ISDS Final 3115
Which choice best describes level scheduling? A. Daily production is variable from period to period. B. Subcontracting, hiring, and layoffs manipulate supply. C. Price points are calculated to match demand to capacity. D. Inventory goes up or down to buffer the difference between demand and production. E. Overtime is used to handle seasonal demand fluctuations.
D. Inventory goes up or down to buffer the difference between demand and production.
Which of the following should be higher in P systems than Q systems? A. lead time B. order spacing C. demand D. safety stock E. order size
D. safety stock
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. back ordering during high demand periods C. hiring and laying off D. subcontracting E. using part-time workers
D. subcontracting
All EXCEPT which of the following statements about ABC analysis are true? A. ABC analysis categorizes on-hand inventory into three groups based on annual dollar volume. B. In ABC analysis, inventory may be categorized by measures other than dollar volume. C. ABC analysis is an application of the Pareto principle. D. ABC analysis suggests that there are the critical few and the trivial many inventory items. E. ABC analysis suggests that all items require the same high degree of control.
E. ABC analysis suggests that all items require the same high degree of control.
Which of the following is an element of inventory holding costs? A. investment costs B. pilferage, scrap, and obsolescence C. material handling costs D. housing costs E. All of the above are elements of inventory holding costs.
E. All of the above are elements of inventory holding costs.
The bullwhip effect: A. occurs as orders are relayed from retailers to distributors to wholesalers to manufacturers. B. results in increasing fluctuations at each step of the sequence. C. occurs because of distortions in information in the supply chain. D. increases the costs associated with inventory in the supply chain. E. All of the above are true.
E. All of the above are true.
When quantity discounts are allowed, the cost-minimizing order quantity: A. minimizes the sum of holding and ordering costs. B. minimizes the unit purchase price. C. may be a quantity below that at which one qualifies for that price. D. is always an EOQ quantity. E. minimizes the sum of holding, ordering, and product costs.
E. minimizes the sum of holding, ordering, and product costs.
Which of the following statements are true regarding JIT inventory?
It is the minimum inventory necessary to keep a perfect system running
Which of the following is specifically characterized by continuous and forced problem solving via a focus on throughput and reduced inventory?
Just-In-Time (JIT)
Which of the following statements is true regarding the leverage of supply chain savings? A. Supply chain savings exert more leverage as the firm's net profit margin decreases. B. Supply chain leverage is about the same for all industries. C. Supply chain savings exert more leverage as the firm's purchases are a smaller percent of sales. D. Supply chain leverage depends only upon the percent of sales spent in the supply chain. E. None of the above is true.
Supply chain savings exert more leverage as the firm's net profit margin decreases
Which of the following statements is true about the MRP plan when using lot for lot ordering?
The quantity of gross requirements for a child is equal to the quantity of planned order releases multiplied by the number of child items in parent assembly
Outsourcing refers to transferring a firm's activities that have traditionally been internal to external suppliers.
True
The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders move through the supply chain.
True
In the service sector, which of the following aggregate planning strategies might direct your client to a competitor?
subcontracting
Which of the following aggregate planning strategies is a capacity option? A. changing inventory levels B. influencing demand by back ordering C. influencing demand by changing price D. counterseasonal product mixing E. influencing demand by extending lead times
A. changing inventory levels
Aggregate planning for service firms that provide intangible output deals mainly with: A. planning for human resource requirements and managing demand. B. centralized production. C. capital investment decisions. D. centralized purchasing. E. smoothing the production rate and finding the optimal size of the workforce.
A. planning for human resource requirements and managing demand.
Hewlett-Packard delays customization of its laser printers as long as possible. This is an example of which of the following? A. timely customization B. postponement .C. standardization D. vendor-managed inventory E. backward integration
B. postponement
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. backward integration B. forward integration C. horizontal integration D. keiretsu E. current transformation
B. forward integration
The purpose of safety stock is to: A. eliminate the possibility of a stockout. B. eliminate the likelihood of a stockout due to erroneous inventory tally. C. control the likelihood of a stockout due to variable demand and/or lead time. D. replace failed units with good ones. E. protect the firm from a sudden decrease in demand.
C. control the likelihood of a stockout due to variable demand and/or lead time.
Which choice below best describes the counterseasonal product demand option? A. producing such products as lawnmowers and sunglasses during the winter B. the breaking of the aggregate plan into finer levels of detail C. developing a mix of products that smoothes out their demands D. lowering prices when demand is slack E. using subcontractors only when demand is excessive
C. developing a mix of products that smoothes out their demands
