Supply Chain Multiple Choice Exam I
Prior to embarking on supply chain design, operations managers must first consider A. "make-or-buy" and outsourcing decisions B. What kind of distribution network to have C. How to manage supply chain inventory D. How to select suppliers
"make-or-buy" and outsourcing decisions
Which of the following statements is NOT true? A. Supply chain management describes the coordination of all supply chain activities, starting with raw materials, and ending with a satisfied customer. B. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting. C. A supply chain includes suppliers; manufacturers and/or service providers; and distributors, wholesalers, and/or retailers who deliver the product and/or service to the final customer. D. The objective of supply chain management is to coordinate activities within the supply chain to maximize the supply chain's competitive advantage and benefits to the ultimate consumer.
An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.
How is the EF computed? A. Max{EF of all immediate predecessors} B. ES + Activity time C. Min{LS of all immediate following activities} D. LF −Activity time
ES + activity time
The person who introduced standardized, interchangeable parts was A. Eli Whitney. B. Henry Ford. C. Frederick W. Taylor. D. W. Edwards Deming.
Eli Whitney
How do you open a blank project using Microsoft Project? A. File|Open B. Project|New C. File|Blank D. File|New
File - New
Which of the following organizations does NOT belong to the service sector? A. Southwest airlines B. Ford motor company C. San Diego zoo D. Costco
Ford motor company
The father of scientific management is A. Frederick W. Taylor B. Henry L. Gantt C. Eli Whitney D. Henry Ford
Frederick W. Taylor
Which of the following sets is determined during a backward pass? A. ES and EF B. LS and LF C. LS and ES D. LS and EF
LS and LF
Which forecast error measure is probably the easiest to interpret? A. MSE B. MAD C. MD D. MAPE
MAPE
The person who believed that management must do more to improve the work environment and processes so that quality can be improved was A. Eli Whitney B. Henry Ford C. W. Edwards Deming D. Walter Shewhart
W. Edwards Deming
Which of the following is NOT one of the four reasons that we study OM? A. We want to understand what marketing managers do. B. It is one of the three major functions of any organization. C. We want to know how goods and services are produced. D. It is such a costly part of an organization.
We want to understand what marketing managers do
Which of the following statements is NOT true? A. "Closed-loop supply chain" is sometimes used as a synonym for "reverse logistics." B. Reverse logistics involves the processes of sending returned products back up the supply chain for resale, repair, reuse, remanufacture, recycling, or disposal. C. A closed-loop supply chain prepares for returns prior to product introduction. D. A closed-loop supply chain is designed to optimize only reverse flows.
a closed-loop supply chain is designed to optimize only reverse flows
A forecast that projects a company's sales is A. An economic forecast B. A demand forecast C. An environmental forecast D. A technological forecast
a demand forecast
A supply chain ends with A. Distributors B. Suppliers C. A satisfied customer D. Manufacturers
a satisfied customer
A global network of organizations and activities that supply a firm with goods and services is referred to as A. Production B. Business Functions C. Operations management D. A supply chain
a supply chain
Which of the following mitigation tactics is NOT designed to reduce the risk of information loss or distortion? A. training of supply chain partners on the proper interpretations and use of information B. redundant databases C. alternate sourcing D. secure IT systems
alternate sourcing
A forecast that addresses the business cycle by predicting planning indicators is A. A demand forecast B. An environmental forecast C. An economic forecast D. A technological forecast
an economic forecast
Dummy activities A. cannot be on the critical path. B. are used when two activities have identical starting and ending events. C. have a duration equal to the shortest non-dummy activity in the network. D. are found in both AOA and AON networks.
are used when two activities have identical starting and ending events
Which of the following activities at a commercial bank is NOT an operations activity? A. Maintenance B. Auditing C. Security D. Check clearing
auditing
The service sector constitutes what percentage of employment in the United States? A. Between 80% to 90% B. Between 70% to 80% C. Between 50% to 60% D. Between 60% to 70%
between 80% to 90%
What is a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship? A. Postponement B. Drop shipping C. Advanced shipping notice D. Blanket order
blanket order
When using exponential smoothing, the smoothing constant A. is typically between .75 and .95 for most business applications. B. indicates the accuracy of the previous forecast. C. should be chosen to maximize positive bias. D. can be determined using MAD.
