Intro Supply Chain Final

Name the five (5) key characteristics to consider in the development and implementation of a Supplier Relationship Management system

-Automation, integration, visibility, collaboration, and optimization

What does 3PL stand for

3PL stands for third party logistics

Candidates for a Supplier Certification Program include suppliers who meet one or more of the following criteria, EXCEPT?

A supplier who has a minimal number of significant negative quality related incidents for a specified time period

Which transportation mode is the fastest over a long distance?

Air

Which cost of the quality category includes performing audits to confirm that the quality system is operating properly?

Appraisal Costs

Which of the following is NOT one of the keys to successful strategic partnership?

Building independent objectives

Name five (5) keys to a successful strategic partnership:

Building trust, having a shared vision and objectives, developing personal relationships, establishing mutual benefits and needs, and gaining

A tool used to aid in brainstorming and isolating the causes of a problem

Cause and effect

A tool used to identify the frequency of occurrence for each identified problem

Check sheets

Which warehouse ownership type provides the advantage of providing the client with the option of obtaining specialized services tailor-made to suit their needs without the disadvantage of high startup costs?

Contract Warehouse

A tool used to graph how a process changes over time

Control Chart

Which warehousing process is considered a Lean concept because it eliminates the need to store inventory, and reduces transportation

Cross Docking Warehousing

What is "Cross-Docking"?

Cross-docking is a LEAN concept and logistics practice of unloading materials from an incoming truck/rail car and loading them, which eliminates the need to store inventory and reduce transportation amounts.

Total Quality Management (TQM) is an integrated organizational effort to improve quality at every level. Which one of the following is NOT part of TQM?

Customer Segmentation

The key characteristics to consider in the development and implementation of a Supplier Relationship Management System, include all of the following, EXCEPT?

Detachment

The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT?

Developmental suppliers that need to make improvements

Which LEAN related process can be described as a strategy to increase the level of service to customers through close cooperation among retailers, wholesalers, and manufacturers?

Efficient customer response

The manufacturing strategy in which the product is designed, engineered, and built to specifications only after the order has been received is called what? It is used when products are unique and extensively customized for the specific needs of individual customers.

Engineer-to-Order(ETO)

Which of the following statements is true?

FTL is used when you have enough volume to fill a truck or you don't want any other company's goods on the truck with your product.

A small LTL shipment that originates on a truck in Los Angeles and is moved to Phoenix where it is unloaded and put onto another truck for final shipment to Denver would be considered an intermodal shipment since it utilizes more than one vehicle during shipment

False

A strong supplier partnership requires that both buyer and supplier adopt a strong tactical perspective

False

An effective supplier certification program may increase the time spent on incoming inspections.

False

Consolidation is the term used to describe when a warehouse receives a single large shipment and then separates that shipment into individual deliveries going to multiple destinations.

False

ISO 14000 certification is a series of management and quality standards in design, development, production, installation, and service

False

ISO 14000 is a widely accepted management and quality certification standard.

False

Lean is a disciplined, statistical-based, data-driven methodology for identifying and removing the causes of defects and minimizing variability in manufacturing and in business processes

False

Lean is an operating philosophy or mindset that attempts to minimize the impact of supply variability and flaws in forecasting through the use of safety stock inventories

False

Motor carrier (i.e., trucking) is the most reliable mode of transportation

False

Owning a private warehouse provides a manufacturing company with control and flexibility without presenting a financial risk.

False

Reverse Logistics involves the process of moving a product from the point of origin to the point of consumption to recapture value or ensure proper disposal

False

Supplier Relationship Management is a comprehensive approach for locating and sourcing key suppliers, so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace

False

The logistics practice of unloading materials from an incoming truck or railcar and loading these materials directly onto outbound trucks or railcars, with little or no storage in between, is known as consolidation

False

The major benefits of transportation regulation are that regulation encourages competition in the industry and allows shippers to negotiate prices directly with carriers.

False

The process to evaluate a supplier's capabilities, and their capacity to supply a product or service to the buyer, is known as Supplier Certification

False

The transportation industry continues to be heavily regulated to protect consumers from monopoly pricing, provide safety, and hold carriers liable for their actions

False

In the context of Total cost of manufacturing, procurement, manufacturing, inventory, warehousing and transportation, per unit cost for each goes up as volume increases

False (Too much inventory=invest in more resource)

The transportation term of sale known as Free on Board (F.O.B.) Origin requires that the seller retain ownership of the product from the point of origin until it reaches the buyer's destination

False, that is destination

A tool used to sequence the movements or actions of people or things involved in a complex system or activity

Flow diagram

A tool to graphical display data grouped into ranges

Histogram

What is the common name of the warehouse network that is configured with a centralized warehouse which holds most of the inventory linked to a series of smaller geographically dispersed warehouses which hold only a small amount of inventory to support their local area in the immediate time frame?

Hub and Spoke

Name five (5) services that a 3PL offers

Inbound transportation, outbound transportation, warehousing, pick & pack, and freight forwarding

Benefits of implementing an effective supplier certification program include all of the following EXCEPT?

Increasing the supplier base

Which one of the following is NOT part of the eight (8) wastes identified through LEAN Manufacturing?

Insufficient Capacity

What type of warehouse network strategy would you be using if you positioned your warehouses somewhere midway between the supply sources and the customers to try to balance costs, inventory and customer service?

Intermediately Positioned

Which manufacturing process can be characterized as creating a custom product for each customer?

Job Shop Production Process

The term for a visual signal that authorizes production or the movement of materials to the next workstations is?

Kanban

Which of the following is NOT part of the seven tools of quality control?

LEAN layout

Name the operating philosophy discussed in Chapter 8 that is used to help manage operations in the supply chain.

LEAN: The main objectives are to reduce waste and enhance value

Lean Manufacturing emphasizes all of the following EXCEPT?

Large batch sizes

Which element of Lean can be described as moving people and materials when and where needed, and as soon as possible?

Lean Layouts

Which of the following Manufacturing Strategies has the shortest customer delivery cycle and can be described as producing products to put into inventory?

Make-To-Stock

manufacturing strategies that are most aligned with batch manufacturing.

Make-to-Order and Assemble-to-Order

What company originated the concept of Six Sigma?

Motorola

A tool used to organize and present process problems from most to least severe:

Pareto Analysis

Which quality expert is credited with introducing the concepts of zero defects?

Philip Crosby

Withdrawing components from stock to make assemblies or finished goods, or to ship to a customer, is known as?

Picking

Which transportation mode has the lowest per unit cost

Pipeline

The process commonly utilized in continuous improvement is known as?

Plan, Do, Check, Act

Costs incurred in the process if establishing specifications for incoming materials processes, products, and services are categorized as which of the following?

Prevention costs

The mode of transportation that has the most capability

Rail

Name the five modes of transportation.

Rail, air, water, truck, and pipeline

What are the primary functions of a warehouse:

Receiving, Storage, Picking, Packing, Shipping

What are the five R's of Reverse Logistics?

Returns, Recalls, Repairs, Repackaging, Recycling

A tool used to plot the values of two variables along two axes in order to reveal any correlation present

Scatter diagram

Name the quality management process discussed in Chapter 8

Six Sigma

Which of the following is NOT one of the Seven Tools of Quality Control?

Small Batch Scheduling

Performance Measures should be S.M.A.R.T. which is an acronym that means?

Specific, Measurable, Achievable, Relevant, Time-oriented

An organization process for evaluating the quality systems of key suppliers

Supplier Certification

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as?

Supplier Certification

What are the main objectives of the quality management process Six Sigma

The objective of six sigma is to maintain high standards of work in any aspect of a company's operations

Considering everything discussed in class about Transportation. Which statement BEST describes what Transportation Management involves?

Trade-off decisions between cost & timing of delivery, decisions about how to ship and negotiations regarding freight rates, terms and conditions

Because air transport is so expensive the best cargo candidates for air shipment are products with a high cost to weight ratio

True

Break-Bulk is the term used to describe when a warehouse receives a single large shipment and then separates that shipment into individual deliveries going to multiple destinations.

True

Consolidation is the term used to describe when a warehouse operation receives products from different plants or suppliers, stores them, and then combines them with similar shipments from other plants or suppliers for further distribution.

True

In the context of Total Cost of Manufacturing (TCM), in general terms, procurement, manufacturing, and transportation per unit costs each go down as volume goes up.

True

Intermittent Production Processes are used to produce a large variety of products with different processing requirements in lower volumes

True

Root Cause Analysis is a term that describes a wide range of approaches, tools, and techniques used to uncover causes of problems.

True

The primary design objective of a Lean layout is to reduce wasted movements of workers and/or materials

True

FOB Origin requires that ownership of the goods passes to the buyer when the public carrier accepts the goods from the seller.

True (FOB destination- KEY TERM: destination - cost covered by the seller)

The goal of a good supplier performance evaluation system is to provide metrics that are:

Understandable, easy to measure, and focused on real value-added results

A key supplier's activities to help the buyer's company reduce cost, improve quality and reduce new product development time beginning with the initial design phase, are known as?

Value Engineering

Which quality expert is is widely considered to be the father of Total Quality Management?

W. Edwards Demming

Which one of the following is among the most important elements of the LEAN manufacturing philosophy?

Waste reduction and continuous improvement

Which of the following transportation modes can be characterized as being inexpensive, very slow, inflexible, and good for heavy transportation, heavy, bulky, and containerized cargo?

Water

Make-to-Stock

is the manufacturing strategy that has the shortest / fastest lead time (i.e., the manufacturing strategy that will provide product to customers the quickest).