SCM Exam 2
"The expenses an organization incurs regardless of the level of business activity" is the definition of A. marginal costs. B. fixed costs. C. variable costs. D. expected value.
B
A waiting line situation where customers have a single service encounter from one customer service representative and then exit the system is A. a single channel system. B. a first-come first-served system. C. a single phase system. D. a Poisson system.
C
All waiting line formulas assume that customers received service on A. a shortest processing time basis. B. an earliest due date basis. C. a first-come, first-served basis. D. a last in, first out basis.
C
One capacity strategy has advantages which include "reduced risk of overbuilding and greater productivity due to higher utilization levels" and risks which include "reduced availability of products or services during periods of high demand." This capacity strategy is A. a lead strategy. B. a match strategy. C. a lag strategy. D. an anticipation strategy.
C
The "head" of a fishbone diagram is usually A. the root cause. B. the cause. C. one of the five M's. D. the effect.
D
"A set of logically related tasks or activities performed to achieve a defined business outcome" is the definition of A. supply chain management. B. operations management. C. project management. D. a process.
D
In the SCOR model, level 2 processes break down level 1 activities into more detail. A. True B. False
A
The ISO 9000 family of standards focuses more on practices than outcomes. A. True B. False
A
"Managing the entire organization so that it excels in all dimensions important to the customer, including product development, marketing and supply chain" is the definition of A. quality functional deployment. B. total quality management. C. continuous improvement. D. statistical quality control.
B
"The long-term, expected output capability of a resource or system" is the definition of A. over capacity. B. rated capacity. C. theoretical capacity. D. managerial capacity.
B
A business process such as forming a team within a company focused on improving the time it takes to issue a bill and collect payment from customers (lowering Days Sales Outstanding - DSO) is a _____________ process. A. primary B. developmental C. support D. core
B
An automobile windshield manufacturer wants to verify that their process is producing windshields of an appropriate thickness. The best tool to determine this information is A. an operating characteristics curve. B. an x-bar chart. C. a process capability ratio. D. a process capability index.
B
Chris plots a point on the control chart and notices that it lies just outside the upper control limit. Which of the following statements is best? A. If a larger sample size had been used, the process would definitely have been in control. B. The process may actually be in control. C. The process should have been stopped or adjusted when the previous sample was taken in order to prevent any defective items from being produced. D. All of the items in the sample are defective.
B
General Motors asks Bendix to produce brakes for its latest model sedan. The brakes should weigh no more than 1 kg and be capable of stopping a two-ton car traveling 60 miles per hour in 80 feet. This purchase description is by A. brand. B. performance characteristics. C. market grade. D. specification.
B
The American Society for Quality has a two part definition of quality. One perspective on quality is "the characteristics of a product or service that bear on its ability to satisfy stated or implied needs of the customer, also known as fitness for use." This is the ____________ perspective on quality. A. aesthetics B. value C. reliability D. conformance
B
The standard that extends the benefits of quality management to all parties that are interested in or affected by a business's operations is A. ISO 9001:2004. B. ISO 9004:2009. C. ISO 9001:2008. D. ISO 9004:2004.
B
A business process such as tuition billing is a necessary, but non-value adding process. It is a A. primary process. B. core process. C. support process. D. developmental process.
C
A company elects to use portfolio analysis to conduct their sourcing strategy. They decide to begin this arduous process with Post-it® notes because they are used in every office and at every workstation in the building. Where would this item likely fall? A. leverage quadrant B. bottleneck quadrant C. routine quadrant D. critical quadrant
C
In the Dittenhoefer Fine China case, a worker found that the plates had around 2.4 microns of coating applied. Manufacturing was able to correct the problem and save these plates, but no one knew how many plates had been shipped before the problem was discovered. The plates that were already shipped before the problem was corrected resulted in which of the following type of quality costs? A. internal failure B. appraisal C. external failure D. prevention
C
Most companies measure capacity in terms of A. inputs or hours. B. inputs or people. C. inputs or outputs. D. inputs or capacity.
C
In a swim lane process map, a decision is represented by which symbol? A. a diamond B. the letter D C. a circle D. a rectangle
A
Which of the following is a principle of TQM that assumes there will always be room for improvement, no matter how well an organization is doing? A. continuous improvement B. quality assurance C. employee empowerment D. quality function development (QFD)
A
"Expenses directly tied to the level of business activity" is the definition of A. variable costs. B. expected value. C. fixed costs. D. marginal costs.
A
A severe ice storm paralyzed the Midwest and as he sat shivering in his dark home, Geoff decided it was time to buy a generator. He drove in to town and stopped at the first home improvement store he encountered. Much to his dismay, the line of customers extended out the door well into the parking lot. Fearing that the company would run out of this item long before he reached the department, Geoff decided against making his purchase from this business and drove on to the next business on his list. This example illustrates what behavior when it comes to waiting line theory? A. balking B. jockeying C. reneging D. blocking
A
A _______________ ensures that an organization's logistics choices are consistent with its overall business strategy and support the performance dimensions that target costumers most value. A. logistics strategy B. information strategy C. packaging strategy D. warehousing strategy
A
Companies focused on improving quality hire Six Sigma Black Belts to work on identifying the root cause of problems and implementing solutions. Hiring Black Belts to keep defects from occurring to begin with results in which of the following type of quality costs? A. prevention B. internal failure C. external failure D. appraisal
A
The florist checked over the arrangement just prior to loading the vase in the delivery van. It was fortunate, because he noticed that lilacs had been included in the arrangement. The customer specifically requested "no lilacs," so the florist was able to remove them and make the order right before it left the office for the customer. This scenario is an example of A. an internal failure cost. B. a reliability cost. C. an external failure cost. D. a prevention cost.
A
The operations manager made sure that all processes were producing output exactly the way the design engineers had drawn it up. Which view of quality is in evidence? A. the conformance perspective B. the performance perspective C. the perceived quality perspective D. the value perspective
A
What do spot stock and assortment warehouses have in common with water and rail transportation modes? A. They tend to increase the amount of inventory in the system. B. They tend to reduce the percent of delivery errors made by the logistics system. C. They tend to increase the need for packaging. D. They tend to get goods to customers slower.
A
Which of the following advantages is gained by a firm that has a multiple sourcing strategy? A. risk is spread B. per unit costs are usually lower C. a stronger relationship is built between the companies D. per-unit transportation costs are usually lower
A
Which of the following is NOT an element of the SCOR model? A. operations B. source C. plan D. return
A
Which of the following is an object in SimQuick? A. customers being served B. a system workstation C. a customer service representative D. the entrance point to the system
A
Wrapping paper is extremely fragile and has a demand that spikes dramatically at the end of each year. It is not possible for manufacturers to ramp up and produce exactly what is needed right before demand occurs, so wrapping paper is produced year-round and sent to a storage facility to be stored alongside other items until demand occurs. This technique is A. assortment warehousing. B. hub and spoke warehousing. C. break-bulk warehousing. D. postponement warehousing.
A
_______________ holds that $1 in cost savings increases pretax profits by $1, while a $1 increase in sales increases pretax profits by only $1 multiplied by the pretax profit margin. A. The profit leverage effect B. The return on assets effect C. The profit margin effect D. The merchandise inventory effect
A
_______________ is used when a product or service is proprietary or when there is a perceived advantage to using a particular supplier's products or services. A. Description by brand B. Description by specification C. Description by performance characteristics D. Description by market grade
A
__________ is the dimension of quality that addresses the additional characteristics of the product or service beyond the base operating features. A. Features B. Reliability C. Aesthetics D. Performance
A
__________ is the dimension of quality that addresses the additional characteristics of the product or service beyond the base operating features. A. Features B. Reliability C. Performance D. Aesthetics
A
_______________ holds that $1 in cost savings increases pretax profits by $1, while a $1 increase in sales increases pretax profits by only $1 multiplied by the pretax profit margin. A. The profit leverage effect B. The profit margin effect C. The return on assets effect D. The merchandise inventory effect
A
_______________ is used when requirements are well understood and there is common agreement between supply chain partners about what certain terms mean. A. Description by market grade B. Description by brand C. Description by specification D. Description by performance characteristics
A
A company is considering building a hotel in downtown Raleigh. They decide to build the hotel in anticipation of demand because they want to make sure they have adequate capacity to meet all demand and would like to preempt the competition. This capacity strategy is A. an anticipation strategy. B. a lead strategy. C. a match strategy. D. a lag strategy.
B
A company is considering building a hotel in downtown Raleigh. They decide wait to build the hotel only after demand has materialized because they want to reduce the risk of overbuilding and achieve greater productivity due to higher utilization levels. This capacity strategy is A. an anticipation strategy. B. a lag strategy. C. a match strategy. D. a lead strategy.
B
Business process reengineering (BPR) is designed to change an existing process in an incremental fashion. The process owners that use BPR should always feel that the process can be performed a little better than it currently is. A. True B. False
B
Communicating your needs can be difficult when purchasing services. The document that communicates this need is called a A. purchase requisition. B. statement of work. C. request for services. D. approach contract.
B
Depleting all of our natural resources this generation is considered sustainable. A. True B. False
B
Employees that are scattered across a large corporate campus meet to determine exactly how the BR549 forms are processed. The best tool for displaying the route these forms take is a A. pareto chart. B. process map. C. cause-and-effect diagram. D. run chart.
B
In a swim process map, a change of lanes indicates A. the item being processed has been physically altered. B. a change in the party responsible for processing. C. the process is complete. D. an increase in the time required for processing.
B
In most waiting line models, customers are assumed to arrive at intervals based on A. a triangular distribution. B. a Poisson distribution. C. a uniform distribution. D. a normal distribution.
B
In the Dittenhoefer fine china case, a worker set the polymer coating machine to 190 degrees to clean the machine and forgot to reset the temperature for production. Dittenhoefer destroyed the 2,400 defective plates prior to delivery to the customer. The destruction of 2,400 plates resulted in which of the following type of quality costs? A. prevention B. internal failure C. appraisal D. external failure
B
Mister Plow has contracted to perform snow removal services for the city of Springfield. Record snowfall has more than doubled the time he will spend on the streets and the resources this job will require. Unfortunately, Mister Plow cannot come back to the city for more money, because the service contract is A. a last-bid contract. B. a cost-plus contract. C. a final contract. D. a fixed-price contract.
B
The _______________ attempts to identify the "best" location for a single warehouse, store, or plant, given multiple demand points that differ in location and importance. A. logistics method B. weighted center of gravity method C. warehouse optimization method D. reverse logistics method
B
Total quality management (TQM) and Six Sigma are equivalent, the latter is simply the latest name for the same set of techniques pioneered by W Edwards Deming. A. True. B. False.
B
Which of the following is NOT a core idea of total quality management? Question content area bottom A. leadership improvement B. cost reduction C. employee empowerment D. continuous improvement
B
Which of the following is a disadvantage of outsourcing? A. required high investment B. hollowing out of the corporation C. reduced strategic flexibility D. higher cash flow
B
Which of the following will move rated capacity closer to theoretical capacity? A. an increase in the frequency of preventive and breakdown maintenance B. a decrease in product complexity C. a decrease in the number of workers D. a decrease in conformance quality
B
_______________ combines classic warehouse operations with light manufacturing and packaging duties to allow firms to put off final assembly or packaging of goods until the last possible moment. A. Break-bulk warehousing B. Postponement warehousing C. Consolidation warehousing D. Hub-and-spoke systems
B
"A measure of process performance; the ratio of outputs to inputs" is the definition of A. benchmarking. B. productivity. C. cycle time. D. efficiency.
B
"The application of quantitative techniques to purchasing data in an effort to better understand spending patterns and identify opportunities for improvement" is the definition of A. industry analysis. B. spend analysis. C. maverick spending. D. core analysis.
B
"The set of activities required to first identify a need, assign a supplier to meet that need, approve the specification or scope, acknowledge receipt, and submit payment to the supplier" is the definition of A. statement of work, or scope of work (SOW). B. procure-to-pay cycle. C. electronic funds transfer (EFT). D. purchase order (PO).
B
_______________ is the purchased cost of goods from outside suppliers. A. Return on assets (ROA) B. Cost of goods sold (COGS) C. Merchandise inventory D. Profit margin
B
_______________ is the purchased cost of goods from outside suppliers. A. Merchandise inventory B. Cost of goods sold (COGS) C. Profit margin D. Return on assets (ROA)
B
"A complete supply chain dedicated to the reverse flow of products and materials for the purpose of returns, repair, remanufacture, and/or recycling" is the definition of A. packaging systems. B. material handling systems. C. reverse logistics systems. D. hub-and-spoke systems.
C
"Earnings over total assets" is the definition of A. profit margin. B. cost of goods sold (COGS). C. return on assets (ROA). D. merchandise inventory.
C
"The maximum output capability, allowing for no adjustments for preventative maintenance or unplanned downtime" is the definition of A. over capacity. B. managerial capacity. C. theoretical capacity. D. rated capacity.
C
A company elects to use portfolio analysis to conduct their sourcing strategy. They decide to begin this arduous process with Post-it® notes because they are used in every office and at every workstation in the building. Where would this item likely fall? A. leverage quadrant B. bottleneck quadrant C. routine quadrant D. critical quadrant
C
Regardless of whether the traditional view of the total cost of quality or the zero defects view of the total cost of quality is taken, A. as the defect level decreases, the failure costs increase. B. as the defect level increases, the prevention cost increases. C. as the defect level increases, the failure costs increase. D. as the defect level increases, the appraisal cost increases.
C
Which of the following actions is most appropriate for an outsourced item that has been judged to fall in the leverage quadrant of a portfolio analysis? A. prepare contingency plans B. develop new suppliers C. promote competitive bidding D. minimize administrative costs and automate requisitioning as much as possible
C
Which of the following statements regarding control charts is best? A. Control charts, by themselves, will improve quality levels. B. The upper and lower limits of a control chart should be identical to the upper and lower tolerance limits for the manufactured part. C. Control charts are used to distinguish whether the process is operating normally or requires attention. D. Control charts should be used regardless of the state of control of the process.
C
Which of these statements about learning curves is best? A. A 60% learning curve means that the time to finish the 16th unit can be found by multiplying the time to finish the 8th unit by 0.4. B. A 70% learning curve is not as steep as an 80% learning curve. C. A 90% learning curve means that the time needed for the 10th unit is 10% less than the time needed for the 5th unit. D. Learning curves apply only to the time needed to perform a task.
C
_______________ are transportation solutions that seek to exploit the strengths of multiple transportation modes through physical, information, and monetary flows that re as seamless as possible. A. Sustainable solutions B. Efficient solutions C. Multimodal solutions D. Logistical solutions
C
_______________ profiles the major forces and trends that are impacting the industry, including pricing, competition, regulatory forces, substitution, technology changes, and supply/demand trends. A. Spend analysis B. Core analysis C. Industry analysis D. Maverick spending
C
"A Six Sigma process that outlines the steps that should be followed to improve existing business processes" is the definition of A. root cause analysis. B. DMADV. C. DMAIC. D. continuous improvement.
C
"A body of theory based on applied statistics that helps managers evaluate the relationship between capacity decisions and important performance issues" is the formal definition of A. learning curve theory. B. decision tree theory. C. waiting line theory. D. theory of constraints.
C
"A calculation that summarizes the expected costs, revenues, or profits of a capacity alternative based on several demand levels, each of which has a different probability" is the definition of A. weighted point evaluation system. B. probability outcome. C. expected value. D. regression.
C
"A capacity strategy in which capacity is added in anticipation of (before) demand" is the definition of A. match strategy. B. lag strategy. C. lead strategy. D. anticipation strategy.
C
"An approach to visualizing and managing capacity that recognizes that nearly all products and services are created through a series of linked process, and in every case, there is at least one process step that limits throughput for the entire chain" is the formal definition of A. learning curve theory. B. waiting line theory. C. theory of constraints. D. decision tree theory.
C
"Earnings over total assets" is the definition of A. cost of goods sold (COGS). B. profit margin. C. return on assets (ROA). D. merchandise inventory.
C
"The capability of a worker, machine, work center, plant or organization to produce output per time period" is the definition of A. logistics. B. forecasting. C. capacity. D. sourcing.
C
"The set of activities required to first identify a need, assign a supplier to meet that need, approve the specification or scope, acknowledge receipt, and submit payment to the supplier" is the definition of A. electronic funds transfer (EFT). B. purchase order (PO). C. procure-to-pay cycle. D. statement of work, or scope of work (SOW).
C
"A capacity strategy in which capacity is added only after demand has materialized—typically a good strategy for mature, cost sensitive products and services" is the definition of A. lead strategy. B. match strategy. C. anticipation strategy. D. lag strategy.
D
"Managing the entire organization so that it excels in all dimensions important to the customer, including product development, marketing and supply chain" is the definition of A. quality functional deployment. B. continuous improvement. C. statistical quality control. D. total quality management.
D
"That part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements" is the definition of A. warehousing. B. transportation. C. packaging. D. logistics management.
D
"The application of quantitative techniques to purchasing data in an effort to better understand spending patterns and identify opportunities for improvement" is the definition of A. core analysis. B. maverick spending. C. industry analysis. D. spend analysis.
D
"The output level at which two capacity alternatives generate equal cost" is the definition of A. expected value. B. variable costs. C. fixed costs. D. indifference point.
D
"The total elapsed time needed to complete a business process (also known as throughput time)" is the definition of A. productivity. B. efficiency. C. benchmarking. D. cycle time.
D
A business process that addresses the main value-added activities (activities for which customers will pay) is defined as a _________ process. A. secondary B. support C. developmental D. primary
D
A document that authorizes a supplier to deliver a product or service is known as A. a contract. B. an IP-5. C. a requisition. D. a purchase order.
D
A producer of windshields decides to monitor the material handling system used in the plant. The producer is concerned about if there are scratches that are appearing on their finished product. The best kind of control chart to use in this case is A. an X chart. B. an R chart. C. a Cpk chart. D. a p chart.
D
Lisa always wondered why the shower in the upstairs bathroom suffered from low flow. She finally determined that the filters in the water softener had not been changed in a decade. She decided to install a larger water softener and maintain it regularly. The installation of the larger water softener corresponds to which step in the TOC process? A. exploit the constraint B. subordinate everything to the constraint C. identify the constraint D. elevate the constraint
D
On the first day of class at a new university you made judgments about the quality of the class before the professor had entered the room. You noted the comfort of the accommodations, the fine works of art in the halls and on the classroom wall and the soothing music piped in over the sound system. This dimension of quality is A. perceived quality. B. features. C. performance. D. aesthetics.
D
One capacity strategy has advantages which include "assures adequate capacity to meet all demand and preempts competitors" and risks which include "demand is unpredictable and technology is evolving rapidly." This capacity strategy is A. an anticipation strategy. B. a match strategy. C. a lag strategy. D. a lead strategy.
D
The American Society for Quality has a two part definition of quality. One perspective on quality is "a product or service free from deficiencies; the product performs as intended." This is the ____________ perspective on quality. A. reliability B. aesthetics C. value D. conformance
D
The standard used by companies seeking to establish a management system that provides confidence in the conformance of their products and services to established or specified requirements is A. ISO 9004:2009. B. ISO 9004:2004. C. ISO 9001:2004. D. ISO 9001:2015.
D
Which of the following is NOT one of the seven core ideas of TQM? A. supplier partnerships B. strategic quality plan C. leadership involvement D. value perspective
D
_______________ are terms and conditions for a purchased service that indicate, among other things, what services will be performed and how the service provider will be evaluated. A. Procure-to-pay cycles B. Purchase orders (PO) C. Electronic funds transfers (EFT) D. Statements of work (SOW)
D
_______________ shows us how much the company paid for the inventory it had on hand at the time of the report. A. Cost of goods sold (COGS) B. Return on assets (ROA) C. Profit margin D. Merchandise inventory
D
_______________ profiles the major forces and trends that are impacting the industry, including pricing, competition, regulatory forces, substitution, technology changes, and supply/demand trends. A. Core analysis B. Spend analysis C. Maverick spending D. Industry analysis
D
"The long-term, expected output capability of a resource or system" is the definition of A. rated capacity. B. theoretical capacity. C. over capacity. D. managerial capacity.
A
A detailed map that identifies the specific activities that make up the informational, physical and/or monetary flows of a process is A. a process map. B. an efficiency map. C. an activity on node map. D. a benchmarking map.
A
"For every doubling of cumulative output, there is a set percentage reduction in the amount of inputs required" is the formal definition of A. waiting line theory. B. learning curve theory. C. decision tree theory. D. theory of constraints.
B
"An agent who handles customs requirements on behalf of another firm" is the definition of a A. customs broker. B. free agent. C. logistics agent. D. freight forwarder.
A