MIS 301 Exam 1 Textbook Questions
Which of the following are types of quantitative forecasting models? Time series models and correlational models Correlational models and expert panels Delphi Technique and correlational models Expert panels and Delphi technique
Time series models and correlational models
The key to managing relationships to achieve customer success is __________________? To invest in the latest information technology. To align your distinctive competencies with customers' success factors. To fire every customer that doesn't value your competencies. To always do what your company does best.
To align your distinctive competencies with customers' success factors.
Integrated business planning (IBP) is the new term for sales and operations planning. That is, IBP is the hot new term consultants use to sell a forecasting process that has been around for 40 years. TrueFalse
False
Learning how to use global resources is not necessary for a company in the U.S. to be successful. TrueFalse
False
Locating operations in global regions with lower cost factors is always beneficial for a company, because lower factors automatically produce benefits for the company. TrueFalse
False
Looking at annual usage is all you need to complete an ABC analysis. TrueFalse
False
Qualitative forecasts are most appropriate when you have a lot of historical data. TrueFalse
False
Showrooming involves searching for a product online to compare prices and then going to a physical store to buy it. TrueFalse
False
The first step in network design is to select specific countries for operation. TrueFalse
False
There are no downsides to bringing components from other countries. TrueFalse
False
To really execute a customer satisfaction strategy, you need to find out how customers both perceive and measure your firm's performance. TrueFalse
False
Total Cost of Ownership is a concept relevant for accounting and economics, but it is NOT an important consideration for global network design decision-making. TrueFalse
False
Toyota's lean production system has documented that there is a single best or perfect way to make things. T/F
False
When it comes to data capture, bricks-and-mortar stores like Walmart have a distinct advantage over their online rivals. TrueFalse
False
Which of the following occurs as the order placement cost (K) increases? (Assume that nothing else changes.) The EOQ increases Annual demand increases The holding cost per unit per year increases None of the above
The EOQ increases
ABC classification relies on the Pareto principle. The Pareto principle observes that 80% of your customers drive 20% of the benefits. TrueFalse
True
Almost every decision you make in business is based on a forecast. TrueFalse
True
An open systems view reiterates that companies operate in a dynamic, ever-changing environment, requiring managers to constantly adapt in order to remain competitive. T/F
True
As an operations manager, you need to remember Darwin's Law: Only the adaptable survive. After all, Constant adaptation is the only way to establish and maintain world-class operations. T/F
True
As an operations manager, your job is to create customer value. T/F
True
Better inventory management can contribute to increased sales. True False
True
Big data (aka) predictive analytics enables the correlational analysis needed to look for hidden connections among phenomena so that you can make better forecasts. TrueFalse
True
Customer contact refers to how often a company reaches out to customers to find out how good their customer-service experience was—i.e., if they were satisfied. TrueFalse
True
Customer relationship management systems (CRM) can help you develop customer profiles, which is an advanced form of customer segmentation. TrueFalse
True
Customers should really be at the center of your decision-making world because they are the only entity that puts money into a supply chain. TrueFalse
True
Features are the unique characteristics that distinguish a product from rivals' products. TrueFalse
True
Growing personal wealth and corporate profitability made sustainability a valued and viable competitive strategy that influences operations management. T/F
True
Higher coordination of production activities globally can create economies of scale. TrueFalse
True
How well you schedule production will determine your costs as well as your ability to deliver what your customers want—when they want it! TrueFalse
True
If annual demand is 2,400 units and orders are placed in monthly intervals, the average amount of inventory is 100 units. True False
True
Integrated business planning is the formal process that helps align supply and demand across functions within a firm as well as with trading partners (i.e., suppliers and customers). TrueFalse
True
Inventory decisions are required to decide how much and when to make (or buy) specific products. TrueFalse
True
Inventory management is a manufacturing setting is similar to finished goods inventory management. TrueFalse
True
Locating stages of their value chains abroad, increases a company's pool of global customers. TrueFalse
True
One of the important lessons of the efficient consumer response initiative was that companies really didn't know how to work cohesively together to create value. TrueFalse
True
Outsourcing involves moving from make to buy, asking a supply chain partner to perform a specific task that the company itself used to do. TrueFalse
True
Process design focuses on the technology and work design used to make products or deliver services. TrueFalse
True
Self-scan technology like Scan & Go helps Walmart gain insight into both what customers buy as well as how they buy it. TrueFalse
True
Supply chain management has become a strategic—i.e., a hot—business function because managers recognize how important creating customer value is in an increasingly competitive environment. TrueFalse
True
Supply chain management involves working closely with key suppliers (and customers) to co-create customer value. T/F
True
Tangibility of Offerings refers to the fact that you can't hold a service in your hand—i.e., you can only experience it as you consume it. TrueFalse
True
The Internet of Things is making the factory of the future—i.e., the factory that runs itself with little or no human intervention--possible. T/F
True
The goal of a basic customer service strategy can be stated as follows: Managers hope that by meeting industry standards they are meeting customers' needs. TrueFalse
True
The industrial revolution marked the beginning of good operations management practice. T/F
True
The simple fact is that one reason order management is so hard is that no one owns the entire process. TrueFalse
True
The value chain expresses the idea that different functions within the firm are interconnected and only by working together can the firm effectively create customer value and compete in a tough competitive environment. TrueFalse
True
To the extent that you can standardize service delivery, you can improve control and productivity. TrueFalse
True
Total cost of ownership should include all the costs of sourcing from or operating in a particular global location. TrueFalse
True
Your firm's order management system is responsible for getting the amount of inventory just right—minimizing the costs of overstocks and stockouts. TrueFalse
True
A bill of materials is a nickname for a materials inventory manager a piece of legislation that apples to raw materials procurement contracts an illustration of how a finished product is manufactured a supplier's invoice for a shipment of raw materials
an illustration of how a finished product is manufactured
Materials Requirement Planning deals with which of the following: a. Independent demand b. Dependent demand c. End-user demand d. Both a & b
b. Dependent demand
Which of the following accurately describes the bullwhip effect? a. The bullwhip effect argues that variations in supply magnify as they move downstream toward the customer. b. The bullwhip effect argues that variations in demand magnify as they move upstream toward suppliers. c. The bullwhip effect argues that every company needs to hold ample just-in-case inventory. d. The bullwhip effect argues that it is better to stock out than to hold inventory. e. All of the above f. c and d only
b. The bullwhip effect argues that variations in demand magnify as they move upstream toward suppliers.
In the context of the EOQ model, the term "sawtooth" refers to which of the following? a. How aggressively managers are able to cut inventory levels b. The pattern of inventory consumption and replenishment over time c. The particular item that can be managed using the EOQ approach d. The basic tool used to build storage facilities e. All of the above f. Only c and d
b. The pattern of inventory consumption and replenishment over time
Because services can't be shipped, you lose decision-making flexibility. ___________________ and _____________________ are everything. a. Location; Location b. Location; Interaction c. Location; Timing d. Interaction; Timing e. Interaction; Tangibility f. Tangibility; Timing
c. Location; Timing
What does the EOQ model help managers determine? a. Annual demand b. The magnitude of inventory holding costs (per unit, per year) c. The size of an individual order d. Overall firm profitability e. Both a and b
c. The size of an individual order
Which of the following are examples of acquisition and utilization touch points, respectively? a. Choosing a brand of shampoo; Washing your hair with the shampoo b. Researching a new car; Driving the car to school c. Showrooming; Webrooming d. Eating dinner at a fine restaurant; Looking for a place to eat on Yelp e. Both a and b
e. Both a and b
Which of the following initiatives represents a true customer-success strategy? a. At the customer, for the customer b. New ways of working together c. Six sigma at the customer d. The customer-driven kaizen burst e. Both a and c
e. Both a and c
Which of the following ways should you classify SKUs to identify which SKUs are the most important to your company? a. Based on relative value b. Based on total number of units used each year c. Based on strategic issues d. All of the above e. Only a & c
e. Only a & c
Which of the following are intangible benefits of collaborative planning? a. Quicker implementation of new ideas b. Less time for strategic planning c. More trust d. All of the above e. Only a and c
e. Only a and c
Which of the following are common causes for stockouts? a. Poor forecast accuracy; i.e., underestimate demand b. Shipping issues that delay product arrival c. Parts shortages that limit production d. Excess warehouse capacity e. Only a, b, & c
e. Only a, b, & c
Which of the following are steps in ABC classification? a. Classify companies by sales b. Define line responsibility for each customer c. Modify classifications based on strategic issues d. Restructure companies based on size e. a and c only
e. a and c only
Which of the following are reasons to set up global operations? a. unique resources b. closeness to the most important markets c. new sources of revenue d. a and c only e. a, b, and c
e. a, b, and c
When modifying classifications based on strategic issues, what are some possibilities that would make a customer more or less important? a. A customer may possess unique skills that will drive future market advantages. b. A customer may control a new patent that will spur sales growth. c. Intensive collaboration may uniquely improve logistics customer service. d. A customer uses invaluable resources. e. a, b, and c only
e. a, b, and c only
Which of the following is one of the fundamental steps in resource orchestration? a. Scan the environment b. Select team members c. Assign team roles d. Identify free agents e. b and c only
e. b and c only
The inventory performance metric that measures how efficiently inventory moves through the supply chain is the fill rate. the inventory turnover. the dwell time. the in-stock rate.
