Op. Mgmt FINAL
Reverse logistics can have a positive impact on the environment through activities such as? a. Data warehousing b. Reneging c. Risk pooling d. Recycling
B. Reneging
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? a. Differentiation strategy b. Demand strategy c. Focus strategy d. Transitional strategy
C. Focus strategy
Organizations that primarily compete on speed of delivery, such as FedEx and UPS, utilize which of the following approaches for location determination? a. Sourcing center b. Air and ground c. Hub and spoke d. LTL consolidation
C. Hub and spoke
The Quick Response program, developed in the 1980's, was an offshoot of the following supply chain concept: a. Efficient Consumer Response b. Six Sigma c. Just-in-Time d. Kaisen
C. Just-in-time
______________ creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized. a. Operations b. Transportation planning c. Logistics d. Procurement
C. Logistics
women-owned businesses.
FALSE
Inaccurate forecasts can result in negative outcomes like: a. High inventory costs and increased profits b. Imbalances in supply and demand c. Material shortages and decreased costs of obsolescence d. Low inventory costs and stockouts
D. Low inventory costs and stockouts
Before supplier relationship management (SRM), buyers typically spent 40% of their time on expediting orders. After SRM implementation buyers spent about: a. 10% of their time on expediting orders b. 20% of their time on expediting orders c. 30% of their time on expediting orders d. None of the these
A. 10% of their time on expediting orders
Which of the following is NOT one of the Eight Key Supply Chain Business Processes? a. Order Fulfillment b. Customer Relationship Management c. Returns Management d. Warehouse Management
D. Warehouse Management
One operational method for managing inventory is the implementation of a software system which can be referred to as: a. Material requirements planning (MRP) b. Demand capacity tracking (DCT) c. Inventory sourcing (IS) d. Demand process reengineering (DPR)
A. MRP
Costs associated with investigating alternative suppliers and investigating alternative delivery options can be classified as: a. Pre-transaction costs b. Post-transaction costs c. Transaction costs d. All of these
A. Pre-transaction costs
Which of the following is considered a disadvantage of utilizing an ERP system? a. ERP systems reduce the bullwhip effect b. ERP systems are very complex and have proven difficult to implement c. ERP systems use a single database and common infrastructure d. Once ERP information is entered it is made available to all users
B. ERP systems are very complex and have proven difficult to implement
If an item is ordered using its economic order quantity, the annual carrying cost should be: a. slightly less than the annual ordering cost. b. equal to the annual ordering cost. c. twice the annual purchase price. d. the square root of the annual ordering cost. e. none of the above.
B. Equal to the annual ordering cost
What is considered an acceptable range for a tracking signal? a. ±1 b. ±2 c. ±3 d. ±10
C.
Which of the following is NOT important in developing a successful strategic alliance? a. Developing performance metrics b. Developing cross-functional team capabilities externally and within the company c. Developing efficient processes that will remain unchanged for the duration of the partnership d. Open lines of communication that both promote sharing and secure confidentiality
C.
The smoothing constant for exponential smoothing must be? a. Positive b. Negative c. Between 0 and 1 d. Greater than 1
C. Between 0 and 1
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: a. Piggy backing b. Risk pooling c. Crossdocking d. Customs Brokering
C. Crossdocking
Which of the following trade agreements created the world's largest free trade area, currently with over 450 million people and GDP of more than US$20 trillion? a. Association of Southeast Asian Nations (ASEAN) b. European Union (EU) c. North American Free Trade Agreement (NAFTA) d. Southern Common Market (MERCOSUR)
C. NAFTA
According to the SCOR model, which of the following is NOT one of the five supply chain operation process categories? a. Plan b. Market c. Return d. Source
C. Return
Which of the following marked the end of the initial push by Congress to deregulate the entire U.S. transportation industry? a. The Granger Laws b. The Transportation Act of 1920 c. The Shipping Act of 1984 d. The Interstate Commerce Act of 2013
C. The Shipping Act of 1984
Sustainable sourcing policies should include which of the following? a. Use of minority workers b. Fair working conditions c. Use of renewable energy d. Use of child labor
C. Use of renewable energy??
Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities? a. The stability in the location considered b. Environmental issues regulated by domestic laws or international trade agreements c. Access to suppliers from the location considered d. All of the above
D. All of the above
When utilizing performance standards, the difference between the standard and the actual performance is called the: a. Productivity Gap b. Organizational Variance c. Certified Variance d. Performance Variance
D. Performance variance
Which of the following statements is FALSE? a. Centralized purchasing is where individual, local purchasing departments, such as at the plant level, make their own purchasing decisions. b. Electronic procurement systems can aid a company in saving both time and money. c. More than 50% of each sales dollar typically goes towards covering supply chain costs. d. If a firm lacks the technology to make a required component they will need to consider buying/outsourcing.
