes: a. Moving to a continuous flow production line b. Using more automated equipment c. Reducing the batch size of each lot as it moves between work stations d. Getting rid of automated production systems e. All of the above f. Only b. and c.

a

Upon arriving at work, Tony discovers that the previous day's production yielded an abnormally low number of defects. Determined to uncover the cause of the outstanding results, Tony explores what was different the previous day. Which one of the following seems the most likely cause of the lower defects? Natasha, the tool and die contractor, explained that she switched to a new supplier of reamers for the mill. Stan, a senior union worker, experienced a "funny feeling" in his knee. He usually uses this to predict severe weather; but since there were no thunderstorms yesterday, Stan is convinced his knee caused the low number of defects. Peter (from the Quality Control department) explains that the workers from his department followed the standard operating procedures for analyzing the products for defects.

a

Which of the following are critical processes for implementing lean techniques? a. Eliminate process waste b. Lower your costs c. Elminated waste tiem and space d. All of the above e. Only a. and c. f. Only a. and b.

a

Which of the following should most likely be considered the most impactful (as in largest component) cost in the total cost of quality equation? a. Prevention costs b. Appraisal costs c. External failure costs d. Internal failure costs e. Training costs f. Verification costs

a

According to Michael Porter, which of the following are order qualifiers rather than order winners? (check all that apply) Cost Quality Delivery Agility Innovation

a,b

What is a (are) potential down side(s) of allowing workers to have pet projects? (check all that apply) Some workers may take their pet projects outside and spin off their own company. Some pet projects fail. Other workers may have allergies to certain pets. Giving workers a little freedom over their activities decreases morale.

a,b

Which of the following are assumptions that are made in the EOQ model? (select all that apply) Demand is constant Complete orders are delivered when expected Relevant costs are known Price does not vary with the quantity ordered

a,b,c,d

Which of the following are possible contributors to the fixed cost of placing an order? (select all that apply) The value of the time it takes to switch from one task to another The opportunity cost of the time it takes a worker to place an order The compensation of a worker for the time he/she spends placing an order Any fee required for the supplier to process the order

a,b,c,d

Identify all product-process types from the following list (check all that apply): a)Hand crafted b)Assembly line c)Efficient systems d)Fixed location e)Lean manufacturing

a,b,d

Please identify all of the following statements that are correct regarding the cross-trained employee. (check all that apply) Reducing the number of job descriptions can alleviate issues with the monotony of narrowly focused tasks.. Giving employees the power to initiate a "Jidoka" event to tackle quality concerns. Sending new managers into training rotations in different assembly lines so they become experts in every single task on the line. Investing in cross-experienced managers can be challenging for firms if they have trouble retaining the employee upon completion of the training. Personal networks are not particularly helpful when managers aim to get to the C-Suite of a company.

a,b,d

What is/are the underlying pricinple(s) of the theory of constraints? (check all that apply) A. The goal of business is to make money B. All constraints must be eliminated. C. Increasing operating expenses does not lead to more throughput unless constraints are addressed. D. We need to increase spending on operations to improve output. E. We need to find all bottlenecks and increase their capacity.

a,c

Which of the following are characteristics of the approach Japanese firms employed as opposed to American companies in the 1980s (check all that apply)? a)Japanese firms worked closely with suppliers to co-create value b)They pitted suppliers against each other to lower purchasing costs c)They build a cohesive and competitive team of suppliers d)They cultivated arms-length relationships with suppliers

a,c

Identify all of the following value dimensions that are common among most scorecards. (check all that apply) Innovation Operating Systems Delivery Competitive Advantage Agility Compliance

a,c,e

Which of the following are possible contributors to the fixed cost of placing an order? (select all that apply) -The value of the time it takes to switch from one task to another -The opportunity cost of the time it takes a worker to place an order -The compensation of a worker for the time he/she spends placing an order -Any fee required for the supplier to process the order

all

Connecticut Consulting Company (CCC) helps diagnose and solve quality production problems. Their most recent client has several out-of-control samples; but CCC recommended against costly root cause analysis since the process was still producing parts well within specification limits. Did CCC make a sound recommendation based on current quality control best practices? a. Yes b. No

b

The concept of lean six sigma: a. Describes a six step process for implementing lean b. Joins lean practices and quality practices c. Has replaced the TPS d. Was used by Cleveland clinic e. None of the above

b

Which of the following are not competitive advantages of lean operations? a. Staying up-to-date with customer's changing taste and demands b. Constantly staying up to date on the latest manufacturing equipment and robotics c. Creating a positive work environment d. Efficient use of resources e. All of the above are competitive advantages of lean f. Only a and b are not competitive advantages of lean

