ISDS final - conceptual MC
Great Lakes Barge and Baggage Company makes, among other things, battery-operated bilge pumps. Which of the following activities is NOT part of JIT? They: A. produce in long production runs to reduce the impact of setup costs. B. continuously work on reducing setup time. C. use a pull system to move inventory. D. communicate their schedules to suppliers. E. produce in small lots.
A. produce in long production runs to reduce the impact of setup costs
Which of the following data visualization graphs provides a best−fit line through a central tendency of points on a graph? A. regression line B. slope graph C. scatter diagram D. histogram E. line graph
A. regression line
A production order quantity problem has a daily demand rate = 10 and a daily production rate = 50. The production order quantity for this problem is approximately 750 units. What is the average inventory for this problem? A. 300 B. 600 C. 61 D. 375 E. 245
A. 300
Which of the following is NOT one of the four categories (areas) to click-and-drag fields into when using the PivotTable function? A. Buckets B. Filters C. Columns D. Rows E. Values
A. Buckets
Which of the following is specifically characterized by the elimination of waste through a focus on exactly what the customer wants? A. Lean operations B. Toyota Production System (TPS) C. Material requirements planning (MRP) D. kanban E. Just-in-time (JIT)
A. Lean operations
Which of the following is specifically characterized by the elimination of waste through a focus on exactly what the customer wants? A. Lean operations B. kanban C. Just-in-time (JIT) D. Material requirements planning (MRP) E. Toyota Production System (TPS)
A. Lean operations
Toyota attempts to have at least two suppliers, each in a different geographical region, for each component to mitigate which type of supply chain risk? A. Natural catastrophes B. Distribution C. Political D. Economic
A. Natural catastrophes
Which of the following statements regarding a pull system is TRUE? A. Problems become more obvious. B. Large lots are pulled from upstream stations. C. Work is pulled to the downstream stations before it is actually needed. D. Manufacturing cycle time is increased. E. None of the above is true of a pull system.
A. Problems become more obvious.
Which of the following best represents the relationship between the master production schedule (MPS) and the aggregate plan? A. The MPS disaggregates the aggregate plan. B. The MPS precedes the aggregate plan in the planning process. C. The MPS is the same as the aggregate plan. D. There is no relationship between the MPS and the aggregate plan.
A. The MPS disaggregates the aggregate plan.
Which of the following statements is NOT true regarding the bullwhip effect? A. The bullwhip effect occurs as order are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations decreasing at each step in the sequence. B. Bullwhip fluctuations in the supply chain decrease customer service and profitability. C. Inaccurate information results in distortions and fluctuations, causing what is known as the bullwhip effect. D. Bullwhip fluctuations in the supply chain increase the costs associated with inventory, transportation, shipping and receiving.
A. The bullwhip effect occurs as order are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations decreasing at each step in the sequence.
To reduce the risks from vertical integration, firms may choose to develop some form of formal collaboration known as A. a joint venture. B. vendor managed inventory. C. cross sourcing. D. channel assembly.
A. a joint venture.
Which of the following statements is NOT one of the response strategy decisions? A. gather and communicate market research data B. fast transportation C. low setup time D. use buffer stocks to ensure speedy supply
A. gather and communicate market research data
The main trait of a single-period model is that: A. inventory has limited value after a certain period of time. B. the cost of a shortage cannot be determined accurately. C. the order quantity should usually equal the expected value of demand. D. it has the largest EOQ sizes. E. supply is limited.
A. inventory has limited value after a certain period of time.
Trucking A. is increasingly using computers to manage its operations. B. is one of the least flexible transportation modes. C. does not play a role in multimodal shipping. D. is the least used transportation mode for manufacturing goods.
A. is increasingly using computers to manage its operations.
Which of the following business analytics tools take(s) large volumes of data and potential variables to form groupings of variables to identify complex paths and associations? A. neural networks B. cluster analysis C. cohort analysis D. opinion mining E. mapping and tracking
A. neural networks
Which of the following is generally found in most Lean environments? A. pull systems B. a push system for purchased parts and a pull system for manufactured parts C. push systems D. a push system for high margin items and a pull system for low margin items E. a push or pull system, depending upon the rate of demand
A. pull systems
An advantage of the fixed-period inventory system is that: A. there is no physical count of inventory items when an item is withdrawn. B. safety stock will be lower than it would be under a fixed-quantity inventory system. C. no inventory records are required. D. the average inventory level is reduced. E. orders usually are for smaller order quantities.
