ISDS 3115 Final Exam (Quiz Questions)
D
A fried chicken fast-food chain that acquired feed mills and poultry farms has performed which of the following? A. horizontal integration B. forward integration C. job expansion D. backward integration E. current transformation
C
A grocery store is attempting to implement a kanban system. Which of the following would not be an application of kanbans? A. An empty doughnut tray signaling the bakery to produce 2 dozen glazed doughnuts. B. A line of 5 people in the Chinese department signaling the department to heat 5 Crab Rangoon. C. The meat department stocking up on turkeys before Thanksgiving. D. A red light on top of the cashier's lane signals that the cashier needs additional change replenished. E. All of the above are kanban applications.
d
Demand for dishwasher water pumps is 8 per day. The standard deviation of demand is 3 per day, and the order lead time is four days. The service level is 95%. What should the reorder point be? A. about 38 B. about 18 C. about 32 D. more than 40 E. about 24
B
Dependence on an external source of supply is found in which of the following aggregate planning strategies? A .hiring and laying off B. subcontracting C. back ordering during high demand periods D. varying production rates through overtime or idle time E. using part-time workers
d
In level scheduling, what is kept uniform from month to month? A. inventory levels B. sub-contracting levels C. demand levels D. production/workforce levels E. product mix
e
In level scheduling, what is kept uniform from month to month? A. product mix B. demand levels C. inventory levels D. sub-contracting levels E. production/workforce levels
c
In the basic EOQ model, if D = 6000 per year, S = $100, and holding cost = $5 per unit per month, what is the economic order quantity? A. 600 B. 24 C. 141 D. 100 E. 490
T
T/F: Outsourcing is a form of specialization that allows the outsourcing firm to focus on its key success factors.
F
T/F: The supply chain management opportunity called postponement involves delaying deliveries to avoid accumulation of inventory at the customer's site.
T
T/F: The supply-chain systems that result from using ERP in the grocery industry are called efficient consumer response (ECR) systems.
d
The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. What is the production order quantity for this problem? A. 365 B. 548 C. 174 D. 184 E. 139
c
What directly results from disaggregation of an aggregate plan? A. a capacity-demand matrix B. a transportation matrix C. a master production schedule D. priority scheduling E. detailed work schedules
E
What is the practice of keeping a product generic as long as possible before customizing? A. backward integration B. forward integration C. vendor-managed inventory D. keiretsu E. postponement
D
What is the practice of keeping a product generic as long as possible before customizing? A. backward integration B. vendor-managed inventory C. keiretsu D. postponement E. forward integration
B
What is the primary purpose of the basic economic order quantity model shown below? Q* = Sqrt 2xDS/H A. to minimize the sum of carrying cost and holding cost B. to minimize the sum of setup cost and holding cost C. to calculate the reorder point, so that replenishments take place at the proper time D. to maximize the customer service level E. to calculate the optimum safety stock
c
Which of the following aggregate planning options attempts to manipulate product or service demand? A. overtime/idle time B. subcontracting C. price cuts D. inventories E. part-time workers
e
Which of the following aggregate planning strategies is a capacity option? A. influencing demand by extending lead times B. influencing demand by changing price C. counterseasonal product mixing D. influencing demand by back ordering E. changing inventory levels
E
Which of the following aggregate planning strategies is known to lower employee morale? A. changing inventory levels B. yield management C. counterseasonal product and service mixing D. back ordering during high demand periods E. varying work force size by hiring or layoffs
C
Which of the following is NOT a source of variability? A. Employees, machines, and suppliers produce units late. B. Customer demand is unknown. C. Employees, machines, and suppliers produce units that conform to standards. D. Engineering drawings are inaccurate. E. Drawings or specifications are incomplete.
b
Which of the following is NOT an advantage of level scheduling? A. more employee commitment B. matching production exactly with sales C. lower absenteeism D. stable employment E. lower turnover
D
Which of the following is NOT an opportunity for effective management in the supply chain? A. CPFR B. postponement C. accurate "pull" data D. local optimization E. vendor-managed inventory
B
Which of the following is NOT one of the Seven Wastes? A.defective product B. assignment C. overproduction D. motion E. transportation
B
Which of the following is specifically characterized by continuous and forced problem solving via a focus on throughput and reduced inventory? A. Lean operations B. Just-in-time (JIT) C. kanban D. Material requirements planning (MRP) E. Toyota Production System (TPS)
c
Which of the following should be higher in P systems than Q systems? A. order size B. order spacing C. safety stock D. lead time E. demand
e
Which of the following statements about aggregate planning is TRUE? A. An advantage of the counterseasonal product and service mixing option is that it matches seasonal fluctuations without hiring/training costs. B. The option of varying workforce size by hiring or layoffs is used where the size of the labor pool is small. C. In aggregate planning, back orders are a means of manipulating supply while part-time workers are a way of manipulating product or service demand. D. A disadvantage of subcontracting is that it may require skills or equipment outside the firm's areas of expertise. E. A pure chase strategy allows lower inventories when compared to a pure level scheduling.
D
Which of the following would NOT generally be a motive for a firm to hold inventories? A. to hedge against inflation B. to take advantage of quantity discounts C. to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand D. to minimize holding costs E. to decouple various parts of the production process
C
Which of the following lot-sizing techniques results in the lowest holding costs? A. EOQ B. Wagner-Whitin algorithm C. lot-for-lot D. the quantity discount model E. POQ
d
Which of these is among the demand options of aggregate planning? A. subcontracting B. varying production rates through overtime or idle time C. varying workforce size D. back-ordering during high-demand periods E. changing inventory levels
D
Which one is NOT an application of lean principle in services? A. scheduling personnel availability at 15 minute increments to meet demand fluctuations B. JIT in food supply management C. improving kitchen layout at McDonald's to drive seconds out of the production process D. securing more inventory to prepare for disruption in production E. inventory sharing among members of the pharmaceutical network
C
Which one of the following is a characteristic of a JIT partnership? A. active pursuit of vertical integration B. maximal product specifications imposed on supplier C. removal of incoming inspection D. third-party logistics never used E. frequent deliveries in large lot quantities
b
Disaggregation: A. transforms the master production schedule into an aggregate plan. B. breaks the aggregate plan into greater detail. C. is an assumption required for the use of the transportation model in aggregate planning. D. calculates the optimal price points for yield management. E. converts product schedules and labor assignments to a facility-wide plan.
c
By convention, what is the top level in a product structure? A. level 10 B. level 1 C. level 0 D. level T E. level 100
C
Concerning relationships with suppliers, which of the following combinations is critical to the success of JIT? A. distant relationships with skepticism B. distant relationships with trust C. close relationships with trust D. close relationships with skepticism E. none of the above
