ISDS 3115 Final

Characteristics of just-in-time partnerships do NOT include: A. Focus on core competencies B. Large lot sizes to save on setup costs and to gain quantity discounts C. produce w/ zero defects D. long-term contracts E. Removal of in-transit inventory

large lot sizes to save on setup costs and to gain quantity discounts.

Which of the following is NOT an opportunity for effective management in the supply chain? A. vendor-managed inventory B. CPFR C. local optimization D. postponement E. accurate "pull" data

local optimization

How can a reduction of in-transit inventory be encouraged? A. High setup costs B. supplier location near plants C. use of trains , not trucks D. low carrying costs E. low-cost, global suppliers

supplier location near plants

In the basic EOQ model, if D=6000 per year, S=$100, H=$5 per unit per month, the economic order quantity is approximately a. 24 b. 100 c. 141 d. 490 e. 600

141

e minimum record accuracy required for successful MRP is approximately which of the​ following? A. 99% ​B. ​97% C. ​95% D. lower than​ 90% E. ​90%

99%

What directly results from disaggregation of an aggregate plan? A. priority scheduling B. detailed work scheduling C. a transportation matrix D. A capacity-demand matrix E. A master production schedule

A master production schedule

Which of the following statements about aggregate planning is TRUE? A. The option of varying workforce size by hiring or layoffs is used where the size of the labor pool is small. B. A pure chase strategy allows lower inventories when compared to a pure level scheduling. C. A disadvantage of subcontracting is that it may require skills or equipment outside the firm's areas of expertise D. An advantage of the countrerseasonal product and service mixing options is that it matches seasonal fluctuations w/o hiring/training cost E. In aggregate planing, back orders are a means of manipulating supply while part-time workers are a way of manipulating product or service demand.

A pure chase strategy allows lower inventories when compared to a pure level scheduling.

ggregate planning would entail which of the following production aspects at BMW for a​ 12-month period? A. total number of cars to produce B. number of cars with a​ hi-fi stereo system to produce C. number of green cars to produce D. number of​ two-door vs.​ four-door cars to produce E. ​B, C, and D

A total number of cars to produce

All EXCEPT which of the following statements about ABC analysis are true?

ABC analysis suggests that all items require the same high degree of control

The bullwhip effect: A. results in increasing fluctuations at each step of the sequence. B. increases the costs associated with inventory in the supply chain. C. occurs as orders are relayed from retailers to distributors to wholesalers to manufacturers. D. occurs because of distortions in information in the supply chain. E. All of the above are true.

All of the above

Which of the following is NOT one of the Seven​ Wastes? A. overproduction B. defective product C. transportation D. assignment E. motion

Assignment

Which of the following is specifically characterized by a focus on continuous​ improvement, respect for​ people, and standard work​ practices? A. Material requirements planning​ (MRP) B. Lean operations C. Toyota Production System​ (TPS) D. ​Just-in-time (JIT) E. kanban

C. Toyota Production System (TPS)

Which of the following aggregate planning strategies is a demand​ option? A. using​ part-time workers B. subcontracting C. varying production levels D. changing inventory levels E. changing price

Changing price

(T/F) The supply chain management opportunity called postponement involves delaying deliveries to avoid accumulation of inventory at the customer's site.

False

A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors. This is an example of a. horizontal integration b. forward integration c. backward integration d. current transformation e. keiretsu

Forward integration

Which of the following is FALSE concerning enterprise resource planning (ERP)? A. It attempts to automate and integrate the majority of business processes. B. It provides and accesses info in a real-time environment. C. It is inexpensive to implement D. It shares common data and practices across the enterprise. E. ERP software promises reduced transaction costs.

It is inexpensive to implement

What is the practice of keeping a product generic as long as possible before customizing? A. Vendor-managed inventory B. Backward integration C. Forward integration D. Postponement E. Keiretsu

Postponement

In level scheduling, what is kept uniform from month to month? A. Demand levels B. Inventory levels C. Product mix D. Sub-contracting levels E. Production/work force levels

Production/workforce levels

A disadvantage of the fixed-period inventory system is that: A. orders usually are for larger quantities B. additional inventory records are required C. it involves higher ordering costs than the fixed quantity inventory system D. since there is no count of inventory during the review period, a stockout is possible E. The average inventory level is decreased

Since there is no count of inventory during the review period, a stockout is possible

Which one of the following statements is TRUE about the kanban system? A. The Suppliers workstation signals the customer workstation as soon as a batch is completed B. It is useful to smooth operations when numerous quality problems occur C. The quantities in the containers are usually large to reduce setup costs. D. It is associated with a push system E. The customer workstation signals to the supplier workstation when production is needed

The customer workstation signals to the supplier workstation when production is needed

An advantage of the fixed-period inventory system is that A. There is no physical count of inventory items when an item is withdraw. B. No inventory record are required C. Orders usually are for smaller order quantities D. Safety stock will be lower than it would be under a fixed-quantity inventory system. E. The avg inventory level is reduced.

There is no physical count of inventory items when an item is withdraw.

Manufacturing cycle time is best defined as the: A. length of the work shift, expressed in minutes per day B. Time from raw materials receipt to finished product exit C. Time between the start of one unit and the start of the next unit D. Sum of all the task times to make one unit of a product E. Time it takes a unit to move from one workstation to the next

Time from raw materials receipt to finished product exit

(T/F) Outsourcing is a form of specialization that allows the outsourcing firm to focus on its key success factors.

True

(T/F) Savings in the supply chain exert more leverage as the firm's net profit margin decreases.

True

Which one of the following is not a benefit of JIT implementation? A. variability increase B. quality improvement C. rapid throughout D. rework reduction E. cost reduction

Variability increase

The fixed- period inventory system requires more safety stock than a fixed-quantity system, because: A. a stockout can occur during the review period as well as during the lead time. B. This model is used for products that require very high service levels. C. Thus model is used for products that have large standard deviations of demand. D. setup costs and holding costs are large E. Replenishment is not instantaneous

a stockout can occur during the review period as well as during the lead time.

Which of the following statements about ABC analysis is​ FALSE? A. Criteria other than annual dollar​ volume, such as high holding cost or delivery​ problems, can determine item classification in ABC analysis. B. In ABC​ analysis, "A" items should have tighter physical inventory control than​ "B" or​ "C" items have. C. In ABC​ analysis, forecasting methods for​ "C" items may be less sophisticated than for​ "A" items. D. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings. E. ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings.

ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.

Lean operations are known for their: A. supplier education B. challenging jobs C. employee development D. supplier partnerships. E. All of the above are attributes of lean operations.

All of the above are attributes of lean operations.

Which of the following is consistent w/ a chase strategy? A. little or no use of inventory to meet demand requirements B. vary production levels and work force to meet demand requirements C. vary work force to meet demand requirements D. vary production levels to meet demand requirements E. All of the above are consistent w/ a chase strategy

All of the above are consistent w a chase strategy

Which of the following is consistent with a chase​ strategy? A. little or no use of inventory to meet demand requirements B. vary work force to meet demand requirements C. vary production levels to meet demand requirements D. vary production levels and work force to meet demand requirements E. All of the above are consistent with a chase strategy.

All of the above are consistent w/ a chase strategy

Which of the following is an element of inventory holding costs? A. investment costs B. housing costs c. pilferage, scrap, and obsolescence D. material handling costs E. All of the above are elements of inventory holding costs

All of the above are elements of inventory holding costs

Which of the following is NOT a goal of JIT partnerships? A. obtain improved quality and reliability B. removal of in-transit inventory C. removal of in-plant inventory D. removal of unnecessary activities E. All of the above are goals of JIT partnerships

All of the above are goals of JIT partnerships

Which of the following is TRUE regarding the steps to reducing setup​ times? A. The cycle of steps is repeated until setup time is reduced to under a minute. B. The standardization of both tooling and work procedures is advantageous to setup time reduction. C. Move material closer and improve material handling are done before operator training. D. The first step involves performing as much setup preparation as possible while the​ process/machine is operating. E. All of the above are true.

