ISDS 3115 Mult. Choice (Final)
When quantity discounts are allowed, the cost-minimizing order quantity: A. may be a quantity below that at which one qualifies for that price. B. minimizes the sum of holding and ordering costs. C. minimizes the sum of holding, ordering, and product costs. D. is always an EOQ quantity. E. minimizes the unit purchase price.
C
The objective of aggregate planning is to meet forecast demand while ______ over the planning period. a. minimizing fixed cost b. maximizing service level c. minimizing stock out d. minimizing cost e. all of the above
D
The staff training center at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 1200 employees per year. Since the training center was first put into use, the program has become more complex, so that 950 now represents the most employees that can be trained per year. In the past year, 850 employees were trained. The efficiency of this system is approximately ________ and its utilization is approximately ________. A. 87.5 percent; 950 employees B. 79.2 percent; 90.5 percent C. 90.5 percent; 79.2 percent D. 89.5 percent; 70.8 percent E. 950 employees; 850 employees
D
The use of effective contracts with penalties could reduce which form of supply chain risk? A. Distribution B. Supplier failure to deliver C. Logistic delays or damages D. All of the above
D
What is the practice of keeping a product generic as long as possible before customizing? A. vendor-managed inventory B. backward integration C.forward integration D. postponement E. keiretsu
D
What is the primary purpose of the basic economic order quantity model Q^ * = sqrt 2DS/H? A. to minimize the sum of carrying and holding cost B. to calculate the reorder point, so that replenishments take place at the proper time C. to calculate the optimum safety stock D. to minimize the sum of setup cost and holding cost E. to maximize the customer service level
D
What is the term of shipping directly from the supplier to the end consumer rather than from the seller, saving both time and reshipping costs? A. Vendor-managed inventory B. Postponement C. Direct shipping D. Drop shipping
D
Which of the following is NOT a source of variability? A. Engineering drawings are inaccurate. B. Drawings or specifications are incomplete. C. Customer demand is unknown. D. Employees, machines, and suppliers produce units that conform to standards. E. Employees, machines, and suppliers produce units late.
D
Which of the following is NOT an advantage of level scheduling? A. lower absenteeism B. lower turnover C. stable employment D. matching production exactly with sales E. more employee commitment
D
Which of the following is one of the four principles of bottleneck management? A. Lost time at a non-bottleneck is lost system capacity. B. Increased non-bottleneck capacity is increased system capacity. C. Bottlenecks should be moved to the end of the system process. D. Release work orders to the system at the bottleneck's capacity pace. E. Increasing capacity at bottleneck stations is a mirage.
D
Which of the following should be higher in P systems than Q systems? A. demand B. order size C. lead time D. safety stock E. order spacing
D
Which of the following statements about quantity discounts is FALSE? a. If carrying costs are expressed as a percentage of value, EOQ is larger at each lower price in the discount schedule b. The cost-minimizing solution may or may not be where annual holding costs equal annual ordering costs. c. The smaller the ordering cost, the less attractive a discount schedule will be d. The larger the annual demand, the less attractive a discount schedule will be e. In Inventory management, cost becomes relevant to order quantity decisions when a quantity discount is available.
D
Which of the following statements is TRUE about the MRP plan when using lot-for-lot ordering? A. The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent. B. The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent. C. The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent. D. The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly. E. All of the above are true.
D
An assembly line has 10 stations with times of 1, 2, 3, 4, ..., 10, respectively. What is the bottleneck time? A. 50% of the throughput time B. 100% of the throughput time C. 550% of the throughput time D. 1.82% of the throughput time E. 18.18% of the throughput time
E
Consider a production line with five stations. Station 1 can produce a unit in 9 minutes. Station 2 can produce a unit in 10 minutes. Station 3 has two identical machines, each of which can process a unit in 12 minutes (each unit only needs to be processed on one of the two machines). Station 4 can produce a unit in 11 minutes. Station 5 can produce a unit in 8 minutes. Which station is the bottleneck station? A. Station 5 B. Station 3 C. Station 2 D. Station 1 E. Station 4
E
Dependence on an external source of supply is found in which of the following aggregate planning strategies? a. varying production rates through overtime or idle time b. hiring and laying off c. using part-time workers d. back ordering during high demand periods E subcontracting
E
In level scheduling what is kept uniform from month to month? A.demand levels B.inventory levels C.product mix D.sub- contracting levels E.production workforce levels
E
In MRP, system nervousness is caused by: A. management's attempt to evaluate alternative plans before making a decision. B. management's marking part of the master production schedule as "not to be rescheduled". C. the use of phantom bills of material. D. the use of the lot-for-lot approach. E. management's attempt to continually respond to minor changes in production requirements.