A.
Leading companies practicing sustainable sourcing and seeking to reduce costs would NOT use which of the following strategies? a. Backward integration to purchase suppliers b. Increase resource efficiencies c. Avoid use of noncompliant suppliers d. Rethink transportation and distribution systems
A. Backward integration to purchase suppliers
The impact of poor communication and inaccurate forecasts resonates along the supply chain and results in the: a. Bullwhip effect b. Delphi method c. CPFR effect d. Mean deviation
A. Bullwhip effect
Your company is conducting forecasting that revolves around population growth in large cities. This type of forecasting can be referred to as what component of a time series? a. Cyclical Variations b. Trend Variations c. Seasonal Variations d. Random Variations
A. Cyclical Variation
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: a. Event-based marketing b. Segmented selling c. Personal holiday marketing d. Extreme segmentation marketing
A. Event-based Marketing
Waste in Japan is also referred to as: a. Muda b. Kanban c. Poka-yoke d. Sakichi
A. Muda
Which of the following has made external integration more difficult to achieve? a. Problems with internal integration efforts b. Identifying key trading partners c. Lack of software applications to coordinate the effort d. Increased number of franchise operators
A. Problems with internal integration efforts
Decisions regarding the types of parts purchased, suppliers used and the manufacturing process employed, should be decided in which phase of the supply chain integration model: a. Review and establish supply chain strategies b. Identify critical supply chain trading partners c. Align supply chain strategies with key supply chain process objectives d. Assess and improve internal integration of key supply chain processes
A. Review and establish supply chain strategies
When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT: a. Select the key dimensions of performance based on what is important to the end consumer b. The weights for all dimensions must sum to 1 or 100% c. Evaluate each of the performance measures on a rating between zero and one-hundred d. Multiply the dimension ratings by their respective important weights and then sum to get an overall weighted score
A. Select the key dimensions of performance based on what is important to the end customer
The average transaction at a single channel, single phase automatic teller can be completed in 7.5 minutes and customers arrive at the average rate of one every ten minutes. On average, what is the server utilization? (Choose the closest answer.) a. 0.167 b. 0.75 c. 0.125 d. 1.33
B. .75
Which of the following would be a good reason to outsource (buy) versus making? a. To utilize existing capacity within a company's own firm b. A firm lacks the technology or expertise to produce an item c. To have more direct control over the design and production of an end item d. No competent supplier presently produces the needed item
B. A firm lacks the technology or expertise to produce and item
A firm offers group discount for orders exceeding 15. Two firms are taking advantage of this offer. Sales to Company A averages $15, 000 of annual sales, has a 22% profit margin and an expected lifetime of 8 years. Company B averages $11, 000 of annual sales, has a 25% profit margin and an expected lifetime of 9 years. Which is the more important customer based on the higher expected lifetime value? Assume a 7% discount rate. a. Company A because its' NPV = $17917 b. Company A because its' NPV = $19705 c. Company B because its' NPV = $21,224 d. Company B because its' NPV = $22,349
B. Company A because its' NPV = $19705
Which of the following MRP terms represents the parts demanded by a parent? a. Gross requirement b. Component c. Net requirement d. Scheduled receipt
B. Component
Which of the following are required elements of an effective CRM initiative? a. Sending out promotional materials via e-mails and traditional mail to a large random group of a potential customers b. Cross-selling customers after an initial purchase c. Preserving a traditional sales force that communicates with the supply-chain members d. All of these
B. Cross-selling customers after and initial purchase
Which of the following customer service elements can be classified as an example of posttransaction elements? a. Salesperson politeness b. Customer complaint resolution c. Customer service policies d. The company's choice of organizational structure
B. Customer complaint resolution
Independent demand is the: a. Internal demand for all end-item parts and materials. b. Demand for a firm's end products. c. Forecasted demand for purchased items. d. Absolute demand for all items.
