Business Process

As discussed in the textbook, which of these is an application of the Pareto principle to inventory management

ABC classification

As discussed in class, the calculate a CP index, ___ by ___

Divide difference between upper and lower specification limits; six times the standard deviation of the actual output

As discussed in the textbook, in the logistics-systems design matrix, volume, cost, and speed of delivery are three variables ( assume three levels: low medium and high) used to describe attributes of transportation modes. Rail is associated with:

high volume, moderate speed & low cost

In the Plan-Do-Check-Act (PDCA) cycle, "Plan" means ___.

set objectives

As discussed in class, which is a reason firm's hold inventory?

to protect against stockouts when demand is uncertain

As discussed in class, fitness for use quality refers to:

user define quality in terms of how an item performs

As discussed in class, "quality at the source" means "do it right the first time and if something goes wrong, stop the process immediately to identify and solve the problem." Which is not true of a "quality at the source" initiative?

workers are not trained to participate in "quality at the source"

As discussed in the textbook, in an overview of the major operations planning activities in a typical service organization, which of these activities comes after aggregate sales and operations planning?

workforce scheduling

As discussed in the textbook, to account for demand uncertainty when calculating reorder point (R) calculations, what do we add to expected demand during lead time (average daily demand multiplied by lead time duration in days)?

Safety stock = standard deviation of demand during lead time multiplied by standard normal probability value for the desired degree of protection form stockout

As discussed in the textbook, for which of these should we use an R-chart to monitor process quality?

Tire pressures in an automotive assembly plant

which, as discussed in class, is not a factor influencing location selection?

access to social media

As discussed in the textbook, which is not one of the steps in the six-step process for green sourcing?

confer with environment groups

As discussed in the textbook, looking outside an organization to examine what industry competitors and excellent performers outside of your industry are doing in a particular process is called:

external benchmarking

as discussed in the textbook, when considering outsourcing, what should firms avoid?

giving the outsourcing partner opportunities to become a stronger competitor

As discussed in class, which is not, in Dr. Marshall Fisher's framework, a characteristic of an innovative product?

high substitutability

As discussed in the textbook, which is not a criterion influencing manufacturing plan or warehouse facility location decisions?

historical cost

As discussed in the textbook, one of the objectives of facility location analysis is to select a site with the lowest total cost. Which cost should be excluded from a location analysis?

historical costs

as discussed in the textbook, which is an organizationally-driven reason for outsourcing?

improve effectiveness by focusing on which the firm does best

As discussed in class, which is not a step in level production planning for a make-to-stock (MTS) environment?

negotiate reduction in value of inventory

The aggregate planning example discussed in class demonstrates:

profit maximization should be the basis for making decisions about the timing (on-peak or off-peak) of demand promotion

As discussed in the textbook, in a lean production system, firms should work with suppliers to:

reduce lead times

As discussed in the textbook, to achieve flow manufacturing in a lean production system a firm should:

reduce time required to set up production equipment to make a different item

Which is not an advantage of reducing the time required to setup manufacturing equipment to make a different item?

reduced training time

As discussed in the textbook, which dimension of design quality is concerned with the consistency of performance over time or the probability of a performance failure?

reliability

as discussed in class, which is not a characteristic of a "lean customer"?

requires FOB, destination freight terms in sales agreements

Which, as discussed in class, is not one of the seven deadly wastes?

run time

As discussed in class, with a chase production strategy a firm establishes its production schedule to:

satisfy average (I.e., expected) demand

As discussed in the textbook, computerized inventory systems are often programmed to produce a cycle count notice in which of these cases?

when the record shows a positive balance, but the system generated a backorder

As discussed in the textbook, which of these concepts relate to elimination of waste in lean production?

Kanban-based production control system

According to Alfred Weber's examination of the location of production facilities (as discussed in class), a firm that uses significant quantities of pure, ubiquitous materials will prefer ___ location

a demand oriented

As discussed in, class which is true of Statistical control?

a process is under statistical control as long as inherent variation is the only variation that affects its output

Statistical process control charts (SPC charts) have central line and upper and lower control limit lines. As discussed in the textbook, an SPC chart indicates the process monitored by the chart should be investigated when:

a single plotted point falls outside the control limits

As discussed in the textbook, in outsourcing, ___ are the type of internal activates and decision responsibilities that cannot be outsourced (I.e., transferred to outside contractors).

activities involving shareholders

As discussed in class, which is an operational goal of total quality management?

assuring the firm's processes can consistently manufacture products as designed

As discussed in the textbook, ____ is the term used for the effect of a lack of synchronization among supply chain members.

bullwhip effect

As discussed in class, assuming EOQ at the lowest price is invalid, the second step in using the total annual cost model presented in chapter 11 of the textbook to analyze quantity discounts is:

calculate EOQ at the middle price & check its validity

As discussed in class, which is not a step in creating an X-bar statistical process control chart?

calculate cost per defect, based on plotted sample average

As discussed in class, all logistics processes are either inventory-oriented or transportation -oriented. Which is a factor a firm considers when, for a specific situation, it is deciding which orientation (inventory or transportation) to adopt for its logistics process?

characteristics of the item

As discussed in the textbook, __ is one of the strategic characteristics to consider when deciding how supplier relationships should be structured on the continuum between vertical integration (do not outsource) and arm's length relationships (outsource).

coordination

from an operational perspective, according to the textbook, yield management is least effective under which circumstances?