A. there is no physical count of inventory items when an item is withdrawn.
A firm's probability of a stockout for a popular item is 2%. Given this information, what is its service level for this popular item? A. 98% B. 4% C. 96% D. 2%
A. 98%
Airfreight A. is the oldest means of freight transportation. B. is a fast-growing mode of shipping. C. is the best way to transport natural gas. D. represents about 10% of the tonnage shipped in the United States.
B. is a fast-growing mode of shipping.
All EXCEPT which of the following statements about ABC analysis are true? A. ABC analysis is an application of the Pareto principle. B. ABC analysis suggests that all items require the same high degree of control. C. In ABC analysis, inventory may be categorized by measures other than dollar volume. D. ABC analysis suggests that there are the critical few and the trivial many inventory items. E. ABC analysis categorizes on-hand inventory into three groups based on annual dollar volume.
B. ABC analysis suggests that all items require the same high degree of control.
What is required for an MRP system to work? A. A high number of purchase orders outstanding B. Accurate inventory records C. A small bill of material D. Long lead times
B. Accurate inventory records
Which of the following is NOT one of the assumptions of fixed-period systems? A. Items are independent of one another. B. Lead times are variable. C. Lead times are known. D. The only relevant costs are the ordering and holding costs.
B. Lead times are variable.
What is a dependent demand technique that uses a bill-of-material, inventory, expected receipts, and a master production schedule to determine material requirements? A. Material requirements method (MRM) B. Material requirements planning (MRP) C. Periodic order planning (POP) D. Economic order method (EOM)
B. Material requirements planning (MRP)
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. Toyota Production System (TPS) C. kanban D. Lean operations E. Just-in-time (JIT)
B. Toyota Production System (TPS)
What is a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship? A. drop shipping B. blanket order C. advanced shipping notice D. postponement
B. blanket order
A ________ in Excel's Conditional Formatting changes the Fill color of every cell by using a gradation of two or three different colors. ________ means more extreme. A. color map; Darker B. color scale; Darker C. color map; Lighter D. color scale; Lighter E. heat map; Darker
B. color scale; Darker
Which of the following business analytics tools presents an overview of the most important metrics (i.e., key success indicators) all in one place? A. Conditional Formatting B. dashboard C. COUNTIF D. heat map E. PivotTable
B. dashboard
Which of the following business analytics tools is designed to explore very large datasets, looking for relevant patterns or relationships? A. linear programming B. data mining C. mapping and tracking D. cohort analysis E. cluster analysis
B. data mining
The advantage of having few suppliers is to A. take advantage of diseconomies of scale. B. form a long-term relationship. C. pursue low cost. D. look for short-term attributes.
B. form a long-term relationship.
Kanban is associated with all EXCEPT which of the following? A. moving inventory only as needed B. increased material handling C. small lot sizes D. signals, such as cards, lights, or flags E. reductions in inventory
B. increased material handling
Characteristics of just-in-time partnerships do NOT include: A. long-term contracts. B. large lot sizes to save on setup costs and to gain quantity discounts. C. produce with zero defects. D. focus on core competencies. E. removal of in-transit inventory.
B. large lot sizes to save on setup costs and to gain quantity discounts.
Which of the following is characteristic of lean operations? A. specialty workers with no cross-training B. low space requirements C. inventory buffers between each workstation to minimize system downtime D. no supplier partnerships E. easy, mindless jobs
B. low space requirements
Speech recognition and self-driving cars are applications of A. cohort analysis. B. machine learning. C. mapping and tracking. D. cluster analysis. E. opinion mining.
