OM Exam 3

Which of the following facilities could use the​ 5Ss? A. Manufacturing facility B. Headquarters C. Retail store D. All of the above

All of the above

Which of the following is the purpose of a​ warehouse? A. ​Break-bulk point B. Storage point C. Consolidation point D. All of the above

All of the above

​Activity-based costing A. identifies applicable costs. B. assigns cost to specific activities. C. assigns overhead to the activity that generates the cost. D. All of the above.

All of the above.

Who is given credit for developing the Toyota Production​ System? A. Akio Toyoda B. Taiichi Ohno C. Eiji Toyoda D. Both B and C

Both B and C

What are the variables needed to determine the number of kanban cards or​ containers? A. Demand during lead​ time, Optimal order​ quantity, Logistics B. Demand during lead​ time, Safety​ stock, Size of container C. ​EOQ, Size of​ container, Safety stock D. ​EOQ, Safety​ stock, Optimal order quantity

Demand during lead​ time, Safety​ stock, Size of container

What is the term of shipping directly from the supplier to the end consumer rather than from the​ seller, saving both time and reshipping​ costs? A. Drop shipping B. Postponement C. Direct shipping D. ​Vendor-managed inventory

Drop shipping

What is a​ long-term purchase commitment to a supplier for items that are to be delivered against​ short-term releases to​ ship? A. blanket order B. postponement C. drop shipping D. advanced shipping notice

blanket order

As orders are relayed from​ retailers, to​ distributors, to​ wholesalers, to​ manufacturers, the fluctuations in order quantities increase at each step in the sequence. What is this​ called? A. demand bias B. bullwhip effect C. local optimization D. quantity discounts

bullwhip effect

Supply chain managers outsource logistics to meet three​ goals: A. drive down inventory​ investment, lower delivery​ costs, and provide better market response. B. lower delivery​ costs, improve delivery reliability and​ speed, and provide better market response. C. drive down inventory​ investment, improve delivery reliability and​ speed, and provide better market response. D. drive down inventory​ investment, lower delivery​ costs, and improve delivery reliability and speed.

drive down inventory​ investment, lower delivery​ costs, and improve delivery reliability and speed.

Which of the following is NOT a lean scheduling​ tactic? A. Produce in large lots to minimize setup costs B. Use kanbans C. Make level schedules D. Freeze part of the schedule

Produce in large lots to minimize setup costs

When an inventory manager uses ABC​ analysis, which of the following will they consider to be the most critical A​ item? A. largest storage space required B. highest cost per unit C. highest​ dollar-volume each year D. largest demand each year

highest​ dollar-volume each year

Which of the following should a company include as part of an​ item's holding​ cost? A. ordering​ costs, including forms and order processing B. investment​ costs, including taxes and insurance C. labor​ costs, including purchasing and clerical support D. process​ costs, including equipment setup

investment​ costs, including taxes and insurance

Cycle counting A. involves shutting down production once per year to perform the annual inventory count. B. cannot be performed in an independent demand situation. C. is a process by which inventory records are verified. D. increases annual inventory adjustments.

is a process by which inventory records are verified.

The Japanese call the practice of stopping production when a defect occurs A. ​poka-yoke. B. kaizen. C. kanban. D. jidoka.

jidoka.

What occurs when members of a work cell group or team meet to develop improvements in the​ process? A. kaizen event B. JIT event C. poka yoke event D. jikoda event

kaizen event

Which of the following strategies is part​ collaboration, part purchasing from few​ suppliers, and part vertical​ integration? A. virtual companies B. joint ventures C. horizontal integration D. keiretsu networks

keiretsu networks

Which of the following is an advantage of faster​ shipping? A. less storage space required B. lower shipping costs C. lower holding costs D. more carrier options

lower holding costs

Which of the following does NOT belong to holding​ costs? A. ​pilferage, scrap, and obsolescence B. insurance on inventory C. order processing D. storage costs

order processing

What is transferring a​ firm's activities that have traditionally been internal to external​ suppliers? A. vertical integration B. outsourcing C. ​make-or-buy D. keiretsu network

outsourcing

Which of the following is a common measure of supply chain​ performance? A. inventory holding cost B. cost of goods sold C. percentage invested in inventory D. total asset turnover

percentage invested in inventory

What is a concept that results in material being produced only when requested and moved to where it is needed just as it is​ needed? A. pull system B. push system C. procrastination system D. requisition system

