MGT 400 Final RMU

A company currently has 100 items in inventory. The demand for the next four months is 500, 800, 900, and 300 units. Determine the monthly production rate if a level strategy is selected with the goal of ending the fourth month with 400 units in inventory.

700 units/month

Which of the following is considered an order winner in an automobile?

A collision avoidance system particular to that design of automobile

In the context of service-delivery system design, which of the following establishments depends on good location decisions?

A health club

Which of the following is true of customer relationship management (CRM)?

A typical CRM system includes market segmentation and analysis

__________is the process of determining the amount of labor and machine resources required to accomplish the tasks of production on a more detailed level, taking into account all component parts and end items in the materials plan.

Capacity requirements planning

A high average inventory value reduces the chances of inventory obsolescence.

False

__________are the decisions management must make as to what type of process structure is best suited to produce goods or create services.

Operations design choices

Which of the following is true of order amplification?

Order amplification in the supply chain leads to the bullwhip effect.

_____ can be attached to objects and used to track and manage inventory and assets.

Radio-frequency identification tags

Which of the following statements is true of sustainability?

Sustainability practices lead to better public perception.

Which of the following can be classified as a support process in a business?

Technology acquisition

In the context of managing inventories in supply chains,__________is the time between placement of an order and its receipt.

The lead time

Which of the following statements is true of service employees?

They require good human interaction skills and strong cross-selling skills.

A work order is a specification of work to be performed for a customer or a client.

True

Customized scheduling spreadsheets use readily available software such as Microsoft Excel, but may be rather expensive to develop.

True

Which of the following is one of the key areas that is addressed by operations design choices?

Value chain integration and outsourcing

_____ consists of partially completed products in various stages of completion that are awaiting further processing.

Work-in-process inventory

Managing orders, transportation, and distribution to provide goods and services is part of the _____ function of the Supply Chain Operations Reference (SCOR) model.

deliver

When business analytics is used to understand past and current performance, it is called _____.

descriptive analytics

In the context of operations management, triage nurses deciding on the order in which emergency patients are to be treated is an example of _____.

sequencing

In the context of the triple bottom line,__________measures include corporate ethics and governance.

social sustainability

Families of goods or services having similar characteristics or methods of creation are called__________.

strategic business units

Fourlotts Corp. provide integrated services that include storing manufactured goods, packaging, and delivering it to the dealers or customers. Given this information, Fourlotts Corp. is most likely a _____.

third-party logistics provider

A__________is a network of facilities and processes that describes the flow of materials, finished goods, services, information, and financial transactions from suppliers, through the facilities and processes that create goods and services, and those that deliver them to the customer.

value chain

__________is inventory that results from purchasing or producing in larger lots than are needed for immediate consumption or sale

Cycle inventory

__________is the explicit consideration of ecological concerns during the design of goods, services, and processes, and includes such practices as designing for recycling and disassembly.

Design for Environment

For goods-producing firms, at which of the following levels of resource planning does scheduling for individual subassemblies and resources by week and day take place?

Disaggregation

Which of the following elements is included in the service-delivery system design?

Facility location and layout

A moving average (MA) method is most appropriate for data with major identifiable trends.

False

A process invariably resides within a department or traditional management function.

False

A small change in a firm's targeted markets or strategic direction usually has little impact on the value chain.

False

A strategy of quality improvement often leads to increased short-run profitability.

False

Air shipments have the lowest transportation cost and can carry unlimited weight.

False

Ambient conditions are the explicit signals that communicate an image about a firm and include examples such as mission statements and diplomas on a wall.

False

An Energy Star dishwasher results in increased release of carbon dioxide to the air.

False

Customer segments cannot be based on sales volume and profitability.

False

Diseconomies of scale are known as the capacity cushion.

False

For firms that adopt innovation as a core component of their strategy, price, not product performance, is the major selling feature.

False

In a fixed-order-quantity system, when demand is uncertain, using economic order quantity (EOQ) based only on the average demand will result in a low probability of a stockout.

False

In the context of causal forecasting models with multiple regression, an R-squared (R2) value of 0.70 means that 30 percent of the variation in the dependent variable is explained by the independent variable.

False

In the context of intellectual property of multinational enterprises, patents protect services.

False

In the context of service-encounter design, free trips and extra vacation days is not considered a form of recognition.

False

In the context of the analytics in operations management, it costs three to five times more to keep an existing customer than acquire a new customer.

False

In the context of the value chain model, when "information replaces assets," the costs increase.

False

In the context of using technology to manage inventories, radio-frequency identification (RFID) chips offer an accuracy of less than 70 percent.

False

Long-term capacity decisions usually involve adjusting schedules or staffing levels.

False

Low scalability implies that serving additional customers requires low incremental variable costs.

False

Professor Terry Hill's operations strategy framework cannot be applied to service-providing firms.

False

Quality measures the degree to which the output of a process conforms to the management's expectations and requirements.

False

Resource management for most service-providing organizations generally requires as many intermediate levels of planning as it does for manufacturing.