can be determined using MAD
A response strategy requires suppliers be selected based primarily on A. capacity, speed, and flexibility B. cost C. product development skills D. being willing to share information
capacity, speed, and flexibility
Which of the following could reduce distribution risk? A. Secure IT systems B. Use multiple suppliers C. Cross-country diversification D. careful selection, monitoring and effective contracts with penalties
careful selection, monitoring and effective contracts with penalities
Which of the following statements is NOT true regarding channel assembly? A. Channel assembly sends individual components, modules, and finished products, to the distributor. B. Channel assembly treats distributors more as manufacturing partners than as distributors. C. Channel assembly postpones final assembly of a product so the distribution channel can assemble it. D. Channel assembly represents one way to implement postponement.
channel assembly sends individual components, modules, and finished products, to the distributor
What is a supply chain designed to optimize both forward and reverse flows? A. Bullwhip-loop supply chain B. Reverse-loop supply chain C. Closed-loop supply chain D. Open-loop supply chain
closed-loop supply chain
CPFR is A. collaborative, planning, forecasting, and replenishment. B. complete, partner, forecasting, and replenishment. C. complete, planning, forecasting, and replenishment. D. collaborative, partner, forecasting, and replenishment.
collaborative, planning, forecasting, and replenishment
Which of the following is NOT considered to be a stakeholder? A. Community members B. Customers C. Distributors D. Competitors
competitors
The cost to produce the goods or services sold for a given period is referred to as A. Inventory investment B. Inventory turnover C. Cost of goods sold D. Weeks of supply
cost of goods sold
Inventory turnover is equal to A. (total assets / total inventory investment) ×100. B. (total inventory investment / total assets) ×100. C. inventory investment / (annual cost of goods sold / 52 weeks). D. cost of goods sold / inventory investment.
cost of goods sold/inventory investment
What is the shortest duration required to complete an activity? A. Pessimistic time B. Most likely time C. Optimistic time D. Crash time
crash time
The goal of CPFR is to A. create significantly more accurate information that can power the supply chain. B. create good relations with suppliers. C. determine which model needs to be used to predict future events. D. ensure product innovation.
create significantly more accurate information that can power the supply chain
Which of the following statements is true regarding cross-sourcing? A. Cross-sourcing describes suppliers who become part of a company coalition. B. Cross-sourcing enhances technological skills. C. Cross-sourcing uses one supplier for a component and a second supplier for another component, where each supplier acts as a backup for the other. D. Cross-sourcing develops the ability to produce goods or services previously purchased or actually buying a supplier or distributor.
cross-sourcing uses one supplier for a component and a second supplier acts as a backup for the other
Which of the following statements is NOT generally an implication stemming from an increase in the number of facilities? A. increased facility costs B. decreased total logistics cost C. increased customer satisfaction D. quicker response
decreased total logistics cost
Which of the following activities does NOT belong to the controlling phase of project management? A. Define the project B. Revise plans C. Shift resources D. Monitor resources, costs, quality, and budgets
define the project
Which of the following is a qualitative forecasting method? A. Naïve approach B. Linear regression C. Delphi method D. Trend projection
delphi method
Which one of the following statements is NOT true about the forecasting in the service sector? A. Hourly demand forecasts may be necessary. B. Demand patterns are often different from those in non-service sectors. C. Forecasting in the service sector presents some unusual challenges. D. Detailed forecasts of demand are not needed.
detailed forecasts of demand are not needed
Which of the following is the FIRST step in a forecasting system? A. Select the forecast model B. Determine the use of the forecast C. Select the items to be forecasted D. Determine the time horizon of the forecast
determine the use of the forecast
Which of the following best defines scheduling? A. Determines and implements long- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands. B. Determines and implements long- and short-term schedules that effectively and efficiently utilize personnel while meeting customer demands. C. Determines and implements intermediate- and short-term schedules that effectively and efficiently utilize personnel while meeting customer demands. D. Determines and implements intermediate- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands.
determines and implements intermediate- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands
Supply chain managers outsource logistics to meet three goals: A. drive down inventory investment, improve delivery reliability and speed, and provide better market response. B. drive down inventory investment, lower delivery costs, and improve delivery reliability and speed. C. drive down inventory investment, lower delivery costs, and provide better market response. D. lower delivery costs, improve delivery reliability and speed, and provide better market response.
drive down inventory investment, lower delivery costs, and improve delivery reliability and speed.
Which of the following is a quantitative forecasting method? A. Market survey B. Jury of executive opinion C. Sales force composite D. Exponential smoothing
exponential smoothing
Which of the following is NOT a technique that allows managers to plan, schedule, and controlprojects? A. Gantt charts B. CPM C. PERT D. Factor-rating method
factor-rating method
Which of the following statements is NOT true? A. Packaging and logistics are important distribution decisions, because the manufacturer is usually held responsible for breakages and serviceability. B. An effective supplier management program and an effective distribution management program may make the difference between supply chain success and failure. C. Finding the optimal number of facilities represents a critical and static decision. D. Top-notch supply chain performance requires good downstream management, just as it does good upstream management.
finding the optimal number of facilities represents a critical and static decision
Forecasting that tries a variety of computer models and selects the best one for a particular application is referred as A. Trend projection B. Adaptive smoothing C. Focus forecasting D. Jury of executive opinion
focus forecasting
Forecasting that tries a variety of computer models and selects the best one for a particular application is referred as A. focus forecasting. B. jury of executive opinion. C. adaptive smoothing. D. trend projection.
focus forecasting
Which of the following statements is NOT true regarding forecasting? A. Forecasting is exclusively an objective prediction. B. Forecasting is the art and science of predicting future events. C. Forecasting may involve taking historical data and projecting them into the future with a mathematical model. D. A forecast is usually classified by the future time horizon that it covers.
forecasting is exclusively an objective prediction
The advantage of having a few suppliers is to A. Form a long-term relationship B. Pursue low cost C. Take advantage of diseconomies of scale D. Look for short-term attributes
form a long-term relationship
Which of the following is NOT true about Gantt charts? A. Gantt charts are low-cost means of helping managers make sure that activities are planned. B. Gantt charts are planning charts used to schedule resources and allocate time. C. Gantt charts adequately illustrate the interrelationships between the activities and the resources. D. Gantt charts also can be used for scheduling repetitive operations.
gantt charts adequately illustrate the interrelationships between the activities and the resources
Which of the following statements is NOT one of the response strategy decisions? A. Gather and communicated market research data B. Fast transportation C. Low setup time D. Use buffer stocks to ensure speedy supply
gather and communicated market research data
Which of the following is NOT one of the benefits accrued from a centralized purchasing function? A. Leverage purchase volume for better pricing. B. Devote more resources to the supplier selection and negotiation process. C. Maintain professional control over the purchasing process. D. Increase the duplication of tasks.
increase the duplication of tasks
The capital investment each year in the United States usually A. decreases unless favorably taxed. B. decreases. C. remains constant. D. increases.
increases
Which operations function at a manufacturing facility strives for the efficient use of machines, space, and personnel? A. Production and inventory control B. Process analysis C. Design D. Industrial engineering
industrial engineering
Productivity increases when A. Inputs increase while outputs remain the same. B. outputs decrease while inputs remain the same. C. inputs decrease while outputs remain the same. D. inputs and outputs increase proportionately.
inputs decrease whiles outputs remain the same
Which of these is NOT one of the basic functions of the management process? A. Controlling B. Inspecting C. Staffing D. Leading
inspecting
Which organization has developed principles and standards to be used as guidelines for ethical behavior? A. Institute for Vendor Management B. Institute for Purchasing Management C. Institute for Supply Management D. Institute for Procurement Management
institute for supply management
Which of the following is NOT one of the reasons operations managers want to work with their supply chains to viciously cut inventories at every level? A. Inventory constrains response to ever-shorter product life cycles. B. Inventory requires financial resources. C. Inventory provides safety against higher-than expected demand. D. Inventory hides quality issues.
inventory provides safety against higher-than-expected demand
Which of the following is NOT one of the reasons operations managers want to work with their supply chains to viciously cut inventories at every level? A. Inventory provides safety against higher-than-expected demand. B. Inventory requires financial resources. C. Inventory constrains response to ever-shorter product life cycles. D. Inventory hides quality issues.
inventory provides safety against higher-than-expected demand
Airfreight A. is the oldest means of freight transportation. B. is a fast-growing mode of shipping. C. represents about 10% of the tonnage shipped in the United States. D. is the best way to transport natural gas
is a fast-growing mode of shipping
A tracking signal A. that is negative indicates that demand is greater than the forecast. B. cannot be used with exponential smoothing. C. is computed as the mean absolute deviation (MAD) divided by the running sum of the forecast errors (RSFE). D. is a measurement of how well a forecast is predicting actual values.
is a measurement of how well a forecast is predicting actual values
Trucking A. is one of the least flexible transportation modes. B. is the least used transportation mode for manufacturing goods. C. is increasingly using computers to manage its operations. D. does not play a role in multimodal shipping.
is increasingly using computers to manage its operations
With respect to PERT and CPM, slack A. is a task or subproject that must be completed. B. marks the start or completion of a task. C. is the latest time an activity can be started without delaying the entire project. D. is the amount of time a task may be delayed without changing the overall project completion time.
is the amount of time a task may be delayed without changing the overall project completion time
Which of the following strategies is part collaboration, part purchasing from few suppliers, and part vertical integration? A. joint ventures B. keiretsu networks C. horizontal integration D. virtual companies
keiretsu networks
Which of the following trends is NOT part of the exciting OM challenges currently facing operations managers? A. Local focus B. Rapid product development C. Supply chain partnering D. Sustainability
local focus
Which of the following activities are NOT part of project scheduling? A. Chart separate schedules for personnel needs by type of skill and materials needs. B. Decide how long each activity will take. C. Make sure all necessary activities are finished in proper sequence and on time. D. Compute resources needed at each stage of production.
make sure all necessary activities are finished in proper sequence and on time
Which of the following is a direct responsibility of the project manager? A. drawing the network diagram B. making sure that the people assigned to the project receive the motivation, direction, and information needed to do their jobs C. performing all of the activities in the project D. calculating completion probabilities for all tasks in the project
making sure that the people assigned to the project receive the motivation, direction, and information needed to do their jobs
Which of the following is NOT true regarding PERT and CPM? A. Managers only need to closely monitor the critical path. B. Time estimates are subject to fudging by managers. C. PERT and CPM are useful in monitoring costs. D. PERT and CPM are useful when controlling large projects.
managers only need to closely monitor the critical path
Which negotiation strategy bases price on a published, auction, or index price? A. Competitive bidding B. Market-based price model C. Supply-based price model D. Cost-based price model
market-based price model
Which of the following is NOT one of the factors that fosters specialization and worldwide supply chains? A. Cheaper transportation B. Instant communication C. Specialized expert knowledge D. Marketing
marketing
Which of these is NOT one of the 10 strategic OM decisions? A. Marketing B. Scheduling C. Layout strategies D. Managing quality
marketing
Each Hard Rock Café goes through a complete change of ________ every 5-7 years. A. team leaders B. menu items C. memorabilia D. merchandise
memorabilia
Which of the following industries has the highest supply chain cost as a percentage of sales? A. restaurants B. automobile C. petroleum D. metals
metals
What is the most popular example of specialized software for managing projects? A. Microsoft project B. Microsoft management tool C. Project apple D. PERT/CPM+
microsoft project
Which of the following does NOT belong to the planning phase of project management? A. defining the project B. team organization C. goal setting D. monitoring resources
monitoring resources
The ratio of all resources to the goods and services produced is referred to as A. Multifactor productivity B. Productivity growth C. Labor productivity D. Single-factor productivity
multifactor productivity
Which forecasting method considers several variables that are related to the variable being predicted? A. weighted moving average B. simple regression C. multiple regression D. exponential smoothing
multiple regression
Which of the following is NOT a time-series model? A. moving averages B. exponential smoothing C. naive approach D. multiple regression
multiple regression
What mathematical technique is used when planning menu changes? A. standard error of the estimate B. exponential smoothing C. multiple-regression analysis D. correlation analysis
multiple-regression analysis
The advantage of having many potential suppliers is their willingness to A. Participate in JIT B. Offer lower prices in the short term C. Provide technical expertise D. Provide innovations
offer lower prices in the short term
A large percentage of the revenue of most firms is spent on which function? A. Marketing B. Finance C. Research and development D. Operations
operations
Which of the following is NOT an element used to compute crash cost per period? A. optimistic time B. crash cost C. crash time D. standard time
optimistic time
Which of the following is a reality each company faces regarding its forecasting system? A. Most forecasting techniques assume there is no underlying stability in the system. B. After automating their predictions using computerized forecasting software, firms closely monitor only the product items whose demand is stable. C. Outside factors that we cannot predict or control often impact the forecast. D. Product family forecast are less accurate than individual product forecasts.