E
Lean operations are known for their A. supplier education B. challenging jobs C. employee development D. supplier partnerships E. All of the above are attributes of lean operations
E
Product-focused processes: A. are profitable because customers demand flexibility, not specialization. B. apply only to service firms, not to manufacturers. C. allow more customization, but are not very efficient. D. are processes that accommodate a variety of products or customer groups. E. tend to have long, continuous production runs.
E
The bullwhip effect a. increases the costs associated with inventory in the supply chain b. occurs because of distortions in information in the supply chain c. occurs as orders are relayed from retailers to distributors to wholesalers to manufacturers d. results in increasing fluctuations at each step of the sequence E. All of the above are true
E
The main trait of a single-period model is that: a. the cost of a shortage cannot be determined accurately b. the order quantity should usually equal the expected value of demand c. supply is limited. d. it has the largest EOQ sizes. e. Inventory has limited value after a certain period of time
E
The two most basic inventory questions answered by the typical inventory model are: A. timing of orders and cost of orders. B. ordering cost and carrying cost. C. order quantity and cost of orders. D. order quantity and service level. E. timing of orders and order quantity.
E
What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor? A. virtual companies B. outsourcing C. vertical integration D. horizontal integration
C
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. vendor-managed inventory. B. e-procurement. C. postponement. D. single stage control of replenishment.
A
A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. When this large order is sent to the the distributor assumes the large size is a trend, not a one-time event. The distributor therefore places an even larger order with the lobsterman This behavior is the result of which of the following? a. the bullwhip effect b. vendor-managed inventory c. double marginalization d. postponement e. CPFR
A
A supply chain ends with A. a satisfied customer. B. distributors. C. suppliers. D. manufacturers.
A
ABC analysis is based upon the principle that a. there are usually a few critical items, and many items that are less critical b. as with grade distributions in many MBA courses, there should be more medium-level items than either A or C items c. all items in inventory must be monitored very closely d. more time should be spent on class C items because there are many more of them e. an item is critical its usage is high
A
An advantage of the fixed period inventory system is that: A. there is no physical count of inventory when an item is withdrawn B. no inventory records are required C. orders usually are for smaller order quantities D. safety stock will be lower than it would be under a fixed quantity Inventory system E. the average inventory level is reduced
A
A single-period inventory model is NOT applicable for A. furniture. B. seasonal goods. C. newspapers. D. milk.
A
Enterprise resource planning (ERP) A. automates and integrates the majority of business processes B. does not integrate well with functional areas other than operations C. is inexpensive to implement D.seldom requires software upgrade or enhancement E. all of the above
A
JIT makes quality cheaper because: A. JIT prevents long runs of defects. B. JIT adds more buffers to the system. C. the cost of low quality can be hidden in inventory. D. B and C E. A, B and C
A
Kanban is associated with all EXCEPT which of the following? A. increased material handling B. reductions in inventory C. small lot sizes D. signals, such as cards, lights, or flags E. moving inventory only as needed
A
Low-level coding means that A. a component item is coded at the lowest level at which it appears in the BOM structure B. the top level of the BOM is below level zero and that BOMs are not organized around the finished product . C. the code being used is the code for the lowest level in the BOM structure. D. the lowest-paid staff member in the production department performs E. the coding a final item has only a few levels in the BOM structure
A
The fixed−period inventory system requires more safety stock than a fixed-quantity system because: A. a stockout can occur during the review period as well as during the lead time. B. replenishment is not instantaneous. C. this model is used for products that have large standard deviations of demand. D. setup costs and holding costs are large. E. this model is used for products that require very high service levels.
A
Which of the following actions is consistent with the use of level scheduling? a. use inventory to meet demand requirements b. vary production levels to meet demand requirements c. use overtime to meet higher-than-average demand requirements d. vary work force to meet demand requirements E none of the above
A
Which of the following best represents the relationship between the master production schedule (MPS) and the aggregate plan? A. The MPS disaggregates the aggregate plan. B. The MPS is the same as the aggregate plan. C. The MPS precedes the aggregate plan in the planning process. D. There is no relationship between the MPS and the aggregate plan.
A
Which of the following is FALSE regarding the links between JIT and quality? A. JIT increases the cost of obtaining good quality. B. If consistent quality exists, JIT allows firms to reduce all costs associated with inventory. C. Inventory hides bad quality; JIT immediately exposes it. D. JIT reduces the number of potential sources of error by shrinking queues and lead times. E. As quality improves, fewer inventory buffers are needed; in turn, JIT performs better.
A
Which of the following is an advantage of the postponement technique? a. reduction in inventory investment b.reduction in automation c. early customization of the product d.reduction in training costs e. better quality of the product
A
Which of the following phrases best describes process focus? A. low volume, high variety B. Finished goods are usually made to a forecast and stored. C. high fixed costs, low variable costs D. Operators are less broadly skilled. E. low inventory
A
Which of the following statement is NOT true? A. Having certain demand raises the possibility of a stockout. B. Probabilistic models are a real-world adjustment because demand and lead time will not always be known and constant. C. Probabilistic models relax the assumption that demand for a product is constant and certain. D. The service level is the complement of the probability of a stockout.
A
Which of the following statements regarding a pull system is TRUE? a. Problems become more obvious b.Manufacturing cycle time is increased c. Work is pulled to the downstream stations before it is actually needed d. Large lots are pulled from upstream stations e. None of the above is true of a pull system
A
Which of the following statements regarding aggregate planning is TRUE? a. Mixed strategies in aggregate planning may inventory, work force, and production rate changes over the planning horizon. b. in a pure level strategy production rates or work force levels are adjusted to match demand over the planning horizon c. Because service have no inventory, the chase strategy does not apply d. pure level strategy allows lower inventories when compared to pure chase and hybrid strategies e. A disadvantage of the option of changing inventory levels is that it forces abrupt production changes
A
Which of these statements about the production order quantity model is FALSE? a. All else equal the smaller the ratio of demand rate to production rate, the larger is the production quantity b.Average inventory is less than one-half of the production order quantity c. Because receipt is some units are used immediately and not stored in inventory d. The production order quantity model is appropriate when the assumptions of the basic model are met, except that receipt is e.None of the above is false
A
Frito-Lay is to ________ focus as Dell Computer is to ________ focus. A. product, mass customization B. product, repetitive C. process, product D. process, repetitive E. repetitive, product
A
A disadvantage of the fixed-period inventory system is that: A. additional inventory records are required. B. since there is no count of inventory during the review period, a stockout is possible. C. orders usually are for larger quantities. D. the average inventory level is decreased. E. it involves higher ordering costs than the fixed quantity inventory system.
B
A grill assembly takes 20 washers. Instead of listing these washers separately, they are grouped into a single kit for production. How is the bill of material for the washers classified? A. modular bill B. planning bill C. low-level bill D. phantom bill E. component bill
B
Aggregate planning would entail which of the following production aspects at BMW for a 12-month period? A. number of cars with a hi-fi stereo system to produce B. total number of cars to produce C. number of two-door vs. four- door cars to produce D. number of green cars to produce E. B,C, and D
B
The purpose of safety stock is to A. eliminate the likelihood of a stockout due to erroneous inventory tally B. control the likelihood of a stockout due to variable demand and/or lead time. C. eliminate the possibility of a stockout D. protect the firm from a sudden decrease in demand E. replace failed units with good ones
B
Characteristics of just-in-time partnerships do NOT include: A. removal of in-transit inventory. B. large lot sizes to save on setup costs and to gain quantity discounts. C. focus on core competencies. D. long-term contracts. E. produce with zero defects.