b

Which of the following statements are true about the bullwhip effect? (check all that apply) a)Bullwhip-related costs are typically as high as 12-25% BETWEEN all members of the supply chain b)The bullwhip effect can be reduced by sharing point-of-sale information effectively up the chain c)Small changes in retail-level demand get magnified as they ripple through the chain d)The bullwhip effect is a major source of competetive advantage

b,c

Please identify all of the following skills a successful supply chain manager needs. (check all that apply) Deep functional skills in supply chain management only. Cross-functional capabilities to be able to work with different units of the business The ability to see the big picture and understand how individual pieces fit into the pattern. The ability to coach and inspire both individual excellence and team cohesion. The right attitude to rather correct more than pat others on the back once in a while. Being a catalyst to brute force change through the organization.

b,c,d

Please select what is true about services from the following statements (check all that apply) a)Services can't be "held in your hand" and are therefore tangible b)Services must be consumed where they are produced unless they can be digitized c)Services are easily inventoried d)Generally, services are easier standardized than products e)Service providers are often challenged with controling for "defective" experiences with their services f)The quality of services may not be controled

b,e

A large real estate developer has a history of paying bills to contractors very late, often more than 120 days after work is delivered. They are also notorios for renegotiating prices after services and products have been delivered, strongarming their suppliers to lower prices. What are the possible implications for the supply chain? a. None, things are great. b. The real estate developer is brilliantly using their market power to lower costs for everyone. c. Suppliers' liquidity can suffer, driving up their costs and possibly increasing costs for the whole supply chain. d. Suppliers should show their respect by accepting the conditions. They are lucky to be working with such a fantastic company anyway.

c

According to a recent report, how many jobs are there expected to be in logistics in the U.S.? a. 1.5 Million b. 1.6 Billion c. 1.2 Million d. We can't be sure but we estimate the number to be huge.

c

Imagine you want to start up a company to manufacture and sell Wildcat sunglasses. You've done your homework and estimate design and launch costs to be $120,000. You expect to sell 500 pairs in the first year, 2,000 pairs in second year, and 5,000 pairs in the following three years. The sales price will be $99 and each pair will cost $75 to produce and market. If your required return is 12%, what is your NPV? (Round your answer to the nearest cent) a. -$20,856,17 b. $158,755,19 c. $158,746.61 d. $191,017.10 e. Numbers? Pah! My company will be great!

c

In order to adapt the TPS to other cultures, the eight waste of ________ was added. a. Waiting b. Defects c. Not utilizing people's talent d. Wasting resources e. Inventory

c

Lean was started as: a. An offshoot of the quality movement after WWII that was big in the 1950s b. To increase the competitiveness of China in the 1980s when it was perceived as low quality c. Ford Motor Company turned to mass production in the 1950s d. As Toyota wanted to emulate Ford's efficiencies without huge inventory build-up it saw at Ford. e. Both a. and d. f. Only a., c. and d.

c

PNON Inc. is a retailer for well-selling management novels such as "Great Deals, Now!" or "Build it and they won't come". They have annual COGS of $100,000 and average inventory $40,000. Currently, there are 1,200 copies of their bestseller: "Rigged! Story of my Life" sitting on the shelves, they sell 200 copies a day on average. Calculate inventory turnover and days of supply. a. Inventory Turnover: 2.5; Days of Supply: 7 a. Inventory Turnover: 3.5; Days of Supply: 6 c. Inventory Turnover: 2.5; Days of Supply: 6 d. Inventory Turnover: 2.5; Days of Supply: 8

c

What is the standard deviation in lead time demand if the lead time is 4 weeks, and weekly demand is normally distributed with a mean of 5 and a standard deviation of 1? 1 1.41 2 2.24

c

Which of the following approaches makes the most sense as a target for reducing the order size so an organization can become more lean? Reduce demand Increase the holding cost Reduce the fixed cost of placing an order Implement a company-wide policy that no burgers can be cooked with ground beef that is less than 98% lean. If such ground beef cannot be found, ground turkey or veggie burgers must be used. Violators will be prosecuted and punished to the fullest extent of the law.

c

Which of the following is not a "right" of purchasing? a. obtaining the right material b. in the right quantity c. in the right mood d. from the right supplier e. at the right total cost

c

_____________ is an attempt to analyze comments (or other content) found on dedicated websites to identify important product trends or customer pain points that might lead to new product ideas. a. Customer profiling b. Crowdsourcing c. Social network analysis d. Simulation e. All of the above f. None of the above

c

According to the text, what was the reason Clark-Cutler-McDermott Co. declared bankruptcy? a. GM did not give them enough business b. Because GM gave them too much business c. Because GM did not pay their bills d. Because the amount of business they received from GM forced them to operate above capacity e. Only a. and c. f. Only b. and d.

