Dsci ex 3

JIT

Just in Time. A system that eliminates work-in-process (WIP) inventory by scheduling arrival of parts and assemblies for an operation at the time they are needed and not before.

In MRP, the number of units projected to be available at the beginning of each time period refers to

Projected on hand

VMI

vendor-managed inventory

Many suppliers sourcing strategy

-Commonly used for commodity products -Purchasing is typically based on price -Suppliers compete with one another -Supplier is responsible for technology, expertise, forecasting, cost, quality, and delivery

Few Suppliers sourcing strategy

-Long-term partnering with few suppliers -Buyer forms longer term relationships with fewer suppliers -Create value through economies of scale and learning curve improvements -Suppliers more willing to participate in JIT programs and contribute design and technological expertise -Cost of changing suppliers is huge

Five jobs, using LPT, what is the makespan?

27

Heavy Eyes Inc- five jobs waiting to be processed using SPT priority rule. Their processing times are shown in the following table. What is the mean flow time?

5.4 days

5) A work center had actual input of 280 hours and actual output of 270 hours. What is the change in backlog? A) 10 B) -10 C) 0 D) 1.037 E) Unable to determine with the given information

A) 10

11) An order for 50 units of Product A and 60 of B has been placed. There are currently 25 units of Product B on hand. Each A requires 2 units of Part C; each B requires 5 units of C. There are 160 units of C available. What are the net requirements for C? A) 115 B) 175 C) 240 D) 690 E) 700

A) 115

7) EDD stands for what? A) earliest due date B) earliest design date C) earliest detrimental date D) earliest decision date E) economic date determination

A) earliest due date

5) In MRP, system nervousness is caused by: A) management's attempt to continually respond to minor changes in production requirements. B) the use of the lot-for-lot approach. C) management's marking part of the master production schedule as "not to be rescheduled". D) the use of phantom bills of material. E) management's attempt to evaluate alternative plans before making a decision.

A) management's attempt to continually respond to minor changes in production requirements.

10) Which of the following dispatching rules ordinarily gives the best results when the criterion is quickest time for completion of the full sequence of jobs? A) shortest processing time (SPT) B) critical ratio (CR) C) first in, first out (FIFO) D) first come, first served (FCFS) E) longest processing time (LPT)

A) shortest processing time (SPT)

If the demand for product A is 50 units, how many units of component E will be needed? A) 4 B) 100 C) 200 D) 250 E) 300 OR If the demand for product A is 50 units, how many units of component E will be needed? A) 50 B) 100 C) 150 D) 200 E) 300

Answer: E , Answer: A

27) Which of the following statements regarding the production order quantity model is TRUE? A) It applies only to items produced in the firm's own production departments. B) It relaxes the assumption that all the order quantity is received at one time. C) It relaxes the assumption that the demand rate is constant. D) It minimizes the total production costs. E) It minimizes inventory.

B) It relaxes the assumption that all the order quantity is received at one time.

4) Which of the following is NOT one of the five parts of the Supply Chain Operations Reference (SCOR) model? A) Make B) Sell C) Plan D) Source E) Return

B) Sell

3) Distribution resource planning (DRP) is: A) a transportation plan to ship materials to warehouses. B) a time-phased stock replenishment plan for all levels of a distribution network. C) a shipping plan from a central warehouse to retail warehouses. D) material requirements planning with a feedback loop from distribution centers. E) a material requirements planning package used exclusively by warehouses.

B) a time-phased stock replenishment plan for all levels of a distribution network.

10) In most manufacturing industries, which of the following would likely represent the largest cost to the firm? A) transportation B) purchasing C) insurance D) financing E) advertising

B) purchasing

8) A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. When this large order is sent to the distributor, the distributor assumes the large size is a trend, not a one-time event. The distributor therefore places an even larger order with the lobsterman. This behavior is the result of which of the following? A) double marginalization B) the bullwhip effect C) CPFR D) postponement E) vendor-managed inventory

B) the bullwhip effect

4) Suppose that papers for a newspaper stand cost $0.40 and sell for $0.80. They currently have no salvage value. If the stand owner is able to find an outlet that would provide a salvage value of $0.10, what would be the increase in service level? A) .5 B) 0 C) .07 D) 1 E) unable to determine given only the above information

C) .07

14) A certain type of computer costs $1,000, and the annual holding cost is 25% of the value of the item. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity? A) 16 B) 70 C) 110 D) 183 E) 600

C) 110

9) If daily demand is normally distributed with a mean of 15 and standard deviation of 5, and lead time is constant at 4 days, a 90 percent service level will require how much safety stock? A) 7 units B) 10 units C) 13 units D) 16 units E) 26 units

C) 13 units

12) An order for 110 units of Product A has been placed. There are currently 60 units of Product A on hand. Each A requires 4 units of Part B. There are 20 units of B available. What are the net requirements for B? A) 20 B) 120 C) 180 D) 240 E) 440

C) 180

10) An order for 110 units of Product M has been placed. There are currently 30 units of Product M on hand. Each M requires 4 units of Component N. There are 20 units of N on hand. What are the net requirements for N? A) 150 B) 170 C) 300 D) 320 E) 440

C) 300

10) If daily demand is constant at 10 units per day, and lead time averages 12 days with a standard deviation of 3 days, 95 percent service requires how much safety stock? A) 28 units B) 30 units C) 49 units D) 59 units E) 114 units

C) 49 units

42) Lead time for computers is 7 days with daily demand of 5 computers and a safety stock of 1 day. Each kanban holds 8 computers. What is the correct number of kanbans? A) 4.5 B) 1 C) 5 D) 7 E) 8

C) 5

If the demand for product A is 30 units, and there are 10 units of B on hand and none of C, how many units of part D will be needed? A) 3 B) 40 C) 70 D) 90 E) 110

C) 70

12) Which of the following is an aid used to monitor jobs in progress? A) a Gantt load chart B) the assignment method C) a Gantt schedule chart D) Johnson's rule E) a Gantt progress chart

C) a Gantt schedule chart

20) Which of the following is NOT one of the Seven Wastes? A) overproduction B) transportation C) assignment D) defective product E) motion

C) assignment

11) The short-term scheduling activity called "loading": A) assigns dates to specific jobs or operations steps. B) specifies the order in which jobs should be done at each center. C) assigns jobs to work centers D) assigns workers to jobs. E) assigns workers to machines.

C) assigns jobs to work centers

11) A fried chicken fast-food chain that acquired feed mills and poultry farms has performed which of the following? A) horizontal integration B) forward integration C) backward integration D) current transformation E) job expansion

C) backward integration

9) Orders are processed in the sequence in which they arrive if (the) ________ rule sequences the jobs. A) earliest due date B) slack time remaining C) first come, first served D) critical ratio E) Johnson's

C) first come, first served

15) The Japanese concept of a company coalition of suppliers is: A) poka-yoke. B) kaizen. C) keiretsu. D) dim sum. E) illegal.

C) keiretsu.

10) A paint company mixes ten different base colors into 3,000 different color options. If production scheduling is organized around the ten different base colors , then the bills of material are classified as which of the following? A) phantom B) planning C) modular D) low-level E) A and B

C) modular

10) Which of the following best describes vertical integration? A) sell products to a supplier or a distributor B) develop the ability to produce products that complement the original product C) produce goods or services previously purchased D) develop the ability to produce the specified good more efficiently than before E) build long-term partnerships with a few suppliers

C) produce goods or services previously purchased

6) What is one of the tools that is particularly useful in reducing system nervousness in an MRP system? A) modular bills B) time phasing C) time fences D) lot sizing E) closed loop system

C) time fences

10) The two most basic inventory questions answered by the typical inventory model are: A) timing of orders and cost of orders. B) order quantity and cost of orders. C) timing of orders and order quantity. D) order quantity and service level. E) ordering cost and carrying cost.

C) timing of orders and order quantity.

15) Most inventory models attempt to minimize: A) the likelihood of a stockout. B) the number of items ordered. C) total inventory-based costs. D) the number of orders placed. E) the safety stock.