All of the above are true

Which of the following statements about the basic EOQ model is​ TRUE? A. If the carrying cost were to​ increase, the EOQ would fall. B. If annual demand were to​ double, the EOQ would increase. C. If the ordering cost were to​ double, the EOQ would rise. D. If annual demand were to​ double, the number of orders per year would increase. E. All of the above statements are true.

All of the above statements are true

Revenue management is MOST likely to be used in which one of the following situations? A . A firm with a good counterseasonal product mix B. a dental clinic that wants to fill its appointment book C. An airline attempting to fill "perishable" seats at maximum revenue D. A fast food restaurant with wide demand fluctuations during the day E. a shipping company that can change its fleet size easily

An airline attempting to fill "perishable" seats at maximum revenue

Enterprise Resource Planning (ERP): A. Automates and integrates the majority of business processes B. does not integrate well w/ functional areas other than operations. C. is inexpensive to implement. D. Seldom requires software upgrade or enhancement. E. all of the above

Automates and integrates the majority of business processes

Which of these is among the demand options of aggregate​ planning? A. subcontracting B. varying production rates through overtime or idle time C. ​back-ordering during​ high-demand periods D. varying workforce size E. changing inventory levels

Back-ordering during high-demand periods

A fried chicken fast-food chain that acquired feed mills and poultry farms has performed which of the following? A. Horizontal integration B. Job expansion C. Backward integration D. Current transformation E. forward integration

Backward integration

Concerning relationships with suppliers, which of the following combinations is critical to the success of JIT? A. close relationships with skepticism B. distant relationships with skepticism C. Distant relationships with trust D. Close relationship with trust E. None of the above

Close relationships with trust

The purpose of safety stock is to: A. eliminate the likelihood of a stockout due to erroneous inventory tally. B. Control the likelihood of a stockout due to variable demand and/or lead time C. eliminate the possibility of a stockout. D. Protect the firm from a sudden decrease in demand. E. Replace failed units with good ones

Control the likelihood of a stockout due to variable demand and/or lead time

In the basic EOQ model, if the cost of placing an order doubles, and all other values remain constant, the EOQ will: A. increase by 200% B. Increase by 100% C. either increase or decrease D. Increase by 41 % E. Increase, but more data is needed to say how much

Increase by 41%

Kanban is associated with all EXCEPT which of the following? A. Reduction in inventory B. small lot sizes C. Signal, such as cards, lights, or flags D. Increased material handling E. Moving inventory only as needed

Increased material handling

Which of the following is not a goal of JIT​ partnerships? A. removal of​ in-transit inventory B. inspect all incoming shipments to ensure zero defects C. removal of​ in-plant inventory D. removal of unnecessary activities E. All of the above are goals of JIT partnerships

Inspecting all incoming shipments to ensure zero defects

Which choice best describes level​ scheduling? A. Inventory goes up or down to buffer the difference between demand and production. B. Daily production is variable from period to period. C. Price points are calculated to match demand to capacity. D. Overtime is used to handle seasonal demand fluctuations. E. ​Subcontracting, hiring, and layoffs manipulate supply.

Inventory goes up or down to buffer the difference between demand and production

Which of the following statements is TRUE regarding JIT inventory? A. It increases if setup costs decreases B. It is the minimum inventory necessary to keep a perfect system running C. It is minimized w/ large lot production D. It exists just in case something goes wrong E. It hides variability

It is the minimum inventory necessary to keep a perfect system running

JIT makes quality cheaper because: A. JIT adds morel buffers to the system B. The cost of low quality can be hidden in inventory C. JIT prevents long runs of defects D. B and C E. A,B, and C

JIT prevents long runs of defects

Which of the following is characteristics of lean operations? A. inventory buffers between each workstation to minimize system downtime B. Specialty workers with no cross-training C. no supplier partnerships D. Easy, mindless jobs E. low space requirements

Low space requirements

Which of the following statements is NOT true about MRP? A. MRP has evolved as the basis for Enterprise Resource Planning B. MRP is an independent demand technique used in a production environment C. MRP provided a clean structure for dependent demand D. MRP uses a bill-of-material, inventory, expected receipts, and a master production schedule to determine material requirements.

MRP is an independent demand technique used in a production environment

Which of the following is NOT an advantage of level scheduling? A. lower absenteeism B. lower turnover C. Stable employment D. matching production exactly w/ sales E. more employee commitment

Matching production exactly w/ sales

When quantity discounts are​ allowed, the​ cost-minimizing order​ quantity: A. is always an EOQ quantity. B. minimizes the sum of holding and ordering costs. C. may be a quantity below that at which one qualifies for that price. D. minimizes the unit purchase price. E. minimizes the sum of​ holding, ordering, and product costs

Minimize the sum of holding, ordering , and product costs.

Hewlett-Packard delays customization of its laser printers as long as possible. This is an example of which of the​ following? A. postponement Your answer is correct.B. ​vendor-managed inventory C. backward integration D. standardization E. timely customization

Postponement

Which of the following statements regarding a pull system is TRUE? A. Problems become more obvious B. Manufacturing cycle times is increased C. Work is pulled to the downstream stations before it is actually needed D. Large lots are pulled from upstream stations E. None of the above is true of a pull system

Problems becoming more obvious

Which of the following is generally found in most Lean environments? A. A push system for purchased parts and a pull system for manufactured parts B. A push or pull system, depending upon the rate of demand C. pull systems D. A push system for high margin items and a pull system fro low margin items E. Push systems

Pull systems

In aggregate planning, which one of the following is not a basic option for altering demand? A. Promotion B. Back ordering C. pricing D. subcontracting E. personal selling

Subcontracting

In the service​ sector, which of the following aggregate planning strategies might direct your client to a​ competitor? A. subcontracting B. varying production rates through overtime or idle time C. changing inventory level D. varying work force size by hiring or layoffs E. using​ part-time workers

Subcontracting

Which of the following aggregate planning options is NOT associated with manipulation of product or service​ demand? A. subcontracting B. advertising C. counterseasonal products or services D. price cuts or discounts E. promotion

Subcountracting

Which of the following statements is true regarding the leverage of supply chain savings? A. Supply chain leverage is about the same for all industries B. Supply chain savings exert more leverages as the firm's purchases are a smaller percent of sales. C. Supply chain leverage depends only upon the percent of sales spent in the supply chain. D. Supply chain savings exert more leverages as the firm's net profit margin decreases. E. None of the above is true

Supply chain savings exert more leverages as the firm's net profit margin decreases.

A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. When this large order is sent to the distributor, the distributor assumes the large size is a trend, not a one-time event. The distributor therefor places an even larger order with the lobsterman. This behavior is the result of which of the following? A. The bullwhip effect B. vendor-managed inventory C. double marginalization D. postponement E. CPFR

The bullwhip effect

Which of the following statements about quantity discounts id FALSE? A. If carrying costs are expressed as a percentage of value, EOQ is larger at each lower price in the discount schedule. B. The cost-minimizing solution may or may not be where annual holding costs equal annual ordering costs. C. The smaller the ordering cost, the less attractive a discount schedule will be. D. the larger the annual demand , the less attractive a discount schedule will be. E. In inventory management, item cost becomes relevant to order quantity decisions when a quantity discount is available

The larger the annual demand, the less attractive a discount schedule will be.

Which of the following statements is TRUE about the MRP plan when using​ lot-for-lot ordering? A. The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent. B. The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent. C. The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent. D. The quantity of gross requirements for a child item is equal to the quantity of planned order​ release(s) multiplied by the number of child items used in the parent assembly. E. All of the above are true.

The quantity of gross requirements for a child item is equal to the quantity of planned order​ release(s) multiplied by the number of child items used in the parent assembly.

Which term is used to describe the outsourcing of logistics? A. Hollow logistics B. sub-logistics C. e-logistics D. shipper-managed inventory E. Third-party logistics (3PL)

Third-party logistics (3PL)

(T/F) bullwhip effect refers to the increasing fluctuation in orders that often occur as orders move through the supply chain

True

T/F A fast-food retailer that acquired a spice manufacturer would be practicing backward integration.

