Supply Chain Management- Test 1

What technology stores information on a small electronic device which can be attached to an object and read from up to several feet away, without the need for direct line-of-site?

Correct answer: Radio Frequency Identification

When creating a quantitative forecast, if you detect a pattern of demand data that shows a wavelike pattern that last longer than 1 year and can extend over multiple years. This is known as what type of variation?

Cyclical Variation

Logistics is another name for transportation.

False

The goal of Supply Chain Management is to increase customer service while increasing inventory and reducing costs.

False

The process of combining statistical forecasting techniques and judgment to construct demand estimates for products or services is known as Collaborative Planning, Forecasting, and Replenishment

False

The service industry does not maintain any inventory, because services cannot be inventoried.

False

To handle a fluctuating demand pattern, the Level Production Strategy adjusts the production rate and capacity to exactly match demand.

False

The business model that consists of producing finished products on the basis of anticipated demand is?

Make-to-Stock

Which one of the following is NOT a common mode of transportation in the supply chain?

Car

Which basic production strategy would you use if the required skill level of the production workers is low, the training requirements are low, and the cost of hiring people and terminating them is also low?

Chase Production Strategy

The process of combining statistical forecasting techniques and judgment to construct demand estimates for products or services is known as?

Demand Planning

What are the two basic Supply Chain Capability Models?

Efficient Model and Responsive Model

Which of the following forecasting methodologies is considered a qualitative forecasting technique?

Historical Analogy

Which type of demand is forecasted?

Independent Demand

Material Requirements Planning (MRP) requires all of the following EXCEPT?

The Rough-cut Capacity Planning information

Which of the following is described as an information system connecting all the functional areas and operations of an organization via common software infrastructure and database?

Enterprise Requirement Planning System

Which one of the following would be considered an inventory ordering cost?

Transportation Costs

Supply Chain Planning is the element of Supply Chain Management responsible for determining how best to satisfy the requirements created by the Demand Plan.

True

The Qualitative forecasting method is based on opinion & intuition

True

The Supply Chain Capability Model designed to minimize cost is known as the Responsive model.

False

Companies establish Time Fences in order to?

Minimize the impact of changes and costly disruptions

The number/quantity of each component or material needed to produce a single unit of the parent item, is known as the

Planning Factor

The inventory control tool that does not require direct line of sight to read the tag on a product(s), is known as

Radio Frequency Identification

The lowest inventory level at which a new order must be placed to avoid a stockout is known as?

Reorder Point

To calculate the Economic Order Quantity, you need all of the following elements, EXCEPT?

Reorder Point

The part of supply chain management that deals with the process of moving goods specifically from the point of consumption back to the point of origin for return, repair, reclamation, remanufacture, recycling, or disposal, is known as

Reverse Logistics

Which of the following is NOT an example of an ordering cost for products purchased from a supplier?

The opportunity cost of not ordering from a least cost supplier

When a supply chain planner talks about using the BOM to do an MRP Explosion, they are talking about?

The process of converting a parent item's planned order releases into component gross requirements

Which one of the following is NOT a function of inventory (i.e., NOT a reason to hold inventory)?

To increase cash flow

When creating a quantitative forecast, if you detect a pattern of demand data that shows a movement of a variable over time. This is known as what type of variation?

Trend Variation

Independent Demand is demand for an item that is unrelated to the demand for other items, such as a finished product, a spare part, or a service part.

True

It was intense global competition that led manufactures to adopt Supply Chain Management (SCM) and other practices such as Just-in-Time (JIT)

True

The four broad categories of inventory are raw materials, work-in-process, MRO, and finished goods

True

The key disadvantages of the Material Requirements Planning (MRP) system include; loss of visibility, and the fact that MRP ignores capacity and shop floor conditions.

True

What part of supply chain management deals with the process of moving goods specifically from the point of consumption back to the point of origin for repair, reclamation, remanufacture, recycling, or disposal?

Reverse Logistics

Which type of forecast variation involves a pattern of variation within one year that can be repeated from year-to-year? Typically has some period of considerably higher demand.

Seasonal Variation

Why would a company want to use ABC analysis when managing their inventory?

So they can focus their limited resources on the items that have the highest inventory value

The Master Production Schedule (MPS) represents what the company plans to produce expressed in specific product configurations, quantities, and dates.

True