d

Imagine you want to start up a company to manufacture and sell sporty polarized sunglasses designed in university colors and featuring university logos. You've done your homework and estimate the variable costs (including trademark privileges) will be $87 a pair and the fixed costs to be $278,000. If you sell the sunglasses for $99 a pair, how many pairs do you need to sell to break even? a. 2,808 b. 3,195 c. 8,091 d. 23,167 e. Who knows...or cares...

d

The formula for calculating the EOQ is: EOQ= sqrt [(2*D*K) / (H)] Krispy Dunkin Kreamy Donuts sells 500 donuts/day. It costs them $10 to place an order of donuts. Inventory holding costs are $0.07/donut/week. What is the Economic Order Quantity? 100 donuts 707 donuts 378 donuts 1000 donuts

d

The net present value is the current value of all _______ _______ (current and future) related to the product. a. Product lifecycle b. Inventory flows c. Forecast records d. Cash flows e. None of the above f. None of the above

d

Which of the following is NOT a focussing step in the Theory of Constraints? A. Identify B. Exploit C. Subordinate D. Prioritize E. Elevate D. Repeat

d

Which of the following is a common advantage of sales and operations planning? a. During product management review, companies can ensure that ensure a healthy innovation pipeline so that they have the right mix of products to meet customer needs profitably. b. During demand review, the firm can clarify assumptions, risks, and opportunities. c. During supply review, the firm has a chance to forecast future demand using statistical models. d. Only a. and b. e. Only b. and c. f. All of the above

d

Which part of the total logistics cost decreases steadily with the number of warehouses increasing (until a certain saturation point)? Transportation Costs Inventory Carrying Cost Warehousing Costs Costs of Poor Service Order Processing Costs

d

Why is it so important to make problems in processes visible? A. Because problems will occur. B. Because problems will lead to inefficiencies and thus harm performance. C. Because you can only manage what you can measure and identify. D. All of the above.

d

Identify which of the following is/are not true regarding agility. (check all that apply) Agility is the ability to adapt to new, different, or changing requirements. Investments in information systems can enable enhanced agility. An agile organization operates with shorter lead times, is responsive to customer requests, and can adjust rapidly to unexpected events. The responsibility to enhance agility is only with the supply chain department. Cross-training can impede agility as employees are locked into one department only.

d,e

Which of the following was (were) NOT a pillar (pillars) on the path to worker empowerment at Newmont Gold? (check all that apply) Leadership Communication / Teamwork Goal Setting Vision Ambition

d,e

A process to make strike-anywhere matches produces matches satisfying length specifications. The matches must be shorter than 2.5" to fit in the match box, and the matches must be longer than 2.0" so that the customers don't scrape their hands while lighting the matches and so they don't burn their fingers while trying to use the lit matches to light campfires. The average length of matches produced is the same as the target length of matches and is equal to 2.25". The standard deviation for the matches produced is 1/18". What is the Process Capability Ratio? a. 10 b. 15 c. 20 d. 1 e. 1.5 f. 2

e

Additive manufacturing . . . a. is making it possible to create designs or stuctures that weren'e feasible using traditional manufacturing processes. b. enables the creation of materials with multiple moving parts and components without assembly. c. affects everyone who works with manufacturers and participates in the creative process design. d. only a and b e. both a, b, and c.

e

How is GE using additive manufacturing? a. They are creating engine parts that weigh less, cost less and employ more intricate designs. b. They are making fuel nozzles as a single part instead of assembled in 18 pieces. c. They are testing procedures out on many different part of the next generation 777 engine. d. only b and c e. both a, b, and c.

e

If the population production mean is exactly at the target production level and the Process Capability Ratio is 1, how far from the mean is the upper specification limit? a. 0.5 σ b. σ c. 1.5 σ d. 2 σ e. 3 σ

e

What caused Suntech's demise? a. Take-or-Pay contracts with suppliers with prices that were too low. b. The short-term nature of the contracts Suntech had signed. c. The surge in the price of polysilicon d. Only b. and c. f. All of the above g. None of the above

e

What did the new owners of Hostess change to modernize their logistics? a. The switched from using their own delivery to a new distribution system. b. They hired specially trained drivers to do their deliveries and stock shelves. c. They changed the formula for their product to improve shelf life to 65 days. d. Their new logistics solution allowed them to use channels such as convenience and dollar stores. e. Only a, c, d f. Only a, b, c g. All of the above

e

What is a good description or analogy of a bottleneck in process design? A. The weakest link of a chain B. The strongest link of a chain C. The size of the opening that determines the outflow amount and speed of liquid from a container. D. Only B. & C. E. Only A. & C. F. All of the above

e

What is a good strategy to manage C-Parts? a. Leverage buying power through volume. b. Setting up a sophisticated buying process because these parts are usually expensive. c. Trying to standardize the ordering process to save time and money. d. C-Parts are boring. Leave it to the intern. e. Only a and c. f. Only b and c.

e

What is a good strategy to manage C-Parts? a. Leverage buying power through volume. b. Setting up a sophisticated buying process because these parts are usually expensive. c. Trying to standardize the ordering process to save time and money. d. C-Parts are boring. Leave it to the intern. e. Only a and c. f. Only b and c.

e

Which of the following are trends that are causing an upheaval in the manufacturing setting? a. more adept machining componets b. low cost and accessibility of Big Data c. software and communication technological advances d. the decline in the cost of electronic sensors e. all of the above

e

Which of the following is not a common characteristic of high-leverage innovators? a. They know what they customers really want because they have obtained deep customer insight. b. They manage innovation as an end-to-end process. c. They make their NPD process visible. d. They increasingly use big data to gain insight into customer behavior. e. They spend more money on R&D than their rivals.

e

Which of the following is not a dimension of product quality? a. Conformance b. Serviceability c. Durability d. Reliability e. Tangibility

e

Which of the following was the successful strategy Lululemon employed to combat their quality problems? a. Blaming the supplier b. Blaming the customers c. Creating the "Second Chance Pant" d. All of the above e. None of the above

e

Companies should use the upper and lower specification limits as control limits. True False

f

James turned to his good friend and told him "Mr. Stank, you could dramatically improve your business by cutting Research & Development. The department only takes money from your bottom line, decreasing your immediate financial productivity numbers." Mr. Stank knew that R&D currently generates no revenue, but all of his competitors tell him they've got blockbuster products in the pipeline and Mr. Stank feels confident in his own R&D pipeline as well. Mr. Stank should trust his friend, James, and eliminate the R&D department. True False

f

Longer forecast horizons always provide better forecasting accuracy. True False

f

Many people try to find ways to predict the gender of a developing human fetus before ultrasound. One method involves tying a wedding ring to a string and suspending it above the woman's belly. If the ring swings side to side, the test result is "boy." If the ring swings in more of a circular motion, the test result is "girl." Historically, data has shown that the test is correct about 50% of the time. Based on this accuracy, the motion of the "Ring Swing" is an exceptionally effective measurement for predicting a baby's gender. True False

f

Success-driven mission statements often scare away potential customers because success-driven companies care only about their own success. True False

f

Teams are always the better way to tackle business decisions because it is helpful to have multiple perspectives on things. True False

f

The Cycle of Satisfaction includes which of the following elements? a. Verify financial viability b. Get deep insight into customer needs c. Conceptualize and develop a product d. Invest in next generation of customer-pleasing products e. Only a. and c. f. All of the above

f

The most common root cause of quality problems (identified with the assistance of the Pareto chart) is ALWAYS the best one to target for quality improvement. True False

f

The shorter the TAKT time, the better. True False

f

The surge in new manufacturing technologies is causing a decrease in manufacturing employment overall. True False

f

The term hidden plant was coined to clarify that 15-40% of a firm's capacity is used to customize products to customers expectations. True False

f

There is only one successful NPD strategy—that is, to be a need seeker. True False

f

Two new customers walk into Stew's comic book store at exactly the same time. One is wearing a $2,000 suit and a $250 tie while the other is wearing worn-out jeans and a sci-fi-themed t-shirt. Stew should make sure the customer wearing expensive clothing experiences perfect customer service even though that means Stew must ignore the other customer. True False

f

What are good reasons to carry inventory? a. Protecting against insecurity of demand via safety stock. b. Keeping equipment running through pipeline inventory. c. Hiding the problems of the organizational flow by drowning your sorrows in inventory. d. Imagine a scenario where the zombie apocalypse is likely to occur in spring 2017. Jungleist Industries decides to pre-order a large shipment of bottled water to be delivered just after Christmas because they get volume discounts and prices for water a likely to increase after the end of January. e. Only b and c f. Only a, b, and d g. All of the above.

f

What are good reasons to carry inventory? a. Protecting against insecurity of demand via safety stock. b. Keeping equipment running through pipeline inventory. c. Hiding the problems of the organizational flow by drowning your sorrows in inventory. d. Imagine a scenario where the zombie apocalypse is likely to occur in spring 2017. Jungleist Industries decides to pre-order a large shipment of bottled water to be delivered just after Christmas because they get volume discounts and prices for water a likely to increase after the end of January. e. Only b and c f. Only a, b, and d g. All of the above.