B. machine learning.
Which of the following mitigation tactics could reduce economic risk? A. franchising and licensing B. purchasing contracts that address price fluctuations C. multiple transportation modes and warehouses D. subcontractors on retainer
B. purchasing contracts that address price fluctuations
Which one is NOT an application of lean principle in services? A. inventory sharing among members of the pharmaceutical network B. securing more inventory to prepare for disruption in production C. scheduling personnel availability at 15 minute increments to meet demand fluctuations D. JIT in food supply management E. improving kitchen layout at McDonald's to drive seconds out of the production process
B. securing more inventory to prepare for disruption in production
The proper quantity of safety stock is typically determined by: A. minimizing total costs. B. setting the level of safety stock so that a given stockout risk is not exceeded. C. multiplying the EOQ by the desired service level. D. using a single-period model. E. carrying sufficient safety stock so as to eliminate all stockouts.
B. setting the level of safety stock so that a given stockout risk is not exceeded.
What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor? A. outsourcing B. vertical integration C. horizontal integration D. virtual companies
B. vertical integration
The minimum record accuracy required for successful MRP is approximately which of the following? A. 97% B. 99% C. 90% D. 95% E. lower than 90%
B. 99%
Which of the following statements is TRUE? A. Prescriptive analytics characterizes and summaries data to facilitate understanding. B. Prescriptive analytics analyzes past data to predict the future. C. Descriptive analytics characterizes and summaries data to facilitate understanding. D. Predictive analytics invokes advanced optimization tools to recommend a strategy or action. E. Descriptive analytics analyzes past data to predict the future.
C. Descriptive analytics characterizes and summaries data to facilitate understanding.
JIT makes quality cheaper because: A. JIT adds more 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
C. JIT prevents long runs of defects.
Which of the following would NOT generally be a motive for a firm to hold inventories? A. to hedge against inflation B. to minimize holding costs C. to take advantage of quantity discounts D. to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand E. to decouple various parts of the production process
B. to minimize holding costs
What is a list of quantities of components, ingredients, and materials required to make a product? A. purchase order B. engineering change notice C. master production schedule D. bill-of-material
D. bill-of-material
Which of the following statements is NOT true regarding the bullwhip effect? A. Inaccurate information results in distortions and fluctuations, causing what is known as the bullwhip effect. B. Bullwhip fluctuations in the supply chain decrease customer service and profitability. C. The bullwhip effect occurs as order are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations decreasing at each step in the sequence. D. Bullwhip fluctuations in the supply chain increase the costs associated with inventory, transportation, shipping and receiving.
C. The bullwhip effect occurs as order are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations decreasing at each step in the sequence.
What is the term for a company that relies on a variety of supplier relationships to provide services on demand? A. Kanban company B. Keiretsu network C. Virtual company D. Integrated network
C. Virtual company
Which of the following mitigation tactics is NOT designed to reduce the risk of information loss or distortion? A. secure IT systems B. training of supply chain partners on the proper interpretations and use of information C. alternate sourcing D. redundant databases
C. alternate sourcing
ABC analysis divides on-hand inventory into three classes, generally based upon which of the following? A. item quality B. unit price C. annual dollar volume D. the number of units on hand E. annual demand
C. annual dollar volume
Enterprise resource planning (ERP): A. seldom requires software upgrade or enhancement. B. does not integrate well with functional areas other than operations. C. automates and integrates the majority of business processes. D. is inexpensive to implement. E. all of the above
C. automates and integrates the majority of business processes.
A single-period inventory model is NOT applicable for A. seasonal goods. B. newspapers. C. furniture. D. milk.
C. furniture.
Which of the following is not a goal of JIT partnerships? A. removal of in-transit inventory B. removal of in-plant inventory C. inspect all incoming shipments to ensure zero defects D. removal of unnecessary activities E. All of the above are goals of JIT partnerships.