True

Low level coding means that: a. a final item has only a few levels in the BOM structure b. The code being used is the code for the lowest level in the BOM structure. c. a component item is coded at the lowest level at which it appears in the BOM structure d. the top level of the BOM is below level zero and that BOMs are not organized around the finished product e. the lowest -paid staff member in the production dept performs the coding.

a component item is coded at the lowest level at which it appears in the BOM structure

Outsourcing A. transfers traditional internal activities to outside vendors B. utilizes the efficiency which comes with specialization C. lets the outsourcing firm focus on its critical success factors D. None of the above are true of outsourcing. E. All of the above are true of outsourcing.

all of the above are true of outsourcing

ABC analysis divides on-hand inventory into three classes, generally based upon which of the following? A. The number of units on hand B. Unit price C. annual demand D. annual dollar volume E. item quality

annual dollar volume

Which of the following aggregate planning strategies is a capacity option? A. Influencing demand by extending lead times B. Counterseasonal product mixing C. Changing inventory levels D. Influencing demand by changing price E. Influence demand by back ordering

changing inventory levels

Which choice below best describes the counterseasonal product demand option? A. lowering prices when demand is stack B. developing a mix of products that smooths out their demands C. producing such products as lawn mowers and sunglasses during the winter D. using subcontractors only when demand is excessive E. the breaking of the aggregate plan into finer levels of detail

developing a mix of products that smooths out their demands

Which of the following is NOT a source of​ variability? A. Customer demand is unknown. B. ​Employees, machines, and suppliers produce units that conform to standards. C. ​Employees, machines, and suppliers produce units late. D. Engineering drawings are inaccurate. E. Drawings or specifications are incomplete.

employees, machines, and suppliers produce units that conform to standards

A grocery store is attempting to implement a kanban system. Which of the following would not be an application of kanbans? A. A line of 5 people in the Chinese department signaling the department to heat 5 Crab rangoon B. A red light on top of the cashier's lane signals that the cashier needs additional change replenished C. The meat department stocking up on turkeys before Thanks giving D. An empty doughnut tray signaling the bakery to produce 2 dozen glazed doughnuts. E. All of the above are kanban applications

he meat department stocking up on turkeys before Thanks giving

Excess bags of basic commodities such as flour and sugar that are stored in a​ restaurant's kitchen represent which of the following​ wastes? A. defective product B. overproduction C. inventory D. queues E. transportation

inventory

Which of the following is NOT one of the successful techniques for controlling the cost of labor in​ services? A. accurate scheduling of​ labor-hours to assure quick response to customer demand B. an​ on-call labor resource that can be added or deleted to meet unexpected demand C. flexibility of individual worker skills that permits reallocation of available labor D. little flexibility in worker hours to decrease the burden on management E. flexibility in rate of output or hours of work to meet changing demand

little flexibility in worker hours to decrease the burden on management

The objective of aggregate planning is to meet forecast demand while​ ________ over the planning period. A. minimizing fixed cost B. minimizing cost C. minimizing stock out D. maximizing service level E. all of the above

minimizing cost

Which of the following statements aggregate planning is TRUE? A. Mixed strategies in aggregate planning may utilize inventory, work force, and production rate changes over the planning horizon. B. In a pure level strategy, production rates or work force levels are adjusted to match demand requirements over the planning horizon. C. B/c service firms have no inventory , the chase strategy does not apply D. A pure level strategy allows lower inventories when compared to pure chase and hybrid strategies

mixed strategies in aggregate planning may utilize inventory, work force, and production rate changes over the planning horizon.

Local optimization is a supply-chain complication best described as: A. the opposite of the billwhip B. optimizing one's local area w/o full knowledge of supply chain needs. C. The result of supply chains built on suppliers w/ compatible corporate cultures. D. obtaining very high production efficiency in a decentralized supply chain. E. the prerequisite of global optimization.

optimizing one's local area w/o full knowledge of supply chain needs.

Aggregate planning for service firms that provide intangible output deals mainly with: A. centralized purchasing B. smoothing the production rate and finding the optimal size of the workforce C. capital investment decisions D. centralized production E. planning for human resource requirements and managing demand

planning for human resource requirements and managing demand

In MRP, the number of units projected to be available at the beginning of each time period refers to: A. Planned order releases B. scheduled receipts C. projected on hand D. Net requirements E. the amount necessary to cover a shortage

projected on hand

Which of the following is an advantage of the postponement technique? A. reduction in inventory investment B. reduction in automation C. early customization of the product D. reduction in training costs E. better quality of the product

reduction in inventory investment

Which of the following is a characteristic of a JIT partnership? A. removal of incoming inspection B. active pursuit of vertical integration C. third-party logistics never used D. frequent deliveries in lg lot quantities E. maximal product specifications imposed on supplier

removal of incoming inspections

The proper quantity of safety stock is typically determined by: A. using a single-period model B. minimizing total costs C. setting the level of safety stock so that a given stockout risk is not exceeded D. multiplying the EOQ by the desired service level E. Carrying sufficient safety stock so as to eliminate all stockouts.

setting the level of safety stock so that a given stockout risk is not exceeded

The proper quantity of safety stock is typically determined​ by: A. using a​ single-period model. B. setting the level of safety stock so that a given stockout risk is not exceeded. C. carrying sufficient safety stock so as to eliminate all stockouts. D. minimizing total costs. E. multiplying the EOQ by the desired service level.

setting the level of safety stock so that a given stockout risk is not exceeded.

he fixed-period inventory system requires more safety stock than a​ fixed-quantity system​ because: A. replenishment is not instantaneous. B. a stockout can occur during the review period as well as during the lead time. C. this model is used for products that require very high service levels. D. this model is used for products that have large standard deviations of demand. E. setup costs and holding costs are large.

stockout can occur during the review period as well as during the lead time.

In the service​ sector, which of the following aggregate planning strategies might direct your client to a​ competitor? A. changing inventory level B. varying production rates through overtime or idle time C. using​ part-time workers D. subcontracting E. varying work force size by hiring or layoffs

subcontracting

A disadvantage of the "few suppliers" sourcing strategy is: A. Possible violations of the Sherman Antitrust Act B. the lack of cost savings for customers and suppliers C. the high cost of changing partners. D. the suppliers are less likely to understand the broad objectives of the procurring firm and the end customer E. the risk of not being ready for technological change

the high cost of changing partners

ABC analysis is based upon the principle that a. all items in inventory must be monitored very closely b. there are usually a few critical items, and many items which are less critical c. an item is critical if its usage is high d. more time should be spent on class "C" items because there are more of them e. an item is critical if its unit price is high

there are usually a few critical items, and many items that are less critical

What is one of the tools that is particularly useful in reducing system nervousness in an MRP​ system? A. modular bills B. time phasing C. time fences D. closed loop system E. lot sizing

time fences

The two most basic inventory questions answered by the typical inventory model​ are: A. timing of orders and order quantity. B. ordering cost and carrying cost. C. order quantity and service level. D. timing of orders and cost of orders. E. order quantity and cost of orders.

timing of orders and order quantity

Which of the following would NOT generally be a motivate for a firm to hold inventories? A. to hedge against inflation B. to take advantage of quantity discounts C. to minimize holding costs D. to decouple various parts of the production process E. to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand

to minimize holding costs

What is the primary purpose of the basic economic order quantity model shown below? Q*= *SQRT (2DS/H)

to minimize the sum of setup cost and holding cost

Which of the following actions is consistent w/ the use of level scheduling? A. use inventory to meet demand requirements B. vary production levels to meet demand requirements C. use overtime to meet higher-than-avg demand requirements D. Vary work force to meet demand requirements E. none of the above

use inventory to meet demand requirements

Which of these aggregate planning strategies is a capacity option? A. Changing price B. counterseasonal product mixing C. Using part-time workers D. back ordering E. promotion

using part-time workers