SCMT Final Exam

Which one of the following statements concerning the economic order quantity (EOQ) is TRUE? A) The EOQ is the order quantity that minimizes annual inventory holding costs. B) An increase in demand will increase the EOQ. C) The time between orders (TBO) will increase with an increase in holding costs. D) The EOQ formula assumes that there are only three relevant costs: holding, transportation, and setup.

An increase in demand will increase the EOQ.

What did the production manager say to the pile of scrapped material? A) "Hello muda." B) "Hello fadduh." C) "We need more kanbans." D) "JIT II Brute?"

"Hello muda."

. Which one of the following statements on inventory placement of finished goods is best? A) Forward placement might help reduce transportation cost. B) Forward placement is consistent with a competitive priority that calls for customization. C) Inventory pooling should be avoided when demand in various regions fluctuates month to month. D) Backward placement is consistent with a competitive priority that calls for fast delivery times.

Forward placement might help reduce transportation cost.

1. Which one of the following statements is TRUE? a. Nothing can be done to completely eliminate variation in process output. b. SPC and TQM are one and the same thing. c. Assignable causes of variation are purely random factors that can be assigned to a particular process. d. Common causes of variation are those factors that can be identified as commonly occurring at a particular process.

Nothing can be done to completely eliminate variation in process output.

1. Which one of the following statements is TRUE? a. No two products are exactly alike because the processes that produce them contain many sources of variation, even if the process is a machine. b. With due diligence, variation in a process can be completely eliminated. c. SPC and TQM are two competing techniques for quality control. d. Common causes of variation are those factors that can be identified as commonly occurring at a particular process.

No two products are exactly alike because the processes that produce them contain many sources of variation, even if the process is a machine.

1. Improving quality seems to be a strategic weapon in gaining market share. However, improving quality entails allocation of resources and effort. As greater effort is expended to stop defects before they occur, which one of the following costs increases? a. Prevention costs b. Appraisal costs c. Internal failure costs d. External failure costs

Prevention costs

1. As an operations manager, which definition of quality do you have the most control over? a. Conformance to specifications b. Support c. Psychological impressions d. Value

Conformance to specifications

1. In Statistical Process Control, ______________ are used to detect defects and determine if the process has deviated from design specifications. a. Flowcharts b. Cause-and-Effect Diagrams c. Process Capability Charts d. Control Charts

Control Charts

1. Which one of the following is considered to be an appraisal cost? a. Cost of quality audits b. Cost of supplier programs c. Cost of rework d. Cost of process design

Cost of quality audits

1. A firm's internal program in employee involvement includes which of the following considerations? a. Defining who is the customer b. Supplier management c. Product availability d. Psychological impressions

Defining who is the customer

1. Which of the following statements is TRUE? a. A process can be out of statistical control but still exhibit process capability. b. Process capability refers to the ability to meet a product's design specifications. c. A process in statistical control necessarily exhibits process capability. d. Process capability can be determined for manufactured products only, not for services.

Process capability refers to the ability to meet a product's design specifications.

100. In SPC, the distribution of sample means: a. can be approximated by the normal distribution. b. will have greater variability than the process distribution. c. will always have a mean greater than the process distribution because of the sample size. d. cannot be used for control charts because the variability is understated.

can be approximated by the normal distribution.

1. Which one of the following is part of prevention costs? a. The costs of quality audits b. The costs resulting from scrap c. The costs of improving process design and product design d. The costs of lawsuits from injury from use of the product

The costs of improving process design and product design

A new product development team that is composed of product and process engineers, marketers, quality specialists, and buyers that work together to make sure the new product can actually be built is engaging in: A) concurrent engineering. B) joint application development. C) reverse logistics. D) core process design.

concurrent engineering.

In lean systems, if a defective product is found, which of the following is generally NOT done? A) The production line is stopped. B) The defective unit is passed on to the next workstation. C) The defective unit is returned to the worker responsible for creating the defect. D) The production line is made aware of the problem without necessarily stopping the line.

