SCM 3660 Exam 2 Study Guide

It takes Grant an hour and a half to prep a job and get his welding rig ready, and once he is ready to weld, Grant can weld a joint every five minutes. A typical trailer has 110 joints. How long will it take to weld it together?

10 hours and 40 minutes (?) (110*5=550 mins 550+90=640 mins 640 mins=10 hrs 40 mins)

Civil Defense Administration has decided to locate the strategic supply of tapioca using the center-of-gravity criterion. The tapioca centers of the United States are indicated in the following table, along with their location and annual tonnage. What is the x-y coordinate of the underground tapioca bunker that should be constructed? ​ City x-coordinate y-coordinate Volume New York 13 6 9,000 Miami 12 1 8,000 Fargo 8 7 10,000 McAllen 8 1 2,000 Portland 1 6 9,000 San Diego 3 2 4,000

8.0, 4.0 (?)

ProShopper, a sportswear store, held an average sportswear inventory of $10 million last year and reported an inventory turnover of 5 times per year. What was its cost of goods sold?

$50 million

A forecast for the first six months of the year revealed a tendency to underpredict the actual demand for the revitalized Hubig's Pies plant in the Marigny. Month Actual Forecast January 675 600 February 720 700 March 640 620 April 510 495 May 480 410 June 565 535 ​ What is the MAPE of this forecast?

6.64% (?)

The cost of returns in e-commerce averages between

7 and 10 percent.

The university president's office is prepping for the incoming freshmen next week and must assemble information packets and books for each group of students. The information packets are assembled by a team that requires a 45-minute setup each morning and 2 minutes for each packet thereafter. The bookstore needs an hour for a setup each morning and 5 minutes to pick the books for each student. Monday Tuesday Wednesday Thursday Friday Business Lib Arts Education Math-Sci Fine Arts 600 350 800 500 40 How much time is needed by the bookstore team to complete the work for the week?

195 hours and 50 minutes

A forecast for the first six months of the year revealed a tendency to underpredict the actual demand for the revitalized Hubig's Pies plant in the Marigny. Month Actual Forecast January 675 600 February 720 700 March 640 620 April 510 495 May 480 410 June 565 535 ​ What is the mean squared error of this forecast?

2,075 (?)

In a garments factory, a part requires 0.10 hours of labor per unit in Work Center B and 1 hour of setup time. The planned order release (order size) for a week is 2000 units. Which of the following is the capacity requirement for a week at Work Center B?

201 hours

A forecast for the first six months of the year revealed a tendency to underpredict the actual demand for the revitalized Hubig's Pies plant in the Marigny. Month Actual Forecast January 675 600 February 720 700 March 640 620 April 510 495 May 480 410 June 565 535 What is the MAD of this forecast?

38.33 (?)

Bonci's Pizzeria can't meet all of its customer demand, so it decides to use backorders and lost sales as an aggregate planning tool. What is the difference between a backorder and a lost sale?

A backorder will ultimately result in revenue for Bonci's, but a lost sale will not.

Which of these is a common approach to gather data for judgmental forecasts? a. A moving average model b. Regression analysis c. A survey questionnaire d. Single exponential smoothing

A survey questionnaire

A supplier in China sends product to customers in the United States. What shipping modes will this supplier rely on?

Air and water (?)

Inventory days' supply (IDS) is calculated as Average total inventory divided by

Cost of goods sold per day.

Which of the following refers to moving work from one workstation to another, assigning people to tasks, setting priorities for jobs, scheduling equipment, and controlling processes?

Execution

In a fixed-order-quantity system, when demand is uncertain, using economic order quantity (EOQ) based only on the average demand will result in a low probability of a stockout.

False

Which of the following is true of purchasing?

It can have a significant impact on total supply chain costs.

In the context of supply chain design trade-offs, which of the following is true of a push system?

It has an advantage of immediate availability of goods to consumers.

Which of the following statements is true of aggregate planning? a. It is not driven by demand forecasts. b. It includes detailed staff schedules. c. It helps in defining budget allocations and associated resource requirements. d. It does not translate forecast into production plans.

It helps in defining budget allocations and associated resource requirements.

