Final Exam Operations Management
A lean system is also known as a push system.
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.
False
ERP Implosion is the process of converting a parent item's planned order releases into component gross requirements.
False
Generally speaking, motor carriers are less expensive than rail carriers to haul goods.
False
If a company is effectively focusing on its core competencies, its level of outsourcing is likely to decrease.
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
Lack of internal or external collaboration will create quality, cost, delivery timing, and other customer service problems that are detrimental to supply chains.
True
One of the assumptions of the economic order quantity model (EOQ) is that purchase price must remain constant.
True
Poor logistics management can bring a supply chain to its knees, regardless of the quality of the products.
True
Which of the following is a traditional performance measure?
Overall total productivity
Some businesses refer to sustainability in terms of supporting the three P's. This stands for:
People planet profit
Which of the following is TRUE?
Performance metrics and personal business relationships are both keys to building successful partnerships
Which of the following are intermodal transportation alternatives?
Piggyback service
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:
Planned order release
The following is a term that refers to error or mistake proofing:
Poka-yoke
Cyclical variations are longer than a year and can be influenced by:
Political factors
Costs associated with investigating alternative suppliers and investigating alternative delivery options can be classified as:
Pre-transaction costs
The element of a CRM program involved with the use of data-mining software and customer behavior analytics is:
Predicting customer behaviors
Which of the following secures the right of employees to decide whether to join or financially support a union?
Right-to-work laws
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:
SRM
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?
Seasonal Variations
When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT:
Select the key dimensions of performance based on what is important to the end consumer
Procurement credit cards can be used for small purchases including meals, lodging, and travel expenses.
True
Rewarding suppliers for maintaining high levels of performance is an important step used in maintaining a successful strategic alliance program.
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
Supply chain analytics can be used along the supply chain to schedule production according to expected supplier deliveries
True
The EOQ equation is derived by setting the annual purchase cost equal to the annual holding cost.
True
The economic order quantity model (EOQ) is the optimal independent demand order quantity that minimizes total annual inventory costs.
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.
True
Two methods for managing supply chain risk include utilizing a supply chain IT system and identifying backup suppliers.
True
The possibility of events like strikes, assembly line breakdowns, and natural disasters are all reasons a company should favor using a single supplier.
False
Capacity utilization =
Actual customers served per period / Capacity
Supply relationship management personnel routinely communicate with:
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 issues is (are) important to consider when trying to determine the location of a firm's facilities?
All of the above
Leading companies practicing sustainable sourcing and seeking to reduce costs would NOT use which of the following strategies?
Backward integration to purchase suppliers
The following is an example of the bullwhip effect:
Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers
Firms can safeguard customer information by doing which of the following?
Both A & B
An important outcome of statistical process control is:
Both A & B Firms can take corrective actions before process variabilities get out of control Firms can visually monitor process performance
Which of the following are required elements of an effective CRM initiative?
Cross-selling customers after an initial purchase
Which of the following customer service elements can be classified as an example of posttransaction elements?
Customer complaint resolution
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:
Customer relationship management and human resource management
Independent demand is the:
Demand for a firm's end products
All of the following are considerations used in designing service layouts EXCEPT:
Ease of access to parking lot
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
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?
Focus strategy
Layout strategies help firms maximize all of the following EXCEPT:
Four M's
Which of the following is NOT a technique for managing customers' perceived waiting times:
Hiding the wait time
The Quick Response program, developed in the 1980's, was an offshoot of the following supply chain concept:
Just-in-Time
According to the text, all of the following are considered key supply chain business processes EXCEPT:
Knowledge management process
Customer relationship management, distribution network, transportation management, and service response logistics are all important issues that are most closely related to:
Logistics
______________ creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized.
Logistics
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:
Manufacturing Cells
According to the SCOR model, which of the following is NOT one of the five supply chain operation process categories?
Market
Waste in Japan is also referred to as:
Muda
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.
Order batching
Which of the key supply chain business processes refers to meeting customer requirements by synchronizing the firm's marketing, production and distribution plans:
Order fulfilment process
Intermodal marketing companies (IMCs) are companies that act as intermediaries between intermodal
Railroad companies
According to the SCM profile Honda ___________ based on a supplier relations index developed by Planning Perspectives.
Ranked near the top in 2015
Substance disposal and recycling are part of which supply chain business process:
Returns management
Which person was a key figure in developing the Toyota Production System and also developed the concept of poka-yoke?
Shingo
The following time-series approach to forecasting uses historical data to generate a forecast and works well when demand is fairly stable over time:
Simple moving average
According to the textbook, the top three challenges for CPFR implementation include all of the following EXCEPT:
Supplier lead times
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.
True
Which of the following marked the end of the initial push by Congress to deregulate the entire U.S. transportation industry?
The Shipping Act of 1984
What type of major cost category is considered in the cost associated with placing and receiving the order?
Transaction cost
Foreign suppliers located farther away may be able to deliver goods faster than domestic suppliers due to more efficient transportation and logistical systems.
True
Which of the following is a reason for favoring single sourcing?
reduces variabilities in quality levels
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.
False
Before supplier relationship management (SRM), buyers typically spent 40% of their time on expediting orders. After SRM implementation buyers spent about:
10% of their time on expediting orders
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:
Early supplier involvement
All of the following may influence demand and should be considered when developing a forecast EXCEPT
Ergonomic conditions
The Hormel company awards their Hormel Food Corporation's No. 1 Award to their top supplier. How often do they give this award?
Every 5 years
In general, performance measurement systems are mostly identical from company to company.
False
It is considered unethical for a firm to intentionally buy from women-owned businesses.
False
The batching of orders is unlikely to increase the likelihood of the bullwhip effect occurring.
False
Themed restaurants such as the ESPN zone (sports theme), Rainforest Cafe (jungle theme), and Chuck E. Cheese (kids theme) are all examples of Entertailment facilities.
False
When a single company that is implementing an ERP system chooses to use one company to provide an operations module, another to 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.
False
Which of the following is a reason that single sourcing is considered risky/bad?
There could be supplier interruptions due to political instability
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
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.
True
Sustainable sourcing policies should include which of the following?
Use of renewable energy
Which of the following are among the MOST important elements of the lean production philosophy?
Waste reduction and continuous improvement
Higher inventories, higher costs, longer response times, and lost customers can result from?
lack of supply chain visibility