C. inspect all incoming shipments to ensure zero defects
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. queues B. overproduction C. inventory D. transportation E. defective product
C. inventory
Which of the following industries has the highest supply chain cost as a percentage of sales? A. metals B. restaurants C. petroleum D. automobile
C. petroleum
A grill assembly takes 20 washers. Instead of listing these washers separately, they are grouped into a single kit for production. How is the bill of material for the washers classified? A. component bill B. phantom bill C. planning bill D. low-level bill E. modular bill
C. planning bill
Which one of the following is a characteristic of a JIT partnership? A. maximal product specifications imposed on supplier B. active pursuit of vertical integration C. removal of incoming inspection D. frequent deliveries in large lot quantities E. third-party logistics never used
C. removal of incoming inspection
Which one is NOT an application of lean principle in services? A. JIT in food supply management B. scheduling personnel availability at 15 minute increments to meet demand fluctuations C. securing more inventory to prepare for disruption in production D. improving kitchen layout at McDonald's to drive seconds out of the production process E. inventory sharing among members of the pharmaceutical network
C. securing more inventory to prepare for disruption in production
Which of the following lot-sizing techniques results in the lowest holding costs? A. POQ B. Wagner-Whitin algorithm C. lot-for-lot D. EOQ E. the quantity discount model
C. lot-for-lot
A lawnmower assembly plant uses a variety of nuts, bolts, screws, and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule. This is an example of A. e-procurement. B. postponement. C. vendor-managed inventory. D. single stage control of replenishment.
C. vendor-managed inventory.
Which of the following statements about ABC analysis is FALSE? A. ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings. B. In ABC analysis, forecasting methods for "C" items may be less sophisticated than for "A" items. C. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings. D. In ABC analysis, "A" items should have tighter physical inventory control than "B" or "C" items have. E. Criteria other than annual dollar volume, such as high holding cost or delivery problems, can determine item classification in ABC analysis.
C. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.
A response strategy requires suppliers be selected based primarily on A. cost. B. being willing to share information. C. product development skills. D. capacity, speed, and flexibility.
D. capacity, speed, and flexibility.
What is an information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders? A. SCM B. MRP C. ERP D. EIS
C. ERP
Which of the following statements is FALSE? A. Descriptive analytics analyzes past data to predict the future. B. Predictive analytics invokes advanced optimization tools to recommend a strategy or action. C. Prescriptive analytics characterizes and summaries data to facilitate understanding. D. All of the above. E. None of the above.
D. All of the above.
Which of the following statements is FALSE? A. Predictive analytics invokes advanced optimization tools to recommend a strategy or action. B. Descriptive analytics analyzes past data to predict the future. C. Prescriptive analytics characterizes and summaries data to facilitate understanding. D. All of the above. E. None of the above.
D. All of the above.
Which of these statements about the production order quantity model is FALSE? A. All else equal, the smaller the ratio of demand rate to production rate, the smaller is the production order quantity. B. Because receipt is noninstantaneous, some units are used immediately and not stored in inventory. C. The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is noninstantaneous. D. Average inventory is more than one-half of the production order quantity. E. None of the above is false.
D. Average inventory is more than one-half of the production order quantity.
What is the term for an approach that seeks efficiency of operations through the integration of all material acquisition, movement, and storage activities? A. Third-party logistics B. Distribution management C. E-procurement D. Logistics management
D. Logistics management
A grocery store is attempting to implement a kanban system. Which of the following would NOT be an application of kanbans? A. A red light on top of the cashier's lane signals that the cashier needs additional change replenished. B. An empty doughnut tray signaling the bakery to produce 2 dozen glazed doughnuts. C. A line of 5 people in the Chinese department signaling the department to heat 5 orders of crab rangoon. D. The meat department stocking up on turkeys before Thanksgiving. E. All of the above are kanban applications.
D. The meat department stocking up on turkeys before Thanksgiving.
Which of the following statements is NOT one of the differentiation strategy decisions? A. Minimize inventory to avoid product obsolescence. B. Modular design to aid product differentiation. C. Gather and communicate market research data. D. Use buffer stocks to ensure speedy supply.
D. Use buffer stocks to ensure speedy supply.
Which of the following business analytics tools identifies and organizes data into groups with similar attributes? A. mapping and tracking B. opinion mining C. cohort analysis D. cluster analysis E. linear programming
D. cluster analysis
The advantage of having few suppliers is to A. look for short-term attributes. B. take advantage of diseconomies of scale. C. pursue low cost. D. form a long-term relationship.
D. form a long-term relationship.
ABC analysis is based upon the principle that: A. all items in inventory must be monitored very closely. B. as with grade distributions in many MBA courses, there should be more medium-level "B" items than either "A" or "C" items. C. an item is critical if its usage is high. D. there are usually a few critical items, and many items that are less critical. E. more time should be spent on class "C" items because there are many more of them.