the dwell time.
What do inventory holding costs typically amount to? $0.10 to $1.50 per unit about 15%-40% of the unit value per year between $25 and $45 per unit per year 100% of the value of a good
about 15%-40% of the unit value per year
Which of the following are the two characteristics that distinguish service operations? a. Customer contact b. Inevitability c. Tangibility d. Capital intensity g. a & c only
g. a & c only
Which of the following are ways to manage the fact that services are perishable—i.e., they cannot be inventoried? a. Buy a bigger warehouse b. Build capacity for peak demand and live with excess capacity during off-peak demand c. Automate your existing warehouses d. Build capacity for average demand and be willing to lose sales when demand is higher e. Try to influence consumer behavior to match demand to supply—e.g., discounts for non-peak times. f. All of the above g. b, d, and e only
g. b, d, and e only
Which of the following is a primary technology system employed in customer relationship management suites? a. Enterprise Resource Planning b. Data Capture c. Data Storage d. Inventory Management System g. both b and c
g. both b and c
In order for a company to win the "first moment of truth" it needs to have the right _______ at the right _______ at the right _______ at the lowest possible _______. product, location, view, risk product, place, time, cost niche, market, time, fare niche, place, time, cost
product, place, time, cost
Since we know our forecast is going to be __________, we _______________. wrong, should frequently update it with the most current information wrong, shouldn't forecast at all. time consuming, should forecast less frequently good, should forecast less frequently
wrong, should frequently update it with the most current information
To make CPFR successful, companies should engage in which of the following collaborative activities? Strategy & planning Demand & supply management Execution Analysis All of the above
All of the above
About 75% of the world's data was created in the past two years—a fact that is changing the way companies view and manage data. TrueFalse
False
According to the courseware, an ugly aspect of the "flattening" of the global economic playing field is that companies can access sources of innovation and cost reduction around the globe. TrueFalse
False
Although it is difficult, serious service providers can control customer behavior in a way consistent with how a manufacturer controls the physical dimensions of a product. TrueFalse
False
If your data fluctuates around a consistent mean, you have a _________ pattern. Trend Level Seasonal Cyclical
Level
Although service industries account for about 80% of jobs in the U.S. economy, they only represent about 40% of the U.S. GDP. T/F
False
Consistent repeat business is a clear and unambiguous signal that a customer is loyal. TrueFalse
False
Control decisions determine where and how you deploy your assets—especially plant and equipment (i.e., your infrastructure)—to create value over the long haul. TrueFalse
False
Currently, if Apple assembled iPhones in the U.S., using local suppliers for all its parts, the price customers pay for the final product would likely decrease. TrueFalse
False
Customer relationship management systems (CRM) can help you develop customer profiles, which is something completely distinct from and unrelated to customer segmentation. TrueFalse
False
Finding cost savings and locating close to customers are necessary and sufficient considerations to build a winning network. TrueFalse
False
Global operations show a company's commitment to sustainability by reducing opportunities for violation of sustainability standards. TrueFalse
False
Henry Ford invented the assembly line. T/F
False
If the order placement cost (K) decreases, the optimal order quantity will increase. TrueFalse
False
If you deliver to promise, exceed industry standards, and meet customers' a priori expectations, you will definitely impress the customer and entice repeat purchase. TrueFalse
False
Which of the following statements about 'A', 'B', and 'C' items is correct? The most valuable items are 'B' items. 'C' items are tightly monitored. 'A' items are generally ordered in small quantities. 'A', 'B', and 'C' items are ordered with the same frequency.
