SCM 303 Final Exam SG
A zero defects quality strategy emphasizes: -"it is the process, not the people." -"quality is free." -"conformance to specification." -"do it right the first time." -"six sigma."
"do it right the first time."
Three major challenges facing supply executives when setting supply strategies and objectives are: -(1) How can we simultaneously provide uninterrupted supply and minimize inventory? (2) How can we improve quality while reducing our supply base? and, (3) How can we increase our involvement in outsourcing decisions? -(1) What is the effective interpretation of corporate objectives and supply objectives? (2) What is the appropriate action plan or strategy to achieve the desired objectives? and, (3) How can supply issues be identified and integrated into organizational objectives and strategies? -(1) Should we have a centralized or decentralized purchasing structure? (2) Should we hire managers trained in supply management or in technical fields? and, (3) Should we outsource any or all of the purchasing function? -(1) Should we pre-certify suppliers? (2) Should we allow internal users to purchase certain categories of purchases? and, (3) Should we increase or decrease the number of suppliers in our supply base? -(1) How many suppliers should we do business with? (2) Which suppliers should we select? and, (3) What type of relationship should we have with these suppliers?
(1) What is the effective interpretation of corporate objectives and supply objectives? (2) What is the appropriate action plan or strategy to achieve the desired objectives? and, (3) How can supply issues be identified and integrated into organizational objectives and strategies?
Which phrase/word best captures what lean is? -A set of effective, well defined tools designed to reduce waste -A quantitative methodology for attacking variance -A procedure to be used within operation management and supply chain systems -A corporate philosophy
-A corporate philosophy
Good reasons to reduce your setup times in a factory are: (Choose all that apply) -A down machine has no output. -Throughput increases after a machine change-over. -Setup times are constant and cannot be controlled. -Long setup times create additional inventory.
-A down machine has no output. -Long setup times create additional inventory.
Which of these is a true statement? (Choose all that apply) -A system can have more than one bottleneck. -Constraints can be eliminated by applying proper scheduling techniques. -A factory's bottleneck can change depending on what products are being made. -According to the Theory of Constraints, each machine should operate at its maximum throughput.
-A system can have more than one bottleneck. -A factory's bottleneck can change depending on what products are being made.
The purpose of the kanban card is to: -Be a signal from the user authorizing the maker to start producing the required parts. -Keep track of defective products. -Inform the maker of the exact specification of the required parts. -Keep track of the total labor hours spent on a finished product.
-Be a signal from the user authorizing the maker to start producing the required parts.
Which of the following lean principles best communicates the notion of demand synchronization? -Produce only the products that the customer wants. -Build with perfect quality. -Build only as quickly as customers want them. -Build only with features that the customers want and no others.
-Build only as quickly as customers want them.
The newsvendor model balances which two costs (choose all that apply)?
-Cost of ordering too many -Running out and losing profits
The newsvendor model balances which two costs (choose all that apply)? -Fixed cost of ordering -Cost of ordering too many -Variable cost of shelving items -Overhead of facility operations -Running out and losing profits
-Cost of ordering too many -Running out and losing profits
The Critical Fraction formula balances which two costs (choose all that apply)?
-Cost of over stock (ordering too many) -Cost of ordering too few (under stock)
The Critical Fraction formula balances which two costs (choose all that apply)? -Fixed cost of ordering (submitting an order) -Cost of over stock (ordering too many) -Variable cost of shelving items (stocking items) -Overhead of facility operations -Cost of ordering too few (under stock)
-Cost of over stock (ordering too many) -Cost of ordering too few (under stock)
When lead time and demand are both variable, the formula we use consists of which two parts? (select two) -Demand variability -Lead time variability -Order period variability -Accounting irregularities
-Demand variability -Lead time variability
Which two things drive the need for safety stock? (choose two)? -Demand variability -Warehouse space -Delays -Manufacturing speed -Customer choice
-Demand variability -Delays
Lean design strives to achieve which of the following objectives? -Design products at the lowest cost -Design products that can be built with existing equipment -Design products that exactly meet customers' needs -Design products with the fewest number of options
-Design products that exactly meet customers' needs
Which of the following would you NOT expect to find in a company attempting to implement lean/just-in-time production? -Emphasis on flexible, cross-trained workers -Inspections after each piece is produced -Frequent changeovers from one product to another -Emphasis on preventive maintenance for equipment
-Inspections after each piece is produced
Little's Law states there is a relationship between: (Choose all that apply) -Inventory -Flow time -Output -Throughput
-Inventory -Flow time -Throughput
What are the three main challenges of the Q-system? (select three)
-Inventory monitoring system -Having enough when you order -Figuring out how much to order
What are the three main challenges of the Q-system? (select three) -Inventory monitoring system -Unhappy customers -Having enough when you order -Figuring out how much to order -Orders getting lost in the system
-Inventory monitoring system -Having enough when you order -Figuring out how much to order
What are the two main challenges of the P-system? (select two)
-Length of review period -Amount of inventory to have
What are the two main challenges of the P-system? (select two) -Unhappy customers -Length of review period -Figuring out when to order -Computers -Amount of inventory to have
-Length of review period -Amount of inventory to have
Benefits received from "economies of scale" include: (Choose all that apply) -Volume purchases of materials and suppliesVolume purchases of materials and supplies -Lower cost per unit producedLower cost per unit produced -A steady stream of customer ordersA steady stream of customer orders -The more you do something, the better you get at it
-Lower cost per unit produced -The more you do something, the better you get at it
Which of the following would be considered part of Ordering Cost? (choose all that apply) -Minimum shipping charge -Postage to mail the order to a supplier (who still lives in the early 20th century) -Renting a truck to haul the order (and only this order, no other business is used for this truck's one time rental) -Cost of the office building housing your employees.
-Minimum shipping charge --Renting a truck to haul the order (and only this order, no other business is used for this truck's one time rental)
Which of the following would be considered part of Ordering Cost? (choose all that apply)
-Minimum shipping charge -Renting a truck to haul the order (and only this order, no other business is used for this truck's one time rental)
Capacity is directly related to: (Choose all that apply) -Output -Machines -Time -Processes
-Output -Machines -Time -Processes
An initial step in implementing lean is: -Lower the break-even point so smaller quantities can be economically produced. -Outsource any non-core activity that can be done more efficiently by a supplier than by the firm. -Increase the contribution margin of product being sold. -Empower Kaizen teams to improve specific processes/activities.
-Outsource any non-core activity that can be done more efficiently by a supplier than by the firm.
Which of the following would be considered a direct holding cost? (choose all that apply) -Refrigeration costs -Disposal cost after the unit is removed from inventory -Purchasing cost of a new forklift for the warehouse -Weekly inventory quality checks for every unit in inventory
-Refrigeration costs -Weekly inventory quality checks for every unit in inventory
A production kanban authorizes a worker to: -Add an empty bin. -Withdraw a standard lot of a specific item. -Withdraw any item he feels is needed. -Replenish an empty bin.
-Replenish an empty bin.
Which of the following are the components of a queuing system? (select all that apply) -Servers -Waiting area -Arrivals -Computers
-Servers -Waiting area -Arrivals
Which of these is a concept for reducing setup times? -RFID tags -Single minute exchange of die -Multi-product factories -Manufacturing production processes
-Single minute exchange of die
Achieving the goal of producing at the output rate that matches the rate of customer demand is the goal of: -Jidoka. -Poka-yoke. -Total productive maintenance. -TAKT time flow balancing.
-TAKT time flow balancing.
