Operations Management Final

Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework?

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A SRM strategy refers to a situation wherein a supplier's employee is permanently housed in the purchasing department of the buyer's organization.

False

A country that imposes high tariffs encourages foreign-based companies to import goods.

False

A lean system is also known as a push system.

False

According to the text, good queue management consists of managing only what the customer perceives to be as the waiting time.

False

According to the textbook, there are four key supply chain business processes: Purchasing, Manufacturing, Distribution, and Returns.

False

According to the textbook, third-party logistics providers do not offer assistance with helping products clear customers.

False

ERP Implosion is the process of converting a parent item's planned order releases into component gross requirements.

False

Generally speaking, motor carriers are less expensive than rail carriers to haul goods.

False

If a company is effectively focusing on its core competencies, its level of outsourcing is likely to decrease.

False

In a weighted-criteria evaluation system the weights of all the performance dimensions must add up to more than 1.00 and less than 100.

False

In general, performance measurement systems are mostly identical from company to company.

False

It is considered unethical for a firm to intentionally buy from women-owned businesses.

False

Organizations practicing lean production often increase their inventory levels in order to create a cushion against variability so that they can investigate and eliminate the weaknesses in their systems.

False

Pareto Analysis means that 20 percent of the items get about 80 percent of the safety stock.

False

The EOQ equation is derived by setting the annual purchase cost equal to the annual holding cost.

False

The batching of orders is unlikely to increase the likelihood of the bullwhip effect occurring.

False

The legacy MRP system was programmed to coordinate with other functional areas in the firm.

False

The objectives of any CRM initiative should be focused on what the company can reasonably achieve.

False

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?

Trend Variations

Statistical process control uses control charts to monitor the outputs of a process to identify variations due to assignable causes and variations due to common causes.

True

Supply chain analytics can be used along the supply chain to schedule production according to expected supplier deliveries

True

Supply chain management is concerned about how suppliers' products are designed, produced, and transported.

True

The Malcolm Baldrige National Quality Award recognizes firms for their quality achievements but is only given to U.S. firms.

True

Toyota initially designed their JIT program on Ford's manufacturing system.

True

The economic order quantity model (EOQ) is the optimal independent demand order quantity that minimizes total annual inventory costs.

True

Themed restaurants such as ESPN zone, Rainforest Cafe, and Chuck E. Cheese are all examples of Entertainment facilities.

True

To control and enhance the capabilities of companies within a supply chain, well-designed performance measurement systems must be implemented.

True

Two methods for managing supply chain risk include utilizing a supply chain IT system and identifying backup suppliers.

True

When both the demand and lead time of a product are variable, firms must keep a higher safety stock level compared to variations in just demand, to offer the same service level.

True

The optimal capacity utilization for an organization would be 100%.

False

The possibility of events like strikes, assembly line breakdowns, and natural disasters are all reasons a company should favor using a single supplier.

False

Which of the following would be considered a quality of life factor?

All of the above

Regional trade agreements assist with which of the following?

All of the above

Supply relationship management personnel routinely communicate with:

All of the above

Which of the following are intermodal transportation alternatives?

All of the above

Which of the following is a vital element in developing a strong supply chain through the practice of process integration?

All of the above

Which of the following is an example of how lean programs can help to protect the environment?

All of the above

Which of the following is a direct benefit from the adoption of NAFTA?

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?

Both A and B

An important outcome of statistical process control is:

Both A and B

Due to the success of NAFTA, the U.S________________.

Both A and B

Firms can safeguard customer information by doing which of the following?

Both A and B

The impact of poor communication and inaccurate forecasts resonates along the supply chain and results in the:

Bullwhip effect

When CRM applications are available 24/7 on smartphones, tablets, and desktops, this is referred to as:

Continuous connectivity

Which of the following are required elements of an effective CRM initiative?

Cross-selling customers after an initial purchase

Which of the following customer service elements can be classified as an example of posttransaction elements?

Customer complaint resolution

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:

Customer service management process

As firms seek to improve the products they offer to the market, companies are seeking help from their suppliers in new product design and development through:

Early supplier involvement

All of the following may influence demand and should be considered when developing a forecast EXCEPT

Ergonomic conditions

Promoting diversity by intentionally buying from small firms or ethnic minority businesses is an example of:

Ethical Sourcing

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:

Event based marketing

The Hormel company awards their Hormel Food Corporation's No. 1 Award to their top supplier. How often do they give this award?

Every 5 years

When a single company that is implementing an ERP system chooses to use one company to provide an operations module, another to provide the sales and marketing application, and yet another company to provide the finance and accounting module, that single company has chosen to utilize the single integrator approach.

False

When customer expectations are met or exceeded, the service is deemed to possess low quality.

False

A customer's lifetime value is calculated by:

Finding the NPV of a customer's projected lifetime profits for the firm

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?

Focus Strategy

Organizations that primarily compete on speed of delivery, such as FedEx and UPS, utilize which of the following approaches for location determination?

Hub and Spoke

Which of the following has made external integration more difficult to achieve?

Increase number of franchise operators

The Quick Response program, developed in the 1980's, was an offshoot of the following supply chain concept:

Just-in-Time

______________ creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized.

Logisitcs

Customer relationship management, distribution network, transportation management, and service response logistics are all important issues that are most closely related to:

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?

Master production schedule

Information technology advances, for example, have made cyber-attacks:

More common

In the text, Table 9.1 shows that for-hire logistics expenditures in the U.S., have _____________ in the past thirty-one years.

More than quadrupled

Waste in Japan is also referred to as:

Muda

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.

Order batching

Which of the following is true?

Performance metrics and personal business relationships are both keys to building successful partnerships.

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:

Planned order release

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:

Posttransaction customer service

___________________ are for-profit organizations that contract out or lease a wide range of light manufacturing, warehousing, and distribution services to other companies.

Public Warehouses

Intermodal marketing companies (IMCs) are companies that act as intermediaries between intermodal

Railroad companies

According to the SCM profile Honda ___________ based on a supplier relations index developed by Planning Perspectives.

Ranked near the top in 2015

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:

SRM

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?

Seasonal Variations

When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT:

Select the key dimensions of performance based on what is important to the end consumer

The following time-series approach to forecasting uses historical data to generate a forecast and works well when demand is fairly stable over time:

Simple moving average

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as:

Supplier certifications

Encouraging or helping a firm's suppliers to perform in a desired fashion can be referred to as:

Supplier management

An internal or external event that causes a disruption or failure of supply chain operations is an example of

Supply chain risk

According to the textbook, the five basic modes of transportation are motor, rail, air, water, and pipeline.

True

As tighter control limits are instituted for the tracking signal, there is a greater probability of finding exceptions that require no action, but it also means catching changes in demand earlier.

True

At a service facility it has been calculated that they can handle the demand per hour approximately 76 percent of the time at a rate of 4 per hour. This means that approximately 24 percent of the time, demand per hour will be greater than four customers, causing queues to develop.

True

Automating procurement activities can lead to significant cost savings as buyers move toward managing processes by exception.

True

Criteria to evaluate a purchasing department's performance should include both quantitative and qualitative assessments.

True

Foreign suppliers located farther away may be able to deliver goods faster than domestic suppliers due to more efficient transportation and logistical systems.

True

In Europe, rail transportation tends to be much more prevalent and reliable than rail transportation in the U.S. because European track, facilities and equipment are newer and better maintained.

True

Lack of internal or external collaboration will create quality, cost, delivery timing, and other customer service problems that are detrimental to supply chains.

True

One of the assumptions of the economic order quantity model (EOQ) is that purchase price must remain constant.

True

Poor logistics management can bring a supply chain to its knees, regardless of the quality of the products

True

Procurement credit cards can be used for small purchases including meals, lodging, and travel expenses.

True

Reverse logistics has become an important trend in ethical and sustainable sourcing.

True

Reverse logistics refers to the movement and storage of returned goods.

True

Rewarding suppliers for maintaining high levels of performance is an important step used in maintaining a successful strategic alliance program.

True

Before supplier relationship management (SRM), buyers typically spent 40% of their time on expediting orders. After SRM implementation buyers spent about:

10% of their time on expediting orders

Which of the following would be a good reason to outsource (buy) versus making?

A firm lacks the technology or expertise to produce an item

Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility.

False

Volatile currency exchange rates do not have an impact on location decisions.

False

While a company's Internet presence may be desirable for finding information or conducting product transfers, touching products and talking face-to-face with company representatives remains an integral part of the supplier-customer interface.

True

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?

Water Carriers