'A' items are generally ordered in small quantities.
There will generally be few ___ items and many ___ items. 'B', 'A' 'A', 'C' 'C', 'A' 'C', 'B'
'A', 'C'
If your company produces textile, low labor cost is a critical factor for you. As such, locating production in low labor cost regions should be a no-brainer, straightforward decision. TrueFalse
False
In a highly coordinated network, the production activities are loosely linked. TrueFalse
False
In an ABC analysis of a firm's SKUs, C items make up 20% of the total SKU count and collectively account for 80% of total usage. TrueFalse
False
For a given product, the order placement cost is $5, the holding cost per unit per year is $10, and annual demand is 1,600 units. If the EOQ is used, total annual logistics costs will amount to which of the following? $100 $200 $400 $800 None of the above
400
If, in a given scenario, the EOQ is 100, then what will be the average amount of cycle stock? 0 50 100 200
50
Let the holding cost for Candy's candies be $1 per unit per year. If annual holding costs amount to $384 in the optimum, what is the EOQ? 192 units 384 units 768 units Cannot determine from the information given
768 units
Services account for about what percent of the American economy? 20% 40% 60% 80% 100%
80%
In the Internet age, delivery has been called the most vital factor to long-term competitive success. TrueFalse
False
Apple assembles smart phones in China and distributes them worldwide. This is an example of... A centralized global supply network configuration A dispersed global supply network configuration A loosely coordinated global supply network A tightly coordinated global supply network
A centralized global supply network configuration
In the introduction, the text describes the dogfight between Airbus and Boeing. History show that forecasting gave Airbus the edge in air supremacy. TrueFalse
False
Which of the following is not a service statement found on L.L. Bean's customer service mantra? A customer is a person who brings us his wants. A customer represents a moment of truth. A customer is not dependent on us . . . we are dependent on him. A customer is not an interruption of our work. He is the purpose for it. A customer is not someone to argue or match wits with. Nobody ever won an argument with a customer.
A customer represents a moment of truth.
Simpler forecasting methods don't require _______________. Sophisticated models are _______________. A lot of data, data intensive Logistics, logistics heavy Lead times, time sensitive Learning management systems, learning intense
A lot of data, data intensive
If a firm holds too little inventory to satisfy customer demand, it will experience which of the following? A high dwell time A low fill rate A high in-stock rate A low inventory holding cost per unit per year
A low fill rate
Which of the following best describes ABC analysis? ABC analysis is a one size fits all approach to managing SKUs. ABC analysis requires the use of complex algorithms. ABC analysis uses letters instead of numbers or names to identify SKUs. ABC analysis helps you tailor ordering practices based on relative item values
ABC analysis helps you tailor ordering practices based on relative item values
What are the two types of touch points? Acquisition; Utilization Accidental; Utilitarian Acclimated; Utilization Acclimated; Utilitarian Acquisition; Utilitarian Accidental; Universal
Acquisition; Utilization
Which of the following is not one of the steps in the DMAIC quality methodology? Define Act Measure Control Improve
Act
Which of the following is not a process in the SCOR model/methodology? Source Activate Plan Make Deliver
Activate
Which of the following accurately describe a supply chain map? To read a supply chain map, you start with the focal firm. Suppliers are mapped on the left side of the focal firm. Customers are depicted on the right side of the focal firm. Suppliers and customers are organized in columns called tiers. Product and services flow from left to right. All of the above
All of the above
Mark the best option. In network design, total cost of ownership includes which of the following: Capital and labor costs Taxes and duties Currency Taxes, duties, and currency All of the above
All of the above
Which of the following accurately describe a supply chain map? a. To read a supply chain map, you start with the focal firm. b. Suppliers are mapped on the left side of the focal firm. c. Customers are depicted on the right side of the focal firm. d. Suppliers and customers are organized in columns called tiers. e. All of the above
All of the above
Which of the following are discussed during the S&OP supply review meeting? How to prevent stockouts Manufacturing capacity Supply chain inventory Logistics/DC capacity All of the above
All of the above
Which of the following are reasons why managers often struggle to work closely together to create customer value? Managers focus on improving their own firm's stock price. Metrics are short term and local—i.e., they focus on the here and now. Managers are too busy putting out fires to learn how to implement collaborative business models. Most managers don't possess collaboration skills. All of the above
All of the above
Which of the following do you need to consider in network design decisions? Business model and company strategy Cultural, legal, and standard differences Global competition and trends Total landed costs and added risks All of the above
All of the above
Which of the following is an intangible benefit of a well-orchestrated IBP program? Higher levels of trust Stepping stone for new opportunities More time for strategic planning All of the above