B. Demand for a firm's end products
Promoting diversity by intentionally buying from small firms or ethnic minority businesses is an example of: a. Supply base rationalization b. Ethical sourcing c. Sustainable sourcing d. Supply base sourcing
B. Ethical sourcing
Layout strategies help firms maximize all of the following EXCEPT: a. Service efficiencies b. Four Ms c. Customer service d. Server productivity
B. Four M's
Which of the following is NOT a technique for managing customers' perceived waiting times: a. Grouping customers b. Hiding the wait time c. Keeping customers occupied d. Starting the service quickly
B. Hiding the wait time
Which of the following is TRUE? a. Performance metrics and personal business relationships are both keys to building successful partnerships. b. ISO 75000 is the supplier award given to the highest rated supplier in Japan. c. The key to successful partnerships is developing performance measures with weights greater than 3.50. d. SRM software modules are very affordable (less than $50,000) and can be implemented with a week.
B. ISO 75000 is the supplier award given to the highest rated supplier in Japan
According to the text, all of the following are considered key supply chain business processes EXCEPT: a. Manufacturing flow management process b. Knowledge management process c. Supplier relationship management process d. Product development and commercialization
B. Knowledge management process
Customer relationship management, distribution network, transportation management, and service response logistics are all important issues that are most closely related to: a. Purchasing b. Logistics c. Integration d. Manufacturing
B. Logistics
The ___________ planning horizon is shorter than the aggregate production plan's, but must be longer than a firm's production lead time to ensure the end item can be completed within the planning horizon? a. Material requirements plan b. Master production schedule c. Demand time fence d. Capacity Requirements Plan
B. Master production schedule
Information technology advances, for example, have made cyber attacks: a. Less common b. More common c. Nearly impossible d. Limited to franchises
B. More common ?
Which of the key supply chain business processes refers to meeting customer requirements by synchronizing the firm's marketing, production and distribution plans: a. Customer relationship management process b. Order fulfillment process c. Customer demand organization process d. Supply chain synchronization process
B. Order fulfillment process
Which of the following is a traditional performance measure? a. Average safety stock levels b. Overall total productivity c. Number of suppliers who are quality certified d. Number of product return per units sold
B. Overall total productivity
The element of a CRM program involved with the use of data-mining software and customer behavior analytics is: a. Segmenting customers b. Predicting customer behaviors c. Customer value determination d. Customer preference determination
B. Predicting customer behaviors
Intermodal marketing companies (IMCs) are companies that act as intermediaries between intermodal a. Trucking companies b. Railroad companies c. Waste management companies d. Warehouse management companies
B. Railroad Companies
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: a. CRM b. SRM c. ISO 9000 d. SCSS
B. SRM
A customer's lifetime value is calculated by: a. Summing the projected annual profitability of the customer b. Summing the annual sales of the customer and then dividing by the projected lifetime c. The firm's MRP system d. Finding the NPV of a customer's projected lifetime profits for the firm
B. Summing the annual sales of the customer and then dividing by the projected lifetime ??
Encouraging or helping a firm's suppliers to perform in a desired fashion can be referred to as: a. Progressive procurement b. Supplier management c. Right-shoring d. Supply chain performance management
B. Supplier Management
All of the following may influence demand and should be considered when developing a forecast EXCEPT a. New competition b. Supplier quality c. Ergonomic conditions d. Emerging markets
C. Ergonomic conditions
You are a manager at Sunnydale Appliances. A customer who recently purchased a dishwasher contacts you with a problem and requests warranty information. According to the text, this is an example of: a. Probable customer churn b. Posttransaction customer service c. Transaction customer service d. Pretransaction customer service
B. post transaction customer service
A current warehouse system has five warehouses with 4,000 units at each warehouse. The company desires to change to three warehouses to become more centralized and keep the same customer service levels. Determine the average warehouse inventory levels, using the square root rule. (Choose the closest answer.) a. 6,667 b. 11,619 c. 15,492 d. 25,820
C. 15,492
Which of the following is a direct benefit from the adoption of NAFTA? a. A reduction in illegal immigrants crossing the border from Mexico b. An increase in manufacturing job opportunities in the U.S. c. An increase in trade between U.S., Canada, and Mexico d. An increase in trade between U.S. and China
C. An increase in trade between U.S., Canada, and Mexico
According to the text, which of the following is considered a current trend in supply chain management? a. Using supply chain analytics b. Increasing supply chain visibility c. Both A and B d. None of these
C. Both A & B
Firms can safeguard customer information by doing which of the following? a. Allow customers to opt-in and out of mailing lists b. Allow customers to access their accounts online to view information collected about themselves c. Both A & B d. None of these
C. Both A & B
Due to the success of NAFTA, the U.S________________. a. Has decided to extend the agreement until 2025 b. Has free trade agreements in 20 countries c. Both A & B d. None of the above