The defective unit is passed on to the next workstation.

A U.S. company faced with spiraling costs in their customer care center recreated that service in Luxembourg at a fraction of the cost. This is an example of: A) offshoring. B) forward integration. C) backward integration. D) postponement.

offshoring.

1. Regarding control charts, a type I error refers to concluding that the process is: a. in control when it is not in control. b. incapable when it is capable. c. out of control when it is in control. d. capable when it is not capable.

out of control when it is in control.

Which of the following is NOT a lever for reducing cycle inventories? A) place purchased item orders at fixed intervals B) reduce lot sizes for items moving in the supply chain C) streamline methods for placing orders and making machine set ups D) increase repeatability to eliminate the need for changeovers

place purchased item orders at fixed intervals

A somewhat successful computer manufacturer makes a generic computer in five exciting colors. Once orders are received, the computer guts are encased in the customer's choice of colored case at the factory. This approach to production is known as: A) channel assembly. B) postponement. C) strategic sourcing. D) strategic production.

postponement.

The practice of selecting suppliers and giving them significant responsibility for the design of certain components or systems of the product is called: A) value analysis. B) locus of control. C) presourcing. D) vendor-managed inventories.

presourcing.

Approaches to e-purchasing include all of the following EXCEPT: A) catalog hubs. B) radio frequency identification (RFID). C) exchanges. D) electronic data interchange (EDI).

radio frequency identification (RFID).

Inventories needed for the production of services and goods (inputs to a firm's transformation processes) are called: A) quarantined materials B) work-in-process C) raw materials D) finished goods

raw materials

1. A cost that is incurred if some aspect of a service must be performed again is called a(n): a. yield loss. b. prevention cost. c. appraisal cost. d. rework cost.

rework cost.

A front-office module for an ERP system includes: A) manufacturing. B) accounting and finance. C) sales and marketing. D) human resources.

sales and marketing.

1. When errors have been made while producing a product such that the item must be discarded, the resultant cost is called a(n): a. warranty. b. scrap cost. c. rework cost. d. external failure cost.

scrap cost

Companies using lean systems generally have: A) many suppliers to ensure that material shortages never occur. B) suppliers that are located nearby to decrease delivery lead time. C) suppliers that are willing to accept short-term contracts. D) suppliers who are low-cost producers.

suppliers that are located nearby to decrease delivery lead time.

A responsive supply chain typically has: A) a low capacity cushion. B) high inventory turns. C) supply chain partners that emphasize low prices. D) supply chain partners that emphasize volume flexibility.

supply chain partners that emphasize volume flexibility.

Which one of the following descriptions best defines the cycle-service level as a measure of customer service? A) the preferred proportion of annual demand instantaneously filled from stock B) the number of stockouts tolerated per year C) the preferred proportion of days in the year when an item is in stock D) the desired probability of not running out of stock in any one inventory cycle

the desired probability of not running out of stock in any one inventory cycle

What is generally true about the class A SKUs in ABC analysis? They represent about: A) 20 percent of all SKUs. B) 30 percent of all SKUs. C) 20 percent of the dollar usage. D) 50 percent of the dollar usage.

20 percent of all SKUs.

1. Which one of the following statements is TRUE? a. Appraisal costs decrease as quality level decreases. b. Appraisal costs increase as the variation of output increases. c. Appraisal costs increase as the variation of output decreases. d. Appraisal costs increase as quality level increases.

Appraisal costs increase as the variation of output increases.

1. Which step of the Six Sigma DMAIC procedure uses flowcharts and process charts to identify gaps between the characteristics of a process's output important to the customer and the process's capabilities? a. Define b. Measure c. Analyze d. Improve e. Control

Define

1. The central line on a p-chart is 0.50 with a UCL of 0.65 and an LCL of 0.35. The results of the next six samples are 0.60, 0.37, 0.45, 0.48, 0.45, and 0.42. What should you do? a. Nothing; the process is behaving as expected. b. Explore the assignable causes because three observations are above the central line. c. Explore assignable causes because there is a run. d. Increase the sample size to get a better measure.