Taichi Ohno, the founder of lean/just-in-time, when he came to America in the 1950s was most impressed with which of the following American developments? -The assembly line -Ford's River Rouge assembly plant -The productivity of American workers -The American supermarket
-The American supermarket
Which of the following is true about forecasting errors? (Select all that apply)
-The accuracy of forecasting has improved over time. -Forecasting becomes easier when the specifications are more detailed.
Which of the following is true about forecasting errors? (Select all that apply) -The accuracy of forecasting has improved over time. -Forecasting becomes easier when the specifications are more detailed. -Forecasting becomes easier when the specifications are more detailed. Correct Forecasting becomes more difficult at a reduced level of aggregation.
-The accuracy of forecasting has improved over time. -Forecasting becomes easier when the specifications are more detailed.
The "right" amount of safety stock is often a function of Service Level. Service Level is: -The probability of making the right product -The probability of delay -The probability of meeting demand during a delay -The probability of delay causing more demand
-The probability of meeting demand during a delay
In which operational setting has lean/just-in-time experienced the lowest levels of acceptance/implementation? -Manufacturing -Services -Across the supply chain -Turbulent business settings
-Turbulent business settings
Increasing which of the following causes degraded queuing performance according to the saturation effect? (choose all that apply) -Variability -Utilization -Line length -System size
-Variability -Utilization
Supply may contribute to the containment of the costs of poor quality by addressing: -appraisal costs. -internal costs. -external costs. -prevention costs. -appraisal costs, internal costs, external costs and prevention costs.
-appraisal costs, internal costs, external costs and prevention costs.
When lead time and demand are both variable, the formula we use consists of which two parts? (select two)
-demand variability -lead time variability
Which two things drive the need for safety stock? (choose two)?
-demand variability -warehouse space
The best type of inspection to use is: -dependent on the nature of the purchase. -100 percent inspection. -sequential sampling. -continuous sampling. -carried out by a commercial testing laboratory.
-dependent on the nature of the purchase.
Which of the following would be considered a direct holding cost? (choose all that apply)
-refrigeration costs -Weekly inventory quality checks for every unit in inventory
the use of concepts of purchasing, procurement, supply, and supply chain management will vary from company to company depending on: -the organization stage of development -industry in which they operate -organizations competitive position -combo of all three -company development and industry they operate in
-the organization stage of development -industry in which they operate -organizations competitive position
company image may be directly influenced by: -treating suppliers in a fair manner -complying with regulatory management -sustainability practices -top three -complying with regulatory requirements and sustainability practices
-treating suppliers in a fair manner -complying with regulatory management -sustainability practices
An example of an external failure cost is: -returns to suppliers. -warranty costs. -lost labor. -scrap and rework costs. -returns to suppliers and lost labor.
-warranty costs.
HighLife Corporation has the following information: Average demand = 30 units per day Average lead time = 40 days Item unit cost = $45 for orders of less than 400 units Item unit cost = $40 for orders of 400 units or more Ordering cost = $50 Inventory carrying cost = 15 percent The business year is 300 days. Standard deviation of demand during lead time = 90 Desired service level = 95 percent What is the safety stock that HighLife Corporation should carry for its desired service level of 95 percent? 1.28 standard deviations cover 90 percent 1.65 standard deviations cover 95 percent 1.96 standard deviations cover 97.5 percent -149 -90 -86 -112
149
HighLife Corporation has the following information: Average demand = 30 units per day Average lead time = 40 days Item unit cost = $45 for orders of less than 400 units Item unit cost = $40 for orders of 400 units or more Ordering cost = $50 Inventory carrying cost = 15 percent The business year is 300 days. Standard deviation of demand during lead time = 90 Desired service level = 95 percent What is the safety stock that HighLife Corporation should carry for its desired service level of 95 percent? 1.28 standard deviations cover 90 percent 1.65 standard deviations cover 95 percent 1.96 standard deviations cover 97.5 percent -149 -90 -86 -112
149
Currently, our system is characterized by a lack of fit between what the customer wants and what the SCM system is best able to provide. As a result, which of the following would apply? The only way to restore fit is for the firm to change the market segment it is going after. Unless something is done, our firm will not be the most effective and efficient long-term supplier. Any firm can successfully counter such inconsistencies through the use of patents and aggressive advertising -1 only. -2 only. -3 only. -1 and 2 only. -1, 2, and 3.
2 only
Some estimates place the total costs of quality to be: -insignificant to the cost of the final product. -10-20 percent of the final product cost. -20-30 percent of the final product cost. -30-40 percent of the final product cost. -40-50 percent of the final product cost.
30-40 percent of the final product cost.
An organization that provides non-asset-based global network, inbound and outbound optimization is generally characterized as ______. -carrier -freight forwarder -3PL -4PL or logistics integrator
4PL or logistics integrator
Which of the following is the most appropriate definition of an "order winner"? -A product characteristic that causes customers to choose the product over that of a competitor. -A product characteristic that permits the product to compete in a market. -A product that has the highest profit margin. -A product that generates the highest dollar sales volume.
A product characteristic that causes customers to choose the product over that of a competitor.
Which of the following is NOT true about "order qualifiers"? -These are product traits that must meet a certain level in order for the product to even be considered by customers. -The firm must perform acceptably on these traits, usually at least as well as competitors' offerings. -Order qualifier traits may include availability, price, and conformance quality. -All of the items are true.
All of the items are true
Inventory held due to bottlenecks in a process causes: -Increased storage requirements -Quality issues -Increased labor costs -All of these
All of these
Which of the following is not a theoretical factor of forecasting? -Amount. -Trend. -Cyclical. -Seasonal.
Amount
Throughput is generally equal to which thing? -Time to completion -The number of process steps -Inventory buildup -Arrival rate
Arrival rate
Utilization is equal to which of the following? -Arrival rate divided by service rate -Service rate divided by arrival rate -Arrival rate times service rate -Service rate minus arrival rate
Arrival rate divided by service rate
Which type of material handling system typically has the highest fixed cost and the lowest variable cost? -Mechanized. -Semi-automated. -Automated. -Information directed.
Automated
In process improvement projects, why should we focus our efforts on those processes that consume the most resources (e.g., labor, space, capital, etc.)? -Because those are the processes most visible to the customer -Because those are the processes that use our firm's core capabilities -Because that is where we get "the most bang for our buck." -All of these
Because that is where we get "the most bang for our buck."
When planning for an increase in production, APS helps to ______. -determine what is best for the customer -identify and calculate the cost of strategic options -determine what is best for suppliers -Both determine what is best for the customer and identify and calculate the cost of strategic options are correct
Both determine what is best for the customer and identify and calculate the cost of strategic options are correct
When small changes generated by a customer produce progressively larger changes at each stage upstream in the supply chain, this is known as: -Buffering. -Bullwhip effect. -Pareto effect. -Supplier-managed inventory.
Bullwhip effect.
When small changes generated by a customer produce progressively larger changes at each stage upstream in the supply chain, this is known as: -buffering -Bullwhip effect. -Pareto effect. -Supplier-managed inventory.
Bullwhip effect.
Taxes and insurance costs are an example of which of the following costs? -Ordering cost. -Governmental costs. -Carrying (or holding) costs. -None of these selections.
Carrying (or holding) costs.
Taxes and insurance costs are an example of which of the following costs? -Ordering cost. -Governmental costs. -Carrying (or holding) costs. -None of these selections.
Carrying (or holding) costs.
Which of the following is not a stage in the S&OP maturity model? -Reacting. -Anticipating. -Competing. -Orchestrating.
Competing
Which of the following is not a stage in the S&OP maturity model? -Reacting. -Anticipating. -Competing. -Orchestrating.