All of the above
Which of the following is true of expectancy disconfirmation theory? When customers buy something, expectations and experiences interact. Experiences that don't meet expectations lead to dissatisfaction. Experiences that exceed expectations achieve delight and lead to repeat business. Feelings of satisfaction (or dissatisfaction) influence future purchase decisions. All of the above
All of the above
Which of the following is/are part of the five monthly review meetings for the S&OP planning process? Product management review Integrated reconciliation Demand review All of the above
All of the above
Which of the following practices/techniques helps to eliminate poorly designed jobs that alienate workers, reduce productivity, and stifle learning? a. Job Enrichment b. Job Enlargement c. Employee Involvement d. All of the above
All of the above
Which of the following should you consider as part of the facility location decision? Labor Costs Access to Customers Tax Rates Materials Costs Transportation Rates All of the above
All of the above
Which of the following statements is NOT true? In a world without inventory, supermarkets would not exist. warehouses would not exist. manufacturing plants would not exist. All of the above
All of the above
Which of the following can be an important consideration in global operations decisions? The manufacturing wages in a region The level of productivity in a region The energy costs in a region The currency exchange rates in a region All of the above can be important considerations
All of the above can be important considerations
A bill of material is An illustration of how a finished product is manufactured. A piece of legislation that applies to raw materials procurement. A nickname for materials inventory manager. A supplier's invoice for a shipment of raw material.
An illustration of how a finished product is manufactured.
Which of the following is true if annual demand for a given product is 1,800 units, and the EOQ is 300 units? The average length of an order cycle will be five months. An order will be placed every two months. There will be three order placements per year. An order will be placed once per quarter.
An order will be placed every two months.
Business forecasting is the process of using _____________, _____________, ____________, and experience to make predictions and respond to various business needs. Capacity, purchase orders, data Analytics, data, insights Insights, definitions, capacity Definitions, purchase orders, data
Analytics, data, insights
_______________ processes influence how you deal with information; ________________ processes influence how you react to experiences. Conative; Affective Affective; Cognitive Affective; Conative Cognitive; Affective Cognitive; Conative
Cognitive; Affective
Global operations are important because. Companies can benefit from sources of innovation, leverage lower factor costs, and expand the size of the their markets. Companies can expand the size of their markets and reduce the likelihood of labor violations. Companies can leverage lower factor costs and reduce the likelihood of labor violations. Companies can reduce the likelihood of labor violations and benefit from sources of innovation.
Companies can benefit from sources of innovation, leverage lower factor costs, and expand the size of the their markets.
What are some of the biggest challenges to effective order management? Uncertainty, flexibility and complexity Complexity, ownership and uncertainty Ownership, uncertainty and flexibility Flexibility, complexity and ownership
Complexity, ownership and uncertainty
S&OP can help you smooth out the handoffs among different functions across your company. S&OP also helps you move from a traditional annual planning process to a _______ re-planning process. Current Marketing Continuous Pre-determined
Continuous
Which of the following customer-service strategies focuses on meeting industry standards in key operational areas like product quality, productivity, product availability, on-time delivery, and service reliability? Customer Loyalty Strategy Customer Delight Strategy Customer Satisfaction Strategy Customer Success Strategy Customer Service Strategy
Customer Service Strategy
Which of the following primary technology systems is needed to make sense of data by making hidden relationships visible? Data Analytics Data Capture Data Display Big Data
Data Display
Which of the following is not one of the steps in the DMAIC quality methodology? Develop Measure Analyze Improve Control
Develop
Which three pieces of information is required to offer the manufacturer a structured approach to planning materials requirement? Retail forecasts, number of suppliers, number of units being produced End-item forecasts, bill of material, current inventory levels Current inventory levels, retail forecasts, number of units being produced End-item forecasts, bill of material, number of suppliers
End-item forecasts, bill of material, current inventory levels
Which of the following approaches to gathering information about customers provides the best insight into how customers really use a product? Surveys Expert Panels Focus Groups Ethnographic Studies In-depth Interviews
Ethnographic Studies
Which of the following best describes a moment of truth (as defined by SAS' Jan Carlson)? Every touch point between a customer and the company is a moment of truth. The vital few touch points that involve intense customer/company interaction are the only moments of truth. The touch points among senior executives from buying and supplying companies are the only moments of truth. High-dollar transactions are the only moments of truth.
