SCM 301 EXAM 2

Legacy MRP systems typically utilized multiple software packages and databases which caused:

Duplicate and inconsistent information across different branches or even departments within an organization

Independent Demand

Has a demand pattern affected by trends, seasonal patterns, and general market conditions.

In the video "Walmart's Supply Chain Case Study"

Walmart simultaneously opens a new DC and nearby store

A Master Production Schedule is an engineering document that shows an inclusive listing of all component parts and subassemblies making up the end item.

False

If you felt that recent demand trends were more significant, and thus should be emphasized more in formulating a forecast, then in forecasting demand for the upcoming demand period, you would probably favor using a simple moving average over the conventional weighted moving average

False

The Naïve forecast, Mean Profit Leverage, and Mean Square Error are examples of forecasting accuracy measures.

False

The true value of Collaborative planning, forecasting, and replenishment (CPFR) comes from the sophisticated forecasting algorithms that provide companies with highly accurate forecasts, not from the exchange of forecasting information.

False

Inaccurate forecasts can result in negative outcomes like:

Imbalances in supply and demand

Which of the following transportation modes were not affected by Hurricane Ian?

Rail Truck Air Ocean

Forecast error is the actual quantity minus the forecast.

True

Lack of communication between the implementing firm and its ERP software provider can become a major hindrance for a successful implementation.

True

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

false

The four categories of inventory are raw materials, intermediate assemblies, work-in-progress and finished goods.

false

Raw materials become part of finished goods after the manufacturing process is completed.

true

Which of the following MRP terms represents the parts demanded by a parent?

Component

It ties up a firm's working capital

Maintenance, repair and operating supplies

Which of the following basic production strategies works best with make-to-order manufacturing firms?

Chase production strategy

Which of the following keeps the production plan's capacity fixed during the planning horizon?

Aggregate Production Plan

Which of the following is a disadvantage of carrying too much inventory?

It ties up a firm's working capital

The primary purpose of the basic economic order quantity (EOQ) model is to:

Derive the optimum order quantity to minimize total inventory costs

In a bill of materials, items at which level are independent demand items?

Level 0

Which of the following is NOT a common module of ERP systems?

Marketing Resources Management

In the video "Hurricane Ian could have impact on Supply Chain issues," which of the following industries were impacted (Choose 2)?

Med Devices, Citrus

Which of the following would be considered a dependent demand item?

Microchips used in automobiles

In the Logistics Management article "Meeting the Need for Talent," what is the single most critical threat for Logistics and Supply Chain Leaders?

People

What is the most important output of the MRP?

Planned order releases

The goal of a good forecasting technique is to minimize the deviation between actual demand and the forecast.

True

Two reasons ERP implementations have been known to fail include: lack of top management commitment and lack of proper training.

True

Which of the following would refer to the 80/20 rule when applied to the ABC inventory control system?

80 percent of the total annual $ usage is accounted for, by 20 percent of the items.

Which of the following is NOT a recommended plan of action, according to supply chain management experts, for the pandemic and beyond?

Decrease communication with customers

In the article "New Inventory Problems Expose Old Supply Chain Weaknesses," which of the following was not a causal factor

Delays in fulfillment from Asian factories,Consumers changed their preferences. Companies ordered more of everything "just to be sure."

To avoid confusion, which of the following units of measure should be avoided in Manufacturing?

Each

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

Ergonomic conditions

Which one of the following is a reason for firms to NOT carry inventory?

Inventory can deteriorate quickly while it is in storage, It is expensive and requires storage space, AND Inventory can become obsolete very quickly

A good demand sensing solution would include an automated model with self-adjusting algorithms that can learn from data without human intervention and generates forecasts for execution daily.

True

ERP provides the mechanism for supply chain members to share information so that scarce resources can be fully utilized to meet demand, while minimizing the bullwhip effect and supply chain inventories.

True

What is one of the challenges of widespread application of AI in demand forecasting?

Trust in AI systems Talent scarcity Access to "right" data **all are correct**

Random variations in a Time Series component are due to:

Unpredictable events

If an item is ordered using its economic order quantity, the annual carrying cost should be:

equal to the annual ordering cost.

MRO supplies are a type of work-in-progress.

false

A positive error implies that a forecast was:

too low

Dependent demand may have a pattern of abrupt and dramatic change because of its dependency on the demand of the final product.

true

Excessive inventory is a sign of poor inventory management.

true

LCD screens purchased by Apple are an example of dependent demand.

true

Retail stores could benefit from item-level RFID tagging by recommending products to consumers to complement products in their shopping cart.

true