Which of the following statements is true of the independent demand for a stock-keeping unit (SKU)? a. It needs to be calculated using the forecast of dependent demand. b. It is affected by the demand of other SKUs. c. It is directly related to the demand of raw materials. d. It needs to be forecasted.

It needs to be forecasted.

Which of the following statements is true of a fixed-period system (FPS)?

It orders sufficient stock at the time of review to bring the inventory position up to the replenishment level (M).

Which of the following is true of a master production schedule (MPS)?

It provides a means for evaluating alternative schedules in terms of capacity requirements.

Genchev Industries conducts an ABC analysis of its inventory and develops the following table from its findings. Item Annual Usage Unit Cost 1 10,960 $47.28 2 3,362 $22.80 3 8,332 $9.90 4 3,074 $22.30 5 2,968 $8.40 6 4,195 $25.00 7 4,536 $19.20 8 8,538 $60.60 9 3,484 $3.20 10 10,232 $5.70 Which of these items requires the closest scrutiny by its operations manager?

Item 1 (?)

Genchev Industries conducts an ABC analysis of its inventory and develops the following table from its findings. Item Annual Usage Unit Cost Dollar Usage 1 9,960 $43.20 $430,272 2 3,362 $22.80 $76,654 3 8,332 $9.90 $82,487 4 3,074 $22.30 $68,550 5 2,968 $8.40 $24,931 6 4,195 $25.00 $104,875 7 4,536 $19.20 $87,091 8 9,538 $65.60 $625,693 9 3,484 $3.20 $11,149 10 10,232 $5.70 $58,322 Which of these items is a C item?

Item 5 (?)

Which function of a supply chain is responsible for selecting transportation carriers and managing company-owned fleets of vehicles?

Logistics

In the context of aggregate planning options, which of the following costs are an implication of allowing stockouts?

Lost sales and customer loyalty costs

Which of the following is true of order amplification?

Order amplification in the supply chain leads to the bullwhip effect.

What are the two primary responsibilities of logistics managers?

Purchasing transportation services and managing inventories and the movement of materials and goods through the supply chain

The SCOR model is a framework for understanding supply chain management. SCOR is an acronym for

Supply Chain Operations Reference.

In location decision process, which of the following factors are considered in local site location decision?

Sustainability issues

Los Pollos Hermanosuses a measure called fill rate to measure how well they are meeting customer demand. Use of this measure is what type of decision?

Tactical (?)

Which of the following is NOT true about returns of sold goods?

The cost of returns averages between 7 to 10 percent of the cost of goods sold, but it is decreasing. (it is increasing)

Which of the following is true of process selection models?

The objective is usually to minimize cost, and typical constraints are meeting demand requirements and resource limitations.

What is the name of the capacity requirements planning report that will show how much labor is needed at each workstation on a week-by-week basis?

Work center load report (?)

At Blyrie Apparels, the apparel stocks in the firm's outlets are changed every week. This is based on the changing fashion preferences of its customers. Its managers also coordinate in real-time among its other stores and satisfy its customers' requirements. In this case, Blyrie Apparels most likely uses

a responsive supply chain.

Fastenal sends trucks from its distribution centers out to retail locations with supplies to replenish their inventory. On the way back to the distribution centers, the trucks haul packages for shipping companies from various drop-off locations along their route. This practice is known as

backhaul.

A firm that specializes in certain types of goods-producing activities, such as customized design, manufacturing, assembly, and packaging, and works under contract for end users is called a

contract manufacturer.

In the Delphi method of judgmental forecasting

experts are not consulted as a group to make predictions.

In order to mitigate the risk of insufficient workforce skills and availability, a supply chain manager should

explore multicountry sourcing options.

The quantity of a component needed to support production at the next-higher level of assembly is called

gross requirements.

In the context of measuring supply chain performance, the goal of sustainability measures is to

have a carbon-neutral supply chain.

A responsive supply chain works best when

product life cycles are short and change often because of innovation.

The forecasting technique that uses a weighted average of past time-series values to forecast the value of the time series in the next period is known as

single exponential smoothing.

The decision of where to purchase materials and how to track returns and recalls is called

sourcing.