OPER1503

Using the actual demand shown in the table below, what is the forecast for May using a form month waited moving average in the weights 0.1, 0.2, 0.3, 0.4 November 39 December 36 January 40 February 38 March 48 April 46 A. 44.4 B. 43.0 C. 41.6 D. 42.5

A. 44.4

The impact of poor communication and inaccurate forecasts resonates along the supply chain and results in: A. Bullwhip effect B. Mean deviation C. CPFR effect D. Delphi method

A. Bullwhip effect

Your company is conducting for fasting that revolves around the current recession and expansion of the US economy. This type of forecasting can be referred to as what component of the time series? A. Cyclical variations B. Seasonal variations C. Random variations D. Trend variations

A. Cyclical variations

Which of the following is considered an advantage/ benefit of utilizing an ERP system? A. Fairly inexpensive to purchase and implement B. Enable the company to utilize a single centralized database system, thus eliminating duplicate data entry. C. Flexible enough that it allows different companies with a different business models to mold the new ERP system to fit the company's business model. D. All of the above

A. Enable the company to utilize a single centralized database system, thus eliminating duplicate data entry.

Which of the following statements regarding the economic order quantity is true? A. If an order quantity is larger than the EOQ, the annual holding cost exceeds the annual ordering cost. B. The EOQ model assumes a variable demand pattern C. The EOQ is used to determine the optimum shipping quantity D. The EOQ model combine several different item orders to the same supplier E. When the interest rate drops, both the holding costs and the EOQ decreases

A. If an order quantity is larger than the EOQ, the annual holding cost exceeds the annual ordering cost

Which of the following is not a benefit of CPFR A. Improved corporate image among regulators. B. Integrate planning, forecasting and logistics activities. C. Provides analysis of sales and order forecast. D. Provide and analysis of key performance metrics.

A. Improved corporate image among regulators.

, such as lubricants for machines, are used in the production process, but do not become parts of the final products. A. Maintenance, repair in operating supplies B. Finished Goods C. Raw materials D. Cycle stock E. Work in process

A. Maintenance, repair in operating supplies

To check the feasibility of the master production schedule, one would look to: A. Rough-cut capacity plan B. Distribution requirement plan C. Capacity requirement plan D. Material requirement plan

A. Rough-cut capacity plan

According to the texts, the ultimate goal the many forecasting and ever is to have an accurate and unbiased forecast. According to the texts, the ultimate goal the many forecasting and ever is to have an accurate and unbiased forecast. A. True B. False

A. True

Examples of forecasting accuracy measures are mean absolute deviation mean, absolute percentage error, and mean square error A. True B. False

A. True

Radio frequency identification is considered an eventual replacement of barcode because of it ability to store huge amount of information to differentiate Goods at the item level. A. True B. False

A. True

Some important steps involved in the implementation of a CPFR process model include, seeking a long term holistic solutions, creating clear accountability, and reducing decision cycle time. A. True B. False

A. True

Some of the benefits of CPFR include strengthening partner relationships, providing an analysis of sales and order forecast, and allowing collaboration on future requirements and planning. A. True B. False

A. True

The EQO, also known as the economic order quantity, is the order size where annual inventory holding cost equal to annual ordering cost. A. True B. False

A. True

The difference between a simple regression forecast and a multiple regression forecast is that simple regression is used when there is only one explanatory variable, while multiple regression is used when there are numerous explanatory variables. A. True B. False

A. True

The periodic inventory review system reviews physical inventory at a specific point in time A. True B. False

A. True

The term cycle counting is synonymous with physically counting inventory. A. True B. False

A. True

The three basic production strategies for addressing ever get planning problem are the Chase production strategy, the level production strategy, and the mix production strategy. A. True B. False

A. True

Two reasons ERP implementations has been known to fail include: lack of employee training on the new ERP system and lack of adequate resources to support these complex and time-consuming implementations A. True B. False

A. True

Which of the following is considered an advantage/benefit of utilizing in ERP system? A. Increases the bullwhip effect B. Allows organizations to more easily communicate information about operational changes to supply chain members C. Utilizes multiple databases in order to provide up-to-date information D. Increases the privacy level within an organization, thus functional departments can more easily protect their data from supporting or dependent functional groups.

B. Allows organizations to more easily communicate information about operational changes to supply chain members

Which of the following MRP terms represent the parts demanded by a parent? A. Net requirement B. Component C. Gross requirement D. scheduled receipt

B. Component

Service parts sold to the repair shops are examples of dependent demand A. True B. False

B. False

The four broad categories of inventory are raw materials, work in process, subassemblies and finished goods A. True B. False

B. False

The process of converting a parent items planned order releases into component gross requirements as referred to as the ERP implosion. A. True B. False

B. False

The total annual inventory cost is the sum of the annual purchase cost, the annual holding costs, the annual capacity cost, and the annual ordering cost. A. True B. False

B. False

Trends representing either increasing or decreasing movements over many years due to factors such as population growth, population shifts, cultural changes and income shifts are a component of a time series called "random variations" A. True B. False

B. False

Which one of the following is not a type of quantitative forecast? A. Consumer survey B. Naïve method C. Jury of executive options D. Sales force composite

B. Naïve method

The following are all common qualitative forecasting models except: A. Delphi Method B. Trend variation C. Jury of executive opinion D. sales force composite

B. Trend variation

Inventory turnover ratio shows how many times a firm turns over its inventory in the accounting period. Faster turnovers are generally viewed as negative because it indicates instability in the firm's inventory level. A. True B. false

B. false

The cost of the widget is $5, and the caring rate is 40%; cost of processing an order is $25, annual demand is for 400 widgets, and the supply and usage patterns are stable. What is the economic order quantity? A. 5 B. 200 C. 100 D. 20 E. 25

C. 100

Which of the following is a long range material plan? A. Master capacity plan B. Capacity requirements plan C. Aggregate production plan D. Materials requirements plan

C. Aggregate production plan

The acronym ERP stands for A. Electronic requirements provider B. Electronic resource provider C. Enterprise resource planning D. Executive resource plan

C. Enterprise resource planning

The EOQ model with quantity discounts attempt to determine A. What is the shortest lead time B. Whether to used mixed quantity or fixed period order policy C. How many units should be ordered D. What is the lowest purchasing price E. what is the lowest amount of inventory necessary to satisfy a certain Service level

C. How many units should be ordered

Inaccurate forecasts can result in negative outcomes like: A. high inventory cost of inventory and increased profits B. material shortages and decrease cost of obsolescence C. stockouts and poor responsiveness to market dynamics D. low inventory costs of inventory and stockouts

C. stockouts and poor responsiveness to market dynamics

The equation for a simple linear regression that saw sales averaging $225,000 over the last 10 periods, and advertising budgets average Gina $3,000 over the last 10 periods is Y= 3250 + 120 X This indicates that $1 increase in advertising will increase sales by A. $250 B. $1,875 C. $3,370 D. $120

D. $120

Which of the following is an engineer document that shows an inclusive listing of all the component parts and assemblies making up the final product? A. Distribution requirement plan B. Resource requirement plan C. Master production schedule D. Bill of materials

D. Bill of materials

The goal of resource planning is to minimize the dependency between capacity and: A. Workload B. Resources C. Supply D. Demand

D. Demand

If an item is ordered at its economic order quantity, the annual carrying cost should be A. Slightly less than the annual ordering cost B. Cannot be determined because there is insufficient information provided C. Twice the annual ordering cost D. Equal to the annual ordering cost E. The square root of the annual ordering cost

D. Equal to the annual ordering cost

Which of the following is a disadvantage of excessive inventory? A. It leads to higher inventory ordering costs B. It eliminates cycle stock C. It reduces the need to conduct cycle count D. It creates an unnecessary waste of scarce resources E. It leads to lower average inventory

D. It creates an unnecessary waste of scarce resources

Organizations that choose to implement one single system with all of the desired applications from a single vendor vs choosing to implement the best applications for models for each of the different functional departments associated with the supply chain is said to have chosen a(n): A. Premier application solution B. Elite integrator solution C. Best-of-breed solution D. Single integrator solution

D. Single integrator solution

Which strategy relies on a constant output rate and capacity while varying inventory and backlog levels to handle the fluctuating demand pattern? A. Mixed production strategy B. The chase production strategy C. The aggregate production strategy D. The level production strategy

D. The level production strategy

The primary purpose of the basic economic order quantity model is A. To calculate the optimum safety stock B. To minimize the sum of the carrying cost and holding cost C. To maximize the customer service level D. To calculate the reorder point, so that replenishments take place at the proper time E. To minimize the sum of the setup cost and holding cost

E. To minimize the sum of the setup cost and holding cost