C. Both A & B ?
A customer approaches a firm with a question regarding her order status and shipping date; the information the firm provides is an example of which of the eight key supply chain business processes: a. Supply management process b. Demand management process c. Customer service management process d. Order fulfillment process
C. Customer service management process
The Hormel company awards their Hormel Food Corporation's No. 1 Award to their top supplier. How often do they give this award? a. Every year b. Every 6 months c. Every 5 years d. Every 10 years
C. Every 5 years
Which of the following is an obstacle to successful process integration? a. Passive integration b. Stockpiling c. Lack of trust d. Transaction costs
C. Lack of Trust
Some businesses refer to sustainability in terms of supporting the three P's. This stands for: a. People, place, price b. Place, price, promotion c. People, planet, profit d. Planet, people, price
C. People, planet, profit
Companies typically like to design scorecards that fit their business and industry. As a result there are now software applications that can help companies design scorecards that fit their individual needs. These web-based balanced scorecard applications are often referred to as: a. E-Cards b. Executive Barometers c. Performance dashboards d. SCOR Boards
C. Performance dashboards
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: a. Material requisition b. Purchase requisition c. Planned order release d. Traveling requisition
C. Planned order release
Cyclical variations are longer than a year and can be influenced by: a. Events such as natural disasters b. Imbalances in supply and demand c. Political factors d. Population growth
C. Political factors
Which of the following is a reason for favoring single sourcing? a. Encourages competition among suppliers b. Spreads the risk of supply interruption c. Reduces variabilities in quality levels d. Reduces information about new processing technologies
C. Reduces variabilities in quality levels
The following time-series approach to forecasting uses historical data to generate a forecast and works well when demand is fairly stable over time: a. Naïve Forecast b. Weighted Moving Average c. Simple Moving Average d. Exponential Smoothing
C. Simple moving agent
An internal or external event that causes a disruption or failure of supply chain operations is an example of a. Bull-whip effect b. Back-shoring c. Supply chain risk d. Six Sigma quality management
C. Supply chain risk management
While ERP is a relatively new technology, it has grown rapidly since the early 1990s. Which of the following is the reason that has contributed to its rapid growth? a. The increased use of email during the 1990's b. The trend for companies to eliminate their supply chain partners c. The year 2000 millennium bug d. All of the above
C. The year 2000 Millennium bug
Which of the following international intermediaries helps foreign buyers and sellers find each other and then handles all the shipping arrangements and documentation preparation? a. Customs broker b. Foreign freight forwarder c. Trading company d. NVOCC
C. Trading company
What type of major cost category is considered in the cost associated with placing and receiving the order? a. Turnover Cost b. Supplier-Development Cost c. Transaction Cost d. Pre-transaction Cost
C. Transaction Cost
possibility of events
FALSE
third-party logistics
FALSE
Which of the following modes of cargo transport can be characterized as being the most inexpensive and very slow, yet good for transporting very heavy goods a long-distance? a. Air Carriers b. Rail Carriers c. Water Carriers d. Motor Carriers
C. Water Carriers
Capacity utilization = a. Capacity x Actual customers served per period b. Capacity / Actual customers served per period c. Actual customers served per period x Capacity d. Actual customers served per period / Capacity
D.
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: a. Customer relationship management and Human resource management b. Computer assisted drawing and Photo enhancing c. Operating systems and Internet browsing d. All of the above
D. All of the above
Supply relationship management personnel routinely communicate with: a. Production personnel to obtain feedback on supplier and purchased item performance b. Marketing personnel for customer feedback c. Suppliers for new product development and performance feedback d. All of the above
D. All of the above
Which of the following are intermodal transportation alternatives? a. Truck trailer-on-flatcar b. Roll-on-roll-off c. Piggyback service d. All of the above
D. All of the above
Which of the following is a vital element in developing a strong supply chain through the practice of process integration? a. Developing and implementing a strong information technology system that allows for fast and easy information exchanges between supply chain partners b. Partner collaborations on methods to improve processes within the supply chain c. Partnerships, which value information sharing and partner collaborations d. All of the above
D. All of the above
Which of the following is an example of how lean programs can help to protect the environment? a. Parts made from recycled materials b. Using rubber from used tires in auto parts c. Batch size reduction to reduce plastics d. All of the above
D. All of the above
Which of the following would be considered a quality of life factor? a. Wage rates b. Foreign exchange rates c. Community safety d. All of the above
D. All of the above
An important outcome of statistical process control is: a. Firms can take corrective actions before process variabilities get out of control b. Firms can visually monitor process performance c. Firms can minimize total inventory cost d. Both A & B e. None of these
D. Both A & B
___________________ are for-profit organizations that contract out or lease a wide range of light manufacturing, warehousing, and distribution services to other companies. a. Public warehouses b. Private warehouses c. Breakbulk warehouses d. Consolidation warehouses
D. Consolidation warehouses
For integrated supply chains, logistics is considered: a. Not at all important b. Somewhat important c. Important d. Critically important
D. Critically important
The online retailer Ecatalog.com has decided to send consumers of the new John Grisham book an e-mail with suggestions for books with similar themes and has also offered them a 20% discount if those suggested books were purchased. This type of marketing/promotion is an example of: a. Target marketing b. Segmented selling c. Clickstream selling d. Cross-selling
D. Cross-selling
Which of the following is a reason that single sourcing is considered risky/bad? a. There could be supplier interruptions due to political instability b. It could establish close relationships with the supplier c. Larger orders make quantity discounts more likely d. Decreases the item to item quality variability of items purchased
D. Decreases the item to item quality variability of item purchased????
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: a. Work centers b. Production kanbans c. Work-in-process d. Manufacturing Cells
D. Manufacturing cells
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. a. Stockpiling b. Bullwhip ordering c. Order fulfillment d. Order batching
D. Order batching
The following is a term that refers to error or mistake proofing: a. Kaizen b. Muda c. Kanban d. Poka-yoke
D. Poka-yoke
Which of the following secures the right of employees to decide whether to join or financially support a union? a. Union shop laws b. Union planning forums c. Ethical union initiatives d. Right-to-work laws
D. Right-to-work
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? a. Trend Variations b. Cyclical Variations c. Random Variations d. Seasonal Variations
D. Seasonal Variations
Which person was a key figure in developing the Toyota Production System and also developed the concept of poka-yoke? a. Deming b. Ohno c. Toyoda d. Shingo
D. Shingo
An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as: a. Quality Systems Certification b. Supply Management c. Supplier Inspection d. Supplier Certification
D. Supplier Certification
According to the textbook, the top three challenges for CPFR implementation include all of the following EXCEPT: a. Making organizational and procedural changes b. Trust between supply chain partners c. Cost d. Supplier lead times
D. Supplier lead times
Which of the following are among the MOST important elements of the lean production philosophy? a. Quality inspections and a standardized product line b. Fully automated assembly lines and a large supplier base c. Large inventories and quality inspections d. Waste reduction and continuous improvement
D. Waste reduction and continuous improvement
EOQ equation
FALSE
Organizations
FALSE
Pareto Analysis
FALSE
Reverse logistics has become an important trend in ethical and sustainable sourcing.
FALSE
SRM strategy
FALSE
Themed restaurants
FALSE
Trends in supply chain
FALSE
Volatile currency
FALSE
four key supply chain
FALSE
good queue management
FALSE
high tariffs
FALSE
lean system
FALSE
legacy MRP
FALSE
motor carriers
FALSE
objectives of any CRM
FALSE
optimal capacity
FALSE
performance measurement
FALSE
The following is an example of the bullwhip effect: a. Barkley's produces a defective product and thus realizes an excessive increase in consumer returns b. Barkley's products are so successful that it adds a new retailer for distribution c. Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers d. Barkley's is unhappy with the performance of a distributor which causes a chain-reaction of replacements to companies involved in its supply chain
c. Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers
