supply chain final

Which of these statements about disaster relief supply chains is best? Critical supplies are usually deployed the instant they are available in the disaster zone. Employee turnover in disaster relief is low since these individuals are dedicated to the cause. Most disaster relief supply chains exist for only short times. Supplies follow a pull flow initially but change to a push flow once demand is more predictable.

Most disaster relief supply chains exist for only short times.

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

True

Increasing inventory turns will reduce the working capital requirement.

True

What is generally true about class A SKUs in ABC analysis? They represent about:

20 percent of all SKUs.

Part commonality tends to increase inventory costs.

False

The bullwhip effect says that in any supply chain, the ordering patterns experience increasing variance as you move closer to the end customer.

False

The efficiency curve of supply chain performance shows the trade-offs between forecasted demand and realized demand for a supply chain.

False

The essence of sustainability has exclusive focus on cutting costs and maximizing shareholder value.

False

The inventory usually stays constant over the planning horizon in a sales and operations plan using a level strategy.

False

When outbound transportation costs are a dominant factor, manufacturing facilities should be located close to suppliers and resources needed for production.

False

When performing sales and operations planning, companies can aggregate products or services but not members of their workforce.

False

With sales remaining constant, the weeks of supply measure will decrease with an increase in the average aggregate inventory value.

False

Which one of the following statements on inventory placement of finished goods is best?

Forward placement might help reduce transportation cost

Identify the item below that is not included in the authors' discussion of how a firm might manage its supply chains to ensure that they are sustainable. Gather data on the buying habits of customers and ensure that data is freely shared throughout the supply chain. Develop a sustainable supply chain framework. Engage in active supplier management and utilize all available ethical means to influence their behavior. Gather data on the performance of current suppliers and use the same questionnaire to screen potential new suppliers.

Gather data on the buying habits of customers and ensure that data is freely shared throughout the supply chain

What reason is cited by the authors for the difficulty with receiving approval for sustainability as a strategy? Sustainability is not a classic strategy in the mold of quality, cost leadership, or flexibility. Sustainability is too easily achieved and therefore does not provide a competitive advantage in the market. In general, directors often need to see a demonstrable return on investment to justify the costs. Sustainability is an inherently high-risk strategy and most boards are risk-averse.

In general, directors often need to see a demonstrable return on investment to justify the costs.

Which of the following statements concerning the use of the Geographical Information System (GIS) method for locating multiple facilities is true? GIS helps with general facility locations, but is not able to identify specific locations because the transportation structure of roads and interstate highways can't be included in the GIS databases. Load-distance scores and center of gravity data can be merged with customer databases to arrive at trial locations for facilities. When locating two new facilities, the entire operating area is split into four subregions, two for each new facility, so the best two locations from the four subregions can be selected. One weakness of the GIS method is that it is slow and cumbersome, and significant time must be allowed in order to reach a reasonable multiple-facility location decision.

Load-distance scores and center of gravity data can be merged with customer databases to arrive at trial locations for facilities.

Which of these is most likely to be classified as a "load" when using the load-distance model? a process a supplier a shipment a customer

a shipment

The stage of new service or product development at which personnel are trained and some pilot runs can be conducted to look for possible problems in production is called: design. analysis. development. full launch.

development

The type of goods for which a responsive supply chain is appropriate are: fashion goods. products with a long shelf life. inexpensive products. those with infrequent design changes.

fashion goods

The SCOR model focuses on the basic supply chain processes of: source, control, operate, return. plan source, make deliver, return. purchase, operate, control, logistics. operations, marketing, finance.

plan source, make deliver, return

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:

postponement

Which of these is an appropriate measurement of freight density? miles per dollar dollars per mile pounds per cubic foot pounds per mile

pounds per cubic foot

Quality of life issues include: proximity to markets. prevailing wage rates. local and state taxes. recreational facilities.

recreational facilities.

Production shifting is a form of low-cost hopping.

False

Responsive supply chains work best when firms offer a low variety of services or products and demand predictability is high.

False

Since disasters happen with little or no warning, any kind of advance planning is impossible to do or even futile.

False

Shipments of Product X from a plant to a wholesaler are made in lots of 1500 units each. The wholesaler's average demand for X is 300 units per week. The lead time from the plant to the wholesaler is 3 weeks. The wholesaler pays for the shipments when they leave the plant. What is the total of the wholesaler's current cycle plus pipeline inventories?

1650 units

Table 13.1 Four departments are located in adjacent bays in the same loading dock. The distance between adjacent bays is 25 feet, the distance between bays separated by another (Alpha and Charlie, Bravo and Delta) is 50 feet, and the distance between Alpha and Delta is 75 feet. Material flows (loads) between departments are shown in the Table below. ​ To To To To From Alpha Bravo Charlie Delta Alpha 0 20 15 25 Bravo 10 0 10 10 Charlie 15 15 0 5 Delta 5 5 15 0 Use the information from Table 13.1. Calculate the load distance for location Charlie. 2,300 3,775 3,250 2,625

2,625

Use the following partially completed MRP record to answer the question. What are the quantities of planned order releases for item XYZ for the first six weeks (weeks 1, 2, 3, 4, 5, and 6)?

20, 30, 0, 40, 20, 0

Acme averages $20 million worth of inventory in all of its worldwide locations. They operate 52 weeks a year and each week average $10 million in sales (at cost). Their inventory turnover is: 5 turns. 7.5 turns. 20 turns. 26 turns.

26 turns

Matrix 15.1 Use this data in this matrix to answer the following questions. Refer to Matrix 15.1. What is the break-even point for shipping a 3,000 pound shipment in class 55?

3,814 pounds

Scenario 12.1 You currently make a part on old equipment at a cost of $50,000 per year and a variable cost of $20 / unit. You have found an outside supplier who will make the part for $15 / unit if you will pay their annual fixed costs of $200,000 / year. The following table summarizes the details of this make versus buy decision. ALTERNATIVE FIXED COST VARIABLE COST Buy $200,000 per year $15 per unit Make $50,000 per year. $20 per unit Use Scenario 12.1 to answer the question. What is the break even quantity between buying and making? 30,000 units per year 40,000 units per year 50,000 units per year 60,000 units per year

30,000 units per year

Use the following to answer the questions below.The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business. They also consider on-time speed, top quality and customization in their selection process. Each criterion is given a weight (total = 100 points), and each supplier is scored on each criterion (1 = poor, 10 = excellent). The data are shown in the following table. CRITERION WEIGHT ACME STATE Total Cost 15 8 4 On-Time Delivery 20 5 7 Top Quality 30 7 6 Customization 35 4 6 Refer to the instruction above. Using the preference matrix approach for selecting suppliers, what is Acme's total weighted score?

570

Use the following partially completed MRP record to answer the question. What are the quantities of planned order releases for item ABC for the first five weeks (weeks 1, 2, 3, 4, and 5)?

60, 0, 145, 0, 0

Scenario 13.1 McKenna Restaurant wishes to open a new store. The table below provides the subjective criteria for the location decision with the respective weights and the factor evaluation for each location. Factor Evaluation By Location Factor Weight A B C D Proximity to Markets 20 6 3 8 5 Quality of Life 25 7 8 7 8 Access to Transportation 30 5 8 8 7 Access for Suppliers 25 8 7 4 7 Based on the information in Scenario 13.1, what is the weighted score for location A?

645

Which one of the following statements about sales and operations planning is best?

A production plan generally focuses on production rates and inventory holdings, whereas a staffing plan focuses on staffing and other labor-related factors.

Which one of the following actions applies to a level strategy?

Build anticipation inventory to meet the variability in demand.

Overtime is the situation that occurs when employees do not have enough productive work for the regular-time workday or workweek.

False

A dummy plant is useful for problems where the sum of the plant capacities equals the sum of the demands.

False

A rotating schedule rotates employees through a series or workstations or tasks.

False

Break-even analysis can help a manager compare location alternatives on the basis of both qualitative and quantitative factors that can be expressed in terms of total cost.

False

Channel assembly involves the customization of raw materials by suppliers to support a form's design-to-order strategy.

False

Companies that fully customize their ERP implementation reap the greatest rewards from such systems since they can continue to use the same processes to which all employees are accustomed.

False

Dependent demand items are those items for which demand is influenced by market conditions and is not related to inventory decisions for any other item held in stock. True False

False

Electric trucks due to their high purchase costs result in a substantially higher total cost of ownership (TCO) compared to traditional diesel trucks in the near short term.

False

Forward placement is a reduction in inventory and safety stock because of the merging of variable demands from customers.

False

One type of cost considered when preparing a sales and operations plan is the materials purchase cost.

False

Which one of the following statements represents an advantage of the P system over the Q system?

Orders can be more easily combined to the same supplier.

Which of the following statements about ERP systems is best?

Recent studies have shown that the most successful ERP implementations use standardized systems.

Table 14.1 Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. Khalil, the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics. Regardless of supplier, Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Khalil has obtained quotes for three different shipment sizes (Freight Costs table). All costs are in US Dollars. Unit costs Supplier Price/Unit Carrying Cost A 123 22 B 125 19 C 126 18 D 100 40 Freight Costs Supplier 15,000 units 25,000 units 50,000 units A 380,000 260,000 237,000 B 615,000 547,000 470,000 C 285,000 240,000 200,000 D 380,000 260,000 237,000 Other Costs Supplier Lead Time Admin Costs A 30 250,000 B 15 275,000 C 7 225,000 D 90 2,500,000 Use Table 14.1 to answer the question. Khalil believes that Alison's would benefit most from smaller shipments of accessories from their chosen supplier. Which supplier would result in the lowest total cost using this criterion?

Supplier D

Which of the following is not an advantage resulting from a firm outsourcing its customer service process? Specific detailed questions can be answered by the customer service representative. The firm gains more control over the customer interface process. Customer service labor costs are low. Automated systems are replaced by human contact.

The firm gains more control over the customer interface process.

A continuous review system is sometimes called a reorder point system.

True

A just-in-time (JIT) system minimizes inventory cost for the company but increases inconvenience in the form of noise, traffic, and air pollution for the community at large.

True

Concurrent engineering helps firms avoid the costly mismatch between the design of a new offering and the capability of the processes required to produce it.

True

Dependent demand for an item occurs because the quantity required for it varies with the production plans of one or more parents.

True

EOQ should be used if you follow a make-to-stock strategy and the item has relatively stable demand.

True

Early supplier involvement is a program that allows suppliers to fill orders prior to the customer placing them.

True

Eliminating the need for changeovers through increased repeatability of the work being done is one of the levers to reduce cycle inventory.

True

Geographical Information System (GIS) can be used to solve both single-facility location and multiple-facility location problems.

True

One component of the holding cost of inventory is interest.

True

Reverse logistics addresses the movement of physical goods from consumer to producer and product information is an important by-product of the reverse-logistics process.

True

Vendor-managed inventories are an example of the forward-placement tactic.

True

The assortment of appliances, unused exercise equipment, and cat-scratched couches gave the neighborhood a post-apocalyptic appearance, but I quickly realized it was simply big trash day in this district. This initiative is an example of: a deposit fee program. a community program. a take-back program. a recycling program.

a community program.

A computer-generated memo used by inventory planners to make decisions about releasing new orders and adjusting due dates of scheduled receipts is an:

action notice

The manager at Crystal Mountain Ski Resort lowers the price of lift tickets to $2 during July and August, a traditionally slow period for skiing. This secondary lever impacts:

anticipation inventory

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:

backward integration

Use Figure 15.1 to answer the questions below. Refer to Figure 15.1. The starting point for the traveling salesman is location E, which is the first city in the visited city set. Use the nearest neighbor heuristic to determine the third city in the visited city set.

city B

The purpose of a rotating schedule is to:

deal with certain undesirable aspects of several individual workforce schedules.

Figure 12.1 This figure represents the impact of supply chain performance on total costs. Refer to Figure 12.1. The movement from point A to point B indicates the: increase in time it takes for your firm to deliver goods and services. decrease in time it takes for your firm to deliver goods and services. increase in performance. decrease in cost.

decrease in cost

Gable Express Co. provides delivery service seven days a week. The daily requirements (in workers) are estimated as follows: Day M T W TH F S SU Requirement 8 4 5 3 7 3 3 Each worker is required to work five days per week, and each must have two consecutive days off. What is the minimum number of workers required if preference is given to the pair S-SU in case of a tie in the selection of off days?

eight workers

The framing department has six jobs waiting to be processed. It is now time zero and all jobs are ready to begin. Each has only one operation remaining. All jobs arrived at the same time, and FCFS begins with job A, then B, etc. Job Processing Time DueDate A 5 12 B 7 18 C 8 6 D 3 10 E 9 22 F 12 17 Using the first-come, first-served (FCFS) rule, what is the average days past due?

greater than 10 days but fewer than or equal to 14 days

The Universal Computer Company uses a newly developed A1 chip in the manufacturer of their tablet computers. The estimated annual demand for this chip is 12,000 units. It is estimated that the cost to place an order is $75, and the holding cost for each chip is $20 per year. The company operates 320 days per year.What is the economic order quantity for the A1 chip?

greater than 250 units but less than or equal to 300 units

Henderson Corporation is a supplier of alloy ball bearings to auto manufacturers in Detroit. Because of the specialized manufacturing process employed, considerable work-in-process and raw material inventories are created. The average inventory levels are $1,152,000 and $2,725,000, respectively. In addition, finished goods inventory is $3,225,000, and sales (at cost) for the current year are expected to be about $24 million. The inventory turnover that Henderson Corporation is currently expecting is: less than 2.0. greater than 2.0 but less than 2.5. greater than 2.5 but less than 3.0. Correct! greater than 3.0.

greater than 3.0

Which one of the following is an MRP lot-sizing rule that attempts to minimize the amount of average inventory?

lot for lot (L4L)

Which one of the following is an input to the MRP system?

master production schedule

Gantt charts can be used to:

monitor the progress of jobs and sequence work on each machine.

Which of these is not identified as a component of a geographical information system? hardware data software network

network

Which of the following generates pressure to increase inventories? inventory holding costs ordering costs storage and handling costs taxes and insurance

ordering costs

Any item manufactured from one or more components is a(n):

parent

What level of supply chain coordination involves working with other participants across the supply chain to improve forecast accuracy, resolve critical supply chain events, creating unified pricing plans, and improving production capacities? transaction integration management information strategic collaboration vertical integration

strategic collaboration

Which one of the following descriptions best defines the cycle-service level as a measure of customer service?

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

Facilitating goods in a hotel's bill of resources would include a:

towel

The university housekeeping and maintenance staff was cut by 50% during late December and early January when students were home breaking things and trashing their parents' houses instead of university property. This type of schedule for housekeeping and maintenance workers is a(n):

vacation schedule

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

value analysis.