B
Demand for dishwasher water pumps is 8 per day. The standard deviation of demand is 3 per day, and the order lead time is four days. The service level is 95%. What should the reorder point be? A. about 32 B. more than 40 C. about 38 D. about 18 E. about 24
B
Fried chicken fast-food chain that acquired feed mills and poultry farms has performed which of the following? A. job expansion B. backward integration C. current transformation D. forward integration E. horizontal integration
B
How can a reduction of in-transit inventory be encouraged? A. use of trains, not trucks B. supplier location near plants C. high setup costs D. low-cost, global suppliers E. low carrying costs
B
If a factory wants to cut its current lot size in half, by what proportion must setup cost change? A. Setup cost must double from its current value. B. Setup cost must be cut to one fourth its current value. C. Setup cost must quadruple from its current value. D. Cannot be determined. E. Setup cost must also be cut in half from its current value.
B
In mass service and professional service, the operations manager should focus extensively on: A. cost-cutting initiatives. B. human resources. C. automation. D. sophisticated scheduling. E. equipment maintenance.
B
Low-volume, high-variety production is best suited for which of the following process strategies? A. product focus B. process focus C. mass customization D. repetitive focus
B
Low-volume, high-variety production is best suited for which of the following process strategies? A. repetitive focus B. process focus C. mass customization D. product focus
B
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. This scenario is a prime example of A. drop shipping. B. postponement. C. vendor-managed inventory. D. the bullwhip effect.
B
To reduce the risks from vertical integration, firms may choose to develop some form of formal collaboration known as A. channel assembly. B. a joint venture. C. cross sourcing. D. vendor managed inventory.
B
Utilization will typically be lower than efficiency because: A. effective capacity equals design capacity. B. effective capacity is less than design capacity. C. expected output is less than rated capacity. D. effective capacity is greater than design capacity. E. expected output is less than actual output.
B
What is required for an MRP system to work? A. Long lead times B. Accurate inventory records C. A small bill of material D. A high number of purchase orders outstanding
B
Which choice below best describes the counterseasonal product demand option? a. lowering prices when demand is slack b. developing a mix of products that smoothes out their demands c. producing such products as lawnmowers and sunglasses during the winter d. using subcontractors only when demand is excessive. e. the breaking of the aggregate plan into finer levels of detail
B
Which choice best describes level scheduling? A. Overtime is used to handle seasonal demand fluctuations B. Inventory goes up or down to buffer the difference between demand and production C. Price points are calculated to match demand to capacity D. Subcontracting, hiring, and layoffs manipulate supply E. Dally production is variable from period to period
B
Which of the following allows a segment of the master schedule to be designated as "not to be rescheduled?" A. system nervousness B. time fence C. freeze point D. pegging
B
Which of the following statements about aggregate planning is TRUE? A. The option of varying workforce size by hiring or layoffs is used where the size of the labor pool is small B. A pure chase strategy allows lower inventories when compared to a pure level scheduling C. A disadvantage of subcontracting that it may require skills or equipment outside the areas of expertise D. An advantage of the counter seasonal product and service mixing option is that it matches seasonal fluctuations without hiring/ training costs E. In aggregate planning back orders are a means of manipulating supply while part-time workers are a way of manipulating product or service demand
B
Which of the following statements is NOT one of the differentiation strategy decisions? A. Modular design to aid product differentiation. B. Use buffer stocks to ensure speedy supply. C. Gather and communicate market research data. D. Minimize inventory to avoid product obsolescence.
B
Which of the following statements is NOT one of the response strategy decisions? A. low setup time B. gather and communicate market research data C. fast transportation D. use buffer stocks to ensure speedy supply
B
Which of the following statements is NOT true? A. 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. 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. Supply chain management describes the coordination of all supply chain activities, starting with raw materials, and ending with a satisfied customer.
B
Which one of the following statements is TRUE regarding JIT Inventory? a. increases setup costs decrease b. It is the minimum inventory necessary to keep a perfect system running c. It is minimized with large lot production d. It exists just in case something goes wrong e. It hides variability
B
A disadvantage of the "few suppliers" sourcing strategy is: A. possible violations of the Sherman Act B. the lack of cost savings for customers and suppliers C. the high cost of changing partners D. the suppliers are less likely to understand the broad objectives of the procuring firm and the end customer E. the risk of not being ready for technological change
C
A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors. This is an example of which of the following? A. horizontal B. keiretsu C. forward integration D. transformation E. backward integration
C
A specific product has demand during lead time of 100 units, with a standard deviation during lead time of 25 units. What safety stock (approximately) provides an 85% service level? A. 126 B. 41 C. 26 D. 165 E. 133
C
A work system has five stations that have process times of 5, 9, 14, 9, and 8. What is the bottleneck time? A.9 B.18 C.14 D.35 E.45
C
Adding a complementary product to what is currently being produced is a demand management strategy used when: A. capacity exceeds demand for a product that has stable demand. B. efficiency exceeds 100 percent. C. the existing product has seasonal or cyclical demand. D. demand exceeds capacity. E. price increases have failed to bring about demand management.
C
Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, the firm expects the machine to be running during approximately 95% of the available time. Based on experience with other products, the firm expects to achieve an efficiency level for the cranks of 75%. What is the expected weekly output of cranks for this company? A. 8421 B. 5100 C. 4275 D. 4845 E. 5700
C
In MRP, the number of units projected to be available at the beginning of each time period refers to a. planned order releases b. scheduled receipts c. projected on hand d. net requirements e. the amount necessary to cover a shortage
C
Revenue management is MOST likely to be used in which one of the following situations? a. a firm with a good counter seasonal product mix b. a dental clinic that wants to fill its appointment book c. airlines attempting to fill perishable" seats at maximum revenue d. a fast food restaurant with wide demand fluctuations during the day e. a shipping company that can change its fleet size easily.
C
The advantage of having few suppliers is to A. take advantage of diseconomies of scale. B. look for short-term attributes. C. form a long-term relationship. D. pursue low cost.
C
The minimum record accuracy required for successful MRP is approximately which of the following? A. 90% B. 97% C. 99% D. 95% E. lower than 90%
C
The proper quantity of safety stock is typically determined by a. using a single-model b. minimizing total costs t c. setting the level of safety stock so that a given stockout risk is not exceeded d.multiplying the EOQ by the desired service level e. carrying sufficient safety stock so as to eliminate all stock-outs
C
What is a list of quantities of components, ingredients, and materials required to make a product? A. purchase order B. master production schedule C. bill-of-material D. engineering change notice
C
Which of the following aggregate planning strategies is a capacity option? a. influencing demand by extending lead times b. counter-seasonal product mixing c. changing inventory levels d. influencing demand by changing price e.influencing demand by back ordering
C
Which of the following aggregate planning strategies is a demand option? a. changing inventory levels b. varying production levels c. changing price d. subcontracting e. using part-time workers
C
Which of the following aggregate planning strategies is a demand option? a. varying production levels b. changing price c. using part-time workers d. subcontracting e. changing inventory levels
C
Which of the following is FALSE regarding repetitive processes? A. They are the classic assembly lines. B. They use modules. C. They allow easy switching from one product to the other. D. They include the assembly of basically all automobiles. E. They have more structure and less flexibility than a job shop layout.
C
Which of the following is NOT an opportunity for effective management in the supply chain? a. vendor-managed inventory b. CPFR c. local optimization d. postponement e. accurate "pull" data
C
Which of the following is specifically characterized by the elimination of waste through a focus on exactly what the customer wants? A. Just-in-time (JIT) B. kanban C. Lean operations D. Material requirements planning (MRP) E. Toyota Production System (TPS)
C
Which of the following statement is NOT true? A. Probabilistic models are a real-world adjustment because demand and lead time will not always be known and constant. B. Probabilistic models relax the assumption that demand for a product is constant and certain. C. Having certain demand raises the possibility of a stockout. D. The service level is the complement of the probability of a stockout.