Every touch point between a customer and the company is a moment of truth.
Having good data is critical to building accurate forecasts. But, data availability isn't sufficient. You need to choose the right _______________ to make the most of your data. Materials planning Measure Logistics Forecasting technique
Forecasting technique
Which of the following innovators/management gurus was responsible for the scientific method? Alfred Sloan Frederick Taylor Eli Goldratt Eli Whitney Henry Ford
Frederick Taylor
Customer success strategies are unique because they focus on ____________________. Spend more money Helping customers solve problems and achieve success in the marketplace. Meeting and exceeding customer expectations. Providing outstanding service vis-à-vis industry standards.
Helping customers solve problems and achieve success in the marketplace.
The strategic profit model is useful to illustrate which of the following? How firms can minimize inventory holdings How inventory management affects overall firm profitability How increased worker compensation would enhance inventory management efficiency That the ROA is calculated as the ratio of net profits and total assets
How inventory management affects overall firm profitability
Which of the following is not a critical design decision? Product Design Facility Location Facility Layout Inventory Management Process Design
Inventory Management
_________ is a measure of how often inventories are depleted and replenished over the course of a given time period (e.g., year). Inventory turnover Dwell time In-stock rate Fill rate
Inventory turnover
Which of the following is NOT true about global operations? It can provide a company opportunity to reduce its costs It can increase risks of disruption to production lines at home It can reduce the likelihood of potential violations of labor rights It can provide a company access to sources of innovation
It can reduce the likelihood of potential violations of labor rights
Select the most appropriate answer about bringing components from other continents. It has no impact on the production lines in the home country. It always lowers the quality of the final product. It never affects innovation of the final product. It potentially results in better products for the customer. It always increases the cost of the final product.
It potentially results in better products for the customer.
In terms of configuration, if you are mainly concerned with the image of your company... Locate in fewer geographic regions Locate close to resources Locate close to partners Locate in key markets
Locate in key markets
If your product is relatively new and your data is limited, your best option is to... Look at sales history of a similar product and use qualitative data Do a milk run and look at sales history of a similar product Use qualitative data and make up a forecast Make up a forecast and do a milk run
Look at sales history of a similar product and use qualitative data
Which of the following represents the dark side of modern data analytics and the trend toward customer profiling? Predictive analytics reveals causality. Low levels of shopping activity may reflect more on actual service levels than on the quality of or profitability of a customer. Although huge amounts of data can be collected, the tools for analyzing data are still rather unsophisticated. People never believe the data and the stories they tell.
Low levels of shopping activity may reflect more on actual service levels than on the quality of or profitability of a customer.
When measuring forecast error, which forecasting error expresses the forecast as a percentage from the mean? ME MSE MAPE MAD
MAPE
When measuring forecast error, which forecasting error expresses the forecast error as a percentage from the mean? MAPE MAD MSE ME
MAPE
Which of the following are general drivers for global operations? Vertical integration and market access Market and resource access Resource access and vertical integration Vertical integration and customer access
Market and resource access
According to relationship-marketing pundits, how much more does it cost to make sales to a new customer than to an existing customer? 30-40% 50-100% 150% 200% More than 500%
More than 500%
Which of the following is NOT part of the forecasting process? Evaluate your data Create the forecast Decide what to forecast Select the forecasting method None of the above
None of the above
Which of the following pieces of information is needed to complete an MRP table? End-item forecast Unit costs Past demand Current inventory levels Bill of materials All pieces of information are needed Only items 1, 3, and 5 are needed Only items 2, 4, and 5 are needed None of the above combinations are correct
None of the above combinations are correct
Which of the following is not true of expectancy disconfirmation theory? When customers buy something, expectations and experiences interact. Experiences that don't meet expectations lead to dissatisfaction. Experiences that exceed expectations achieve delight and lead to repeat business. Feelings of satisfaction (or dissatisfaction) influence future purchase decisions. None of the above, that is, they are all implications of expectancy disconfirmation theory
None of the above, that is, they are all implications of expectancy disconfirmation theory
_______________ and _______________ are primarily responsible for creating form utility. Operations; Purchasing Finance; Operations Purchasing; Marketing Operations; Human Resources Research & Development; Finance Marketing; Research & Development
Operations; Purchasing
_______________ and _______________ are primarily responsible for creating form utility. Operations; Purchasing Operations; Human Resources Marketing; Research & Development Research & Development; Finance Finance; Operations Purchasing; Marketing
Operations; Purchasing
Which of the following represents the dark side of modern data analytics and the trend toward customer profiling? Past buying behavior does not always predict future behavior. People never believe the data and the stories they tell. Although huge amounts of data can be collected, the tools for analyzing data are still rather unsophisticated. Predictive analytics reveals causality.