Competing.
Which of the following is not a key component of forecast accuracy? -Technique. -Support system. -Knowledge. -Competition
Competition
Which of the following is not a key component of forecast accuracy? -Technique. -Support system. -Knowledge. -Competition.
Competition.
We have a situation where we have many different processes; high quantities are required to deliver the product's value both on the factory floor and in the customer's use. Which of the following categories of waste in product design have we encountered in this situation? -Complexity -Precision -Danger -Sensitivity
Complexity
Scantron Inc. claims that its competitors have to recall 10 percent of their products to fix defects, while it only has to recall 5 percent. Scantron is emphasizing which dimension of quality? -Durability -Reliability -Performance -Conformance
Conformance
Which statement best describes the performance curve of a queuing system as system utilization approaches 100%: -It flattens out -Performance drastically improves -System performance is not impacted by utilization -Congestion and delays skyrocket
Congestion and delays skyrocket
The four economic benefits of warehousing are: -Receiving, shipping, handling, and storage -Shipping, receiving, assortment, and value added -Consolidation, sorting, seasonal storage, and reverse logistics -None of the above benefit combinations
Consolidation, sorting, seasonal storage, and reverse logistics
What is another name for the "Q-system" of inventory? -Qualified Inventory Order System -Controlled Inventory Ordering System -Continuous Review Inventory System -Quick Response Inventory System
Continuous Review Inventory System
Supply chain synchronization attempts to achieve which of the following? -Make sure all parties are operating in the same time zone. -Coordinate multiple firms activities across the supply chain. -Coordinate activities within a single firm. -Reduce total cost.
Coordinate multiple firms activities across the supply chain.
A vice president of operations wants to evaluate the impact of reducing manufacturing expenses on the firm's return on assets. Which measurement should be examined? -Cost of goods sold -Asset turnover -Net profit margin -None of these
Cost of goods sold
Promotions such as "buy one get one free" are somewhat risky in terms of forecasting. Why? -Increases likelihood of competition. -Could decrease future sales. -Decreases perceived value of regular-price items. -Gives the impression of a struggling company.
Could decrease future sales.
If you maintain inventory at a constant level and keep the throughput rate constant: -Cycle time will decrease -Customer delivery dates become more reliable -You are following a push operating system -Your processes are operating under normal conditions
Customer delivery dates become more reliable
Which of the following is NOT often associated with supplier-managed inventory (SMI) arrangements? -Long-term commitments from both parties. -Supplier representative located at the customer site. -Customers recommend to suppliers how they should schedule production. -Supplier places replenishment orders. -All of these are typically associated with SMI.
Customers recommend to suppliers how they should schedule production.
Which two of the following effects directly result from bottlenecks? -Increase in costs and increase in defects. -Increase in output and increase in lead-times. -Decrease in inspections and increase in costs. -Decrease in output and increase in lead-times.
Decrease in output and increase in lead-times.
The critical fraction gives us a probability because: -Demand is exact -Demand is unknown -Demand is only for one period -The costs could be equal
Demand is unknown
What is typically the first planning stage of the APS technology tool? -Supply planning. -Demand planning. -Financial planning. -Factory planning and demand fulfillment.
Demand planning.
What is typically the first planning stage of the APS technology tool? -Supply planning. -Demand planning. -Financial planning. -Factory planning and demand fulfillment.
Demand planning.
Which of the following is NOT a component of the business model? -Key customer -Value proposition -Desired outcome statement -System capabilities
Desired outcome statement
You are an upper-level manager in a firm. You believe that corporate objectives are not effectively disseminated throughout the organization and that line-level managers do not take them into account in their decision making. Which of the following would best help you to try to correct this problem? -Hold a series of supervisory manager meetings. -Establish metric-based performance measures. -Evaluate personality indicators to ensure inter-departmental worker compatibility. -Evaluate and increase manager salaries and benefits.
Establish metric-based performance measures.
To facilitate classification of a large variety of different items being shipped on a single invoice or order, a traffic manager may want to consider ______. -commodity rates -class rates -volume rates -FAK (freight-all-kinds) rates
FAK (freight-all-kinds) rates
"Economies of scale" means that large factories operating a planned capacity are able to make many different products at the same time and promise short delivery times. -True -False
False
"Queuing" means the scientific study of the use of the letter Q in the English language. -True -False
False
A Push system requires a high degree of coordination between production stations. -True -False
False
An offered discount makes no change to determining optimal order quantity. -True -False
False
Because they are paying for the contract, the buyer's company should receive the cost savings from a learning-curve application. -True -False
False
Ordering cost only consists of the shipping cost from supplier to customer. -True -False
False
Scheduling major change-overs sequentially helps to shorten overall setup times for the factory. -True -False
False
The P-system of inventory submits inventory orders at random times. -True -False
False
The best approach to developing a distribution warehouse is to locate a vacant building and then design a material handling system that will work in that structure. -True -False
False
The critical fraction formula output is the optimal quantity to order in a newsvendor model. -True -False
False
The saturation effect says that queuing performance changes with utilization in a steady, straight line. -True -False
False
The simplest way to think about throughput is the quantity of work completed. -True -False
False
The standard deviation of demand during lead time is the same whether or not lead time is variable. -True -False
False
The time value of money, opportunity cost, is not part of the calculation of EOQ holding cost (T/F) -True -False
False
Throughput, sometimes referred to as output rate, is expressed in units produced per hour. -True -False
False
Which of the following is not an APS application issue? -Reliable, consistent forecast. -Data integrity. -Supply chain and application education. -Financial flow.
Financial flow.
Which of the following is not an APS application issue? -Reliable, consistent forecast. -Data integrity. -Supply chain and application education. -Financial flow.
Financial flow.
___________ inventory is the costliest form of inventory one can hold. -Finished goods -Raw materials -Components -Work-in-process
Finished goods
___________ inventory is the costliest form of inventory one can hold. -Finished goods -Raw materials -Components -Work-in-process
Finished goods
"When operational capabilities are consistent with and supportive of the value proposition and the outcomes desired by key customers" - this statement best describes the concept of: -Execution. -Flexibility. -Strategic planning. -Fit.
Fit
Holding cost is which type of cost? -Fixed -Variable -Overhead
Fixed
An electronics firm produces smart phones for sale to the worldwide market. One of the most crucial process-related competitive operational priorities for this firm is: -Aesthetics -Cyber security -Flexibility -Durability
Flexibility
Foundries owe much of their success to: -Location -Flexibility -Volume purchases of materials and supplies -Diseconomies of scale
Flexibility
Which of the following is considered a "process-related" competitive priority? -Flexibility -Quality -Cost -All of these
Flexibility
Which of these in not an approach to capacity planning? -Tracking -Leading -Forecasting -Following
Forecasting
The three elements of Value Proposition, Key Customers, and Capabilities operate within an environment. Which of the following is NOT part of that environment? -Competition -Regulation -Technology -Founder's ideology
Founder's ideology
Which of the following is not a demand planning requirement? -Provide reporting analysis and other metrics. -Allow exception alerts and resolution. -Handle time fences. -Track promotion activity.
Handle time fences.
The first step in the Theory of Constraints is to: -Make the constraint of the system more efficient -Measure the output of the factory -Identify the bottleneck -Build a buffer inventory in front of the constraint
Identify the bottleneck
Process thinking causes managers to address critical process elements, including: -If you don't like the outcome, focus on the people. -Processes are guidelines to thinking about to best staff activities. -Processes drive measurement. -If you don't like the outcome, change the process.
If you don't like the outcome, change the process.
Which of the following is not a benefit that is offered by advanced planning and scheduling (APS)? -Improved customer service with lower inventory. -Improved forecast accuracy. -Better utilization of existing capacity. -Better relationships with suppliers.
Improved forecast accuracy.
Which of the following is not a characteristic of a global supply chain? -Increased complexity. -Increased standardization. -Increased languages. -Increased distances.
Increased standardization.
Which of the following is NOT a role of inventory? -Increasing quality of finished goods -Balancing supply and demand -Buffering uncertainty in supply or demand -Enabling geographical specialization
Increasing quality of finished goods
Which of the following material handling systems offers the most flexibility? -Mechanized. -Semi-automated. -Automated. -Information directed.
Information directed
Performance cycles contain which of the following? -Inventory and transportation. -Inputs and outputs. -Warehousing and manufacturing. Ups and downs.
Inputs and outputs.
Which of the following is NOT considered a key characteristic of a core capability: -It is based on factors that are rare or unique to the firm. -It is hard to imitate. -It does not need to be extendable to many market opportunities. -There are few substitutes for it.
It does not need to be extendable to many market opportunities.
Which of the following is not true about CPFR? -It can make products more consistent. -It is time consuming. -It aids in forecasting accuracy. -It is good for low-volume items.
It is good for low-volume items.
A well-designed value proposition possesses four characteristics. Which of the following is NOT one of those characteristics? -It offers the highest product quality in each quality dimension. -It differentiates the firm from its competition in a way that is difficult to imitate. -It satisfies the financial and strategic objectives of the firm. -It can be reliably delivered given the operational capabilities of the firm and its supporting supply chain.
It offers the highest product quality in each quality dimension.
In the lean systems approach, as a system improves, it should have ____________ inventory on hand. -More -The same amount of -Less -Twice the amount of
Less
A manufacturer of generic prescription drugs must excel at delivering which of the following product traits? -Product performance -Features (unique attributes) -Durability -Low cost
Low Cost
Which of the following is NOT a driver of consolidation in the third-party logistics industry? -Analytical capability. -Global scope. -Manufacturing capability. -Technology capability.
Manufacturing capability.
Decision making regarding customers and products is often led by the: -CEO -Board of Directors -Marketing Management -Financial Managers
Marketing Management
What can managers do with queuing theory? -Calculate net profits -Measure and predict performance -Create better marketing -Eat at fancy restaurants
Measure and predict performance
Subcontracting is typically considered at what time horizon when doing capacity planning? -Short-term -Medium-term -Long-term -It is not part of the capacity planning process.
Medium-term
Which of the following transportation modes is the best for end-to-end delivery? -Air. -Motor. -Rail. -Water.
Motor
If a company can eliminate all sources of variance in a process: -It will be able to operate at maximum capacity at all times. -There will be no constraints in the process. -Continuous improvement will not be necessary. -None of these are true.
None of these are true.
The basic calculation in the newsvendor model will result in a calculation of: -Minimum order quantity -Optimal probability of running out -Exact profit that will be earned -The probability that next year's styles will be more popular than this year's.
Optimal probability of running out
A company with a number of physically separate plants has a centralized tool room. This tool room in the past has been responsible for emergency repairs. Whenever equipment (e.g., a spindle, boring machine, transfer line) in one of these separate plants breaks down, the affected items are brought to the tool room, where they are repaired. In some cases, the breakdowns affect production schedules. In other cases, the breakdowns are more annoying but do not adversely affect schedules. Complicating the operations in the tool room is the fact that many of the plans for the equipment are incomplete or out-of-date, thus resulting in "make from sample"; requests (the broken part is provided and the tool room is asked to make the replacement piece just like the broken part). It is difficult to predict what equipment will break down and when. Furthermore, the company owns a wide variety of equipment. What are the order winners and order qualifiers in this scenario? Order WinnersOrder QualifiersA.Cost,QualitySpeed,FlexibilityB.Flexibility,QualitySpeed,CostC.Speed,CostFlexibility,QualityD.Speed,FlexibilityQuality,Cost -Option A -Option B -Option C -Option D
Option D
If I calculate the EOQ with the new, discounted material cost and the resulting quantity is enough to get the discount, what should I do? -Order the discounted EOQ amount -Order the regular EOQ amount -Average the discounted and undiscounted EOQ amounts and order that -Compare total costs of the two EOQ amounts
Order the discounted EOQ amount
Misuse of automation is a root cause of which of the following types of waste? -Overproduction -Process -Motion -Rework
Overproduction
A process having the same activity being performed by two or more resources simultaneously is said to have what kind of structure? -Serial -Parallel -Helping -Flexible
Parallel
The ABC analysis used for analyzing inventory is an example of: -Safety stock calculation. -Regression analysis. -Pareto's law. -Inventory carrying cost.
Pareto's law.
Which of the following is not input needed for an APS? -Current inventories. -Past inventories. -Work already in progress. -Time-phased demand plan.
Past inventories.
Which of the following is not input needed for an APS? -Current inventories. -Past inventories. -Work already in progress. -Time-phased demand plan.
Past inventories.
Which three elements make up the triple bottom line? -Planet, Pollution, Profit. -Pollution, Equality, People. -Profit, Equality, Pollution. -People, Profit, Planet.
People, Profit, Planet.
What is the great benefit of the Q-system? -Complicated mathematical calculations -Responsiveness -Hiding inventory from customers -Ordering at fixed times
Responsiveness
"tp" stands for "average service" time and can be found by taking the inverse of which thing? -Arrival Rate -Service Rate -Utilization -Coefficient of Variation
Service Rate
What is the great benefit of the P-system? -A name that is easy to remember -Customer satisfaction is guaranteed -Simplicity in managing the system -Complicated mathematical requirements
Simplicity in managing the system
Which of the following is not an argument for using best of breed software products? -Solution integration. -Each program is optimized to complete a specific assignment. -Each program has an ideal user interface. -Each solution can be customized.
Solution integration.
Xanadu Inc. claims that its manufacturing processes result in fewer greenhouse gases than those of its primary competitors. This suggests that Xanadu has a focus on: -Risk management. -Sustainability. -Flexibility. -Profitability.
Sustainability
Under which component of the business model would people and culture fall? -Key customer -Value proposition -Environment -System capabilities
System capabilities
The use of a Warehouse Management System(WMS) to route fork trucks on-demand is called: -Simultaneous routing -Variable routing -Directed routing -Task Interleaving
Task Interleaving
Which of the following attributes is directly related to fitness for consumption by a customer? -Transaction Price -Timeliness -Performance -Availability
Performance
Xanadu makes HD televisions. It claims that its HD televisions have the clearest picture clarity in the industry. Xanadu is emphasizing which dimension of quality? -Reliability -Performance -Features -Conformance
Performance
Within the supply chain and operations management system, the value proposition is most effectively communicated to the rest of the organization through which of the following mechanisms? -Performance measures -Mission statements -Management mandates -Corporate slogans and promotional materials.
Performance Measures
What is another name for the "P-system" of inventory? -Partial Request Inventory Order System -Poorly Routed Inventory Ordering System -Particularly Responsive Complicated Ordering System -Periodic Review Inventory System
Periodic Review Inventory System
When a firm "spot stocks" inventory they are engaged in: -Placing inventory in an exact location in the warehouse -Placing inventory in consignment -Marking inventory for ease of identification -Placing inventory in a local warehouse in anticipation of future need
Placing inventory in a local warehouse in anticipation of future need
In the end, the point of using the EOQ formula is to: -Properly enter the values we have calculated -Identify the number that is best under any condition -Point us toward the possible lowest cost option -Keep people who create math models employed
Point us toward the possible lowest cost option
Which of the following is not a reason for increased importance of S&OP? -Increased capacity. -Lesser variance of products. -Strategies are simplified. -Precise demands by key customers
Precise demands by key customers
Which of the following is not a reason for increased importance of S&OP? -Increased capacity. -Lesser variance of products. -Strategies are simplified. -Precise demands by key customers.
Precise demands by key customers.
Kaizen events are most effective when applied to problems involving which of the following elements? -Processes -Products -Customers -Measures
Processes
Which of the following is the most appropriate definition of a core capability? -A set of products unique to a firm. -Technical capabilities of a firm. -Reputation. -Production/design processes unique to the firm.
Production/design processes unique to the firm.
"Slotting" a warehouse means: -Products are positioned for value added services -Products are assigned a specific warehouse location -Products are placed in a pick line location -None of the above.
Products are assigned a specific warehouse location
A company which has limited experience in warehousing who has a need to establish temporary warehouse facilities in multiple cities would most likely use: -Private warehouses -Public warehouses -Contract Warehouses -Common Warehouses
Public warehouses
McGreen Burger Shop sells about two burgers per minute. Although the cook can cook up to 10 burgers per minute, he starts to cook another burger only after the salesperson removes a burger from the ramp. The ramp is large enough to hold only five burgers and keep them warm until a sale is made. This is an example of a: -Pull system. -Push system. -Group technology. -Poka-yoke.
Pull System
Which of the following statements is true of Push and Pull systems? -Push and Pull systems are opposites and can not be used together -Push and Pull systems are opposite but can still be used together -Push and Pull systems are essentially the same system -Push and Pull systems are only good for controlling machines on a shop floor
Push and Pull systems are opposite but can still be used together
Which of the following modes of transportation has high fixed and low variable costs? -Rail. -Motor. -Air. -Water.
Rail
Throughput is a ...? -Rate -Number -Time -Proportion
Rate
The learning curve measures: -Overall factory performance -Reduction in direct labor costs -Reduction in production costs per unit -Increase in production volume
Reduction in direct labor costs
What does the R stand for in CPFR? -Repeat. -Replenish. -Re-evaluate. -Re-design.
Replenish
Which of the following is NOT a basic activity type in processes? -Delay -Operation -Reporting -Storage
Reporting
Which of the following is not a benefit of sales and operations planning? -The S&OP process eliminates the need to have finished goods inventory. -The S&OP process results in better customer service. -The S&OP process provides better visibility into future capacity problems. -The S&OP process provides a single set of numbers to run the business.
The S&OP process eliminates the need to have finished goods inventory.
The second, simpler formula is only valid for which condition? -The arrival and service rates are derived from a Normal distribution -The arrival and service rates are derived from a Chi-Square distribution -The arrival and service rates are derived from a Poisson distribution -The arrival and service rates are derived from a Beta distribution
The arrival and service rates are derived from a Poisson distribution
Which of the following statements is true when comparing the total cost curve for a product without discounting and the total cost curve with discounting? -The discounted curve is always below the undiscounted curve -The undiscounted curve is always below the discounted curve -The discounted curve is always below the undiscounted curve but does not really exist for values less than the minimum order amount to receive the discount. -The undiscounted curve is always below the discounted curve but does not really exist for values less than the minimum order amount to receive the discount.
The discounted curve is always below the undiscounted curve but does not really exist for values less than the minimum order amount to receive the discount.
The "right" amount of safety stock is often a function of Service Level. Service Level is: -The probability of making the right product -The probability of delay -The probability of meeting demand during a delay -The probability of delay causing more demand
The probability of meeting demand during a delay
There is increasing consolidation for the major logistics and supply chain service providers. Which of the following is the major justification for this consolidation? -To take advantage of major brand names. -To offer a broad platform of integrated services. -To provide specialty capabilities. -All of the choices are correct.
To offer a broad platform of integrated services.
Safety stock exists for which of the following reasons? -To allow less expensive purchases by buying more. -To allow for transportation time. -To provide protection against the uncertainties of supply and demand. -None of these selections.
To provide protection against the uncertainties of supply and demand.
Which of the following is not an example of transportation safety regulation? -Transitioning from stage three to stage four diesel engines to reduce emissions. -Changing the hours of service. -Modifying the braking and lighting systems on trucks. -Changing the length of transportation vehicles.
Transitioning from stage three to stage four diesel engines to reduce emissions.
Which of the following optimizes resources to move materials and goods within supply chains to minimize cost while meeting deadline constraints? -Supply chain planning. -Factory planning. -Distribution planning. -Transportation planning
Transportation planning
Which of the following optimizes resources to move materials and goods within supply chains to minimize cost while meeting deadline constraints? -Supply chain planning. -Factory planning -Distribution planning. -Transportation planning.
Transportation planning.
A Pull system is likely to struggle to meet demand during demand spikes. -True -False
True
A disadvantage of RFID tags versus UPC codes is that RFID is more expensive -True -False
True
Equipment utilization is normally expressed as a percentage of design capacity. -True -False
True
Safety stock is inventory held to guard against uncertainty -True -False
True
The "C's" in the equation for the general queue stand for "Coefficient of Variation." -True -False
True
The Q-system of inventory submits inventory orders at random times. -True -False
True
The output of a factory can be no higher than the output of the slowest machine, the constraint of the system. -True -False
True
The warehouse functionality of sorting means that products are being assembled in custom assortments to meet the needs of specific orders. -True -False
True
Ocean transportation from Asia to the west coast of the US would typically require how much time? -Two weeks. -One month. -Two months. -Six months.
Two Months
Which of the following is not a benefit of public warehousing? -Easy to adjust the total warehouse capacity. -Easy to adjust the number and location of warehouses. -Typically unionized. -Relatively standardized service offering
Typically unionized.
Combined logistics operating arrangements do which of the following? -Only focus on reducing transportation cost. -Carry more inventory than direct or echelon systems. -Use both direct and echelon logistics solutions depending on the specific needs. -Only stock products in one location.
Use both direct and echelon logistics solutions depending on the specific needs.
Which one of these concepts is not part of logistical integration objectives? -Variance reduction. -Inventory reduction. -Using less parcel shipping. -Responsiveness.
Using less parcel shipping.
Echelon logistics operating arrangements accomplish which of the following? -Utilize warehouses to create inventory assortments and achieve consolidation economies. -Focus on reducing transportation cost. -Require at least 2 warehouse locations. -Are only used in the grocery industry.
Utilize warehouses to create inventory assortments and achieve consolidation economies.
Which of the following results in waiting lines? -Hungry patrons -Small doors -Variability -System age
Variability
Ordering cost is which type of cost? -Fixed -Variable -Overhead
Variable
Since standard deviations don't sum, we have to sum which thing instead? -Average -Median -Kurtosis -Variance
Variance
Corporate strategic planning involves decisions related to: -What businesses should we be in? -What specific product- and market-based initiatives and goals should we establish? -What measures should we use to control strategic initiatives? -All of these.
What businesses should we be in?
Internal questions that may be addressed in a SWOT analysis include: -What obstacles do we face? -What trends are we well positioned to take advantage of? -What do we do better than anyone else? -What changes in technology will affect us?
What do we do better than anyone else?
Functional strategic planning involves decisions related to: -What businesses should we be in? -Specific product- and market-based initiatives and goals. -What metrics should be used to ensure progress in operations management? -All of these.
What metrics should be used to ensure progress in operations management?
Which of these is a proper application of the learning curve? (Choose all that apply) -When production processes are highly automated -When labor content is high -When the supplier is using a new process -When the supplier has a stable direct-labor workforce
When the supplier is using a new process
A batch of Raisin Bran that has been made at Kellogg's but not yet packaged in its final cereal box would be an example of what type of inventory? -Raw material -Work in process -Finished goods -Maintenance, repair, and operating supplies (MRO)
Work in process
A batch of Raisin Bran that has been made at Kellogg's but not yet packaged in its final cereal box would be an example of what type of inventory? -Raw material -Work in process -Finished goods -Maintenance, repair, and operating supplies (MRO)
Work in process
A supplier certification program: -adds cost to the supplier, but provides few benefits to the supplier. -may improve quality, but at best will not raise costs. -always improves quality, but usually at a higher purchase price. -may enable the buyer and seller to lower costs and improve quality. -typically costs more to implement than the value of the quality improvement.
may enable the buyer and seller to lower costs and improve quality.
A formal service quality evaluation process: -measures the gap between service expectations and performance perceptions. -is relatively simple and applicable for all types of services. -is performed exactly the same as it is for goods. -is impossible to quantify if the service is highly intangible. -is most easily done on the buyer's premises.
measures the gap between service expectations and performance perceptions.
Quality control in services is: -more difficult for standardized services delivered by low-skilled workers. -performed exactly the same for small, medium, and large service providers. -more difficult for customized services delivered by highly skilled workers. -especially difficult if the service is a combination of tangible and intangible. -most easily done on the buyer's premises after the service is delivered.
more difficult for customized services delivered by highly skilled workers.
The majority of the laborers for 3PL and 4PL organizations are typically ______. -non-union -union -mixed -automated
non-union
The ABC analysis used for analyzing inventory is an example of: -safety stock calculation -regression analysis -pareto's law -inventory carrying cost
pareto's law
When a firm "spot stocks" inventory they are engaged in ______. -placing inventory in an exact location in the warehouse -placing inventory in consignment -marking inventory for ease of identification -placing inventory in a local warehouse in anticipation of future need
placing inventory in a local warehouse in anticipation of future need
A firm that groups small shipments for delivery to a retail mall is doing ______. -consolidation -sequencing -pooled delivery -break bulk delivery
pooled delivery
The Jones Company learned that several other shippers located in its hometown had customers located in the same markets it serves. With this information, Jones could find it advantageous to investigate the potential of ______. -market area consolidation -scheduled delivery consolidation -pooled delivery consolidation -a phantom freight program
pooled delivery consolidation
the supply area is a good training ground for managers because it provides exposure to: -accounting systems -pressure of decisions making under uncertainty -various levels and functions in the organization -combo of top 3 -pressure of decision making under uncertainty and various levels and functions of the organization
pressure of decision making under uncertainty and various levels and functions of the organization
a successful supply chain management strategy integrates: -process in systems w/in and across organizations -process in systems w/in the organization -flow of materials w/in the organization -flow of information w/in the organization
process in systems w/in and across organizations
In a situation where there are low economies of scale and a long response time, the supply chain strategy should focus on ______. -an accurate short-term forecast with strong tactics and less consideration of history -production flexibility since detailed and accurate forecasting is not of critical importance -responsiveness at the expense of forecast accuracy -both forecast accuracy and responsiveness because they are equally important
production flexibility since detailed and accurate forecasting is not of critical importance
Supply has the potential to contribute to: -financial performance -financial performance and competitive position -profitability, competitive position, and sustainability performance -competitive potion and sustainability performance -financial performance, competitive position and sustainability performance
profitability, competitive position, and sustainability performance
ISO 9001:2015 provides a tested framework for a systematic approach to consistently delivering product that satisfies customers' expectations by: -dictating how quality requirements should be met in every organization. -dictating scope and flexibility for quality system implementation. -assuming all national cultures will meet quality requirements the same way. -assuming all business sectors will meet quality requirements the same way. -providing a set of standardized requirements a quality system must meet.
providing a set of standardized requirements a quality system must meet.
A sampling technique in which every element in the population has an equal chance of being selected is called: -additive sampling. -sequential sampling. -100 percent testing. -random sampling. -cumulative sampling.
random sampling.
Advanced planning and scheduling (APS) facilitates improvements in customer service by ______. -reducing the time to make accurate commitments to customers -reducing inventory levels -improving resource utilization -None of the above
reducing the time to make accurate commitments to customers
Economic regulation of transportation includes all the following, EXCEPT ______. -regulation of rates -regulation of market entry -regulation of market exit -regulation of drivers
regulation of drivers
What does the R stand for in CPFR? -repeat -replenish -re-evaluate -re-design
replenish
the impact of supply management actions on the balance sheet: return on investment effect return on inventory effect inventory turn over effect return on assets effect profit leverage effect
return on assets effect
The real costs of quality: -tend to rise significantly with the cost of prevention. -rise significantly as defects increase in the finished product. -are incurred in the quality control department. -are easily identified by the accounting department. -are frequently overstated in an organization.
rise significantly as defects increase in the finished product.
Quality function deployment: -seeks to understand what value represents to the customer. -is a system for deploying quality at supplier facilities. -provides direction on the appropriate level of product performance and which features should be included. -seeks to understand what value represents to the customer and is a system for deploying quality at supplier facilities. -seeks to understand what value represents to the customer, and provides direction on the appropriate level of product performance and which features should be included
seeks to understand what value represents to the customer, and provides direction on the appropriate level of product performance and which features should be included
A firm that supports an automotive assembly plant by providing just-in time inventory is engaged in ______. -cross-docking -order assembly -mixing -sequencing
sequencing
A sampling technique that is based on the cumulative effect of information that every additional item in the sample adds as it is inspected is called: -random sampling. -100 percent testing. -cumulative sampling. -sequential sampling. -additive testing.
sequential sampling.
The question: "How can supply and the supply chain contribute effectively to organizational objectives and strategy?" is a key question in: -supplier relationship management -strategic sourcing. -supplier network management. -supply chain management. -strategic supply management.
strategic supply management.
The match between a commercially available material, good or service and the intended function is known as: -quality. -best buy. -suitability. -reliability. -functionality.
suitability
a systems approach to managing the flow of info materials and services from ters of suppliers through the buying organization to teries of customers: -strategic sourcing -materials management -supply chain management -procurement management -inventory management
supply chain management
the design and management of seamless value added processes across organizational boundaries is call: -supply chain management -strategic sourcing -value management -customer relationship management -strategic process management
supply chain management
Strategies designed to make available the knowledge and capabilities of supply chain members to others in the buying organization are called: -environmental-change strategies. -assurance-of-supply strategies. -risk-management strategies. -cost-reduction strategies. -supply-chain-support strategies.
supply-chain-support strategies.
The goal of logistics is to ______. -support procurement, manufacturing, and customer accommodation -support product delivery -support procurement and manufacturing -reduce total cost
support procurement, manufacturing, and customer accommodation
Normally, most organizational objectives can be summarized as: -marketing, management, finance, and operations. -leadership, market share, earnings per share, and return on investment. -survival, growth, financial, and sustainability -profitability, return on investment, liquidity, and shareholder value. -growth, maintenance, new products, and asset management.
survival, growth, financial, and sustainability.
Normally, most organizational objectives can be summarized under four categories: -marketing, management, financial, and operations. -survival, market share, earnings per share, and return on investment. -profitability, return on investment, liquidity, and earnings per share. -survival, growth, financial, and sustainability. -growth, maintenance, new product development, and asset management.
survival, growth, financial, and sustainability.
When developing strategies related to "how to buy," decisions must be made about: -make or buy -size of inventories -insource or outsource -systems and processes -level of quality
systems and processes
The document that lists and details the contents and conditions of a shipment is called ______. -the tariff -the proof of delivery -the invoice -the bill of lading
the bill of lading
the return on assets affect quantifies and measures: -the indirect contribution to supply management to profitability -any increase that occurs at a greater rate than a cost of assets -reduction in the allocations to the operating budget of the supply department -the impact of supply actions on inventory and the balance sheet -the affects on profitability of reduced spend in compare to a sales increase
the impact of supply actions on inventory and the balance sheet
supply decisions can effect: -the balance sheet -the income statement -the income statement and the balance sheet -neither -none of the financial
the income statement and the balance sheet
Performance cycle uncertainty has the following trait: ______. -the larger the variance to desired goal, the bigger the impact -numerous inputs lead to poor performance -the more firms involved, the poorer the performance -manufacturing is always the leading or first indicator
the larger the variance to desired goal, the bigger the impact
The logistics value proposition is ______. -the unique commitment of a firm to an individual or customer group -a general strategy used by a firm -a marketing campaign -what every firm hopes to achieve
the unique commitment of a firm to an individual or customer group
If you want the consignee to be responsible for goods while they are in-transit you should ship products ______. -to FOB destination -to FOB origin -using delivered pricing -using single zone pricing
to FOB origin
Determination of the "best buy" is based on: -suitability for a given use. -a balance between price and quality. -technical considerations only. -the internal user or specifier's perceptions. -trade-offs among stakeholders (e.g., marketing, operations, and supply).
trade-offs among stakeholders (e.g., marketing, operations, and supply).
The tapering principle of transportation rates suggests that ______. -transportation charges increase at an increasing rate with distance traveled -transportation charges per unit increase at an increasing rate with distance traveled -transportation charges increase at a decreasing rate with distance traveled -transportation charges per unit increase at a decreasing rate with distance traveled
transportation charges increase at a decreasing rate with distance traveled
The work of logistics involves ______. -order processing, inventory, and manufacturing -production planning, shop scheduling, and production -transportation, inventory, order processing, warehousing, and facility network design -soliciting quotations, contracting, acquisitions, and materials receipt
transportation, inventory, order processing, warehousing, and facility network design
Safety stock is inventory held to guard against uncertainty
true
Supply chain sustainability performance must comply with legal obligations and meet the values and standards of the organization's stakeholders, including employees, shareholders, and customers.
true
The Q-system of inventory submits inventory orders at random times.
true
The key decisions and plans in corporate strategy address: What business are we in and how will we allocate resources among these businesses?
true
The newsvendor model works well for perishable products
true
The newsvendor model works well for perishable products -True -False
true
the true test of supplies contrubution is when the cheif executive officer and the senior management team realize that
true
theres not 1 best way for all organizations to organize and manage the supply function, conduct actives
true
Ordering cost is which type of cost? -fixed -variable -overhead
variable
Since standard deviations don't sum, we have to sum which thing instead? -average -median -kurtosis -variance
variance
When developing supply strategies, the supply manager must determine: -what to make or buy -when to buy -how much to buy -how it should be ordered -what to make or buy, when to buy, how much to buy and how it should be ordered.
what to make or buy, when to buy, how much to buy and how it should be ordered.
The key element of order process is ______. -process as many orders as possible -process orders as to never ever make an error -achieve accurate information to support logistics performance -avoid customer returns
achieve accurate information to support logistics performance
Total Cost Logistics Model takes into consideration ______. -all of the transportation cost -all of the handling cost -all of the inventory carrying cost -all expenditures necessary to perform logistical requirements
all expenditures necessary to perform logistical requirements
Best warehousing practice is to ______. -store fast moving goods near the receiving docks -store fast moving goods near the shipping docks -allow the fast moving product to move quickly through the warehouse -Cannot be determined.
allow the fast moving product to move quickly through the warehouse
Which of the following is not a theoretical factor of forecasting? -amount -trend -cyclical -seasonal
amount
A strategy is: -an action plan to maximize rewards in the current period in return for big risks. -a procedure for allocating resources among functions in the organization. -an action plan to achieve specific long-term goals and objectives. -an action plan to achieve specific operational and tactical goals. -a vision of the future of an organization.
an action plan to achieve specific long-term goals and objectives.
Strategic planning can be defined as: -how each functional area will achieve its specific goals and objectives. -an action plan to achieve specific operational and tactical goals. -a procedure for allocating resources to appropriate functions in the organization. -taking big risks to maximize current period benefits. -an action plan to achieve specific long-term goals and objectives.
an action plan to achieve specific long-term goals and objectives.
Linking current and future needs with current and future markets is the primary focus of: -internal users of purchased goods and services. -each individual buyer. -an effective supply strategy. -an effective marketing strategy. -an effective organizational strategy.
an effective supply strategy.
Warehousing, Materials Handling, and Packaging are unique in the sense that they ______. -are very complicated to manage -are an integral part of the other logistics areas -are very expensive -are frequently overlooked
are an integral part of the other logistics areas
Supply strategies that are based on changes in demand and supply are known as: -assurance-of-supply strategies. -risk-management strategies -cost-reduction strategies. -environmental-change strategies. -supply chain support strategies.
assurance-of-supply strategies.
Process variation that are intrinsic to the process are: -common, nonassignable causes of variation. -special or assignable causes of variation. -prevention costs. -internal failure costs. -external failure costs.
common, nonassignable causes of variation.
Supply strategies that are designed to exploit market opportunities and organizational strengths to give the buying organization an advantage in the marketplace are known as: -risk-management strategies. -competitive-edge strategies. -assurance-of-supply strategies. -cost-reduction strategies. -supply chain support strategies.
competitive-edge strategies.
The three factors fundamental to transportation performance are ______. -cost, speed, and consistency -cost, cost, and cost -cost, volume, and modality -cost, speed, and frequency
cost, speed, and consistency
ISO 9001: 2015: -provides common quality standards across all sectors of the United States economy. -was established by the International Supply Organization to focus quality efforts on supplier relationships. -defines the requirements a quality system must meet but does not dictate how they should be met. -was developed and first issued in the United States, and later adopted worldwide. -was designed to recognize U.S. organizations that excel in quality achievements and quality management.
defines the requirements a quality system must meet but does not dictate how they should be met.
The characteristic of a service that has the greatest impact on the ability to define, measure and control service quality is: -degree of tangibility. -nature of the demand. -monetary value of the service. -degree of repetitiveness. direction of the service.
degree of tangibility.
Organizational objectives and supply objectives typically are expressed: -differently, providing the supply manager multiple opportunities to tap into organizational resources. -the same (survival, growth, financial, and environmental), making it easy to translate organizational objectives into supply objectives. -differently, making it difficult to translate organizational objectives into supply objectives. -the same factors (quality, quantity, price, delivery and service), but long-term at the organizational level and short-term at the supply level. -in ways that are very specific to the organization, making it difficult to convey objectives to suppliers.
differently, making it difficult to translate organizational objectives into supply objectives.
evaluation of the supply functions contribution to organizational goals can be view in the context of: -operational and strategic -strategic and transnational -direct and indirect - 1 and 2 -1 and 3
direct and indirect operational and strategic
When orders are shipped directly to the customer, it is called ______. -direct shipping -drop shipping -consolidated shippin -postponement
drop shipping
interest in the supply function as a managerial activity began: -before 1900, when railroads recognized it as an important function -during WW1 and WW2 because of material shortages - in the 1970's during a period of high inflation -early 1980's with high interest rates and the cost of financing -more recently with the rise of e comers
during WW1 and WW2 because of material shortages
Declining transport rates per unit of weight as the weight shipped increases represents ______. -the tapering principle -economy of distance -economy of energy -economy of scale
economy of scale
Quality improvement programs for goods are initiated by a desire to: -achieve ISO 9001 certification. -achieve ISO 14001 certification. -eliminate incoming inspection. -reduce incoming inspection. -increase prices.
eliminate incoming inspection.
Supply strategies that are designed to anticipate and recognize shifts in the economy, organization, people, legal, government regulations and controls, and technologies are: -environmental change strategies. -change management strategies. -total cost strategies. -internal management strategies. -supply assurance strategies.
environmental change strategies.
The more significant the service ______ impact upon a customer's business, the greater the priority placed on error free logistical performance. -cost -complexity -failure -growth
failure
An offered discount makes no change to determining optimal order quantity.
false
Ordering cost only consists of the shipping cost from supplier to customer.
false
The P-system of inventory submits inventory orders at random times.
false
The critical fraction formula output is the optimal quantity to order in a newsvendor model.
false
The standard deviation of demand during lead time is the same whether or not lead time is variable.
false
The time value of money, opportunity cost, is not part of the calculation of EOQ holding cost (T/F)
false
The trend is to decentralize risk management, and allow each function to assess its risk exposure and develop strategies to best manage functional risks.
false
supply can influence risk management in which areas: -financial -operational -reputation -financial and operational -financial, operational, and reputation
financial, operational, and reputation
Holding cost is which type of cost? -fixed -variable -overhead
fixed
A six sigma (6σ) approach to quality: -means there are no more than 25 defects per million opportunities. -was developed by Japanese companies in the 1950s. -has no connection to the concept of zero defects. -focuses on preventing defects by using data to reduce variation and waste. -has soft goals such as happier customers and employees.
focuses on preventing defects by using data to reduce variation and waste.
on average the dollar spent with suppliers has a % revenues: -greater in manufacturing organizations than in service organization -about equal in manufacturing and service organizations -greater in service then manufacturing organizations -depends on the type of manufacturing process -depending on the type of service delivery
greater in manufacturing organizations than in service organization
One function of a distribution warehouse is consolidation, which means the facility is being used to ______. -group small inbound shipments into one large outbound shipment -collect products/packaging materials or disposal -hold safety stock inventory -None of the choices are correct.
group small inbound shipments into one large outbound shipment
Logistics and supply chain outsourcing in North America is a ______ industry. -declining -stable -growing -Cannot be determined.
growing
When a supply-related risk exists, the supply management team should: -identify and classify risks, assess possible impact, develop a mitigation strategy, inform the chief supply officer, await instructions, and implement the directive. -seek input from other functional areas, compile the ideas, and submit them to senior management. -review the existing risk mitigation plan, suggest revisions, and await instructions. -confer with relevant parties, provide requested data, and implement senior management's mitigation strategy.
identify and classify risks, assess possible impact, develop a mitigation strategy, inform the chief supply officer, await instructions, and implement the directive.
Since 2007 total US business logistics costs have ______. -increased dramatically, by more than 10% -stayed flat - is the same -decreased dramatically, by less than 10% -decreased slightly, by less than 1-2%
increased dramatically, by more than 10%
Logistical operations have two main flows: ______. -inventory and information -inventory and materials -inventory and warehousing -materials and customer accommodation
inventory and information
evidence of the growth and influence of supply management in an organization: -fewer activies -meaningful involvement -involvement and strategic planning -executive status for the chief supply manager -last two
involvement and strategic planning, executive status for the chief supply manager
The optimization module of an advanced planning and scheduling (APS) system ______. -develops the requirement projections for the planning horizon -defines and coordinates supply chain system resources and constraints -is the computational engine of the supply chain planning system -specifies the resource assignments and communicates them to the ERP system
is the computational engine of the supply chain planning system
If organizational objectives and supply objectives are incongruent: -it will be easy to translate organizational objectives into supply objectives. -it will be difficult to translate organizational objectives into supply objectives. -it is likely that many organizational resources will be made available to supply. -it will be easy to define quality, quantity, price, delivery, and service goals. -it will be easy to convey objectives to suppliers.
it will be difficult to translate organizational objectives into supply objectives.
Public warehouses typically have ______. -low fixed and high variable cost -high fixed and low variable cost -fixed and variable costs are about the same for both -Cannot be determined.
low fixed and high variable cost
Lean quality management philosophy is based on: -maximizing customer value. -minimizing waste. -statistical process control (SPC). -maximizing customer value and minimizing waste.
maximizing customer value and minimizing waste.
Which of the following is the rationale for plastic packaging? -Sustainability. -Protection from dropping. -Lower transportation cost. -All of the choices are correct.
All of the choices are correct.
in manufacturing organizations the dollars spent with suppliers fall in to what range as a % of revenues: -25-35% -30-60% -45-75% -50-80% -65-75%
50-80%
for an organization with annual sales of 500 million purchases of 300 million and profit of 50 million a 10% reduction in cost of purchases, would result in a profit leverage effect of: -10%(sales increase of 10% would require same increase in process) -15%(sales increase of 15% would be required to achieve same increase in profit) -10%(sales increase of 50%) -60%(sales increase of 60% required) -75%(sales increase of 75%)
60%(sales increase of 60% required)
In 2016 US business logistics costs represented what portion of Gross Domestic Product (GDP)? -2.5% -5% -7.5% -15%
7.5%
for an organization with 100 million dollars purchases of 60 million and a profit of 8 million before taxes a 10% reduction in purchase spent would result in an increase in profit of: -10% -36% -57% -60% -75%
75%
Under Juran's Law, whenever a problem occurs, what percentage of the time is the problem the result of a system/process error? -15 percent -50 percent -85 percent -100 percent
85 percent
An example of a short-term capacity increase decision is: -Adding specialized labor. -Installing new equipment. -Adding new facilities. -Adding low-skilled labor.
Adding low-skilled labor.
Which of the following is not an objective of industrial packaging? -Unitization. -Advertising. -Security. -Protection.
Advertising
Which of the following is not a purpose of APS planning charts? -Assist planners with evaluating cost procurement. -Identify various stages within the supply chain. -Aid employees in understanding production purposes. -Facilitate decision making for optimal results.
Aid employees in understanding production purposes.
Which of the following modes of transportation has low fixed and high variable costs? -Rail. -Motor. -Air. -Water. -Pipeline.
Air
Continual improvement of processes is important because: -Competitors are improving their processes. -Customer preferences change over time. -Technology is constantly changing. -All of these.
All of These
Logistics is ______. -the process that links supply chain participants into integrated operations -the catalyst of activity between different supply chain functional areas such as procurement and warehousing -a critical component to supply chain success concerned with getting the right product to the right place at the right time, at minimum cost -All of the above
All of the above
Facility network design is concerned with which of the following? -How many buildings. -The location of the buildings. -The ownership structure of the buildings. -All of the answers
All of the answers
Which of the following are the major reasons for supply chain outsourcing? -To take advantage of operational economies of scale. -To provide more flexibility regarding capacity. -To allow the firm to outsource non-core activities. -All of the choices are correct.
All of the choices are correct.
Finding average demand during lead time involves doing which of the following? -Squaring average demand per day and summing -Summing the square root of average demand per day and summing -Summing the daily average demand per day -Integrating average daily demand from zero to four
Summing the daily average demand per day
