Supply Chain Exam 2

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

False

Lubricants for production equipment which are not parts of the final products are called:

Maintenance, repair and operating supplies

Waste in Japan is also referred to as:

Muda

Which tool is useful for presenting data in an organized fashion, indicating process problems from most to least severe:

Pareto charts

What is the most important output of the MRP?

Planned order releases

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

Predicting customer behaviors

What does the term "Zombie Inventory" refer to?

Product returns that sit unsold in storerooms

Which of the following is NOT an assumption of the economic order quantity (EOQ) model?

Production and use occur simultaneously.

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

Railroad Companies

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

Recycling

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

Shingo

The ___________ solution picks all the desired applications from a single vendor for the ERP system.

Single integrator

Which of the following legislative acts is NOT in support of transportation deregulation?

Staggers Rail Act

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

The EOQ is at lot size G, and curve K is the annual holding cost curve.

Which of the following is a U.S. law which requires compliance by all firms engaged in handling customer information?

The U.S. Patriot Act

Private warehouses refer to warehouses that are owned by the firm storing the goods.

True

Reverse logistics refers to the movement and storage of returned goods.

True

Safeguarding customer information is a legal and ethical responsibility for any company collecting, processing, and transmitting sensitive customer data.

True

Statistical process control (SPC) allows firms to compare process performance to desired levels or required standards.

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.

True

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

True

When both the demand and lead time of a product are variable, firms must keep a higher safety stock level compared to variations in just demand, to offer the same service level.

True

The optimal order quantity for the quantity discount model is always at one of the price breakpoints.

False

The best-of-breed solution picks all the desired applications from a single vendor for the ERP system.

False

The four categories of inventory are raw materials, intermediate assemblies, work-in-progress and finished goods.

False

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

False

Tire manufacturer Firebridge sells tires to retail firm A. Average annual sales for firm A is $55,000. Average profit margin is 15%. The expected lifetime is 10 years. Using a discount rate of 15 percent, calculate the Customer Lifetime Value of firm A and choose the closest answer below:

$41,405

The College Bookstore sells a unique calculator to college students. The demand for this calculator is constant at 20 units per day. The lead time for this calculator is variable at an average of 9 days with a standard deviation of 2 days. Compute the statistical reorder point that results in a 95 percent in-stock probability. Choose the closest answer.

246 units

Complete the following MRP record and provide the planned order releases for Week 1. Lead time is 2 weeks. Safety stock is 3. Use LFL lot sizes.

29

When demand and delivery lead time are known and constant, daily demand = 8, purchase lead time = 5 days, and the purchase price = $20/unit, then the reorder point is:

40

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

All of these Parts made from recycled materials Using rubber from used tires in auto parts Batch size reduction to reduce plastics

Legacy MRP systems had which of the following limitations?

All of these The systems needed continuous modifications The systems were not user-friendly The systems were designed to perform a very specific operational function

An MRP system has a subassembly with a lot size of 500 units. In terms of filling future requirements, this would mean that planned order releases for the subassembly would always have to be exactly 500 units.

False

Using the ________________ multiple software infrastructures and databases may have to be used to link the multiple applications obtained from different vendors.

Best-of-breed solution

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

Cross-selling customers after an initial purchase

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:

Crossdocking

A Master Production Schedule is an engineering document that shows an inclusive listing of all component parts and subassemblies making up the end item.

False

A cause-and-effect diagram is a useful tool for presenting data in an organized fashion, indicating process problems from most to least severe.

False

The acronym ERP is short for:

Enterprise Resource Planning

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:

Event-based marketing

All of the following are recommended for designing and implementing a successful CRM program EXCEPT:

Expect employees to 'learn on the job' and adapt their way of working

In a 2016 survey of 3PL usage, 70 percent of shippers and 85 percent of 3PL services said the use of 3PLs contributed to higher logistics costs.

False

Lean production, JIT, and Six Sigma quality mean the same thing

False

MRP is the production planning system intended to develop long-range plans (more than a year away) concerning product families manufactured by the organization.

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.

False

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

False

Radio Frequency Identification (RFID) is beginning to replace bar code inventory tracking, however a weakness is that it requires a direct line of sight for RFID tags to be read.

False

Sales force automation products manage a sales person's accounts, business opportunities, and communications.

False

The three basic production strategies for addressing the aggregate planning problem are the chase production strategy, the level production strategy, and the aggregate production strategy

False

The three inputs for calculating Customer Lifetime Value are Average Annual Sales, Expected Lifetime and Forecasted Profits

False

The use of small data makes CRM systems less successful.

False

Until recently, CRM was not very effective for most companies because it didn't focus on building customers' trust and loyalty, or building strong relationships with customers.

False

When designing a manufacturing or service process, a Pareto chart would be an essential tool for evaluating the process in terms of its action elements, waiting periods, and process flow.

False

Which company probably played the largest role in the development of the Toyota Production System?

Ford

Which of the following describes a global RFID challenge?

Globally, the RFID industry does not have its own UHF spectrum allocation.

Which one of the following statements regarding the economic order quantity (EOQ) is true?

If an order quantity is larger than the EOQ, then the annual holding cost will exceed the annual ordering cost.

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

Just-in-Time

According to the textbook, which of the following is considered a reason that ERP implementations fail?

Lack of communication within an organization

Legacy MRP systems typically utilized multiple software packages and databases which caused:

The same information to be stored in multiple locations

Which of the following would be considered an act of deregulation?

Trucking Industry Regulatory Reform Act − Motor carriers freed from filing rates with the Interstate Commerce Commission

An effective reverse logistics process can create goodwill and enhance customers' perceptions of product quality.

True

As customers navigate through a company's website, CRM software can record and analyze the customer's clickstream so website images and ads can be tailored to the needs and desires of that one individual customer

True

Customer lifetime value is calculated as the net present value of an annuity.

True

Efficient supply chain management distribution requires that modern warehouses concentrate their efforts on a wide array of warehousing and distribution functions like storing purchases, work in progress inventories, and finished goods inventories, receiving shipments, breaking down shipments, repackaging, and the distribution of components.

True

International intermediaries can provide shipping, consolidation, and other import and export services. Some examples of these international intermediaries include: NVOCCs and trading companies.

True

Legacy MRP systems typically utilized multiple software packages and databases which caused the same information to be stored in multiple locations.

True

Manufacturing cells are often U-shaped to make operator and material movements easier within the cell.

True

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

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.

True

With FOB pricing, a supplier is the legal owner of a product until the product reaches its destination.

True

The EOQ model with quantity discounts attempts to determine:

how many units should be ordered.

Which of the following is a disadvantage of carrying too much inventory?

it creates an unnecessary waste of scarce resources.

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

true