f

What is quality? a. Overrated b. Performance relative to price c. Performance relative to expectations d. Judged by customers along multiple dimensions e. Only b. and c. f. Only c. and d.

f

When assigning weights for weighted moving averages for forecasting, under which circumstances should a strong emphasis with respect to weights be placed on the most recent data? a. In cases of strong seasonality of demand for off-season products. b. For product lines that have been around for a long time and for which a lot of sales information exists. c. For products that have recently been launched and are developing dynamically. d. I have no influence on the weights, management dictates those and you should never question authority. e. If disruptions in the market have recently changed the rules of the competitive game. f. Only c. and e. g. Only a. and c. h. Only b. and c.

f

When looking at the waste of motion versus transportation: a. They mean the same thing b. Transportation involves a transportation mode c. Motion specifically deals with the movement of people d. Transportation can involve people or things e. Only a is incorrect f. Only b and c are correct

f

When using a simple moving average, the larger the number of periods used, the more responsive the forecast will be to a chaotic or fluctuating environment. True False

f

Which of the following are important reasons to involve suppliers early in the NPD process? a. Suppliers often possess vital materials expertise. b. Suppliers can share designs they have obtained from other customers. c. Suppliers are expert in packing and shipping. d. Suppliers often possess important technical expertise related to processes or products. e. All of the above f. A and D only

f

Zara manages is supply chain risk through: a. Carrying lots of inventory b. Using flexible factories c. Buying capacity from suppliers so that the suppliers can respond quickly d. Deeply discounting products that aren't selling, because that is cheaper than losing a sale e. All of the above f. Only b and c

f

Outsourcing is a strategy where you move from buy to make, so that every firm can focus on what they do best. True False

false

Frank and Eva Mae are inspecting the quality of the record cutting process in their boutique vinyl shop. They have had some complaints that recent records had more glitches during playback. They map the quality of some sample records on a control chart and they can see a trend seems to emerge that more records show glitches although they are still well within the control limits of their specifications. An argument ensues because Eva Mae is determined to investigate with their staff due to these shortcomings in quality. Frank thinks there is no need for action because the process is within control limits. Which of the following are valid arguments in this discussion? a. The glitches should be considered common cause variation and there is nothing they can do. b. The glitches might indicate special cause variation and warrant further investigation. c. Who cares? Nobody listens to vinyl anymore anyway. d. Things are fine because they are within control limits. No need to intervene. e. Trends should always be taken seriously, even if control limits are not breached. f. Only a. and d. g. Only b. and e.

g

What are good strategies to reduce inventory? a. Increasing the number of SKUs because then customers have more choices. b. Implementing a system to monitor real time demand to improve forecasts. c. Sharing forecasting information with suppliers to improve their ability to deliver. d. Hiring a manager from Apple because let's face it: It's Apple! e. Only a and c. f. Only a, b, and c g. Only b and c

g

What are good strategies to reduce inventory? a. Increasing the number of SKUs because then customers have more choices. b. Implementing a system to monitor real time demand to improve forecasts. c. Sharing forecasting information with suppliers to improve their ability to deliver. d. Hiring a manager from Apple because let's face it: It's Apple! e. Only a and c. f. Only a, b, and c g. Only b and c

g

Exponential smoothing incorporates information from the most recent actual results with information from the most recent forecast. To increase the responsiveness of the forecasting process, a manager should __________________ the smoothing constant (a). Increase Decrease Leave constant

increase

Which of the following approaches makes the most sense as a target for reducing the order size so an organization can become more lean? -Reduce demand -Increase the holding cost -Reduce the fixed cost of placing an order -Implement a company-wide policy that no burgers can be cooked with ground beef that is less than 98% lean. If such ground beef cannot be found, ground turkey or veggie burgers must be used. Violators will be prosecuted and punished to the fullest extent of the law.

reduce the fixed cost of placing an order

A larger Process Capability Ratio is generally preferred over a smaller Process Capability Ratio. True False

t

Breakbulk warehouses receive large-volume truckload (TL) shipments that are destined for several customers. True False

t

Empowering employees is important because people are your only source of inimitable creativity and collaboration. True False

t

For effective management, companies should focus on processes, not people when assessing outcomes of a production line. True False

t

Technological advances in manufacturing has allowed Jay Leno to manufacture entire cars (without tires and electronics) in his own automobile shop. True False

t

The EOQ model captures the trade-offs between the costs of placing an order and the inventory holding costs. True False

t