Explore assignable causes because there is a run.

An OWMM arrangement reduces labor requirements but increases inventory. T/F

FALSE

An end item in a BOM is typically both a component and a parent. T/F

FALSE

Manufacturing an item before it is needed in a lean system is not considered waste, because it helps keep material flowing through the system. T/F

FALSE

Part commonality tends to increase inventory costs. T/F

FALSE

Takt time is the cycle time needed to maximize utilization of an organization's workers and equipment. T/F

FALSE

The Japanese practice of andon means that production does not begin until a card or bin is empty. T/F

FALSE

The value stream mapping tool often requires completion of the future state drawing before the current state drawing, to help managers see the future state goals and more easily identify problems with the current state of the process. T/F

FALSE

1. The international standard that is applied to determine a company's "environmental friendliness" is: a. ISO 9000:2000. b. ISO 14000:2004. c. ISO 19000:2008. d. ISO 24000:2009.

ISO 14000:2004.

1. Which one of the following statements is TRUE? a. The Malcolm Baldrige National Quality Award and ISO 9000:2000 are essentially the same things, except that ISO 9000:2000 is a quality award for European companies. b. The Malcolm Baldrige National Quality Award is only for manufacturing companies. c. To achieve ISO 9000:2000 standards, a company must have excellent quality. d. ISO 9000:2000 is not an award for good quality.

ISO 9000:2000 is not an award for good quality.

Which one of the following statements regarding the economic order quantity (EOQ) is TRUE? A) The EOQ model combines several different item orders to the same supplier. B) If an order quantity is larger than the EOQ, the annual holding cost for cycle inventory exceeds the annual ordering cost. C) The EOQ model assumes a variable demand pattern. D) When the interest rate drops, the inventory holding cost decreases and the EOQ decreases.

If an order quantity is larger than the EOQ, the annual holding cost for cycle inventory exceeds the annual ordering cost.

Which one of the following statements about lot-sizing rules is TRUE? A) The periodic order quantity (POQ) rule seeks to create inventory remnants. B) If the POQ rule is used, an item's lot size can vary each time an order is placed. C) The lot-for-lot (L4L) rule is a special case of the fixed-order quantity (FOQ) rule. D) All lot-sizing rules seek to minimize inventory levels.

If the POQ rule is used, an item's lot size can vary each time an order is placed.

1. During which step of the Six Sigma DMAIC procedure are current processes modified or redesigned to meet new performance objectives? a. Define b. Measure c. Analyze d. Improve e. Control

Improve

1. Which one of the following statements about total quality management (TQM) is TRUE? a. Total quality management reduces the external failure costs but not the internal failure costs. b. Total quality management reduces the internal failure costs but not the external failure costs. c. Total quality management means inspectors are responsible for finding out who makes the defects. d. In total quality management, workers have the authority to stop a production line if they see quality problems.

In total quality management, workers have the authority to stop a production line if they see quality problems.

Regarding the Eight Types of Waste that must be eliminated to implement lean systems, using expensive high precision equipment when a simpler machine would suffice is part of which general waste category? A) Motion B) Overproduction C) Inappropriate Processing D) Defects

Inappropriate Processing

1. Which one of the following is a consequence of internal failures? a. Increased customer service b. Increased inventory costs c. Increased productivity d. Decreased lead time

Increased inventory costs

Consumers consider five aspects when defining quality. Which one of the following is least likely to be one of these aspects? a. Value b. Fitness for use c. Psychological impressions d. Individual development

Individual development

1. Which step of the Six Sigma DMAIC procedure involves identifying data sources and preparing a data collection plan? a. Define b. Measure c. Analyze d. Improve e. Control

Measure

Which one of the following statements about the relation between financial and supply-chain performance measures is TRUE? A) Longer delivery times require higher levels of working capital. B) Shorter new product development time decreases revenue. C) Higher inventory turns call for higher working capital requirements. D) Lower aggregate inventory value means higher current assets.

Longer delivery times require higher levels of working capital.

Which of the following statements about MRP is TRUE? A) To be classified as a successful MRP user, a company must use either the L4L or POQ rules for lot sizing. B) MRP gross requirements for a parent item are equal to the planned order releases of its components. C) MRP logic is based on the logic of uniform, continuous demand, and item independence. D) MRP gross requirements for a component depend on the planned order releases of its immediate parents.

MRP gross requirements for a component depend on the planned order releases of its immediate parents.

1. Six sigma teacher can attain different level titles, based on their experience and level of achievement. What is the highest level a Six Sigma teacher can reach? a. Black Belt b. Green Belt c. Master Black Belt d. Master Green Belt

Master Black Belt

1. The UCL and LCL for an chart are 25 and 15 respectively. The central line is 20, and the process variability is considered to be in statistical control. The results of the next six sample means are 18, 23, 17, 21, 24, and 16. What should you do? a. Nothing; the process is in control. b. Explore the assignable causes because the second, fourth, and fifth samples are above the mean. c. Explore the assignable causes because there is a run. d. Explore the assignable causes because there is a trend.

Nothing; the process is in control.

Which one of the following statements represents an advantage of the P system over the Q system? A) Less safety stock is carried to achieve the same service level. B) The replenishment intervals can be more easily individualized for items. C) Orders can be more easily combined to the same supplier. D) A P system is more suitable for quantity discounts and capacity limitations.

Orders can be more easily combined to the same supplier.

ABC analysis is closely related to: A) three-bin analysis. B) EOQ analysis. C) repeatability analysis. D) Pareto analysis.

Pareto analysis.

1. Which one of the following statements is a key feature of both TQM and Six Sigma? a. Quality is primarily the responsibility of all employees in the organization. b. Quality is primarily the responsibility of the quality control department. c. Quality is primarily the responsibility of the production department. d. Quality is primarily the responsibility of top management.

Quality is primarily the responsibility of all employees in the organization.

1. Which of the following would be a "common" cause of variation? a. Random sources b. A machine in need of repair c. An untrained worker d. A defective raw material

Random sources

1. Which one of the following statements is TRUE? a. Fitness for use is how well a product or service serves its intended market at a price customers are willing to pay. b. The quality of service is generally easier to measure than is the quality of manufactured products. c. High conformance to quality in manufacturing has no effect on profit margins. d. Rework tends to increase lead time and inventory levels maintained in a manufacturing company.

Rework tends to increase lead time and inventory levels maintained in a manufacturing company.

Which of the following would be considered an appraisal cost of quality? a. Training workers to perform their jobs b. Purchasing better tools for workers to perform their jobs c. Repairing an item under the warranty d. Running a functional test on each item before it is boxed for shipment

Running a functional test on each item before it is boxed for shipment

Gross requirements are the total demand derived from all parent production plans. T/F

TRUE

In lean systems, work-in-process inventory is a direct result of overproduction and waiting. T/F

TRUE

Just-in-time (JIT) systems need close relationships with suppliers. T/F

TRUE

The push method begins the production of items in advance of customer needs. T/F

TRUE

1. What is one reason that Six Sigma is more difficult to apply to service processes? a. There is no manual that suggests how Six Sigma can be applied to services. b. The work product is more difficult to see. c. There is no way to measure process capability of a service product. d. The National Six Sigma Society cautions against using it for services.

The work product is more difficult to see.

1. Which of the following can be used to eliminate "common" causes of variation? a. Statistical process control b. Acceptance sampling c. Traditional statistical techniques d. They cannot be eliminated.

They cannot be eliminated.

Which of the following would be considered a prevention cost of quality? a. Inspecting incoming raw materials b. Training workers to perform their jobs c. Issuing a recall of defective product before another customer is injured d. Performing a 24 hour burn-in on every item produced to make sure it works before it is shipped.

Training workers to perform their jobs

Regarding the Eight Types of Waste that must be eliminated to implement lean systems, excessive movement and material handling of product between processes is part of which general waste category? A) Motion B) Transportation C) Inappropriate Processing D) Underutilization of Employees

Transportation

An inventory system answers two important questions: when to order and how much to order. Which of the following statements correctly explains how a Q system (continuous review system) or a P system (periodic review system) answers these questions? A) Under a Q system, a fixed quantity is ordered every P time period. B) Under a Q system, an order is placed to replenish the inventory position up to the target level T when the inventory position reaches the reorder point R. C) Under a P system, a fixed quantity Q is ordered when the inventory position reaches the reorder point R. D) Under a P system, an order is placed to replenish the inventory position up to the target level T every P time periods.

Under a P system, an order is placed to replenish the inventory position up to the target level T every P time periods.

. Which one of the following statements concerning a continuous review system is best? A) The inventory position (IP) of an item measures the item's ability to satisfy future demand, relying only on the on-hand inventory. B) An item's inventory position under a continuous review system increases by Q units as soon as an order is received. C) An item's on-hand inventory increases by Q units as soon as an order is placed. D) Under a continuous review system, an item's inventory position corresponds to the on-hand inventory unless there are backorders or one or more scheduled receipts.

Under a continuous review system, an item's inventory position corresponds to the on-hand inventory unless there are backorders or one or more scheduled receipts.

1. When should complete inspection be used? a. When inspection tests are destructive b. When inspection tasks are monotonous c. When the cost of product failure is high relative to the inspection costs d. When quality is a competitive priority

When the cost of product failure is high relative to the inspection costs

1. A company is interested in monitoring the number of scratches on Plexiglass panels. The appropriate control chart to use would be: a. an chart. b. a p-chart. c. a c-chart. d. an R-chart.

a c-chart.

1. Process capability can be addressed when: a. assignable causes are present. b. a process is in statistical control. c. a process is in statistical control but assignable causes are present. d. the nominal value equals the tolerance regardless of assignable causes.

a process is in statistical control.

1. The ISO 9000:2000 standard: a. emphasizes corporate leadership as a means of determining who receives the award. b. has the greatest number of points awarded for business results. c. is awarded by the U.S. government each year. d. addresses quality system documentation.

addresses quality system documentation.

1. Increasing the quality level by better products and processes may: a. allow a company to raise the price of the product. b. move a company closer to a competitive priority of price. c. reduce prevention costs. d. ensure that the trade-off between prevention costs and other costs of poor quality is worthwhile.

allow a company to raise the price of the product.

1. A company is interested in monitoring the variability in the weight of the fertilizer bags it produces. An appropriate control chart would be: a. an x chart. b. a p-chart. c. a c-chart. d. an R-chart.

an R-chart.

1. A company is interested in monitoring the average time it takes to serve its customers. An appropriate control chart would be: a. an X chart. b. a p-chart. c. a c-chart. d. an R-chart.

an X chart.

1. The implementation of a total quality management program or a Six Sigma program will most likely result in: a. an increase in product lead times. b. a decrease in employee involvement. c. an increase in communication between workers. d. an increase in work-in-process inventory.

an increase in communication between workers.

The product development team ensures compatibility of the proposed product with corporate strategy and regulatory standards in the: A) design stage. B) analysis stage. C) development stage. D) full launch stage.

analysis stage.

The supply chain management department of a major manufacturer pondered a particularly weighty make or buy decision for weeks, ultimately deciding to make, rather than buy. This decision resulted in increased: A) outsourcing. B) offshoring. C) postponement. D) backward integration.

backward integration.

1. One of the main challenges in developing the proper culture for TQM is to: a. define customer for each employee. b. suspend reward systems based on quantity. c. institute an equitable employee recognition program. d. get buy-in from the customer.

define customer for each employee.

An efficient supply chain should be preferred when: A) product variety is high. B) competitive priority is customization. C) demand is highly predictable. D) demand is unpredictable.

demand is highly predictable.

The stage of new product or service development that links the creation of new services or products to the corporate strategy of the firm is called: A) design. B) analysis. C) development. D) full launch.

design.

1. An example of a type II error would be: a. counting a student's True/False response incorrect when it is actually correct. b. convicting an innocent defendant. c. eating food that you were unaware was spoiled. d. counting a student's True/False response incorrect when it is actually incorrect.

eating food that you were unaware was spoiled.

Continuous improvement with lean systems: A) involves navigating a ship over treacherous rocks. B) requires periodically increasing lot sizes or workforce levels to uncover problems. C) entails systematically stressing the system and focusing on problem areas. D) focuses exclusively on internal operations without addressing relationships with customers and suppliers.

entails systematically stressing the system and focusing on problem areas.

A companywide process that cuts across traditional functional areas, business units, geographic regions, and product lines is a(n): A) enterprise process. B) master production scheduling process. C) kinetic process. D) full-business process.

enterprise process.

Combining parts or products with similar characteristics into families and setting machines aside for their production is known as: A) the one-worker, multiple machines (OWMM) method of production. B) the standardized component method of manufacturing. C) group technology. D) the flexible workforce approach to manufacturing.

group technology.

An efficient supply chain typically has: A) a high capacity cushion. B) high inventory turns. C) supply chain partners that emphasize fast delivery time. D) supply chain partners that emphasize volume flexibility.

high inventory turns.

Which of the following is NOT an example of dependent demand items? A) shoelaces, shoes B) wheels, car C) carafes, coffeemakers D) ice skates, roller skates

ice skates, roller skates

Lean systems use the standardization of components because standardization: A) decreases the demand for each component. B) increases repeatability. C) allows for small lot sizes more easily. D) decreases repeatability.

increases repeatability.

1. Regarding control charts, changing from two-sigma limits to three-sigma limits: a. increases the probability of concluding nothing has changed, when in fact it has. b. increases the probability of searching for a cause when none exists. c. decreases the probability that the process average will change. d. decreases the probability that defects will be generated by the process.

increases the probability of concluding nothing has changed, when in fact it has.

Which of the following generates pressure to decrease inventories? A) inventory shrinkage costs B) backorders and stockouts C) transportation costs D) quantity discounts

inventory shrinkage costs

1. The Malcolm Baldrige National Quality Award: a. involves a rigorous review process that often helps the companies define what quality means to them, regardless of the outcome. b. focuses on large manufacturing companies because of the impact they have on the economy. c. is a set of standards governing the requirements for documentation of a quality program. d. was devised by the International Organization for Standardization for companies doing business in Europe.

involves a rigorous review process that often helps the companies define what quality means to them, regardless of the outcome.

1. The Malcolm Baldrige National Quality Award: a. focuses on large manufacturing companies because of the impact they have on the economy. b. involves seven major criteria that are built on the base of customer satisfaction. c. is a set of standards governing the requirements for documentation of a quality program. d. was devised by the International Organization for Standardization for companies doing business in Europe.

involves seven major criteria that are built on the base of customer satisfaction.

When a process fails to satisfy a customer: a. it is quite often the customer's fault. b. it is considered a defect c. it is time to reengineer the process. d. it is usually half the customer's fault and half the company's fault.

it is considered a defect

One source of disruption caused by the external supply chain is: A) product or sales promotions. B) new product or service introduction. C) late deliveries. D) engineering changes.

late deliveries.

1. "Quality at the source" implies: a. less expensive raw materials. b. lower scrap. c. higher rework costs. d. more final-test inspectors.

lower scrap.

Possible causes of disruption due to internal supply chain problems are: A) late deliveries. B) machine breakdowns or inexperienced workers. C) product and service mix changes. D) underfilled shipments.

machine breakdowns or inexperienced workers.

Which of the following is NOT a stage in the New Service / Product Development Process? A) development B) design C) maintenance D) analysis

maintenance

Which one of the following is an input to the MRP system? A) shop-floor schedules B) financial reports C) master production schedule D) purchasing orders

master production schedule

Lean systems try to: A) produce a product in anticipation of demand. B) maximize the value added by of each of its activities. C) organize production in large lots to minimize the number of setups. D) reduce the labor content in all processes.

maximize the value added by of each of its activities.