D. there are usually a few critical items, and many items that are less critical.
What is the primary purpose of the basic economic order quantity model shown below? Q* = SqRt (2DS/H) A. to maximize the customer service level B. to calculate the optimum safety stock C. to calculate the reorder point, so that replenishments take place at the proper time D. to minimize the sum of setup cost and holding cost E. to minimize the sum of carrying cost and holding cost
D. to minimize the sum of setup cost and holding cost
Which of the following statements is true regarding cross-sourcing? A. Cross-sourcing enhances technological skills. B. Cross-sourcing describes suppliers who become part of a company coalition. C. Cross-sourcing develops the ability to produce goods or services previously purchased or actually buying a supplier or distributor. D. Cross-sourcing uses one supplier for a component and a second supplier for another component, where each supplier acts as a backup for the other.
D. Cross-sourcing uses one supplier for a component and a second supplier for another component, where each supplier acts as a backup for the other.
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. Material requirements planning (MRP) C. kanban D. Just-in-time (JIT) E. Toyota Production System (TPS)
D. Just-in-time (JIT)
Which of the following statement is NOT true? A. Probabilistic models are a real-world adjustment because demand and lead time will not always be known and constant. B. Probabilistic models relax the assumption that demand for a product is constant and certain. C. The service level is the complement of the probability of a stockout. D. Having certain demand raises the possibility of a stockout.
D. Having certain demand raises the possibility of a stockout.
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 gross requirements for its parent. B. The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent. C. The quantity of gross requirements for a child item is always equal to the quantity of planned order releases 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.
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.
A disadvantage of the fixed-period inventory system is that: A. it involves higher ordering costs than the fixed quantity inventory system. B. the average inventory level is decreased. C. orders usually are for larger quantities. D. since there is no count of inventory during the review period, a stockout is possible. E. additional inventory records are required.
D. since there is no count of inventory during the review period, a stockout is possible.
Which of the following is an element of inventory holding costs? A. pilferage, scrap, and obsolescence B. material handling costs C. housing costs D. investment costs E. All of the above are elements of inventory holding costs.
E. 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 unnecessary activities D. removal of in-plant inventory E. All of the above are goals of JIT partnerships.
E. All of the above are goals of JIT partnerships.
Which of the following is TRUE regarding the steps to reducing setup times? A. The first step involves performing as much setup preparation as possible while the process/machine is operating. 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 cycle of steps is repeated until setup time is reduced to under a minute. E. All of the above are true.
E. All of the above are true.
Which one of the following statements is TRUE regarding JIT inventory? A. It increases if setup costs decrease. B. It hides variability. C. It exists just in case something goes wrong. D. It is minimized with large lot production. E. It is the minimum inventory necessary to keep a perfect system running.
E. It is the minimum inventory necessary to keep a perfect system running.
Which of the following Excel functions is NOT used to facilitate quick accuracy checks on the extreme values? A. SMALL B. MAX C. LARGE D. MIN E. MEDIAN
E. MEDIAN
Which one of the following statements is TRUE about the kanban system? A. It is associated with a push system. B. It is useful to smooth operations when numerous quality problems occur. C. The supplier workstation signals the customer workstation as soon as a batch is completed. D. The quantities in the containers are usually large to reduce setup costs. E. The customer workstation signals to the supplier workstation when production is needed.
E. The customer workstation signals to the supplier workstation when production is needed.
Which of the following data visualization graphs plots data that are readily divided into categories? A. network diagram B. line graph C. slope graph D. scatter diagram E. bar graph
E. bar graph
By convention, what is the top level in a product structure? A. level 1 B. level T C. level 10 D. level 100 E. level 0
E. level 0
Which of the following data visualization graphs uses arcs and nodes to provide a representation of flow through a system? A. line graph B. slope graph C. bar graph D. scatter diagram E. network diagram
E. network diagram
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 100%. B. either increase or decrease. C. increase, but more data is needed to say by how much. D. increase by 200%. E. increase by about 41%.
E. increase by about 41%.
MRP can be effective only if very accurate lot sizes are calculated in advance. True False
False
