OPER 1503 Last test
Training of supply chain partner employees is also known as collaborative education, and can result in more successful supply chains and higher partner returns. T or F
True
Using cost as a departmental or business unit performance measure can actually result in actions that raise costs for the organization. T or F
True
When a chase demand strategy is used for managing capacity, effective plans must be in place to utilize, transfer or reduce service capacity when there is excess available and to develop or borrow capacity quickly when demand exceeds capacity. T or F
True
When a level demand strategy is used for managing capacity, the firm is required to use a demand management or queue management tactic to deal with excess customers. T or F
True
The Balanced Scorecard framework consists of four perspectives
financial perspective, human resources perspective, inventory perspective, and the logistics perspective.
A company has 5 employees that work an 8 hour shift. During those eight hours they make 80 units. The labor productivity would be 10.0. T or F
False
According to the textbook, the five basic modes of transportation are motor, rail, air, water, and cyberspace. T or F
False
One of the primary steps in developing world-class performance measures is to define a product's functions and attributes. T or F
False
The phrases "customer relationship management" and "customer service management" are interchangeable supply chain terms. T or F
False
According to the text, customer relationship management refers to building and maintaining profitable long-term customer relationships. T or F
True
Lack of knowledge, uncertainty, and lack of trust between people and organizations are some primary obstacles preventing organizations from sharing information with supply-chain partners, as well as among coworkers. T or F
True
Manufacturing cells are often U-shaped to make operator and material movements easier within the cell. T or F
True
Private warehouses refer to warehouses that are owned by the firm storing the goods. T or F
True
Statistical process control (SPC) allows firms to compare process performance to desired levels or standards. T or F
True
Lean production is an operating philosophy or mindset that essentially attempts to minimize the impact of system variability and flaws in forecasting through the use of high safety stock inventories. T or F
False
Organizations practicing lean production often increase their inventory levels in the long-run in order to create a cushion against variability so that they can investigate and eliminate the weaknesses of their system T or F
False
Six Sigma is a quality improvement concept developed by IBM. T or F
False
The Balanced Scorecard framework consists of four perspectives: financial perspective, human resources perspective, inventory perspective, and the logistics perspective. T or F
False
An important outcome of statistical process control is: A. Firms can visually monitor process performance B. None of these C. Firms can minimize total inventory cost D. Both A & B E. Firms can take corrective actions before process variabilities get out of control
Both A&B
While a well-planned and organized CRM plan can be extremely useful in developing effective and efficient marketing programs for retailers, they are not particularly helpful for manufacturing companies like GM since their touches with the customer are few. T or F
False
With supply chains, performance measurement systems become smaller and less complicated due to varied relationships, trust and interactions T or F
False
Traditional performance measures tend to link current operating characteristics to long-term strategies and objectives. T or F
False
Using the weighted-factor rating model, the location with the lowest total weighted score is the recommended location. T or F
False
An integral part of Six Sigma is: A. Firms committing to a program of continual reassessment and improvement B. Using ABC analysis to divide on-hand inventory into three classes C. Moving new products to market more quickly D. Enterprise resource planning
Firms committing to a program of continual reassessment and improvement
Why do so many CRM programs fail?
Firms concentrate more on the CRM software instead of taking care of customers
Supply chain strategies must consider the trade-offs between the cost, quality, sustainability, and service requirements. T or F
True
What does LTL stand for in the transportation industry?
Less than truck load
Limitations of air carrier transport include cost and airport accessibility. T or F
True
A lean system is also known as a push system
False
A cause-and-effect diagram is a useful tool for presenting data in an organized fashion, indicating process problems from most to least severe. T or F
False
A small LTL shipment that originates on a truck in Los Angeles and is moved from Los Angeles to Phoenix where it is unloaded and put onto another truck for final shipment to Denver would be considered an intermodal shipment since it utilizes more than one vehicle during shipment T or F
False
Deming's 14 points actually conflict with many Six Sigma concepts. T or F
False
Japanese manufacturing firms sometimes create cooperative coalitions with their suppliers in order to provide the suppliers with a certain degree of financial support. What are these cooperative coalitions called? A. Kanban Networks B. Kaizen Networks C. Jidoka Networks D. Keiretsu Networks
Keiretsu Networks
Which tool is useful for presenting data in an organized fashion, indicating process problems from most to least severe : A. Cause-and-Effect Diagrams B. Fishbone Diagrams C. Check Sheets D. Pareto Charts
Pareto Charts
A company produces 750 bicycles every day. Each bicycle is worth $250. The inputs used to make those bicycles are labor, materials, and machine costs. The company pays their employees a total of $7500 per day, the materials to make those bicycles cost $75 per bike, and the cost to operate the machines is $2500 per day. Based only on the data provided, what is this company's total productivity for one day?
2.830
A company produces 400 bicycles every day. Each bicycle is worth $250. The inputs used to make those bicycles are labor, materials, and machine costs. The company pays their employees a total of $10,000 per day, the materials to make those bicycles cost $50 per bike, and the cost to operate the machines is $3000 per day. Based only on the data provided, what is this company's total productivity for one day?
3.03
Supply relationship management personnel routinely communicate with: A. Marketing personnel for customer feedback B. Production personnel to obtain feedback on supplier and purchased item performance C. Suppliers for new product development and performance feedback D. All of these
All of these
Which of the following is a factor in choosing a location? A. Currency Stability B. Proximity to Markets C. Access to Suppliers D. All of these
All of these
Traditional performance measures include: A. Profit and Perfect Order Fulfillment B. Revenue and SCOR C. Cost and Revenue D. SCOR and DCO
Cost and Revenue
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:
Crossdocking
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. Crossdocking C. Transshipping D. Customs Brokering
Crossdocking
The element of a CRM program in which a customer's lifetime value is calculated is referred to as:
Customer Value Determination
Which of the following is NOT one of the Seven Wastes? A. Environmental waste B. Excess inventories C. Scrap and rework D.Waiting time
Environmental Waste
The common term across the seven wastes is:
Excess
Building, maintaining and strengthening beneficial relationships with suppliers and customers is accomplished through the use of: A. Data warehouses B. Legacy systems C. Order batching D. External process integration
External process integration
According to the text, customer relationship management refers to building and maintaining profitable long-term customer relationships. A. Review and establish supply chain strategies B. Assess and improve internal integration of key supply chain processes C. Identify critical supply chain trading partners D. Align supply chain strategies with key supply chain process objectives
Identify critical supply chain trading partners
Which of the following is NOT consistent with the lean philosophy? A. Developing a culture of continuous improvement within the organization B. Cross-training employees to increase processing flexibility C. Increasing batch size to take advantage of economies of scale D. Positioning WIP inventories near each processing center
Increasing batch size to take advantage of economies of scale
Which of the following tends to reduce safety stocks among supply chain members, generating even less variability in supply chain orders?
Information visibility
Which of the key supply chain business processes refers to meeting customer requirements by synchronizing the firm's marketing, production and distribution plans:
Order fulfillment process
The coordination and sharing of information and resources to jointly manage a process is referred to as:
Process Integration
According to the text, a warehouse location strategy that proposes locating a warehouse closest to the sources of supply is referred to as: A. Supply positioned strategy B. Market positioned strategy C. Intermediately positioned strategy D. Product positioned strategy
Product Positioned Strategy
Customer feedback mechanisms are developed as part of which supply chain business process: A. Knowledge management process B. Customer relationship management process C. Customer service management process D. Product development and commercialization process
Product development and commercialization process
According to the SCOR model, which of the following is NOT one of the five supply chain operation process categories? A. Sell B. Plan C. Source D. Return
Sell
Which of the following strategic foreign facilities is set-up primarily to avoid tariff barriers, minimize exchange risk, and/or take advantage of government incentives? Ultimately the factory operates as most normal factories making only minor improvements in either the products or processes.
Server Factory
Your company needs to determine the appropriate location of a factory in order to take advantage of government incentives and avoid tariff barriers, the type of factory needed can be referred to as a(n):
Server Factory
The four primary activities of concern in service response logistics are the management of:
Service capacity, waiting times, distribution channels and service quality
Failing to see the big picture and acting only in regard to single firm in the supply chain can be referred to as:
Silo Mentality
An important initial step in the supply chain integration model is for a firm to identify the primary trading partners so the firm can concentrate its time and resources on managing the important process links with these companies. T or F
True
Lean thinking and Six Sigma quality are concerned with achieving low cost along with high levels of quality and responsiveness throughout the supply chain. T or F
True
Long-term customer satisfaction, especially in the face of service failures, requires organizations to empower front-line service personnel to identify problems and then provide solutions quickly and an empathetic way. T or F
True
Poor logistics management can bring a supply chain to its knees, regardless of the quality of the products. T or F
True
Some researchers have indicated that the Balanced Scorecard approach can problematic and costly to implement, and even after implementation may be unsuccessful in achieving the overall objectives. T or F
True
Statistical process control uses control charts to monitor the outputs of a process to identify variations due to assignable causes from variations due to common causes. T or F
True
The Balanced Scorecard approach to performance measurement seeks in to improve managerial decision-making by aligning an organization's performance measures with its strategic plan and goals. T or F
True
The term "lean production" essentially refers to the Toyota Production System in its entirety. T or F
True
The ultimate goal in supply chain management is to create value for the services and products provided to end customers, which, in turn, will benefit the firms in the supply chain network. T or F
True
While many developing countries are attractive to companies seeking out low labor costs, there are other important factors such as productivity levels, employee skill and education levels, turnover rates, and employment trends that certain industries find just as important, if not more important, in determining facilities' location. T or F
True
It is important for all supply chain members to first understand the important characteristics upon which the supply chain end product is competing. Once this is understood, the supply chain members should all be using strategies consistent with those competitive characteristics when delivering their product and/or service. T or F
True
With supply chains, performance measurement systems become much larger and are complicated by: A. Varied relationships, trust and interactions B. Demand-driven supply networks C. SCOR supply chains D. Push supply chains
Varied relationships, trust and interactions
Which of the following are among the MOST important elements of the lean production philosophy? A. Quality inspections and a standardized product line B. Large inventories and quality inspections C. Fully automated assembly lines and a large supplier base D. Waste reduction and continuous improvement
Waste reduction and continuous improvement
The following facility location technique uses quantitative and qualitative dimensions and is subject to interpretation and bias by the analyst: A. Business cluster analysis model B. Weighted-factor rating model C. Mean absolute deviation model D. Break-even model
Weighted factor rating model
Generally speaking, rail carriers are less expensive than motor carriers. T or F
True
Which of the following is an example of how lean programs can help to protect the environment?: A. Parts made from recycled material B. Using rubber from used tires in auto parts C. Batch size reduction to reduce plastics D. All of these
All of these
Which of the following would be considered a Supply Chain Risk Management activity? A. Diversify the supply base B. Utilize a supply chain IT system C. Increasing safety stock D. All of these
All of these
Which of the following would be considered a quality of life factor? A. Education B. Arts, culture, and recreation C. Community safety D. All of these
All of these
World-class performance measures can be used in different functional areas of a firm to satisfy objectives, enhance the value of the firm's products and services, and increase customer satisfaction by providing measures in which of the following capability area(s)? A. CostB. Customer Service C. All of these D. Quality
All of these
The dimension of service quality concerned with using knowledgeable, competent, courteous employees who convey trust and confidence to customers is referred to as: A. Reasonability B. Reliability C. Assurance D. Responsiveness
Assurance
Performance measurements: A. Help to eliminate non-value-creating activities B. Help identify new customer requirements C. Assist in the pricing of products D. Both B & C
Both B&C
The following facility location technique uses fixed and variable costs to analyze potential locations: A. Break-even model B. Business cluster analysis model C. Weighted-factor rating model D. Mean absolute deviation mode
Break even model
A customer approaches you with a question regarding her order status and shipping date; the information you provide is an example of which of the eight key supply chain business processes: A. Supply management process B. Customer service management process C. Demand management process D. Order management process
Customer service management process
All of the following are recommended for designing and implementing a successful CRM program EXCEPT: A. Expect employees to 'learn on the job' and adapt their way of working B. Continuous awareness of customers' changing requirements C. Support from the firm's top executive D. Knowledge of the tools available to aid in CRM
Expect employees to 'learn on the job' and adapt their was of working
A "lead factory" is set up in a location with an abundance of advanced suppliers, competitors, research facilities and knowledge centers in order to have access to the most current information on materials, components, technologies and products. T or F
False
A model used for integrating supply chains and measuring partner performance is the SCOR model which separates supply chain operations into four categories: Sourcing, Costs, Operations, and Returns. T or F
False
A type of card called a kanban is used to signal when a process is out of control in the production process. T or F
False
Because of strict regulations, third-party logistics (3PL) services cannot assist with customs clearance. T or F
False
Control charts makes it very difficult for operators or other workers to plot data and compare performance over time. T or F
False
Lean production and Six Sigma quality are essentially two terms that mean the same thing. T or F
False
The development of functional silos within an organization is considered a key component to achieving successful supply chain process integration. T or F
False
The five S's refer to various safety activities practiced by Toyota. T or F
False
The five dimensions of service quality include: Reliability, durability, performance, aesthetics, and availability. T or F
False
A transportation intermediary used to consolidate large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates is referred to as:
Freight forwarder
The difference between customer expectations and customer perceptions of what was actually received during the service encounter is referred to as service quality ________.
Gaps
Lean production systems are sometimes referred to as pull systems because demand from customers activates the production actions of the manufacturing facilities. In order for this demand to be communicated to everyone in the supply chain/manufacturing facility a signal must be passed from downstream processing centers to the upstream processing centers. This system of relaying signals is referred to as a:
Kanban
According to the text, all of the following are considered key supply chain business processes EXCEPT: A. Manufacturing flow management process B. Supplier relationship management process C. Returns management process D. Knowledge management process
Knowledge management process
Your top sales executive leaves your company to work for a competitor. Fortunately, all of her notes regarding prior dealings with customers have been captured in a: A. Sales activity management system B. Lead management system C. Knowledge management system D. Sales territory management system
Knowledge management system
Which of the following is NOT one of the eight key supply chain business processes? A. Order Fulfillment B. Strategic Management C. Customer Relationship Management D. Product Development and Commercialization
Strategic Management
Which of the following is NOT a problem with using cost, revenues or profits as performance measures? A. It is difficult to attribute costs to various functional units B. They are difficult to compare with other firms C. Weaknesses in functional areas are not identified D. Cost and profit information could be hidden or manipulated
The are difficult to compare with other firms
Which of the following best describes the five S's? A. These are five different kinds of manufacturing layouts B. Five ways to reduce inventories on the shop floor C. Refer to methods for reducing setup times D. These were originally Japanese words relating to industrial housekeeping
These new originally Japanese words relating to industrial housekeeping
According to the text, poor planning is typically the cause for most unsuccessful CRM initiatives. T or F
True
While profit, revenue, and cost related metrics would seem to be useful in moving a company in the right direction, they often give no indication of the underlying causes of financial performance. T or F
True
SCORmark allows Supply Chain Council (SCC) members to benchmark performance against selected peer companies using a benchmarking portal at SCC's website. T or F
True
Two methods for managing supply chain risk include utilizing a supply chain IT system and identifying backup suppliers. T or F
True
With FOB pricing, a supplier is the legal owner of a product until the product reaches its destination. T or F
True
The primary design objective with lean layouts is to reduce wasted movements of workers, customers, and/or work-in-process. T or F
True.