Supply Chain Test 1

Which SCP process is defined as a hierarchical planning process that translates annual business plans, marketing plans, and demand forecast into production? a. Master Production Scheduling b. Sales & Operations Planning c. Aggregate Production Planning d. Material Requirements Planning

Aggregate Production Planning

The lowest inventory level at which a new order must be placed to avoid a stockout is known as the Break-Even Point

F

The top 2 primary functions of inventory are (1) To meet customer demand, and (2) To buffer against uncertainty in demand and/or supply. T/F

T

All nodes or links are converted by _____ and _____

Warehousing and Transportation

Which production strategy would you use if the required production skill level is low, requirements are lo, and the cost of hiring people and terminating them is low? a. Level Production Strategy b. Chase Production Strategy c. Hybrid Production Strategy

b. Chase

The goals of the SCM are to: a. Increase customer satisfaction through increased inventory and reduced operations b. Increase customer satisfaction while reducing inventory and operating expenses c. Increase customer satisfaction while increasing inventory and operation expenses

b. Increase customer satisfaction while reducing inventory and operating expenses

Which of the following is NOT one of the Constraints on the practical use of EOQ? a. Utilization b. Obsolescence c. Production Lot Size d. Safety Stock

d.

Which of the following is NOT one of the ways that carrying too much inventory can become a significant liability? a. More inventory means more space is needed to hold it, and space costs money b. Holding inventory loo long may cause it to be unusable due to expiration, obsolescence, damage, or spoilage c. Too much inventory ties up capital d. Holding more inventory usually means that a company can provide a higher customer service

d.

Which of the following is NOT one of the Fundamentals of Forecasting? a. All trends will eventually end b. The more "granular" the forecast, the more accurate it is c. Technology is not the solution to better forecasting d. A correct forecast does not prove your forecast method is correct

b. The more "granular" the forecast, the more accurate it is

The lowest inventory level at which a new order must be placed to avoid a stockout is known as? a. safety stock b. reorder point c. public review system d. cycle stock

b. reorder point

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

F

Which of the following MRP terms represents a committed order awaiting delivery for a specific period? Projected on-hand inventory Time bucket Net requirement Scheduled receipt

Scheduled receipt

Which inventory stock level is generally used for a very specific purpose or future event, and for a defined period of time?

Strategic Stock

Based on the following diagram, which selection correctly identifies the Manufacturer's Tier 1 supply chain partner(s)? Supplier A => Supplier B => Supplier C => Manfuacturer => Customer C => Customer B => Customer A

Supplier C and Customer C

Supply Chain Planning is the element of SCM responsible for determining how best to satisfy the requirements created by the Demand Plan? True False

True

The MPS represents? a. the maximum amount the company can produce in any time period? b. what the company plans to produce c. what the customer wants d. the component parts and materials required to manufacture a product

b. what the company plans to produce

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? a. trend b. random c. seasonal d. cyclical

c.

Which forecasting model uses mathematical models and historical data to make forecasts? a. approximate b. conditional c. qualitative d. quantitative

quantitative

What is Supply Chain Management?

the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. ------------- is more than planning and overseeing the flow of goods and services through the channel, is also about establishing strong relationships with the chain partners by having a direct communication and constant collaboration, making the whole chain network succeeds. Thus, also proving an efficient performance as Supply Chain Manager.

A type of inventory system that issues an order whenever a withdrawal is made from inventory, is known as?

Base Stock Level System

What does the acronym CPFR represent?

Collaborative Planning, Forecasting, & Replenishment

Which one of the following is NOT one of the four Foundations of Supply Chain Management? Operations Management Logistics Management Integration Demand Management Supply Management Demand Management

Demand Management

What are two basic Supply Chain Capability Models?

Efficient and Responsive Model

Service firms offer intangible products (meaning products that cannot be physically touched), therefore, they do not have a supply chain T/F

F

There are no inventories in the service industry T/F

F

Companies today are focused on vertical integration encompassing the ownership and coordination of all supply chain activities while also outsourcing their own competencies True False

False

Logistics is another term for transportation True False

False

The Bullwhip Effect occurs because suppliers and manufacturers do not make enough inventory to satisfy demand True False

False

The goal of Supply Chain Management is to increase customer service by increasing inventory and reducing costs T/F

False

Inventory costs that are independent of the output quantity are called?

Fixed Costs

A supply chain consists of:

Suppliers, Manufacturers, and Customers, facilitated through the use of logistics

Cause-and-Effect Models can have multiple independent variables

T

Supply Chain Management starts with understanding the flow T/F

T

The Economic Order Quantity (EOQ) is the optimal order size because it minimizes the annual total inventory cost. T/F

T

The Qualitative forecasting method is based on opinion & intuition T/F

T

As the supply chain continues to evolves, it's critical for companies to a. increase inventory levels b. outsource their core competencies c. adapt to emerging technologies and strategies

adapt to emerging technologies and strategies

Which one of the following is NOT a common mode of transportation in the supply chain? Rail Air Bus Truck Pipeline Water

bus

The following diagram depicts the anticipatory (or push) business model. Sell Product(s) to Customer => Create Supply Plan =>Buy Materials to Produce Product(s) => Manufacture Product(s) => Deliver Product(s) to Customer

yes

___________________ measures the size of the forecast error in units. It is calculated as the average of the unsigned errors over a specified period of time

MAD

Are the following two absolute deviations correct? 1. 500 Actual - 300 Forecast = 200 Absolute 2. 500 Actual - 700 Forecast = -200 Absolute yes/no

No

The medium-range capacity planning technique used to check the feasibility of the Master Production Schedule (MPS) is called?