C
Which of the following would NOT generally be a motive for a firm to hold inventories? A .to hedge against inflation B. to take advantage of quantity discounts C. to minimize holding costs D. to decouple various parts of the production process E. to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand
C
Which of the following lot-sizing techniques results in the lowest holding costs? A. the quantity discount model B. POQ C. lot-for-lot D. Wagner-Whitin algorithm E. EOQ
C
Which of these aggregate planning strategies is a capacity option? A. changing price B. counter-seasonal product mixing C. using part-time workers D. back ordering E. promotion
C
Which of these statements about the production order quantity model is FALSE? A. All else equal, the smaller the ratio of demand rate to production rate, the smaller is the production order quantity. B. The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is noninstantaneous. C. Average inventory is more than one-half of the production order quantity. D. Because receipt is noninstantaneous, some units are used immediately and not stored in inventory. E. None of the above is false
C
A grocery store is attempting to implement a kanban system. Which of the following would NOT be an application of kanbans? A. A line of 5 people in the Chinese department signaling the department to heat 5 orders of crab rangoon. B. A red light on top of the cashier's lane signals that the cashier needs additional change replenished. C. An empty doughnut tray signaling the bakery to produce 2 dozen glazed doughnuts. D. The meat department stocking up on turkeys before Thanksgiving. E. All of the above are kanban applications.
D
A process focused facility is A. a rapid, low-cost production facility that caters to constantly changing unique customer desires. B. based on the classical assembly line. C. a production facility organized around products. D. a production facility organized around specific activities.
D
An assembly line is an example of a: A. process-focused process. B. product-focused process. C. line process. D. repetitive process. E. specialized process.
D
Concerning relationships with suppliers, which of the following combinations is critical to the success of JIT? A. close relationships with skepticism B.distant relationships with skepticism C. distant relationships with trust D. close relationships with trust E. none of the above
D
Excess bags of basic commodities such as flour and sugar that are stored in a restaurant's kitchen represent which of the following wastes? A. defective product B. transportation C. queues D. inventory E. overproduction
D
In aggregate planning which one of the following is not a basic option for altering demand? A. promotion B. back ordering C. pricing D. subcontracting E. personal selling
D
In the basic EOQ model, if the cost of placing an order doubles , and all other values remain constant , the EOQ will: A. Increase by 200% B. Increase by 100% C. either increase or decrease D. increase by about 41% E. Increase, but more data is needed to say by how much
D
Low-volume, high-variety production is best suited for which of the following process strategies? A. product focus B. mass customization C. repetitive focus D. process focus
D
Outsourcing: a. transfers traditional internal activities to outside vendors b. allows the outsourcing firm to focus on its key success factors c. utilizes the efficiency that comes with specialization d. All of the above are true of outsourcing e.None of the above is true of outsourcing .
D
The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students. Assume that the design capacity of the system is 1900 students per semester and that effective capacity equals 90% of design capacity. If the number of students who actually got their orientation session is 1500, what is the utilization of the system? A. 1350 students B. 1710 students C. 90% D. 78.9% E. 87.7%
D
The minimum record accuracy required for successful MRP is approximately which of the following? A. 95% B. 90% C. lower than 90% D. 99% E. 97%
D
Which of the following statements is true regarding cross-sourcing? A. Cross-sourcing enhances technological skills. B. Cross-sourcing develops the ability to produce goods or services previously purchased or actually buying a supplier or distributor. C. Cross-sourcing describes suppliers who become part of a company coalition. D. 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
Which of the following is NOT a goal of JIT partnerships? A. obtain improved quality and reliability B. removal of in-transit inventory C. removal of in-plant inventory D. removal of unnecessary activities E. All of the above are goals of JIT partnerships.
E
Which of the following is TRUE regarding the steps to reducing setup times? A. The standardization of both tooling and work procedures is advantageous to setup time reduction . B. The cycle of steps is repeated until setup time is reduced to under a minute. C. The first step involves performing as much setup preparation as possible while the process/machine is operating D. Move material closer and Improve material handling are done before operator training E. All of the above are true
E
Which of the following is an element of inventory holding costs? A. Investment costs B. housing costs C. pilferage , scrap, and obsolescence D. material handling costs E. All of the above are elements of inventory holding costs.
E
Which of the following is consistent with a chase strategy? a. little or no use of inventory to meet demand requirements b. vary production levels and work force to meet demand requirements c. vary work force to meet demand requirements d. vary production levels to meet demand requirements E. All of the above are consistent with a chase strategy .
