Operations Final

Four Ms

Layout strategies help firms maximize all of the following EXCEPT

Backward integration to purchase suppliers

Leading companies practicing sustainable sourcing and seeking to reduce costs would NOT use which of the following strategies?

recycling

Reverse logistics can have a positive impact on the environment through activities such as?

True

Reverse logistics has become an important trend in ethical and sustainable sourcing.

true

Reverse logistics refers to the movement and storage of returned goods

True

Supply chain analytics can be used along the supply chain to schedule production according to expected supplier deliveries

False

Supply chain management is concerned about how suppliers' products are designed, produced, and transported.

all of the above

Supply relationship management personnel routinely communicate with:

use of renewable energy

Sustainable sourcing policies should include which of the following?

False

The EOQ equation is derived by setting the annual purchase cost equal to the annual holding cost.

Every 5 years

The Hormel company awards their Hormel Food Corporation's No. 1 Award to their top supplier. How often do they give this award?

True

The Malcolm Baldrige National Quality Award recognizes firms for their quality achievements but is only given to U.S. firms.

just in time

The Quick Response program, developed in the 1980's, was an offshoot of the following supply chain concept:

Pre-Transaction Costs

Costs associated with investigating alternative suppliers and investigating alternative delivery options can be classified as:

true

Criteria to evaluate a purchasing department's performance should include both quantitative and qualitative assessments.

master production schedule

The ___________ planning horizon is shorter than the aggregate production plan's, but must be longer than a firm's production lead time to ensure the end item can be completed within the planning horizon?

crossdocking

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:

False

The batching of orders is unlikely to increase the likelihood of the bullwhip effect occurring.

True

The economic order quantity model (EOQ) is the optimal independent demand order quantity that minimizes total annual inventory costs.

Predicting Customer Behaviors

The element of a CRM program involved with the use of data-mining software and customer behavior analytics is:

Poka-yoke

The following is a term that refers to error or mistake proofing

Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers

The following is an example of the bullwhip effect

Simple moving average

The following time-series approach to forecasting uses historical data to generate a forecast and works well when demand is fairly stable over time

bullwhip effect

The impact of poor communication and inaccurate forecasts resonates along the supply chain and results in the

False

The legacy MRP system was programmed to coordinate with other functional areas in the firm.

False

The objectives of any CRM initiative should be focused on what the company can reasonably achieve.

cross selling

The online retailer Ecatalog.com has decided to send consumers of the new John Grisham book an e-mail with suggestions for books with similar themes and has also offered them a 20% discount if those suggested books were purchased. This type of marketing/promotion is an example of:

False

The optimal capacity utilization for an organization would be 100%.

False

The possibility of events like strikes, assembly line breakdowns, and natural disasters are all reasons a company should favor using a single supplier.

between 0 and 1

The smoothing constant for exponential smoothing must be?

True

Two methods for managing supply chain risk include utilizing a supply chain IT system and identifying backup suppliers.

false

Volatile currency exchange rates do not have an impact on location decisions.

Muda

Waste in Japan is also referred to as

the shipping act of 1984

Which of the following marked the end of the initial push by Congress to deregulate the entire U.S. transportation industry?

water carriers

Which of the following modes of cargo transport can be characterized as being the most inexpensive and very slow, yet good for transporting very heavy goods a long-distance?

right-to-work laws

Which of the following secures the right of employees to decide whether to join or financially support a union?

Centralized purchasing is where individual, local purchasing departments, such as at the plant level, make their own purchasing desicions

Which of the following statements is FALSE?

NAFTA

Which of the following trade agreements created the world's largest free trade area, currently with over 450 million people and GDP of more than US$20 trillion?

A firm lacks the technology or expertise to produce an item

Which of the following would be a good reason to outsource (buy) versus making?

all of these

Which of the following would be considered a quality of life factor?

order fulfillment process

Which of the key supply chain business processes refers to meeting customer requirements by synchronizing the firm's marketing, production and distribution plans

Shingo

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

The year 2000 millennium bug

While ERP is a relatively new technology, it has grown rapidly since the early 1990s. Which of the following is the reason that has contributed to its rapid growth?

True

While a company's Internet presence may be desirable for finding information or conducting product transfers, touching products and talking face-to-face with company representatives remains an integral part of the supplier-customer interface.

Post transactional customer service

You are a manager at Sunnydale Appliances. A customer who recently purchased a dishwasher contacts you with a problem and requests warranty information. According to the text,: this is an example of

Cyclical variations

Your company is conducting forecasting that revolves around population growth in large cities. This type of forecasting can be referred to as what component of a time series?

logistics

_____________ creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized.

containerships

_______________ carry the majority of the world's water-transported manufactured goods.

public warehouses

___________________ are for-profit organizations that contract out or lease a wide range of light manufacturing, warehousing, and distribution services to other companies.

False

Pareto Analysis means that 20 percent of the items get about 80 percent of the safety stock.

False

A SRM strategy refers to a situation wherein a supplier's employee is permanently housed in the purchasing department of the buyer's organization.

False

A country that imposes high tariffs encourages foreign-based companies to import goods.

customer service management process

A customer approaches a firm with a question regarding her order status and shipping date; the information the firm provides is an example of which of the eight key supply chain business processes:

finding the NVP of a customers projected lifetime profits for the firm

A customer's lifetime value is calculated by

planned order release

A form of purchasing that is placed directly to the supplier and suitable when firms use the same components to make standard goods over a relatively long period of time is referred to as:

False

A lean system is also known as a push system.

Ranked near the top in 2015

According to the SCM profile Honda ___________ based on a supplier relations index developed by Planning Perspectives.

market

According to the SCOR model, which of the following is NOT one of the five supply chain operation process categories?

knowledge management process

According to the text, all of the following are considered key supply chain business processes EXCEPT

False

According to the text, good queue management consists of managing only what the customer perceives to be as the waiting time.

focus strategy

According to the text, which of the following is a service strategy characterized by the idea that a service can serve a narrow target market better than a broad market?

Both A & B

According to the text, which of the following is considered a current trend in supply chain management?

True

According to the textbook, the five basic modes of transportation are motor, rail, air, water, and pipeline.

supplier lead times

According to the textbook, the top three challenges for CPFR implementation include all of the following EXCEPT

False

According to the textbook, there are four key supply chain business processes: purchasing, manufacturing, distribution, and returns.

False

According to the textbook, third-party logistics providers (3LPs) do not offer assistance with helping products clear customs.

ease of access to parking lot

All of the following are considerations used in designing service layouts EXCEPT:

ergonomic conditions

All of the following may influence demand and should be considered when developing a forecast EXCEPT

both A & B

An important outcome of statistical process control is:

supply chain risk

An internal or external event that causes a disruption or failure of supply chain operations is an example of

supplier certification

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as:

Early Supplier Involvement

As firms seek to improve the products they offer to the market, companies are seeking help from their suppliers in new product design and development through

True

As tighter control limits are instituted for the tracking signal, there is a greater probability of finding exceptions that require no action, but it also means catching changes in demand earlier.

True

At a service facility it has been calculated that they can handle the demand per hour approximately 76 percent of the time at a rate of 4 per hour. This means that approximately 24 percent of the time, demand per hour will be greater than four customers, causing queues to develop.

True

Automating procurement activities can lead to significant cost savings as buyers move toward managing processes by exception.

10 % of their time on expediting orders

Before supplier relationship management (SRM), buyers typically spent 40% of their time on expediting orders. After SRM implementation buyers spent about:

Actual customers served per period / Capacity

Capacity utilization =

E-cards

Companies typically like to design scorecards that fit their business and industry. As a result there are now software applications that can help companies design scorecards that fit their individual needs. These web-based balanced scorecard applications are often referred to as

logistics

Customer relationship management, distribution network, transportation management, and service response logistics are all important issues that are most closely related to

Political factors

Cyclical variations are longer than a year and can be influenced by

Review and Establish Supply Chain Strategies

Decisions regarding the types of parts purchased, suppliers used and the manufacturing process employed, should be decided in which phase of the supply chain integration model

Both A & B

Due to the success of NAFTA, the U.S________________.

False

ERP Implosion is the process of converting a parent item's planned order releases into component gross requirements.

Supplier Management

Encouraging or helping a firm's suppliers to perform in a desired fashion can be referred to as:

both A and B

Firms can safeguard customer information by doing which of the following?

important

For integrated supply chains, logistics is considered

True

Foreign suppliers located farther away may be able to deliver goods faster than domestic suppliers due to more efficient transportation and logistical systems.

False

Generally speaking, motor carriers are less expensive than rail carriers to haul goods.

Lack of Supply Chain Visibility

Higher inventories, higher costs, longer response times, and lost customers can result from?

False

If a company is effectively focusing on its core competencies, its level of outsourcing is likely to decrease.

Equal to the annual ordering cost

If an item is ordered using its economic order quantity, the annual carrying cost should be:

True

In Europe, rail transportation tends to be much more prevalent and reliable than rail transportation in the U.S, because European track, facilities, and equipment are newer and better maintained.

False

In a weighted-criteria evaluation system the weights of all the performance dimensions must add up to more than 1.00 and less than 100.

False

In general, performance measurement systems are mostly identical from company to company.

more than quadrupled

In the text, Table 9.1 shows that for-hire logistics expenditures in the U.S., have _____________ in the past thirty-one years.

imbalances in supply and demand

Inaccurate forecasts can result in negative outcomes like:

demand for a firms end product

Independent demand is the

Shortage gaming

Influencing and increasing the capabilities of a firms own employees, as well as those of their trading partners, will help to eliminate which of the following obstacles to process integration?

more common

Information technology advances, for example, have made cyber attacks

railroad companies

Intermodal marketing companies (IMCs) are companies that act as intermediaries between intermodal

False

It is considered unethical for a firm to intentionally buy from women-owned businesses.

True

Lack of internal or external collaboration will create quality, cost, delivery timing, and other customer service problems that are detrimental to supply chains.

Customer relationship management and Human resource management

Not all ERP software is designed to provide the exact same tools, nonetheless, some of the common modules usually included in ERP software packages include:

True

One of the assumptions of the economic order quantity model (EOQ) is that purchase price must remain constant.

False

Organizations practicing lean production often increase their inventory levels in order to create a cushion against variability so that they can investigate and eliminate the weaknesses in their systems.

hub and spoke

Organizations that primarily compete on speed of delivery, such as FedEx and UPS, utilize which of the following approaches for location determination?

True

Poor logistics management can bring a supply chain to its knees, regardless of the quality of the products.

True

Procurement credit cards can be used for small purchases including meals, lodging, and travel expense.

Ethical Sourcing

Promoting diversity by intentionally buying from small firms or ethnic minority businesses is an example of:

all of the above

Regional trade agreements assist with which of the following?

True

Rewarding suppliers for maintaining high levels of performance is an important step used in maintaining a successful strategic alliance program.

people, planet, profit

Some businesses refer to sustainability in terms of supporting the three P's. This stands for:

True

Statistical process control uses control charts to monitor the outputs of a process to identify variations due to assignable causes and variations due to common causes.

SRM

Streamlining the processes and communications between the buyer and supplier using software applications that enable these processes to be managed more efficiently and effectively can be referred to as:

Return management

Substance disposal and recycling are part of which supply chain business process

True

Themed restaurants such as ESPN zone, Rainforest Cafe, and Chuck E. Cheese are all examples of entertainment facilities.

True

To control and enhance the capabilities of companies within a supply chain, well-designed performance measurement systems must be implemented.

True

Toyota initially designed their JIT program on Ford's manufacturing system.

false

Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility.

seasonal variation

What component of a time series has variations in demand which show peaks and valleys that repeat over a consistent interval such as hours, days, weeks, months, or years?

-+ 3

What is considered an acceptable range for a tracking signal?

transaction costs

What type of major cost category is considered in the cost associated with placing and receiving the order?

continuous connectivity

When CRM applications are available 24/7 on smartphones, tablets, and desktops, this is referred to as

False

When a single company that is implementing an ERP system chooses to use one company to provide an operations module, another provide the sales and marketing application, and yet another company to provide the finance and accounting module, that single company has chosen to utilize the single integrator approach.

Event Based Marketing

When an organization attempts to offer the right products and services to customers at the right time through the offer of individual promotions tied to specific events like birthdays and anniversaries, this is referred to as

False

When customer expectations are met or exceeded, the service is deemed to possess low quality.

Order Batching

When salespeople need to fill end-of-quarter or end-of-year sales quotas they might use ___________, which creates greater use of safety stock causing the bullwhip effect.

Select the key dimensions of performance based on what is important to the end consumer

When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT

Performance variance

When utilizing performance standards, the difference between the standard and the actual performance is called the:

component

Which of the following MRP terms represents the parts demanded by a parent?

Waste reduction and continuous improvement

Which of the following are among the MOST important elements of the lean production philosophy?

All of the above

Which of the following are intermodal transportation alternatives?

cross-selling customers after an initial purchase

Which of the following are required elements of an effective CRM initiative?

customer complaint resolution

Which of the following customer service elements can be classified as an example of posttransaction elements?

increased number of franchise operators

Which of the following has made external integration more difficult to achieve?

trading company

Which of the following international intermediaries helps foreign buyers and sellers find each other and then handles all the shipping arrangements and documentation preparation?

to select the best suppliers

Which of the following is NOT a reason for supplier recognition programs?

Hiding the wait time

Which of the following is NOT a technique for managing customers' perceived waiting times

developing efficient processes that will remain unchanged for the duration of the partnership

Which of the following is NOT important in developing a successful strategic alliance?

warehouse management

Which of the following is NOT one of the Eight Key Supply Chain Business Processes?

the EOQ is a lot size G, and curve K is the annual holding cost curve

Which of the following is TRUE regarding the EOQ figure below?

Performance metrics and personal business relationship are both keys to building successful partnerships

Which of the following is TRUE?

Increase in manufacturing job opportunities in the U.S.

Which of the following is a direct benefit from the adoption of NAFTA?

reduces variabilities in quality levels

Which of the following is a reason for favoring single sourcing?

there could be supplier interruptions due to political instability

Which of the following is a reason that single sourcing is considered risky/bad?

overall total productivity

Which of the following is a traditional performance measure?

all of the above

Which of the following is a vital element in developing a strong supply chain through the practice of process integration?

all of the above

Which of the following is an example of how lean programs can help to protect the environment?

lack of trust

Which of the following is an obstacle to successful process integration?

all of the above

Which of the following is true of today's purchasing staff members?

all of the above

Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities?

manufacturing cells

Which of the following layouts is primarily designed to process parts, components, or jobs requiring the same or similar processing steps, saving duplication of equipment and labor: