Supply Chain Management Test Three (13, 14, 15, 17)

The newsvendor model balances which two costs

Costs of ordering too many Running out and losing profits

To _____ an activity means to shorten the time it will take.

Crash

Which of the following is least likely to be a key consideration when a company chooses a supplier?

Current Inventory

The need for safety stocks can be reduced by an operations strategy which:

Decreases lead time variability

The website and order fulfillment are essential features of

E-Commerce

Schedule E Optimistic = 91 Most Likely = 100 Pessimistic = 115

Estimated standard deviation is the square root of [((115 − 91)/6) "2] = 4

Optimistic = 32 Most Likely = 41 Pessimistic = 44

Estimated time is [32 + (4 × 41) + 44]/6

Expected Mean Time for Schedule E Optimistic = 91 Expected = 100 Pessimistic = 115

Expected time is [91 + (4 × 100) + 115]/6. = 101 Days

A Push system requires a high degree of coordination between production stations.

False

Preventive maintenance is additional maintenance done immediately after a breakdown has occurred to help prevent any further breakdowns.

False

If two consecutive activities on the same path each have two days of activity slack, this means that each of them can be delayed by two days without delaying the project.

False Likely only two days total slack are available for these two activities.

The Five S's

Five terms beginning with "S" used to create a workplace suitable for lean production. -Sort means to separate needed items from unneeded ones and remove the latter. -Simplify means to neatly arrange items for use. -Scrub means clean up the work area. -Standardize means to sort, simplify, and scrub daily. -Sustain means to always follow the first four Ss. Sometimes referred to by the Japanese equivalents: seiri, seiton, seiso, seiketsu, and shitsuke.

In a supermarket, a vendor's restocking the shelves every Monday morning is an example of:

Fixed order intervals.

The more __________ a company's supply chain, the more difficult it is to ensure that the supply chain is managed ethically.

Global

A popular visual tool for planning and scheduling simple projects, and for monitoring progress, is the:

Gnatt Chart

A lean-systems method of asking questions about a process is the __________ approach.

HW2H

The basic calculation in the newsvendor model will result in a calculation of:

Optimal probability of running out

_________ has/have helped firms to concentrate on their core business.

Outsourcing

The four building blocks of lean operations are: product design, process design, personnel/organizational elements, and manufacturing planning and control.

True

The matrix organization is useful in integrating specialists into projects

True

The newsvendor model works well for perishable products

True

The overall objective of inventory management is to achieve satisfactory levels of customer service while keeping inventory costs reasonable.

True

The path with the longest duration is the critical path.

True

The probability of occurrence of risk events is higher near the beginning of a project.

True

The rate of demand is an important factor in determining the ROP.

True

The standard deviation of the critical path is equal to the square root of the sum of the variances of all of the activities on the critical path.

True

The sum of times of the longest path in a network indicates expected project duration, and the activities represent the critical activities.

True

The ultimate goal of lean operations is a system characterized by the smooth, rapid flow of materials.

True

To provide satisfactory levels of customer service while keeping inventory costs within reasonable bounds, two fundamental decisions must be made about inventory: when to order and how much to order.

True

Using the EOQ model, the higher an item's carrying costs, the more frequently it will be ordered.

True

Variability in demand and/or lead time can be compensated for by safety stock.

True

Vendor analysis is the process that evaluates the source of supply in terms of price, quality, reputation, and service

True

One way that project management differs from management of more traditional activities is because of the limited time framework of projects.

True Projects have lifetimes with definite beginning and ending points unlike ongoing business activities.

The costs associated with risk events tend to be lower near the beginning of a project and higher near the end of the project.

True This is true even though the probability of occurrence of risk events is higher near the beginning of a project.

A method used for establishing a logical framework for identifying the required activities for the project is called:

Work breakdown structure

Which of the following would probably not involve the use of PERT?

Writing a poem Developing a work breakdown structure would be next to impossible.

The ultimate goal of lean operations is to have: a smooth, rapid flow of work through the system.

a smooth, rapid flow of work through the system.

The lean philosophy suggests that workers are:

assets

Which of the following would not usually be a main factor in selecting a vendor?

inventory turnover

Which of the following would be a main factor in selecting a vendor?

location vendor services quality price

With regard to suppliers, lean systems typically require:

long term relationships and commitments

The ultimate goal in a lean system is:

low to moderate levels of inventory. minimal waste (less than 6 percent). balanced and rapid flow. high quality, zero defects.

Which of the following is not a goal of supply chain management?

lowest possible transportation costs

Which of the following are goals of supply chain management?

small lot sizes fewer suppliers and long-term relationships on-time deliveries delivery often to the place of use

Which of the following contributes to reduced setup time and cost?

standardized setup equipment use of group technology use of multipurpose equipment or attachments standardized setup tools

Which of the following are benefits of centralized purchasing?

supplier research potential for quantity discounts better service from suppliers potential for use of purchasing specialists

Some organizations use a matrix organization to integrate the activities of specialists within a functional framework

True

One problem with lean operations is that they can lead to much stress on workers due to their increased responsibility for process and quality improvement.

True

Returned goods are part of reverse logistics

True

The objective of inventory management is to

Strike a balance between inventory investment and customer service

One important use of inventories in manufacturing is to decouple operations through the use of work-in-process inventories.

True

Dairy items, fresh fruit, and newspapers are items that:

Are subject to deterioration and spoilage.

Having a vendor be responsible for managing the restocking of inventory is what is meant by the term:

JIT II

A conveyance __________ signals parts movement.

Kanban

In a project network, the critical path is the sequence of activities which has the:

Longest duration

A risk avoider would want ______ safety stock.

More

Which one of the following is not generally a determinant of the reorder point?

Purchase Cost

Which of the following is typically the largest of all inventory costs?

Purchase Costs

Which of the following statements is true of Push and Pull systems?

Push and Pull systems are opposite but can still be used together

Which of the following is not one of the assumptions of the basic EOQ model?

Quantity discounts are available

Real-time information about product movement on store shelves could benefit from the use of:

Radio Frequency ID Tags

Which of the following interactions with vendors would potentially lead to inventory reductions?

Reduced lead times

Although transitioning to a lean system can be a powerful means of improving performance, some believe that using __________ along with lean can lead to even better results.

Six Sigma

Which of the following would contribute to making services more lean?

Train workers so they can handle variety in the tasks they perform. Simplify the service process. Standardize the work methods for providing the service. Increase the flexibility of the service system.

A Pull system is likely to struggle to meet demand during demand spikes.

True

A hierarchical listing of what must be done during a project is called the work breakdown

True

An advantage of decentralized purchasing is the attention given to local needs

True

Bullwhip effect refers to a phenomenon in which demand variations that exist at the customer end of the supply chain are magnified as orders are generated back through the supply chain.

True

Carrying cost is a function of order size; the larger the order quantity, the higher the inventory carrying cost.

True

Critical path activities have slack time equal to zero.

True

Decentralized purchasing can usually offer quicker response than centralized purchasing.

True

Delayed differentiation is a means of increasing product variety without building the customized product from scratch or keeping large inventories of custom products.

True

Disintermediation occurs when the traditional retailer or service provider is reduced or eliminated in a supply chain.

True

Important factors in purchasing include the cost of goods purchased, the quality of goods and services, and the timing of deliveries of goods or services.

True

In a lean environment, anything not essential to the product or process is viewed as waste.

True

In a pull system, the accumulation of excessive inventory in front of a workstation is avoided even if there are problems such as equipment failure at that workstation which prevent it from completing its work.

True

In matrix organizations, workers are shared by functional and project managers.

True

Interest, insurance, and opportunity costs are all associated with holding costs.

True

Logistics includes all of these except:

customer selection

In the Toyota Production System, waste and inefficiency are referred to as __________, and the ongoing effort to reduce this is referred to as __________.

muda; kaizen

The purchasing perspective of the supplier as a partner is characterized by

one or a few suppliers

Which of the following are benefits of effective supply chain management?

shorter lead times lower inventory costs higher productivity greater customer loyalty

A common objective of both MRP and the lean philosophy is to:

reduce (and ultimately eliminate) "excess" inventory.

Which of the following are characteristics of preventive maintenance in lean systems?

replacing parts that have a tendency to fail before they fail workers maintaining their own equipment maintaining equipment in good operating condition perceiving breakdowns as an opportunity for improvement