C) total inventory-based costs.

CPFR

Collaborative Planning, Forecasting, and Replenishment

9) Dependent demand and independent demand items differ in that: A) for any product, all components are dependent-demand items. B) the need for independent-demand items is forecast. C) the need for dependent-demand items is calculated. D) All of the above are true. E) None of the above is true.

D) All of the above are true.

17) Which of the following statements regarding a pull system is TRUE? A) Large lots are pulled from upstream stations. B) Work is pulled to the downstream stations before it is actually needed. C) Manufacturing cycle time is increased. D) Problems become more obvious. E) None of the above is true of a pull system.

D) Problems become more obvious.

2) Which of the following statements regarding MRP in services is TRUE? A) MRP is for manufacturing only, and it is not applicable to services. B) MRP can be used in services, but only in those that offer very limited customization. C) MRP only works in services for demand that is independent. D) Services such as restaurant meals illustrate dependent demand, and they require product structure trees, bills-of-material, and scheduling. E) None of the above is true.

D) Services such as restaurant meals illustrate dependent demand, and they require product structure trees, bills-of-material, and scheduling.

12) Hewlett-Packard delays customization of its laser printers as long as possible. This is an example of which of the following? A) vendor-managed inventory B) standardization C) backward integration D) postponement E) timely customization

D) postponement

5) Which one of the following is NOT one of the six sourcing strategies? A) negotiation with many suppliers B) vertical integration C) keiretsu D) short-term relationships with few suppliers E) virtual companies

D) short-term relationships with few suppliers

Seven Wastes

DOMITOQ1. defective product2. overprocessing3. motion4. inventory5. transportation6. overproduction7. queues

35) Which one of the following statements is TRUE about the kanban system? A) The quantities in the containers are usually large to reduce setup costs. B) It is associated with a push system. C) It is useful to smooth operations when numerous quality problems occur. D) The supplier workstation signals the customer workstation as soon as a batch is completed. E) The customer workstation signals to the supplier workstation when production is needed.

E) The customer workstation signals to the supplier workstation when production is needed.

11) ABC analysis divides on-hand inventory into three classes, generally based upon which of the following? A) item quality B) unit price C) the number of units on hand D) annual demand E) annual dollar volume

E) annual dollar volume

13) Which of the following is generally found in most Lean environments? A) a push or pull system, depending upon the rate of demand B) a push system for high margin items and a pull system for low margin items C) a push system for purchased parts and a pull system for manufactured parts D) push systems E) pull systems

E) pull systems

EOQ

Economic Order Quantity

ERP

Enterprise Resource Planning

Sweet-Dreams Inc- five jobs waiting to be processed. Job A has a flow time of 8 days, b of 10, c of 15, d of 20, and e of 27. What is the mean flow time?

average- 16 days

Drop shipping and special packaging

bypasses the seller and reduces costs

TPS emphasizes

continuous improvement, respect for people, and standard work practices in an assembly-line environment (TOYOTA PRODUCTION SYSTEM)

If safety stock is desired, it should be built into which portion of MRP?

either raw materials or finished goods

Joint venture

formal collaboration avoid conceding competitive advantage and diluting brand can enhance skills, secure supply, and reduce costs

What are the six sourcing strategies?

many suppliersfew supplierskeiretsu networksvertical integrationvirtual companiesjoint ventures

Keiretsu network

middle ground between few suppliers and vertical integrationsupplier part of company coalitionmay give financial support to suppliers (loans/ownership)LT relationship

Vertical Integration

producing goods/services that were previously purchasedforward- towards the customerbackward- towards the suppliers

Direction in MRP systems can be minimized when safety stock is held at the

purchased component or raw material level and finsihed goods level

Virtual Company

sourcing strategy ST or LT relationshipsrely on variety of suppliers to provide services on-demand and in a changing mktflexible, lean performance, low capital investment, flexible, speedy

Lean operations

supply the customer with exactly what the customer wants when the customer wants it, without waste, through continuous improvement