False

Service-delivery systems with high customer contact can be treated much like an assembly line.

False

Single-period inventory models are used in situations involving items that can be carried in inventory and sold in future periods.

False

The Theory of Constraints focuses on eliminating all bottleneck activities in a process.

False

The center-of-gravity model increases the weighted distance between the facility to be located and its supply and demand points.

False

The higher the customer participation in service processes, the more certainty a firm has with respect to service time and capacity.

False

The purpose of a master production schedule (MPS) is to break down the aggregate planning decisions into such details as order sizes and schedules for individual subassemblies and resources by week and day.

False

The use of technology has increased opportunities for employee creativity and empowerment.

False

Two examples of process-focused performance measures for sequencing rules are tardiness and lateness.

False

Vehicles, furniture, and dishwashers are examples of nondurable goods.

False

Which of the following statements is true of goods?

Goods-producing industries rely on machines and hard technology to perform work.

Which of the following companies is most likely to have a competitive advantage in its market?

Greyon Inc., a computer manufacturer that builds and leverage operational capabilities to support desired priorities

Which of the following is a benefit of using technology?

It increases quality and productivity of firms.

Which of the following statements is true of the transportation problem?

Its objective is to satisfy all destination demands with a minimum transportation cost.

In the context of the types of performance measures, which of the following is a measure of innovation and learning?

Patent applications

__________is inventory that has been ordered but is in transit.

Pipeline inventory

In the context of the pre- and postproduction services perspective of a value chain, which of the following are postproduction services of a value chain?

Recycling and remanufacturing initiatives

__________specialize in handling all aspects of customers giving back a manufactured good or delivered service and requesting their money back, repairing the manufactured good and giving it to the customer, and/or invoking the service guarantee.

Return facilitators

Cash-to-cash conversion cycle is the average time to convert a dollar spent to acquire raw materials into a dollar collected for a finished good.

True

Different industries use different software packages for scheduling because every industry has different problem structures.

True

Enterprise resource planning (ERP) systems integrate all aspects of a business into a unified information system.

True

Forecasting is a key component in customer relationship management.

True

If the value ratio for a good or service is high, the good or service is perceived favorably by customers.

True

In industries where jobs have low skill requirements, changing workforce levels can be cost effective.

True

In the Theory of Constraints, constraints determine the throughput of a facility.

True

In the context of demand planning, customers' wants and needs define the customer benefit package.

True

In the context of sourcing, a single supplier often provides economies of scale and the ability to form close partnerships.

True

In the context of the value chain model, fewer resources are needed to achieve performance goals when "information replaces assets."

True

Location is an important competitive priority in a service business.

True

Marketing and operations prefer high inventory levels, whereas finance would prefer small inventories.

True

Radio-frequency identification (RFID) chips allow firms to track individual containers.

True

Scalability is a key issue in e-commerce.

True

Supply chain optimization includes minimizing the total costs of manufacturing and transportation, which might consider sourcing, distribution, and placement of inventory throughout the supply chain.

True

Technology upgrades and backup systems and sites can help mitigate security risks.

True

The core competencies of an organization are the strengths that are unique to that organization.

True

The ideas and methods surrounding a revenue management system are often called yield management.

True

The intangible nature of a service makes it difficult to keep a competitor from copying a service encounter design.

True

The single-period inventory model applies to inventory situations where demand is uncertain.

True

With interlinking models, managers can objectively make internal decisions that impact external outcomes.

True

Zara's value chain model focuses on two basic rules: "Give customers what they want, and get it to them faster than anyone else."

True

At Blyrie Apparels, the apparel stocks in the firm's outlets are changed every week. This is based on the changing fashion preferences of its customers. Its managers also coordinate in real-time among its other stores and satisfy its customers' requirements. In this case, Blyrie Apparels most likely uses _____.

a responsive supply chain

A firm that specializes in certain types of goods-producing activities, such as customized design, manufacturing, assembly, and packaging, and works for end users is called a _____.

contract manufacturer

A(n)__________is an example of soft technology.

database system

A requirement of two-resource sequencing rule is that

each job must be processed first on the first resource and then on the second.

Rues and West Inc. manufactures various electronic goods. It uses mass-customization strategies to make its products available to all consumers at any place in the world. It also manufactures various electronic goods in the same assembly line. Given this information, Rues and West Inc.'s operations are aligned around _____.

flexibility

A(n)__________is any entity—real or virtual—that coordinates and shares information between buyers and sellers.

intermediary

In the context of sourcing, multiple suppliers:

lower the risk of supply disruption.

Unlike firms that outsource, firms engaged in offshoring:

maintain ownership of the facility in another country.

In manufacturing, a _____ is a statement of how many finished items are to be produced and when they are to be produced.

master production schedule

In the context of sequencing, the earliest due date (EDD) rule:

minimizes the maximum number of jobs past due.

For manufactured goods, design blueprints specify a target dimension, along with a range of permissible variation called the__________.

tolerance