Supply Chain Exam 3 Peavey

The process commonly utilized in continuous improvement is known as? A.Plan, Source, Make, Deliver B. Specific, Measurable, Achievable, Relevant, Time-Oriented (S.M.A.R.T.) C. Plan, Do, Check, Act D. Ready, Set, Go

C. Plan, Do, Check, Act

What is "Cross-Docking"?

unloading materials from an incoming truck or railcar and loading these materials directly onto outbound trucks or railcars, with little or no storage in between to reduce inventory investment and storage space requirements.

What are the main objectives of the quality management process (Six Sigma)?

- Identifying and reducing or removing the causes of defects (errors) and - Minimizing variability in manufacturing and business processes

What are the main objectives of managing operation philosophy in supply chain? (LEAN)

- Waste Reduction, Value Enhancement, and Improving Efficiency (and/or) - Eliminate everything that does not add value (waste) in the customer's eyes

Match each of the Seven Tools of Quality Control to the appropriate description for each. 1. A tool used to graph how a process changes over time: 2. A tool used to identify the frequency of occurrence for each identified problem 3. A tool used to plot the values of two variables along two axes in order to reveal any correlation present 4. A tool used to aid in brainstorming and isolating the causes of a problem 5. A tool used to sequence the movements or actions of people or things involved in a complex system or activity 6. A tool used to organize and present process problems from most to least severe 7. A tool to graphical display data grouped into ranges A. Scatter Diagrams B. Pareto Analysis C. Histograms D. Check Sheets E. Flow Diagrams F. Cause and Effect Diagrams G. Control Charts

1. A tool used to graph how a process changes over time: G. Control Charts 2. A tool used to identify the frequency of occurrence for each identified problem: D. Check Sheets 3. A tool used to plot the values of two variables along two axes in order to reveal any correlation present: A. Scatter Diagrams 4. A tool used to aid in brainstorming and isolating the causes of a problem: F. Cause and Effect Diagrams 5. A tool used to sequence the movements or actions of people or things involved in a complex system or activity: E. Flow Diagrams 6. A tool used to organize and present process problems from most to least severe B. Pareto Analysis 7. A tool to graphical display data grouped into ranges: C. Histograms

Select the two manufacturing strategies that are most aligned with batch manufacturing. - Intermodal - Continuous Flow Production - Assemble-to-Order - Water - Make-to-Stock - Rail - Make-to-Order - Project Production - Pipeline - Engineer-to-Order - Truck - Job Shop Production - Line Flow Production - Air

1. Assemble-to-order 2. Make-to-order

Name the five key characteristics to consider in the development and implementation of a Supplier Relationship Management system

1. Automation 2. Integration 3. Visibility 4. Collaboration 5. Optimization

Name five keys to a successful strategic partnership (Note: There are more than 5, but you only need to identify any 5)

1. Building Trust 2. Having a Shared Vision and Objectives 3. Developing Personal Relationships 4. Establishing Mutual Benefits and Needs 5. Gaining Commitment from Top Management 6. Managing Change 7. Information Sharing and Lines of Communication 8. Understanding and Influencing Capabilities 9. Continuous Improvement 10. Measuring Performance

Name five services that a 3PL offers. (are more than 5)

1. Inbound Transportation 2. Outbound Transportation 2. Warehousing 3. Picking and Packing 4. Freight Forwarding 5. Customs Brokerage 6. Customs Clearance 7. Order Taking 8. Billing and Invoicing 9. Inventory Auditing 10. Freight Bill Auditing and Payment

What are the primary functions of a warehouse (Select all that apply) - Picking - Shipping - Transportation - Repackaging - Packing - Reverse Logistics - Assembly Operations - Receiving - Quality Inspections - Storage

1. Receiving 2. Storage 3. Picking 4. Packing 5. Shipping

What are the five R's of Reverse Logistics? (Select all five correct answers) - Remitting - Reject - Reducing - Report - Repeating - Rewinding - Remove - Review - Reverberating - Returns - Replicating - Refill - Repackaging - Revise - Recycling - Repairs - Rehabilitate - Recalls - Reshipping - Rework

1. Returns 2. Recalls 3. Repairs 4. Repackaging 5. Recycling

Name the five modes of transportation.

1. truck 2. rail 3. pipeline 4. air 5. water

Using the Weighted-Criteria Evaluation System, what is the overall performance score for this Supplier given the following parameters? Performance Measure Rating Weight On-Time Delivery 85 25% Order Accuracy 95 25% Quality (i.e., rejections) 80 30% Price 95 10% Cost Reduction 75 5% Innovation 80 5%

86.25

Which Transportation Company Classification is described as a person or company who transports freight for a fee and can be hired by anyone to transport goods? A. Common Carrier B. Private Carrier C. Exempt Carrier D. Contract Carrier

A. Common Carrier

Which one of the following Manufacturing Strategies has the shortest (i.e., fastest) Customer Delivery Cycle? A. Make-to-Stock B. Engineer-to-Order C. Make-to-Order D. Assemble-to-Order

A. Make-to-Stock

Costs incurred in the process of establishing specifications for incoming materials, processes, products, and services, are categorized as which of the following? A. Prevention Costs B. Appraisal Costs C. External Failure Costs D. Internal Failure Costs

A. Prevention Costs

Which warehouse ownership type provides the most flexible contract terms? A. Public Warehouse B. Private Warehouse C. Contract Warehouse

A. Public Warehouse

In the context of Total Cost of Manufacturing (TCM), in general terms, procurement, manufacturing, and transportation per unit costs each go down as volume goes up. A. True B. False

A. True

Intermittent Production Processes are used to produce a large variety of products with different processing requirements in lower volumes. A. True B. False

A. True

Successful supplier relationships involve equal decision-making control between both the buyer and the supplier. A. True B. False

A. True

The Weighted-Criteria Evaluation System is typically used to select a supplier or to evaluate the performance of a supplier? A. True B. False

A. True

The key characteristics to consider in the development and implementation of a Supplier Relationship Management System, include all of the following, EXCEPT? A. Visibility B. Detachment C. Integration D. Collaboration

B. Detachment

A strong supplier partnership requires that both buyer and supplier adopt a strong tactical perspective. A. True B. False

B. False

FOB Destination requires that ownership of the goods passes to the buyer when the public carrier accepts the goods from the seller. A. True B. False

B. False

FOB Origin requires that the supplier legally retain ownership of the product being shipped until it reaches the destination A. True B. False

B. False

ISO 14000 is a widely accepted management and quality certification standard. A. True B. False

B. False

Lean is an operating philosophy or mindset that attempts to minimize the impact of supply variability and flaws in forecasting through the use of safety stock inventories. A. True B. False

B. False

The goal of Six Sigma is the elimination of waste and the minimization of the amount of all resources (including time) used in the operation of a company. A. True B. False

B. False

The greater the desired customer service level is, the more warehouses the company may need to have, but the tradeoff is maintaining a lower inventory level A. True B. False

B. False

The process to evaluate a supplier's capabilities, and their capacity to supply a product or service to the buyer, is known as Supplier Certification. A. True B. False

B. False

The transportation industry continues to be heavily regulated to protect consumers from monopoly pricing, provide safety, and hold carriers liable for their actions. A. True B. False

B. False

When using a weighted-criteria evaluation system with five or more categories, suppliers should be ranked based on their score in only the two highest weighted categories. A. True B. False

B. False

What is the term for starting the production of finished goods only after a customer's order is received? A. Mass Customization B. Make-to-Order C. Economic Order Quantity D. Make-to-Stock

B. Make-to-Order

What company originated the concept of Six Sigma? A. General Electric B Motorola C. Ford D. Toyota

B. Motorola

Performance Measures should be S.M.A.R.T. which is an acronym that means? Correct answer: A. Specific, Measurable, Achievable, Relevant, Time-oriented B. Suitable, Marketable, Applicable, Remarkable, Time-based C. Substantial, Meaningful, Accurate, Rational, Time-sensitive D. Significant, Memorable, Appropriate, Reasonable, Time-tested

B. Suitable, Marketable, Applicable, Remarkable, Time-based

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as? A. Supply Management B. Supplier Certification C. Supplier Inspection D. Quality Systems Certification

B. Supplier Certification

Which warehousing process is considered a Lean concept because it eliminates the need to store inventory, and reduces transportation A. Consolidation Warehousing B. Break-Bulk Warehousing C. Cross Docking Warehousing D. Third Party Logistics

C. Cross Docking Warehousing

The manufacturing strategy in which the product is designed, engineered, and built to specifications only after the order has been received is called what? It is used when products are unique and extensively customized for the specific needs of individual customers. A. Assemble-to-Order (ATO) B. Make-to-Order (MTO) C. Engineer-to-Order (ETO) D. Make-to-Stock (MTS)

C. Engineer-to-Order (ETO)

What is the common name of the warehouse network that is configured with a centralized warehouse which holds most of the inventory linked to a series of smaller geographically dispersed warehouses which hold only a small amount of inventory to support their local area in the immediate time frame? A. Decentralized B. Break-Bulk C. Hub and Spoke D. Consolidation

C. Hub and spoke

Which Lean related process can be described as a strategy to increase the level of services to consumers through close cooperation among retailers, wholesalers, and manufacturers? A. Just-in-Time B. Keiretsu Relationships C. Quick Response D. Efficient Consumer Response

D. Efficient Consumer Response

Reverse logistics involves the process of moving a product from the point of customer receipt back to the point of origin. Which one of the following is NOT one of the Five R's of Reverse Logistics? A. Recalls B. Recycling C. Repackaging D. Reconciliation E. Returns F. Repairs

D. Reconciliation

Withdrawing components from stock to make assemblies or finished goods, or to ship to a customer, is known as? A. Shipping B. Receiving C. Storage D. Packing E. Picking

E. Picking

Name the operating philosophy discussed in Chapter 8 that is used to help manage operations in the supply chain.

LEAN or Lean production

___________ is the manufacturing strategy that has the shortest / fastest lead time (i.e., the manufacturing strategy that will provide product to customers the quickest).

Make-to-stock

The mode of transportation that has the most capability is _________

Rail

Name the quality management process discussed in Chapter 8.

Six Sigma

What does 3PL stand for?

Third party logistics