pull system

Which of the following mitigation tactics could reduce economic​ risk? A. subcontractors on retainer B. franchising and licensing C. multiple transportation modes and warehouses D. purchasing contracts that address price fluctuations

purchasing contracts that address price fluctuations

Which three criteria should be considered when designing distribution networks to meet customer​ expectations? A. ​cost, volume, profit B. ​capacity, security, environment C. rapid​ response, product​ choice, service D. ​convenience, selection, value

rapid​ response, product​ choice, service

Which of the following types of inventory describes inventory that has been purchased but not​ processed? A. ​maintenance/repair/operating supply inventory B. raw material inventory C. ​work-in-process inventory D. ​finished-goods inventory

raw material inventory

Supply chain management describes the coordination of all supply chain​ activities, starting with​ _______ and ending with​ _______. A. ​quality; differentiation B. ​manufacturers; retailers C. component​ suppliers; distributors D. raw​ materials; satisfied customers

raw​ materials; satisfied customers

Efficiency in a warehouse is primarily improved by A. creating wider aisles. B. using taller shelves. C. increasing order quantities. D. reducing worker travel time.

reducing worker travel time.

Shrinkage is A. the decrease in inventory levels resulting from cycle counting. B. retail inventory that is unaccounted for between receipt and sale. C. liquid inventory. D. a small amount of theft.

retail inventory that is unaccounted for between receipt and sale.

The 5Ss developed by the Japanese do NOT include A. standardize. B. ​sort/segregate. C. safety. D. ​simplify/straighten.

safety.

What is the cost to prepare a machine or process for​ production? A. setup cost B. preparation cost C. holding cost D. ordering cost

setup cost

In manufacturing​ environments, setup cost is highly correlated with A. dependent demand. B. holding cost. C. independent demand. D. setup time.

setup time.

Which of the following remedies may reduce the bullwhip effect​? A. allocate orders based on demand forecasts B. offer periodic sales to stabilize demand C. encourage order batching to reduce order frequency D. share demand information throughout the supply chain

share demand information throughout the supply chain

The objective of inventory management is to A. take advantage of quantity discounts. B. strike a balance between inventory investment and customer service. C. provide a selection of goods for anticipated customer demand. D. decouple various parts of the production process.

strike a balance between inventory investment and customer service.

Why might a company carry​ inventory? A. to encourage customers to order in advance B. to synchronize production and distribution schedules C. to decouple steps in a production process D. to prevent inflation

to decouple steps in a production process

Which of the following is one of Taiichi​ Ohno's seven​ wastes? A. ​MRP/ERP B. logistics C. energy D. transportation

transportation

What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a​ distributor? A. horizontal integration B. virtual companies C. outsourcing D. vertical integration

vertical integration

Which of the following is NOT a Lean quality​ tactic? A. ​cross-train workers to add flexibility B. build​ fail-safe methods C. empower employees D. use statistical process control

​cross-train workers to add flexibility

Which of the following words means​ built-in quality​ tests? A. kaizen B. ​poka-yoke C. sensei D. kanban

​poka-yoke

A lawnmower assembly plant uses a variety of​ nuts, bolts,​ screws, and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule. This is an example of A. single stage control of replenishment. B. ​e-procurement. C. postponement. D. ​vendor-managed inventory.

​vendor-managed inventory.

Which of the following is NOT a type of​ inventory? A. finished goods B. MRP C. ​work-in-process D. raw material

MRP

Prior to embarking on supply chain​ design, why do operations managers first consider​ "make-or-buy" and outsourcing​ decisions? A. Organizations owe it to the community to share customer profits. B. Modern accounting practices require a quantitative analysis of production options. C. Some products or services may be better or less expensive if obtained externally. D. Globalization dictates focusing on fewer products or services to remain competitive.

Some products or services may be better or less expensive if obtained externally.

What does it mean when managers in a hospital go to the​ Gemba? A. They are working on reducing the average wait time in the Urgent Care Center. B. They are reducing the number of minutes it takes from when a patient is wheeled into the operating room until the first incision is made. C. They are utilizing 5S protocol and standard work practices for the preoperation process. D. They are going to the place where the work is actually performed in the hospital.

They are going to the place where the work is actually performed in the hospital.

Which of the following statements is NOT one of the differentiation strategy​ decisions? A. Modular design to aid product differentiation. B. Use buffer stocks to ensure speedy supply. C. Minimize inventory to avoid product obsolescence. D. Gather and communicate market research data.

Use buffer stocks to ensure speedy supply.