Past buying behavior does not always predict future behavior.
As you look at a supply chain map, you can be confident you are looking at a winning supply chain if it depicts the right ______________ and the right _________________. Price; Promotion Players; Products Products; Price Players; Relationships Players; Price
Players; Relationships
Which of the following is not one of the core value dimensions? Cost Agility Process Improvement Quality Delivery Innovation None of the above; that is, they are all core value propositions.
Process Improvement
Which of the following is not one of the value gaps that can undermine customer experiences and can damage relationships? Performance Gaps Translation Gaps Psychological Gaps Perception Gaps Knowledge Gaps Service Quality Gaps
Psychological Gaps
By linking _______ and _______, it is possible to synchronize order management across an entire supply chain. VMI and S&OP S&OP and CPFR S&OP and TMS CPFR and TMS VMI and S&OP
S&OP and CPFR
Retailers worldwide lose more than $400 billion in sales annually due to which of the following? Stockouts Technological innovation Excessive inventory holdings Food waste
Stockouts
Value can only be realistically assessed from the standpoint of _________________. The CEO The Stock Price The Customer The Worker Senior Management The Shareholder
The Customer
Operating under a just-in-time production system, Toyota concentrates the assembly of major components in particular regions, which then supply other locations where Toyota concentrates the assembly of end products. This reflects... The company concentrates supply chain activities and loosely coordinates them The company disperses supply chain activities and tightly coordinates them The company centralizes supply chain activities and tightly coordinates them The company loosely coordinates its supply network The company disperses supply chain activities
The company centralizes supply chain activities and tightly coordinates them
Toyota assembles 6-cylinder engines in West Virginia and distributes them to plants in North America and Canada, each of which assembles specific vehicle models for distribution to various regions. The statement that best describes this strategy is... The company centralizes supply chain activities and tightly coordinates them The company loosely coordinates its supply network The company disperses supply chain activities and tightly coordinates them The company disperses supply chain activities The company concentrates supply chain activities and loosely coordinates them
The company centralizes supply chain activities and tightly coordinates them
A forecast error is A retail category management technique which identifies merchandise budgeted for purchase during a certain time period that has not yet been ordered. A computer term which describes activities performed using computer systems. A metric defined as % of orders received on time by the company from its suppliers, or delivered on time to the company's customers. The difference between what you predict and what actually happens.
The difference between what you predict and what actually happens.
In the context of the EOQ model, the term "sawtooth" refers to which of the following? The pattern of inventory consumption and replenishment over time The basic tool used to build storage facilities How aggressively managers are able to cut inventory levels The particular item that can be managed using the EOQ approach
The pattern of inventory consumption and replenishment over time
If the in-stock rate is 95%, which of the following is true? Stockouts are observed in 95% of all order cycles 95% of total consumer demand is filled from on-hand inventory There will be no stockout occurrences in 95 out of 100 order cycles The dwell time will be 95 days
There will be no stockout occurrences in 95 out of 100 order cycles
What are stockout costs? They are equal to inventory holding costs per unit per year They are trivial in most cases They are difficult to estimate precisely They are the same for every product
They are difficult to estimate precisely
Which of the following is NOT a reason to sell abroad? To gain access to both resources and markets To expand the company's potential market To safeguard the company's dependence on the domestic economy To diversify the company's customer base
To safeguard the company's dependence on the domestic economy
Which of the following companies invented the lean six sigma paradigm shift? Samsung Toyota General Electric Sony Ford
Toyota
If you look at a plot of your data and see an upward or downward pattern, your data is revealing a ____________. Level Trend Cyclical Seasonal
Trend
A single MSE calculation doesn't give us a whole lot of information. We have to compare it to previous MSE's or industry benchmarks. TrueFalse
True
Forecasts are based on what two things? Fulfilling orders and creating a production plan What has happened in the past and knowledge regarding how a system works Specifications and sourcing strategy Performance measurement and program management
What has happened in the past and knowledge regarding how a system works
If your company produces chemicals, energy cost is a critical factor for you. As such... While energy cost is important, you need to review the cost of other factors. As energy cost is the most important factor, you can ignore the cost of other inputs. Energy cost is no longer a critical consideration given the cost of solar energy. Labor costs become even more critical, as energy production is labor intensive.
While energy cost is important, you need to review the cost of other factors.
Which of the following might be expected to be an 'A' item SKU at a university? a ream of paper a $30,000 vehicle a computer monitor a particular type of pen
a $30,000 vehicle
Your company decides to locate an R&D center in Campo Grande, Brazil; a Design Center in Cupertino, California; and an assembly plant in Xi'an, Shaanxi. This is a(n) _________ decision. coordination integration autonomy configuration
configuration
By changing the manufacturing environment it is possible to achieve higher levels of performance across all value dimensions. Which of the following is a critical aspect of improving the environment? a. Increase process visibility b. Better share information c. Build a flexible workforce d. All of the above
d. All of the above
S&OP is used to bring the customer-facing and supply-facing sides of your company together to get everyone to agree to which of the following? a. The nature of the business environment b. A single forecast c. How to increase the profit margin d. Both a and b
d. Both a and b
Material requirements planning is a tool to decide which materials should be used in production forecast end-item demand select raw materials suppliers determine when and how many components or materials are needed
determine when and how many components or materials are needed
In the strategic profit model, inventory-related storage and handling costs are captured as direct expenses. cost of goods sold. accounts receivable. indirect expenses.
direct expenses.
Which of the following activities play a key, but interconnected role in the value chain? a. Operations b. Logistics c. Marketing d. Finance e. Human Resources f. All of the above
f. All of the above
Which of the following is almost always an order qualifier? a. Cost b. Quality c. Delivery d. Agility e. Innovation f. Both a and b
f. Both a and b
Which of the following tools are bricks-and-mortar stores commonly using to improve data capture and customer profiling? a. RFID b. Loyalty Cards c. Cookies d. Security Cameras e. Self-scan Technology (e.g., Scan & Go) f. Both b and e
f. Both b and e
Which of the following hobbies illustrates a transformation process? a. Art b. Cooking c. Do-it-yourself projects d. Mountain biking e. All of the above f. a, b, and c only
f. a, b, and c only
Why should you care about needing to learn how to effectively manage services? a. Services are a small part of the economy b. Services are very different from manufacturing operations. c. Services productivity growth and innovation are critical to future prosperity. d. Services are overrated, but they are still important. e. All of the above f. b & c only
f. b & c only
Which of the following are ways to manage the fact that services are perishable—i.e., they cannot be inventoried? a. Automate your existing warehouses b. Buy a bigger warehouse c. Build capacity for peak demand and live with excess capacity during off-peak demand d. Build capacity for average demand and be willing to lose sales when demand is higher e. Try to influence consumer behavior to match demand to supply—e.g., discounts for non-peak times. f. c, d, and e only
f. c, d, and e only
Greater fill rates . . . indicate better customer service. require longer dwell times. require lower in-stock rates. None of the above
indicate better customer service.
GM's global plants typically operate with certain autonomy from each other, because________. the operations activities are highly concentrated the operations activities are very dispersed the operations activities are tightly linked together the operations activities are very coordinated none of the above
none of the above
The main components of inventory holding costs are order and backorder costs. physical and financial carrying costs. storage and stockout costs. warehousing and housekeeping costs.
physical and financial carrying costs.
Material requirements planning should be used to verify that the EOQ has been correctly determined for dependent demand items to determine a retailer's optimal order quantities for disposable cameras when the EOQ formula is not readily available
to verify that the EOQ has been correctly determined
Inventory management in a manufacturing context is similar to finished good inventory management in that the objective is... commodity strategy development capacity requirements planning total cost minimization all of the above
total cost minimization
ABC classification is based on which of the following? value of annual item use units of annual item use value of item use relative to total value of items used item value
value of item use relative to total value of items used