demand is stable & close to capacity

as discussed in the textbook, which of these is a layout principle for lean production process?

design for balanced workflow

As discussed in the textbook, when using Dr. Marshall Fisher's supply chain uncertainty framework to classify supply chains, ___ describes a supply chain for functional products with a stable supply process.

efficient

As discussed in class, which is not a cost relevant for production planning?

export duties

As discussed in the textbook, which of these cost is irrelevant for determining inventory requirements?

fixed cost

As discussed in the textbook, which is an assumption of the basic fixed-order quantity (e.g., EOQ) inventory model?

fixed prices or cost per unit or inventory

As discussed in class, the plotted points on a p-chart statistical process control chart show:

for each sample, the proportion of the sample that is defective

Which, as discussed in class, is not true of service facility location selection?

in the 21st century, service facilities should all move free WIFI service for waiting customers to us

as discussed in the text, which is not a manufacturing process problem hidden by excess inventory?

inadequate worker motivation

if the replenishment quantity increases, the annual cost of carrying inventory will, ___, because ___ will ___.

increase; average inventory; increase

As discussed in the textbook, which is not an aspect of infrastructure assessed in location analysis?

labor cost and supply

Marinating a constant output rate which fluctuations in demand are handled by accumulating or consuming inventory describes, according to the textbook, which of these production planning strategies?

level

as discussed in class, fishbone diagrams help managers:

link defects (unwanted effects) to their underlying root causes

In logistics, the levels of optimality concept refers to:

logistics process performance is affected by (and influences the efficiency and effectiveness of) the performance of supplier and customer processes and logistics process performance is affected by (and influences the effective ness of) marketing & production strategies (both b and c)

As discussed in the textbook, the sourcing/purchasing design matrix, includes three variables, contract duration, transaction cost, and specificity (assumes levels as short, medium and long for contact duration and for the rest, low medium and high). Vendor managed inventory belongs to:

long contract duration, low transaction cost & high specificity

Which, as discussed in class, is not true of waste in a lean environment?

market segmentation & product proliferation strategies are wasteful & should be abandoned

as discussed in class, which is true of long-term storage in a logistics process?

materials are held over time to assure reliable supply

As discussed in the textbook, very few items are shipped without at least part of the their journey provided by which more of transportation?

motor (truck)

As demonstrated in class, to calculate shipment quantity in ton-miles

multiply shipment weight in tons by shipment distance in miles

Which, according to the video "Aligning Supply & Demand: Creating the Right Supply Chain," is not one of the activities making up the "physical" function of the supply chain?

new product development

As discussed in class, which is not true of the bullwhip effect?

over-communication between supply chain allies causes the bullwhip effect

As discussed in class, a firm's inventory system is:

policies & controls that monitor the quantity of inventory

According to the video Continuous Process Improvement, a "critical challenge" firms face in gaining and sustaining competitive advantage frim their supply chain is that their relationships with their supply chain allies (suppliers and customers) must be ___ and not ___.

positive; characterized by suspicion and hostility

The cost of controlling quality includes which of these?

prevention & appraisal costs

According to the video Continuous Process Improvement, the reality that, in today's competitive environment, "cost down" (the ability to consistently reduce cost) is an order qualifier, puts pressure on firms to continuously improve their ___.

process methods

As discussed in the textbook, in the lean philosophy, as demonstrated by the Toyota Production System, which of these is a waste to be eliminated?

product defects

As discussed in class, a disadvantage of a chase production strategy is ___.

production rate varies to meet demand

As discussed in the textbook, which is an improvement-driven reason for outsourcing?

shorten cycle time

As discussed in class, group technology means:

similar parts are grouped into families & the process required to make them are arranged in manufacturing cells

As demonstrated in class, when calculating the number of Kanban card sets, the denominator of the calculation includes ___.

size of parts container (number of units per container)

According to the textbook, which of these is considered a "pure" production planning strategy?

stable workforce, variable work hours

As discussed in the textbook, for which of these should we use an R-chart to monitor process quality?

student grades measured from 1 to 100

As discussed in the textbook, ownership costs, from a total cost of ownership perspective, are incurred after the initial purchase and are associated with the ongoing use of the product or material. From that perspective, which of these is not an ownership cost?

taxes (of any kind)

as discussed in the textbook, which is not a relevant component of order cost?

taxes on the items ordered

The March 23, 2015 Associated Press article entitled, "are Slaves Catching the Fish You Buy?," illustrates:

the buying behaviors of shopper and consumers in the United States and other developed countries are supporting human trafficking

According to the video "aligning supply & demand : creating the right supply Chain," supply chain risk is defined as ___.

the firm's ability to effectively & efficiently coordinate (I.e., balance) supply and demand

As discussed in class, if all a firm knows is mean & standard deviation of demand during lead time:

they can specify a continuous probability distribution of demand during lead time

As discussed in the textbook, which is not a reason firms hold inventory?

to keep supplies of component parts out of the hands of competitors

As discussed in class, when faced with demand seasonality a firm must either manage capacity, mange inventory or manage demand. Which is a tactic a firm faced with demand seasonality could use to manage its demand?

use promotion to spread seasonal demand over more time

As discussed in the textbook, in a manufacturing plant, ___ is the technique used to identify the value-adding and non-value-adding processes.

value stream mapping

In production planning, the concept of priority refers to ___.

what output are needed, how much is needed & when is it needed