1. A firm that has embraced the notion of quality at the source is more likely to have: a. an inspector at each workstation working alongside each employee. b. inspectors at each of their suppliers performing 100% inspection on shipments bound for them. c. multiple inspectors at the end of the line to make sure no defects are passed along to the customer. d. no inspectors.

no inspectors.

The goal of single-digit setups is to have a setup time: A) of less than one shift. B) of less than one hour. C) of less than 30 minutes. D) of less than 10 minutes.

of less than 10 minutes.

You have taken a job in industry and are facing your first ordering decision. As you prepare to place the order, you remember your instructor teaching you that you wouldn't use the EOQ formula if: A) you followed a make-to-stock strategy for an item with stable demand. B) your carrying costs and ordering costs are known and relatively stable. C) the order size is constrained by capacity limitations such as the number or size of the delivery trucks. D) your setup costs and holding costs remain constant and can be determined.

the order size is constrained by capacity limitations such as the number or size of the delivery trucks.

Using customer demand to activate production of an item or service is called: A) the andon method. B) the pull method. C) the jidoka method. D) the push method.

the pull method.

Which best defines the gross requirements for a component item? A) the forecasted customer demand for the component B) the amount of safety stock needed to buffer against uncertainties C) the sum of gross requirements for all parents of the component D) the total demand for the component derived from all immediate parents

the total demand for the component derived from all immediate parents

1. An example of a type I error would be: a. throwing away a perfectly good banana. b. counting a student's multiple choice response correct when it is actually incorrect. c. releasing a guilty defendant. d. counting a student's multiple choice response correct when it is actually correct.

throwing away a perfectly good banana.

Examples of radio frequency identification (RFID) could include all of the following EXCEPT: A) tracking the status of engineering changes during development of a new product line. B) tracking cases and pallets of products into and out of warehouse inventories. C) air travel use for baggage tracking. D) tracking the flow of parts through a manufacturing process.

tracking the status of engineering changes during development of a new product line.

Which one of the following is NOT a method for tracking inventory and ensuring accurate records? A) assigning responsibility to specific employees for issuing and receiving materials B) updating the reorder points to minimize safety stock C) cycle counting D) logic error checks

updating the reorder points to minimize safety stock

1. Continuous improvement is a philosophy that: a. uses problem-solving techniques within work teams. b. ensures there are plenty of quality inspectors to find areas for improvement. c. waits until a big problem occurs, then systematically solves it. d. encourages the hiring of statistical process control specialists to reduce the need for current employees to learn statistical methods.

uses problem-solving techniques within work teams.

A systematic effort to reduce the cost or improve the performance of services or products is known as: A) presourcing. B) cooperative orientation. C) supplier certification. D) value analysis.

value analysis.

The practice whereby a manufacturer has inventories of materials on consignment from its suppliers falls under the scope of: A) inventory pooling control. B) virtual distribution. C) electronic inventory control. D) vendor-managed inventories.

vendor-managed inventories.

If a planned receipt for an item is due in week 6 and the item's lead time is two weeks, in which week will the corresponding planned order release occur? A) week 2 B) week 4 C) week 6 D) week 8

week 4

1. The consultant suspiciously eyed the c-chart that Chickenverks used to monitor the number of broken eggs in each 100 egg carton. "You know you really should be using a p-chart," the consultant commented with an air of superiority. "What's the difference between a p-chart and a c-chart in this application?" the long time Chickenverks employee asked with an obvious edge to his voice. "Well," the consultant replied, "the difference is: a. the width of the three sigma limits for the c-chart is 100 times greater than those of the p-chart." b. the three-sigma p-chart will catch problems earlier than the three sigma c-chart." c. the three sigma c-chart will catch problems earlier than the three sigma p-chart." d. well, OK, you got me. The charts will look and behave the same for all practical purposes."

well, OK, you got me. The charts will look and behave the same for all practical purposes."