SCMT 364 - Exam 2 Info

The widespread scientific application of yield management began within what industry?

Airline

Which of the following circumstances would make a level aggregate planning approach more attractive than a chase aggregate planning approach?

An increase in the time required to train new employees

Dell Computer's primary consumer business takes orders from customers for specific configurations of desktop and laptop computers. Customers must select from a certain model line of computer and choose from available parts, but within those constraints may customize the computer as they desire. Once the order is received, Dell assembles the computer as ordered and delivers it to the customer. What type of manufacturing process is described here?

Assemble-to-order

Match the industry type to the expected benefits from an MRP system as High, Medium, or Low.

Assemble-to-stock (high) Assemble-to-order (high) Make-to-stock (low) Make-to-order (low) Engineer-to-order (high) Process (medium)

Area where an item is produced through a fixed sequence of workstation, designed to achieve a specific production rate is called:

Assembly line

What term is used to identify the difference between the number of units of an item listed on the master schedule and the number of firm customer orders?

Available to promise

Which of the four costs relevant to aggregate production planning is the most difficult to accurately measure?

Backordering costs

In the agriculture industry, migrant workers are commonly employed to pick crops ready for harvest. They are hired as needed and are laid off once the crops are picked. The realities of the industry make this approach necessary. Which production planning strategy best describes this approach?

Chase strategy

Which of the following is an advantage or characteristic of a process layout over a product layout when volumes are low?

General-purpose and less capital-intensive resources

Under what type of demand is yield management most effective?

High variable

The customer order decoupling point determines the position of what in the supply chain?

Inventory

An efficiency measure where the cost of goods sold is divided by the total average value of inventory is called:

Inventory turn

What term is used to mean manufacturing designed to achieve high customer satisfaction with minimum levels of inventory investment?

Lean manufacturing

What is the process used to ensure that all of the needs for a particular item are calculated at the same time in the MRP process?

Low-level coding

A buffet restaurant is an example of:

Make-to-stock

What are the three primary data sources used by the MRP system?

Master production schedule, bill-of-materials, inventory records file

Which scheduling process drives requirements in the MRP process?

Master production scheduling

Major operations and supply planning activities can be grouped into categories based on the relevant time range of the activity. Into what time range category does sales and operations planning fit?

Medium-range planning

What is the term for a more complex production strategy that combines approaches from more than one basic strategy?

Mixed stragety

What is another common name for the bill-of-materials?

Product structure tree

In a yield management system, pricing differences must appear logical and justified to the customer. What is the basis for this justification commonly called?

Rate fences

What category of planning covers a period from a day to six months, with daily or weekly time increments?

Short-range planning

What is the first of the three simple steps in the high-level view of manufacturing?

Sourcing the parts we need

What is the MRP term for the time periods used in planning?

Time buckets

Material in a production process can be in either "in-transit" or "buffer" state.

True

Sales and operations planning is a process that helps firms provide better customer service, lower inventory, shorten customer lead times, stabilize production rates, and give top management a handle on the business.

True

Splitting tasks is one way to improve efficiency in assembly line design.

True

In a typical inventory reordering scenario, if the lead time for delivery of the item increases, the __________ will need to be increased if stockout risk is to remain unchanged.

safety stock

The essence of yield management is the ability to manage what?

Demand

MRP is based on what type of demand?

Dependent demand

Little's law mathematically relates inventory, throughput, and sales.

False

Firm A typically sees a learning percentage of 85 percent in their processes. Firm B has a learning percentage of 80 percent. Which firm has the faster learning rate?

Firm B

Owners of a local restaurant are concerned about their ability to provide quality service as they continue to grow and attract more customers. They have collected data from Friday and Saturday nights, their busiest times of the week. During these time periods about 75 customers arrive per hour for service. Given number of tables and chairs, and the typical time it takes to serve a customer, they the owners estimate they can serve on average about 100 customers per hour. Use Exhibit 5.6. During these nights, are they in the zone of service, the critical zone, or the zone of nonservice?

Critical Zone