SCM 414 Test #2

_____ focuses on flexibility and responsive service and is able to react quickly to changing market demand and requirements. a. A responsive supply chain b. The push-pull boundary c. An efficient supply chain d. The center-of-gravity method

a. A responsive supply chain

Which of the following best defines a fixed-time simulation model? a. A simulation model that counts the number of arrivals and determines whether or not a customer is being serviced during a set time interval b. A simulation that relies on user input and actual statistical data c. A simulation that represents a certain time period in the past d. A simulation that replicates until a maximum time has been reached

a. A simulation model that counts the number of arrivals and determines whether or not a customer is being serviced during a set time interval

Which of following facilities is most likely to have a fixed-position layout? a. An airplane factory b. A legal office c. A paper factory d. A pizza kitchen

a. An airplane factory

Which of the following statements is true of capacity? a. Capacity must be at least as large as the average demand to satisfy customers in the long run. b. Short-term capacity decisions usually involve major capital investments. c. Long-term capacity decisions typically involve adjusting schedules and staffing levels. d. When demand exceeds capacity, it results in idle processes or facilities.

a. Capacity must be at least as large as the average demand to satisfy customers in the long run.

_____ delineate the boundaries of a process. a. Flowcharts b. Bottlenecks c. Value streams d. Control tasks

a. Flowcharts

_____ is an approach for mistake-proofing processes using automatic devices or simple methods to avoid human error. a. Poka-yoke b. The value stream c. The product-process matrix d. Reengineering

a. Poka-yoke

_____ constrain customers to follow a very small number of possible and predefined pathways through the service system. a. Provider-routed services b. Value-added services c. Customer-routed services d. Make-to-order services

a. Provider-routed services

_____ is a promise to provide a good or service at some future time and place. a. Reservation b. Allocation c. Expansion d. Stimulation

a. Reservation

What does the variable Qi represent in the capacity required formula? a. The size of the order i in number of units b. Processing time for each unit of work order i c. Setup or changeover time for work order i as a fixed amount that does not vary with volume d. Capacity requirements in units of time for work order i

a. The size of the order i in number of units

In the context of the processes used to produce goods and services, which of the following is a characteristic of projects? a. They have a wide variation in specifications or tasks. b. They require no setup or changeover time. c. They are organized around a fixed sequence of activities and process steps. d. They create large volumes of highly standardized goods or services.

a. They have a wide variation in specifications or tasks.

_____ are businesses that provide integrated services that might include packaging, warehousing, inventory management, and inbound or outbound transportation. a. Third-party logistics providers b. Contract manufacturers c. Push-pull enterprises d. Distribution centers

a. Third-party logistics providers

_____ is a systematic procedure for the analysis of work, and determination of standard times required to perform key tasks in a process. a. Work measurement b. A standard time c. A time study d. An allowance

a. Work measurement

In responsive supply chains, a focus on flexibility and response is best when: a. customers require customization. b. goods and services have highly predictable demand. c. efficiency and low cost are the main competitive priority. d. product lines have long life cycles and do not change frequently.

a. customers require customization.

The design and construction cost per room of building a hotel decreases as the facility gets larger because the fixed cost is allocated over more rooms. This is an example of _____. a. economies of scale b. a physical constraint c. diseconomies of scale d. a nonphysical constraint

a. economies of scale

As one moves down the diagonal of the service-positioning matrix (SPM), the service-encounter activity sequence becomes: a. less unique and more repeatable with fewer pathways. b. less repeatable with many customer-driven pathways. c. more unique with only provider-driven pathways. d. more repeatable with many customer- and provider-driven pathways.

a. less unique and more repeatable with fewer pathways.

Changing labor capacity and schedules is a way to: a. make short-term adjustments to capacity. b. minimize throughput. c. stimulate demand. d. make long-term adjustments to capacity.

a. make short-term adjustments to capacity.

Eliminating _____ in a process design is one of the most important responsibilities of operations managers. a. non-value-added activities b. process boundaries c. provider-routed services d. value streams

a. non-value-added activities

According to a study conducted by Software Advice, a consumer is more likely to buy a product that has: a. reduced environmental impact. b. less involvement in the community. c. been manufactured using child labor. d. been manufactured under inauspicious working conditions.

a. reduced environmental impact.

The capacity cushion can be defined as: a. the amount of capacity reserved for unanticipated events such as demand surges, material shortages, and equipment breakdowns. b. the amount of money generated per time period through actual sales. c. the constraint that effectively limits the capacity of an entire process. d. the constraint associated with the capacity of a resource such as a machine, employee, or workstation.

a. the amount of capacity reserved for unanticipated events such as demand surges, material shortages, and equipment breakdowns.

Which of the following facility layouts is used by service organizations that provide highly standardized services? a. A flexible layout b. A product layout c. A cellular layout d. A process layout

b. A product layout

Which of the following formulas is used to compute the capacity required to meet a given production volume for one work order? a. Capacity required = [Setup time + Processing time] × Order size b. Capacity required = Setup time + [Processing time × Order size] c. Capacity required = [Setup time + Processing time] ÷ Order size d. Capacity required = [Setup time + Processing time × 60] × Order size

b. Capacity required = Setup time + [Processing time × Order size]

Which of the following is an assumption made to illustrate capacity expansion decisions? a. Supply is steadily decreasing. b. Demand is steadily increasing. c. Processing time is added in discrete increments. d. Capacity is added as one large increase.

b. Demand is steadily increasing.

_____ is the process of managing geographically dispersed service-providing facilities. a. Postponement b. Multisite management c. Reverse logistics d. Cannibalization

b. Multisite management

_____ is the building, acquiring, or moving of process capabilities from a domestic location to another country location while maintaining ownership and control. a. Insourcing b. Offshoring c. Outsourcing d. Reshoring

b. Offshoring

The _____ structure of a supply chain is the configuration of resources such as suppliers, factories, warehouses, distributors, technical support centers, engineering design and sales offices, and communication links. a. virtual b. operational c. informal d. network

b. Operational

In the context of Zara's global supply chain, which of the following supply chain decisions is measured through traceability of raw materials and finished goods? a. Technology b. Performance c. Outsourcing d. Location

b. Performance

Which of the following best describes the process of throughput? a. The point of most efficiency in a process b. The number of units or tasks that are completed per unit time from a process c. The total time it takes to complete one cycle of the manufacturing process d. The number of goods sold minus the number of goods returned

b. The number of units or tasks that are completed per unit time from a process

Question Workspace Check My Work _____ is a linear optimization model that seeks to minimize the cost of shipping from sources such as factories, to destinations, such as warehouses or customer zones. a. A push and pull system b. The transportation model c. The center-of-gravity method d. A design trade-off

b. The transportation model

Which of the following is true of flow shop processes? a. They use different sequence of processing steps for different orders. b. They require little or no setup or changeover time. c. They produce low volumes of custom goods and services. d. They are large-scale customized initiatives with wide variations in tasks.

b. They require little or no setup or changeover time.

Which of the following is true of continuous flow processes? a. They create one of a kind products with wide variations in specifications. b. They use highly specialized and automated equipment. c. They have a very flexible sequence of work tasks. d. They create low volumes of customized goods and services.

b. They use highly specialized and automated equipment.

In a revenue management system (RMS), _____ involves segmenting perishable assets into target market categories. a. reservation b. allocation c. overbooking d. pricing

b. allocation

In designing process layouts, the _____ of each department is used to compute distances and materials-handling costs for a particular layout. a. first workstation b. centroid c. periphery d. last workstation

b. centroid

Analytical queueing models assume a(n) _____ distribution for service times. a. average b. exponential c. maximum d. Poisson

b. exponential

In the single- and multiple-server queueing models, the queue discipline is _____. a. completely random b. first-come, first-served c. every man for himself d. highest need cases get priority treatment

b. first-come, first-served

The _____ curve concept is that direct labor unit cost decreases in a predictable manner as the experience in producing the unit increases. a. growth b. learning c. experience d. exponential

b. learning

A _____ produces goods in advance of customer demand using a forecast of sales and moves them through the supply chain to points of sale, where they are stored as finished-goods inventory. a. pull system b. push system c. make-to-order supply chain d. value chain

b. push system

One example of a(n) _____ system is a waiting line of entities when the server is busy. a. static b. queueing c. input d. buffer

b. queueing

Unlike a high degree of repeatability of service encounters, a low degree of repeatability of service encounters: a. encourages more standardization. b. results in higher relative cost per transaction. c. encourages more rigid equipment and process designs. d. results in improved efficiency.

b. results in higher relative cost per transaction.

In the context of capacity plan, having too little capacity can: a. increase the costs incurred by a firm for production. b. squeeze profit margins of a firm. c. help satisfy consumer demands quickly. d. decrease the number of nonbottleneck activities in a process.

b. squeeze profit margins of a firm.

An assembly line with 28 activities is to be balanced. The total amount of time required for all 28 activities is 39 minutes. The line will operate for 300 minutes per day. Which of the following must be the cycle time (CT) to achieve an output rate of 250 units/day? a. 2.1 minutes b. 1.39 minutes c. 1.2 minutes d. 0.89 minutes

c. 1.2 minutes

TopToes Inc., a shoe company, assembles gym shoes in an assembly line using 10 workstations. The target output for an 8 hour workday is 240 shoes. The sum of the task times is 18 minutes/shoe. The cycle time is 2 minutes/shoe. The assembly-line efficiency of TopToes Inc. is _____. a. 80% b. 85% c. 90% d. 95%

c. 90%

_____ are often influenced by economies and diseconomies of scale. a. Physical constraints b. Bottleneck activities c. Capacity decisions d. Work orders

c. Capacity decisions

What production process is most likely to be used when there are low/no setup times, similar products and dominant production lines? a. Project flows b. Job shop c. Flow shop d. Continuous production

c. Flow shop

_____ occurs when a work center completes a unit but cannot release it because the in-process storage at the next stage is full. a. Lack-of-work delay b. Propagation delay c. Flow-blocking delay d. Overload delay

c. Flow-blocking delay

In the context of facility layout, which of the following is true of a fixed-position layout? a. It has moderate setup or changeover requirements. b. It has high demand volume. c. It has moderate flexibility. d. It has high equipment utilization.

c. It has moderate flexibility.

Which of the following is true of ergonomics? a. It increases the possibility of human errors. b. It results in an increase in the cost of doing a job. c. It helps reduce fatigue. d. It results in the reduction of accuracy.

c. It helps reduce fatigue.

Which of the following defines a pathway in a service-delivery system? a. It is a unique arrangement of service activities in a service system map. b. It is a set of all value-added activities involved in producing and delivering services to customers. c. It is a unique route through a service system. d. It is a set of work activities that limits the throughput of the entire process.

c. It is a unique route through a service system.

Which of the following statements is true of a pull system? a. It works best when there are few distribution centers and products. b. It has an advantage of immediate availability of goods to customers. c. It minimizes inventory and production costs. d. It views a supply chain from "left to right."

c. It minimizes inventory and production costs.

Which of the following is true of a cellular layout? a. It has a slow response to quality problems. b. It requires extra floor space for set up. c. It reduces materials-handling requirements. d. It lacks a standardized workflow.

c. It reduces materials-handling requirements.

What production process is most likely to be used when there are high setup times, customized products, many different products and highly skilled employees? a. Project flows b. Flow production c. Job shop d. Continuous

c. Job shop

Which of the following supply chain design decisions involves protecting and honoring patents from other countries? a. Outsourcing b. Technology c. Logistics d. Sourcing

c. Technology

Which of the following statements is true of diseconomies of scale? a. They occur when the average cost of goods decreases. b. They lend support to building large facilities with more capacity. c. They arise when dissimilar product lines and processes exist in the same facility. d. They decrease as the capacity and/or volume of throughput increases.

c. They arise when dissimilar product lines and processes exist in the same facility.

Which of the following is true of custom goods? a. They have a fixed, standard design that cannot be altered to suit the requirements of different customers. b. They are configurations of standard parts that can be selected by customers from a limited set. c. They have long customer wait times because they are designed to meet specific customers' specifications. d. They are made in anticipation of customer demand and are stocked in inventory.

c. They have long customer wait times because they are designed to meet specific customers' specifications.

In the context of facility layouts, which of the following is true of process layouts? a. They have high equipment utilization. b. They do not have high materials-handling costs. c. They require more complicated planning and control systems. d. They do not require high skilled workers.

c. They require more complicated planning and control systems.

In the context of supply chain design trade-offs, _____ refers to acquiring capabilities toward suppliers. a. contract manufacturing b. outsourcing c. backward integration d. forward integration

c. backward integration

A facility arrangement that is made up of self-contained groups of equipment needed for producing a particular set of goods or services is a _____ layout. a. flexible b. product c. cellular d. process

c. cellular

Harlose Tanneries planned to expand its facilities. While selecting a spot for its new facility, its managers chose a city where the environmental impact of the new facility would be minimum. In this case, the managers of Harlose Tanneries were involved in _____. a. reshoring b. local site location decision c. community location decision

c. community location decision

Job _____ involves determining the specific job tasks and responsibilities, the work environment, and the methods by which the tasks will be carried out to meet the goals of operations. a. enlargement b. enrichment c. design d. posting

c. design

In designing _____ layouts, one is concerned with the arrangement of departments or work centers relative to each other. a. product b. cellular c. process d. fixed-position

c. process

Little's Law is an equation that measures work-in-process by multiplying _____ × flow time, a. overstock b. demand c. throughput d. downtime

c. throughput

A(n) _____ is the development of a standard time by observing a task with the use of a stopwatch and analyzing the data. a. experiment b. longitudinal study c. time study d. allowance

c. time study

A(n) _____ is a symbol used in process maps to indicate waiting. a. rectangle b. diamond c. triangle d. oval

c. triangle

In which of the following strategies for expanding capacity will there be short periods of over- and underutilization of resources? a. A capacity lead strategy b. A capacity-expansion strategy c. A capacity lag strategy d. A capacity straddle strategy

d. A capacity straddle strategy

Which of the following best defines the imputed cost of waiting? a. The extra costs associated with satisfying customers who are affected by delays b. The accurate value of the exact amount of money lost when customer delays occur c. The loss of income caused by returns due to late shipments d. A reasonable value that might reflect the potential loss of future revenue or customer satisfaction

d. A reasonable value that might reflect the potential loss of future revenue or customer satisfaction

Which of the following goods and services is an example of a flow shop process? a. A surgery b. A Web page c. A cruise ship d. An insurance policy

d. An insurance policy

_____ time or cycle time is the average time it takes to complete one cycle of a process. a. End b. Circle c. Finish d. Flow

d. Flow

Which of the following statements is true of an efficient supply chain? a. It is supported by information technology that provides real-time, accurate information to managers across the supply chain. b. It works efficiently even when demand for goods and services is unpredictable. c. It has the ability to respond to market changes faster than a responsive supply chain. d. It is designed for efficiency and low cost by minimizing inventory and maximizing efficiencies in process flow.

d. It is designed for efficiency and low cost by minimizing inventory and maximizing efficiencies in process flow.

Which of the following statements is true of safety capacity? a. It cannot be maintained in a firm that produces goods. b. It cannot meet the unexpected demand from new customers. c. It is a strategy that results in constant capacity shortages. d. It is normally planned into a process or facility to deal with unanticipated events.

d. It is normally planned into a process or facility to deal with unanticipated events.

Which of the following statements is true of a revenue management system (RMS)? a. The earliest RMS focused solely on pricing decisions. b. It cannot be used by service-providing businesses. c. The ideas and methods surrounding RMS are often called the Theory of Constraints. d. It is often used to manage theater, stadium, and concert seats.

d. It is often used to manage theater, stadium, and concert seats.

In the context of facility layouts, which of the following is true of a product layout? a. It consolidates the resources necessary to manufacture a good in one physical location. b. It has a functional grouping of equipment or activities that do similar work. c. It is based on self-contained groups of equipment needed for producing a particular set of goods or services. d. It supports a smooth and logical flow where all goods or services move in a continuous path from one process stage to the next.

d. It supports a smooth and logical flow where all goods or services move in a continuous path from one process stage to the next.

_____ has been defined as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed. a. Remanufacturing b. Streamlining c. Delayering d. Reengineering

d. Reengineering

_____ is the process of moving operations back to a company's domestic location. a. Insourcing b. Outsourcing c. Offshoring d. Reshoring

d. Reshoring

_____ is a key supply chain design decision that involves selecting suppliers from whom to purchase. a. Sustainability b. Technology c. Logistics d. Sourcing

d. Sourcing

Which of the following is true of standard goods? a. They are produced on demand and take a long time to be designed, created, and delivered. b. They are configurations of standard parts that can be selected by customers from a limited set. c. They are designed in small quantities to meet specific customers' specifications. d. They are made in anticipation of customer demand and are stocked in inventory.

d. They are made in anticipation of customer demand and are stocked in inventory.

Which of the following statements is true of complementary goods and services? a. Their production does not depend on the resource availability of a firm. b. Their demand patterns are in sync with other goods and services produced by a firm. c. They cannot use the excess capacity available during the off-season. d. They are produced to balance seasonal demand cycles.

d. They are produced to balance seasonal demand cycles.

Which of the following is true of firms that outsource? a. They integrate both backward and forward. b. They acquire capabilities toward suppliers. c. They cannot outsource skilled knowledge work and simple service work. d. They do not have ownership of the outsourced process or function.

d. They do not have ownership of the outsourced process or function.

A(n) _____ is a product layout dedicated to combining the components of a good or service that has been created previously. a. transformation system b. work cell c. coupling center d. assembly line

d. assembly line

The service-encounter activity sequence depends on the: a. number of work activities that limit the throughput of a service activity. b. intensity of non-value-added activities in the service-encounter activity sequence. c. carbon footprint of the tasks involved in the creation and delivery of a service. d. degree of repeatability of the service-encounter activity sequence.

d. degree of repeatability of the service-encounter activity sequence.

One of the objectives of facility layout and work design in a goods producing organization is to: a. maximize environmental impact. b. lock management into a noncompetitive situation. c. maximize the number of workstations. d. enhance sustainability.

d. enhance sustainability.

A facility arrangement that consists of a functional grouping of equipment or activities that do similar work is a _____ layout. a. flexible b. product c. cellular d. process

d. process