MKt 411 exam 3 quizzes

Calculate the defects per million opportunities (DPMO) given the following: Blake, owner of Blakester's T-shirt Shoppe, keeps track of customer complaints. For each T-shirt sold, there are four possible complaints: T-shirt shrinks, poor quality, design wears off, and doesn't fit right. Each week, Blake calculates the rate of T-shirt "defects" per total T-shirts sold, and then uses this information to determine his company's DPMO. During the past week, his company sold 1200 T-shirts. His company received 22 customer shrinkage complaints, 16 poor quality complaints, 12 design wears off complaints, 8 doesn't fit right complaints. Calculate his firm's DPMO. a) 69,600 b) 12,083 c) 0.193 d) 5.8 x 10-6

12,083

A current warehouse system has five warehouses with 4,000 units at each warehouse. The company desires to change to three warehouses to become more centralized and keep the same customer service levels. Determine the average warehouse inventory levels, using the square root rule. (Choose the closest answer.) a. 15,492 b. 6,667 c. 11,619 d. 25,820

15,942

Calculate the inventory container size required given the following: Demand rate = 10 parts per hour, Safety stock required = 16% Number of containers = 14, Time to cycle through entire system = 6 hours a) Parts b) 4 parts c) 5 parts d) 2 parts

5 parts

A company produces 8-pound bags of cat litter; as shown below, it gathered 5 samples with 6 bags in each sample for quality control purposes. The weights of each of the bags are listed below.

8.06

A company that produces 8 pound bags of cat litter gathered 5 samples of 6 bags each. The weights of each bags' contents are listed below. What would you plot on the x̄ chart for sample 2?

8.130

When mistakes occur in the supply chain, which of the following things might happen? a. Cost may increase due to expedited deliveries b. Customer service levels drop c. More safety stock must be held d. All of these choices are correct.

All of these choices are correct

which of the following is an example of how lean programs can help to protect the environment? a) using rubber from used tires in auto parts b) parts made from recycled materials c) batch size reduction to reduce plastics d) all of these choices are correct

All of these choices are correct

An important outcome of statistical process control is: Firms can take corrective actions before process variabilities get out of control a)Firms can visually monitor process performance b) Firms can minimize total inventory cost c) Both "Firms can take corrective actions before process variabilities get out of control" & "Firms can visually monitor process performance" d) None of these choices are correct.

Both "Firms can take corrective actions before process variabilities get out of control" & "Firms can visually monitor process performance"

A company sells eggs in boxes with 12 cartons and 12 eggs in each carton, thus there are 144 eggs in each box. The organization wants to construct a P-chart to track the proportion of broken eggs in each sample (shown below). If the company used one box of eggs in each sample in the dataset below, what would be the centerline, upper control limit (UCL), and lower control limit (LCL) for the appropriate P-chart? (Use z = 3.) Choose the closest answer.

Centerline = 0.025, UCL = 0.64, LCL = 0

For integrated supply chains, logistics is considered: a. Critically important b. Important c. Somewhat important d. Not at all important

Critically important

Which of the following quality gurus believed that companies should strive for zero defects and that quality was, in a sense, free since quality improvement programs invariably paid for themselves? a)Deming b) Juran c) Crosby d) Baldrige

Crosby

We discussed in class that logistics strategy is usually best tied to this category of overall business obj

Customer satisfaction or NPS

Lean Production, JIT, and Six sigma quality mean the same thing. T/F

False

Which of the following is NOT consistent with the lean philosophy? a) Increasing batch sizes to take advantage of economies of scale b) Positioning WIP inventories near each processing center c) Developing a culture of continuous improvement within the organization d) Cross-training employees to increase processing flexibility

Increasing batch sizes to take advantage of economies of scale

The Five-Ss refer to: a) robust evaluation techniques b)overspending habits c) industrial housekeeping d) Keiretsu relationships

Industrial housekeeping

The quick response program, developed in the 1980's, was an offshoot of the following supply chain concept: a) efficient consumer response b) six sigma c) kaisen d) just in time

Just-in-time

Lean production systems are sometimes referred to as pull systems because demand from customers activates the production actions of the manufacturing facilities. In order for this demand to be communicated to everyone in the supply chain/manufacturing facility a signal must be passed from downstream processing centers to the upstream processing centers. This system of relaying signals is referred to as a: a) keiretsu Network b) Kanban System c) TQM Network

Kanban System

The foundational concept om the Toyota productions system that defines the value of partnership arrangements is:

Keiretsu

Japense manufacturing firms sometimes create cooperative coalitions with their suppliers in order to provide the suppliers with a certain degree of financial support. What are these cooperative coalitions called? a) Kanban Networks b) Kaizen Networks c) Keiretsu Networks d) Jidoka Networks

Keiretsu netowrks

_____________ creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized. a. Procurement b. Transportation planning c. Operations d. Logistics

Logistcs

Which tool is useful for presenting data in an organized fashion, indicating process problems from most to least severe: a)Cause-and-Effect Diagrams b)Fishbone Diagrams c) Check Sheets d) Pareto Charts

Pareto charts

Intermodal marketing companies (IMCs) are companies that act as intermediaries between intermodal a. Waste management companies b. Warehouse management companies c. Trucking companies d. Railroad companies

Railroad companies

Which person was a key figure in developing the Toyota Production System and also developed the concept of poker-yoke?

Shingo

If you need to transport bulky products to a customer your primary concerns was keeping costs low, & speed were not a priority, then which of the following modes would be best?

Ship

What type of firm would be most interested in using a third-party logistics service? a. A freight forwarder b. Large integrated global manufacturing company c. Small firm with no logistics expertise d. A for-hire transportation company

Small firms with no logistics expertise

Which of the following marked the end of the initial push by Congress to deregulate the entire U.S. transportation industry? a. The Shipping Act of 1984 b. The Interstate Commerce Act of 2013 c. The Transportation Act of 1920 d. The Granger Laws

The shipping act of 1984

The Malcolm Baldrige National Quality Award recognizes firms for their quality achivements but is only given to U.S. firms. T/F

True

The responsibility of transportation is to create both time utility and place utility, which means that products will be delivered at the right time to the desired location T/F

True

When lean firms share their best practices with supply chain members, this is referred to as yokoten. T/F

True

Which of the following is a direct benefit from the adoption of NAFTA? a. An increase in trade between U.S., Canada, and Mexico b. An increase in trade between U.S. and China c. An increase in manufacturing job opportunities in the U.S. d. A reduction in immigrants crossing the border from Mexico

an increase in trade between the U.S., Canada, & Mexico

_______________ carry the majority of the world's water-transported manufactured goods. a. Supertankers b. Barges c. Containerships d. None of these choices are correct.

containerships

The acts of receiving shipments, breaking down shipments, repackaging shipments, and distributing components to a manufacturing location or finished products to customers by a distribution center is referred to as: a. Risk pooling b. Crossdocking c. Piggy backing d. Customs Brokering

crossdocking

A primary advantage for motor carriers is the weather. T/F

false

which company probably played the largest role in the development of the Toyota production system? a) chrysler b) boeing c) ford d) general motors

ford

A ___________________ consolidates large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates. a. Consolidation forwarder b. Transportation broker c. Freight forwarder d. Load broker

freight forwarder

It is argued that transportation deregulation is good because: a. It ensures adequate transportation service throughout the country b. It protects consumers in terms of monopoly pricing c. It encourages competition d. All of these choices are correct.

it encourages competition

In the text, Table 9.1 shows that for-hire logistics expenditures in the U.S., have _____________ in the past thirty-one years. a. Remained the same b. Decreased for the first 10 years, then increased c. More than quadrupled d. Slowly declined

more than quadrupled

________________ are the most flexible mode of transportation and account for 70 percent of all the freight tonnage moved in the U.S. a. Rail Carriers b. Water Carriers c. Motor Carriers d. Air Carriers

motor carriers

A product positioned strategy: a. Places warehouses close to the sources of supply b. Places warehouses close to customers c. Places warehouses midway between the sources of supply and the customers d. None of these choices are correct.

places warehouses close to the sources of supply

The following is Aterm that refers to error to mistake proofing: a) kaizen b) muda c) Kanban d) poka-yoke

poka-yoke

Reverse logistics can have a positive impact on the environment through activities such as? a. Risk pooling b. Reneging c. Recycling d. Data warehousing

recycling

Returns mangament is also know as _________. a. Inverted logistics b. Waste reduction c. Reverse logistics d. Backward logistics

reverse logistics

Foreign-trade zones are: a. Markets in the U.S. where foreign countries set up and sell products b. Secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes c. Bodies of water where cargo ships are allowed to dock to deliver imported goods d. Secure sites in foreign countries where goods wait for clearance by importing country

secure sits within the U.S where goods and materials can be assembled and exported without being levied domestic duties or excise taxes