outside factors that we cannot predict or control often impact the forecast
What is transferring a firm's activities that have traditionally been internal to external suppliers? A. Keiretsu network B. Outsourcing C. Make-or-buy D. Vertical integration
outsourcing
What is transferring a firm's activities that have traditionally been internal to external suppliers? A. keiretsu network B. vertical integration C. make-or-buy D. outsourcing
outsourcing
Three common measures of supply chain performance are: A. percentage invested in inventory, debt/equity ratio, and weeks of supply. B. debt/equity ratio, inventory turnover, and weeks of supply. C. percentage invested in inventory, inventory turnover, and weeks of supply. D. percentage invested in inventory, inventory turnover, and debt/equity ratio.
percentage invested in inventory, inventory turnover, and weeks of supply.
Which of the following industries has the highest supply chain cost as a percentage of sales? A. Petroleum B. Automobile C. Restaurants D. Metals
petroleum
Among the following, critical path and slack time analysis MOST help A. highlight relationships among project activities. B. pinpoint activities that need to be closely watched. C. managers define the project activities. D. point out who is responsible for various activities.
pinpoint activities that need to be closely watched
Gantt charts are A. Not easy to understand B. Planning charts used to schedule resources and allocate time C. Not widely used D. Widely used network techniques
planning charts used to schedule resources and allocate time
The three phases involved in the management of large projects are A. planning, scheduling, and controlling. B. scheduling, operating, and evaluating. C. planning, scheduling, and evaluating. D. scheduling, designing, and operating
planning, scheduling, and controlling
The do-it-yourselfer plucked a gallon can of base paint from the shelf of the local hardware store and handed it to Keith, the cheerful clerk at the paint counter. Their eyes met briefly and the do-it-yourselfer silently handed over sample 150C-1, Musical Mist, to the clerk. It was impractical to keep several gallons of every possible color on the shelves at the hardware store, so the paint manufacturer had created clever workaround. The workaround was a computer-based system that added predetermined quantities of pigments to a gallon can of base paint depending on the desired shade, in this case, Musical Mist. The hardware store now needed to stock only the base paint, this machine, and a small supply of paint pigments in order to create the thousands of colors in its catalog. A. The bullwhip effect B. Drop shipping C. Postponement D. Vendor-managed inventory
postponement
Which column in Microsoft Project defines the precedence relationships among the activities? A. Order B. Successors C. Predecessors D. Relations
predecessors
With regard to the cost-based price model negotiation strategy, which of the following is true? A. Potential suppliers each submit quotations as to price, delivery, and so on. B. Prices float based on what the customer is willing to pay. C. Prices are based in some way upon market standards agreed to by both supplier and purchaser. D. Prices are based upon supplier costs.
prices are based upon supplier costs
With regard to the cost-based price model negotiation strategy, which of the following is true? A. Prices are based in some way upon market standards agreed to by both supplier and purchaser. B. Prices float based on what the customer is willing to pay. C. Potential suppliers each submit quotations as to price, delivery, and so on. D. Prices are based upon supplier costs.
prices are based upon supplier costs
Computerized PERT/CPM reports and charts do NOT include A. detailed cost breakdowns for each task. B. cost distribution tables. C. probability estimates for on-time completion. D. variance reports.
probability estimates for on-time completion
Which of the following OM decisions determines how a good or service is produced and commits management to specific technology, quality, human resources, and capital investment? A. human resources and job design B. process and capacity design C. design of goods and services D. managing quality
process and capacity design
The creation of goods and services is referred to as: A. Design B. Transformation C. Production D. Formation
production
Which of these statements is NOT true about project scheduling? A. Project scheduling helps make better use of resources by identifying the non-critical paths through the network. B. Project scheduling encourages the setting of realistic time and cost estimates for each activity. C. Project scheduling identifies the precedence relationships among activities. D. Project scheduling shows the relationship of each activity to others.
project scheduling helps make better use of resources by identifying the non-critical paths through the network
When determining the optimal number of facilities, logistics-related costs do NOT usually include which of the following costs? A. Purchasing B. Inventory C. Facility D. Transportation
purchasing
Which of the following mitigation tactics could reduce economic risk? A. Franchising and licensing B. Multiple transportation modes and warehouses C. Subcontractors on retainer D. Purchasing contracts that address price fluctuations
purchasing contracts that address price fluctuations
Which of these statements accurately captures a current trend in operations? A. Jobs are increasingly specialized as workers focus on basic assembly tasks. B. Mass production at the expense of product variety. C. There is increased focus on local market and local competition. D. Rapid product development.
rapid product development
Which of these statements accurately captures a current trend in operations? A. There is increased focus on local market and local competition. B. Rapid product development. C. Jobs are increasingly specialized as workers focus on basic assembly tasks. D. Mass production at the expense of product variety.
rapid product development
Three criteria for designing distribution networks to meet customer expectations are: A. low cost, product choice and service. B. rapid response, product choice, and service. C. low cost, rapid response and product choice. D. rapid response, low cost, and service.
rapid response, product choice, and service
Which of the following is NOT considered to be one of the three primary functions that all organizations perform? A. research and development B. production/operations C. marketing D. finance/accounting
research and development
Which of the following activities at an airline is NOT an operations activity? A. Catering B. Crew scheduling C. Flying D. Sales
sales
Which forecasting model is based upon salespersons' estimates of expected sales? A. Delphi method B. Market survey C. Sales force composite D. Jury of executive opinion
sales force composite
What is a data pattern that repeats itself after a period of days, weeks, months, or quarters? A. Random variation B. Cycle C. Trend D. Seasonality
seasonality
Which of the following forecasting steps comes directly after determining the time horizon of the forecast? A. Select the items to be forecasted B. Select the forecasting model(s) C. Gather the data D. Make the forecast
select the forecasting model(s)
Which of the following is NOT part of project controlling? A. using a feedback loop to revise the project plan B. shifting resources to where they are needed most C. sequencing and allotting time to all project activities D. close monitoring of resources, costs, quality, and budgets
sequencing and allotting time to all project activities
The economic activities that typically produce an intangible product are referred to as A. Services B. Products C. Goods D. phantoms
services
The forecasting time horizon that would typically be easiest to predict for would be the A. long range. B. short range. C. intermediate range. D. medium range.
short range
Which of the following is NOT true about reverse logistics as compared to forward logistics? A. Speed is often very important. B. Forecasting is more uncertain. C. Pricing is dependent on many factors. D. Distribution costs are less directly visible.
speed is often very important
Which of these time estimates is NOT used in PERT? A. Standard time B. Pessimistic time C. Optimistic time D. Most likely time
standard time
Which of the following is NOT a characteristic of services? A. produced and consumed simultaneously B. intangible C. unique D. standardized product
standardized product
Which of the following is an advantage of PERT and CPM? A. Straightforward concept and not mathematically complex. B. Precedence relationships must be specified and networked together. C. Useful in monitoring only schedules. D. Project activities have to be clearly defined, independent, and stable in their relationships.
straightforward concept and not mathematically complex
Which of the following is the THIRD level in work breakdown structure (WBS)? A. Subtasks in major tasks B. Major tasks in the project C. Activities to be completed D. Project
subtasks in major tasks
Which of the following is the first stage of supplier selection? A. supplier development B. supplier evaluation C. contracting D. negotiations
supplier evaluation
Competition in the 21st century is no longer between companies; it is between A. supply chains. B. technologies. C. countries. D. individuals.