Rough-cut Capacity Planning (RCCP)

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

T

The goal of supply chain planning is to balance supply and demand in a way that realizes the financial and service objectives of the company.

T

The three basic production strategies are the chase production strategy, the level production strategy, and the mixed (or Hybrid) production strategy.

T

The primary purpose of the basic economic order quantity model is?

To minimize the sum of the ordering costs and the carrying costs

Cause and Effect forecast models use the historical relationship between an independent variable and a dependent variable to predict the future values of the dependent variable True False

True

Which inventory system classifies inventory based on the degree of importance in order to determine which inventories should be counted and managed more closely? a. ABC System b. Bin System c. Base Stock Level System d. Single-Period inventory Model

a. ABC

which is true? A. Supply chain management was invented by the auto manufacturing industry B. Strategic partnerships are seen as one of the foundations of supply chain management C. Purchasing is seen as the final and most difficult step in the supply chain D. Logistics and Supply Chain Management are synonymous terms (i.e., they mean the same thing).

b.

Which of the following inventory types is characterized as "inventory used for a very specific purpose or future event, and for a defined period of time"? a. cycle stock b. safety stock c. strategic stock d. pipeline inventory

c.

Which of the following is not a Time Series forecasting technique? a. SImple Moving Average b. Naive Forecast c. Historical Analogy d. Weighted Moving Average

c. Historical

Which term used in Material Requirements Planning is defined as the number/quantity of each component or material needed to produce a single unit of parent item? a. lot size b. safety stock c. net requirements d. planning factor

d.

Successful modern supply chain management typically includes the practice of? A. Keeping high inventories throughout the supply chain B. Always purchasing materials with the lowest per unit cost C. Collaborating and sharing information between supply chain partners D. Issuing ultimatums to your supply chain partner

Collaborating and sharing information between supply chain partners

Forecasts are more accurate the farther out into the future that you forecast

F

Independent Demand is demand for an item that is directly related to other items or finished products, such as a component or material used in making a finished product

F

Master Production Scheduling is a process that brings all the demand and supply plans for the business (sales, marketing, development, production, sourcing, and finance) together to provide management with the ability to strategically direct the business to achieve a competitive advantage T/F

F

Material Requirement Planning is the hierarchical planning process that translates annual business plans, marketing plans, and demand forecasts into a production plan for a product family in a plant or facility

F

The Chase Production Strategy relies on a constant output rate and capacity while varying inventory and backlog levels to handle the fluctuating demand pattern.

F

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

True

Costs for physically having inventory on-site, and for maintaining the infrastructure needed to store the inventory and to secure and insure it over time are referred to as? a. carrying costs b. variable costs c. fixed costs d. order costs

a.

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? a. Distribution Requirements Planning System b. Enterprise c. Resource d. Advanced

b.

Which one of the following is NOT one of the four reasons to hold inventory? a. To decouple dependencies int he supply chain b. to avoid obsolescence c. to decouple supply from demand d. to buffer against uncertainty in demand and/or supply

b.

Which of the following is NOT one of the advantages of Material Requirements Planning? a. Facilitates lower inventory levels b. Helps to optimize the use of production resources and lower costs c. Ignores capacity. Focuses on what is needed and when, regardless of capital d. On-time availability of the right materials required for production

c. Ignores capacity

Companies establish Times Fences in order to? a. Limit the amount of time production planners have to create orders b. Measure how long it takes to produce products c. Minimize the impact of changes and costly disruptions

c. minimize

To calculate the Economic Order Quantity (EOQ), you need all of the following, except a. Carrying Cost b. Order Cost c. Annual Demand Volume d. Reorder Point

d.

Which type of Demand is forecasted? a. dependent b. conditional c. independent d. tentative

independent

The process of converting a parent item's planned order releases into component gross requirements is called? Pegging Bill of Materials Lot Size MRP explosion

MRP explosion

Which one of the following is NOT a type of qualitative forecasting? a. Sales force composite b. Consumer survey c. Jury of executive opinion d. Naïve method

Naive Method

The SCOR model is

Plan, Source, Make, Deliver/Return, Enable

In the absence of any other information or visibility, individual supply chain participants can begin second-guessing what is happening with ordering patterns, and potentially start over-reacting. This is known as?

The Bullwhip Effect

Which of the following is NOT an example of an ordering cost for products purchased from a supplier? a. The cost of transmitting the order b. The cost of receiving the product c. The cost associated with processing the invoice d. The opportunity cost of not ordering from a least cost supplier e. The cost of handling the product

The lost opportunity cost of not ordering from a lower-cost supplier

One of the main differences between Barcodes and RFID is that Barcodes require direct line of sight to read the information, and RFID does not True False

True

Companies in the service industry do not have a real supply chain because they offer intangible products true false

false

Which of the following is an engineering document that shows an inclusive listing of all the component parts and assemblies making up the final product? Master Production Schedule Bill of Materials Distribution Requirement Plan Resource Requirement Plan

Bill of Materials

When creating a quantitative forecast, data should be evaluated to detect for a repeating pattern of demand from year to year, or over some other time interval, with some periods of considerably higher demand than others. This is known as a?

Seasonal Variation

Organizations that choose to implement one single system with all of the desired applications from a single vendor is said to have chosen a?

Single integrator solution