Operations Management Test #3

Which of the following can be used as a punishment for suppliers that perform poorly?

All of these (-elimination of future business with the focal firm -downgrade the supplier's statues -billback penalty)

Legacy MRP systems had which of the following limitations?

All of these (-the system needed continuous modifications -the systems were not user-friendly -the systems are designed to perform a very specific operational function)

Which of the following could be an ethical and environmental certification requirement?

All of these (Forest Stewardship Council (FSC, Energy star certification, Fair trade certification)

Which of the following is a trend in ethical and sustainable sourcing?

All of these (-using suppliers who are reducing their carbon footprint -discontinuing purchases from firms that use unacceptable labor practices -reducing the number of delivery miles traveled)

The main benefit(s) from benchmarking sourcing practices is/are:

Allows firms to leapfrog the experience-gaining stage by trying things that have worked well for other companies

The use of ethical and environmental certifications for suppliers is decreasing.

False

Benchmarking is:

A practice where companies attempt to learn and apply the best practice of other companies

Successful strategic supplier alliances can result in which of the following?

All of these (-better market penetration -access to new technologies and knowledge -higher return on investment)

Legacy MRP systems typically utilize multiple software packages and databases which caused:

The same information to be stored in multiple locations

One standard which is measured in environmental supplier certification is:

The suppliers' recycle content

While ERP is a relatively new technology, it has grown rapidly since the early 1990s. Which of the following is the reason that has contributed to its rapid growth?

The year 2000 millennium bug

A practice aimed at ensuring that purchased products or materials meet environmental objectives of the organization is referred to as green purchasing.

True

ERP provides the mechanism for supply chain members to share information so that scarce resources can be fully utilized to meet demand, while minimizing the bullwhip effect and supply chain inventories.

True

Implementing a best-of-breed solution may cause firms to link databases from multiple software applications of different vendors.

True

Which of the following basic production strategies works best with make-to-order manufacturing firms?

Chase production strategy

Which of the following MRP terms represents the parts demanded by a parent?

Component

__________ considers the public consequences of organizational buying.

Ethical sourcing

As described in the text, a "fair trade product" refers to selling and purchasing products without a cash transaction.

False

The legacy MRP system was programmed to coordinate with other functional areas in the firm.

False

The use of environmental supplier certification programs assists companies by which of the following?

Identifying strategic alliance candidates

In a bill of materials, items at which level are independent demand items?

Level 0

Which of the following should not be used as assessment criteria to evaluate the purchasing department's performance?

Lowering inventory turnover rates

ERP Implosion is the process of covering a parent item's planned order releases into component gross requirements.

False

In general, single integrator ERP solutions are better suited to more intricate workplaces.

False

It is best for firms to learn through their own experiences the methods and tools that work the best, rather than benchmarking.

False

Sustainable sourcing practices include promoting diversity by internationally buying from ethnic minority businesses.

False

The three basic production strategies for addressing the aggregate planning problem are the chase production strategy, the level production strategy, and the aggregate production strategy.

False

There are just a small number of resources available for firms seeking to learn about and implement successful sourcing practices.

False

When a single company that is implementing an ERP system chooses to use on company to provide an operations module, another to provide the sales and marketing application, and yet another company to provide the finance and accounting module, that single company has chose to utilize the single integrator approach.

False

What is the most important out of the MRP?

Planned order releases

The _________ solution picks all the desired applications from a single vendor for the ERP system.

Single integrator

Convincing your supplier to cut back on packaging, fuel, or electricity is an example of:

Sustainable sourcing

Which strategy allows finished goods inventories to accrue and relies on backlogs to handle the demand?

The level production strategy

An ERP system is generally a multi-module application software for managing an enterprise's internal functional activities, as well as its suppliers and customers.

True

Because international recognized certifications like ISO 9000 are becoming so common among suppliers, it is becoming more important that purchasing firms develop internal certification programs that are geared toward the specific needs of the purchasing organization.

True

Creating strategic supplier alliances benefits firms by increasing the performance and value of suppliers as well as increasing brand awareness.

True

Criteria to evaluate a purchasing department's performance should include both quantitative and qualitative assessments.

True

Demands by customers for companies to become more ethically and environmentally focused have placed added pressures on firms to improve their performance in supply chain management.

True

Developing a collaborative negotiation infrastructure includes four steps: build a preparation process, develop a negotiation database, design a negotiation launch process, and institute a feedback mechanism.

True

ERP systems were designed to coordinate the information requirements for purchasing, planning, scheduling and distribution of an organization operating in a complex multi-unit global environment.

True

Environmental supplier certifications can be used to identify rogue suppliers before they can cause problems.

True

Firms assess their sourcing capabilities because the sourcing function is one of the most value-enhancing functions in an organization.

True

Functional products are characterized by low profit margins, relatively stable demands and high levels of competition.

True

It is important for firms to address the impact of ethical and sustainable sourcing on other facts of the organization and its trading partners.

True

Lack of communication between the implementing firm and its ERP software provider can become a major hinderance for a successful implementation.

True

Rewarding suppliers for maintaining high levels of performance is an important step used in maintaining a successful strategic alliance program.

True

System nervousness is when even small changes to upper-level production plans cause major changes in lower-level production plans.

True

The mixed strategy uses overtime and subcontracting to cope with the high demand periods.

True

Two reasons ERP implementations have been known to fail include: lack of top management commitment and lack of communication between the firm and its ERP software provider.

True

A service where key customers ask suppliers to take on the job of store level replenishment planning is called:

Vendor managed inventory

The best-of-breed solution picks all the desired application from a single vendor for the ERP system.

.False

Calculate the final discrete available-to-promise quantity for Week 1 using the following table.

ATP1=10

The _________ specifies which end product is to be made, how many are required, and when they need to be completed.

Aggregate production plan

Using the _________ multiple software infrastructures and databases may have to be used to link the multiple applications obtained from different vendors.

Best-of-breed

Why are firms migrating to ERP systems?

ERP systems tie together a variety of specialized systems

Which of the following is considered an advantage/benefit of utilizing an ERP system?

Enables the company to utilize a single centralized database system, thus eliminating duplicate data entries

The acronym for ERP is short for:

Enterprise Resource Planning

Sustainability reporting is ________ for American companies:

Largely a voluntary effort

Complete the following MRP record and provide the planned order releases for Week 1. Lead time is 2 weeks. Safety stock is 3. Use LFL lot sizes.

29

A negotiation where both sides work together to maximize the join outcome or to create a joint optimal result is referred to as:

Win-win negotiations