supply chains
Competition in the 21st century is no longer between companies; it is between A. technologies B. countries C. individuals D. supply chains
supply chains
What does Microsoft Project call an activity? A. Task B. Goal C. Event D. Job
task
Which of the following statements is NOT true regarding the bullwhip effect? A. The bullwhip effect occurs as order are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations decreasing at each step in the sequence. B. Inaccurate information results in distortions and fluctuations, causing what is known as the bullwhip effect. C. Bullwhip fluctuations in the supply chain decrease customer service and profitability. D. Bullwhip fluctuations in the supply chain increase the costs associated with inventory, transportation, shipping and receiving.
the bullwhip effect occurs as orders are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations decreasing at each step in the sequence
A forecasting technique consistently produces a negative tracking signal. This means that A. the MAPE will also consistently be negative. B. the forecasting technique consistently over-predicts. C. the forecasting technique consistently under-predicts. D. the MSE will also consistently be negative.
the forecasting technique consistently over-predicts
What is the goal for mass customization? A. The goal is to seek creative designs, efficient production, and high-quality goods via international collaboration. B. The goal is to enrich jobs and move more decision making to the individual contributor. C. The goal is to let operations managers work with their supply chain to viciously cut inventories at every level. D. The goal is to produce customized products, whenever and wherever needed.
the goal is to produce customized products, whenever and wherever needed
The project organization may be LESS helpful when A. the work contains complex interrelated tasks requiring specialized skills. B. the project cuts across organizational lines. C. work tasks can be defined with a specific goal and deadline. D. the job is familiar to the existing organization.
the job is familiar to the existing organization
"Today's forecast equals yesterday's actual demand" is referred as A. The Delphi method B. A moving average C. Exponential smoothing D. The naïve approach
the naïve approach
In general, the supply chain starts with A. Research and Development B. The provider of basic raw materials C. Final customers at the retail store D. A distributor
the provider of basic raw materials
PERT analysis computes the variance of the total project completion time as A. the sum of the variances of all activities on the critical path. B. the variance of the final activity of the project. C. the sum of the variances of all activities not on the critical path. D. the sum of the variances of all activities in the project.
the sum of variances of all activities on the critical path
Which of the following is a limitation of PERT and CPM? A. They are applicable to only a narrow variety of projects and industries. B. There is the inherent danger of placing too much emphasis on the critical path. C. The graphical nature of a network delays comprehension of the activity list's interrelationships. D. They can be used only to monitor schedules.
there is an inherent danger of placing too much emphasis on the critical path
Which of the following statements is an assumption PERT makes regarding the probability of finishing the project ontime? A. Total project completion times follow a uniform probability distribution. B. Activity times are statistically identical. C. Activity times are statistically dependent. D. Total project completion times follow a normal probability distribution.
total project completion times follow a normal probability distribution
Which of the following is an example of a "hidden" production function? A. Manufacturing a television B. Assembling a motorcycle C. Producing a computer D. Transplanting a liver
transplanting a liver
Which of the following does NOT contribute to OM? A. innovations from physical sciences B. other disciplines including industrial engineering, statistics, management, and economics C. information technology D. unsystematic processing of data
unsystematic processing of data
Which of the following statements is NOT one of the differentiation strategy decisions? A. Minimize inventory to avoid product obsolescence. B. Modular design to aid product differentiation. C. Use buffer stocks to ensure speedy supply. D. Gather and communicate market research data.
use buffer stocks to ensure speedy supply
Which of the following is the FINAL step in a forecasting system? A. Make the forecast. B. Select the forecast model(s). C. Validate and implement the results. D. Gather the data needed to make the forecast.
validate and implement the results
A lawnmower assembly plant uses a variety of nuts, bolts, screws, and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule. This is an example of A. E-procurement B. Postponement C. Single stage control of replenishment D. Vendor-managed inventory
vendor-managed inventory
What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor? A. Horizontal integration B. Virtual companies C. Vertical integration D. Outsourcing
vertical integration
Which of the following statements is NOT true? A. When excess capacity exists, cost can decrease. B. When capacity is inadequate, market share can shrink. C. When excess capacity exists, cost can increase. D. When capacity is inadequate, customers can be lost.
when excess capacity exists, cost can decrease