E
Which of the following is generally found in most Lean environments? A. a push system for high margin items and a pull system for low margin items B. a push or pull system, depending upon the rate of demand C. a push system for purchased parts and a pull system for manufactured parts D. push systems E. pull systems
E
Which of the following is specifically characterized by a focus on continuous improvement, respect for people, and standard work practices? A. Lean operations B. kanban C. Material requirements planning (MRP) D. Just-in-time (JIT) E. Toyota Production System (TPS)
E
Which of the following statements about ABC analysis is FALSE? A. In ABC analysis, forecasting methods for "C" items may be less sophisticated than for "A" items. B. ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings. C. Criteria other than annual dollar volume, such as high holding cost or delivery problems, can determine item classification in ABC analysis. D. In ABC analysis, "A" items should have tighter physical inventory control than "B" or "C" items have. E. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.
E
Which of the following statements about the basic EOQ model is TRUE? a. If annual demand were to double, the EOQ would increase . b. If annual demand were to double, the number of orders per year would increase. c. If the ordering cost were to double, the EOQ would rise . d. If the carrying cost were to increase, the EOQ would fall e. All of the above statements are true
E
Which of the following statements regarding the production order quantity model is TRUE? A. It minimizes the total production costs. B. It relaxes the assumption that the demand rate is constant. C. It applies only to items produced in the firm's own production departments. D. It minimizes inventory. E. It relaxes the assumption that all the order quantity is received at one time.
E
Which one of the following is a characteristic of a JIT partnership? A. active pursuit of vertical integration B. frequent deliveries in large lot quantities C. maximal product specifications imposed on supplier D. third-party logistics never used E. removal of incoming inspection
E
Which one of the following statements is TRUE about the kanban system? A. The supplier workstation signals the customer workstation as soon as a batch is completed. B. It is useful to smooth operations when numerous quality problems occur C. The quantities in the containers are usually large to reduce setup costs D. It is associated with a push system E. The customer workstation signals to the supplier workstation when production is needed
E
The supply chain management opportunity called postponement involves delaying deliveries to avoid accumulation of inventory at the customer's site. True False
F
Utilization is the number of units a facility can hold, receive, store, or produce in a period of time. True False
F
A food retailer that acquired a spice manufacturer would be practicing backward integration. True False
T
Outsourcing is a form of specialization that allows the outsourcing firm to focus on its key success factors True False
T
Savings in the supply chain exert more leverage as the firm's net profit margin decreases. True False
T
Which of the following is NOT one of the benefits in MRP? a. Increased inventory levels b. better response to customer orders as the result of improved adherence to schedules c.improved utilization of facilities and labor d.faster response to market changes
a
Local optimization is a supply-chain complication best described as: a. the opposite of the bullwhip effect b. optimizing one's local area without full knowledge of supply chain needs. c. the result of supply chains built on suppliers with compatible corporate cultures . d. obtaining very high production efficiency in a decentralized supply chain e. the prerequisite of global optimization
b
Manufacturing cycle time is best defined as a. the length of the work shift, expressed in minutes per day b. time from raw materials receipt to finished product exit c. time between the start of one unit and the start of the next unit d. sum of all the task times to make one unit of a product e. time it takes a unit to move from one workstation to the next
b
Which of the following aggregate planning options is NOT associated with manipulation of product or service demand? a. price cuts or discounts b. subcontracting c. advertising d. counter seasonal products or services e.promotion
b
Which of the following statements is NOT true about MRP? a. MRP has evolved as the basis for Enterprise Resource Planning b. MRP is an independent demand technique used in a production environment c. MRP provides a clean structure for dependent demand d. MRP uses a bill-of-material inventory, expected receipts, and a master production schedule to determine material requirements
b
Which of these is among the demand options of aggregate planning ? A. varying workforce size b. changing inventory levels c. back-ordering during high- demand periods d. subcontracting e. varying production rates through overtime or idle time
c
Which of the following is characteristic of lean operations? a. inventory buffers between each workstation to minimize system downtime b. specialty workers with no cross-training c. no supplier partnerships d. easy, mindless jobs e. low space requirements
e
