bus3750
89. There are many applications of poka-yokes in service organizations. Which is one of the three T's used to classify poka-yokes? a) Task b) Time c) Teamwork d) Trust e) Treatment
a) Task
81. According to the textbook, which of these starts a project: a) a statement of work b) Critical path method analysis c) A series of milestones d) A Gantt chart e) A latest start time estimate
a) a statement of work
142. k = DL*(1+S) / C In setting up a Kanaban control system you need to determine the number of Kanban card sets needed. If the expected demand during lead time is 25 per hour, the safety stock is 20% of the demand during lead time, the container size is 5, and the lead time to replenish an order is 5 hours, what is the number of Kanban card sets needed? A. 5 B. 20 C. 27 D. 30 E. 34
D. 30
124. Which is NOT a component of inventory carrying (holding) cost? A. Annualized cost of materials B. Handling C. Insurance D. Pilferage E. Storage space
A. Annualized cost of materials
149. Inventory turnover equals____? A. Cost of gods sold divided by average aggregate inventory value B. Sales cost divided by marketing costs C. Cost of goods sold divided by cost to sell goods D. Fixed costs divided by variable costs E. Operations flow costs divided by supplier flow costs
A. Cost of gods sold divided by average aggregate inventory value
18. As discussed in class, a firm's competitive strategy___? A. Defines the set of customer needs the firm wants to serve B. Depends on the firms weighted average cost of capital C. Depends on whether or not the firm uses the accrual method of accounting D. Depends on whether the firm's organizational structure is flat or hierachial E. None of the above are true of a firm's competitive strategy
A. Defines the set of customer needs the firm wants to serve
159. In Hau Lee's uncertainty framework for classifying supple chains, a supple chain for functional products with a stable supply process is called__? A. Efficient B. Forward-looking C. Agile D. Risk-hedging E. Responsive
A. Efficient
141. According to the text, in a lean environment, to maximize value creation a firm might __? A. Eliminate anything that does not add value for customers B. Standardize product configurations C. Design process simultaneously with product D. Adopt a management-by-exception philosophy E. Implement top-down management controls
A. Eliminate anything that does not add value for customers
42. Which is accurate? A. Given uncertainty in demand and/or lead time duration, reorder point = expected demand during lead time + safety stock B. Given a supplier is altering a quantity discount, under the terms of the discount the buying firm must order at least ½ its annual usage to qualify for the discount C. Safety stock is always required, whether or not demand and/or lead time are uncertain D. All of the above are accurate E. None of the above are accurate
A. Given uncertainty in demand and/or lead time duration, reorder point = expected demand during lead time + safety stock
49. According to the video "production activity control" bottleneck operations have cycle times that are ___ the takt time. A. Greater than B. Less than C. Equal to D. Independent of E. Irrelevant to
A. Greater than
147. Which of these is organizationally-driven reason of outsourcing? A. Improve effectiveness by focusing on what the firm does best, i.e, core competency strategy B. Turn fixed costs into variable costs C. Reduce costs by shrinking the cost structure and increased flexibility D. Improve risk management improve credibility and imagine by associating with superior suppliers
A. Improve effectiveness by focusing on what the firm does best, i.e, core competency strategy
131. According to the text, in a lead production process, a stabilized schedule is achieved through the use of? A. Level scheduling B. Demand pull C. Freeze windows D. Reduced lot sized
A. Level scheduling
25. In simple exponential smoothing forecasting, as the value of the smoothing constant (a) increases, ____ emphasis is put on the most recent data, so the forecast becomes____ responsive. A. More; more B. Less; less C. More; less D. Less; more E. Can't answer with the info provided
A. More; more
47. In the plan do check act (PDCA) cycle, "Do" means____ A. Perform according to plan B. Compare actual performance is expected performance C. Set objectives D. Eliminate waste E. All of the above
A. Perform according to plan
35. The cost of controlling quality includes which of these? A. Prevention & appraisal costs B. Prevention & material costs C. Appraisal & capacity costs D. Any of the above E. None of the above
A. Prevention & appraisal costs
150. According to the textbook, acquisition costs include which of these? A. Quality costs B. Maintenance and repair costs C. Environmental costs D. Supply chain costs
A. Quality costs
135. According to the textbook, which of these is a benefit of group technology (GT)? A. Reduced waiting time between process operations B. Improved inventory discipline C. Reducing required workforce skills D. Improved labor relations E. Improved small group functioning
A. Reduced waiting time between process operations
9. As discussed in class, which is true about supply chain profitability? A. Supply chain profitability is defined as the total profit generated by all entities in the supply chain B. Supply chain success in defined in terms of the profit generated by the largest (in terms of revenue) entity in the supply chain C. The customer is not the only source of positive cash flow into the supply chain D. All of the above are true about supply chain profitability E. None of the above are true about supply chain profitability
A. Supply chain profitability is defined as the total profit generated by all entities in the supply chain
27. In production planning, the concept of capacity refers to___? A. The capability of the business process to produce & deliver output B. The number of elements in the business process C. Market demand for output D. The cost of inputs E. None of the above
A. The capability of the business process to produce & deliver output
32. The product design dimension of quality refers to____? A. The design of the product must incorporate the basic quality requirements necessary to give the item the attributes (appearance, price, expected performance) identified through market research. B. The ability of the manufacturing process to achieve the precision necessary to meet the specifications and tolerances established in thee product design C. The items fitness for the use to which the consumer will put it D. All of the above E. None of the above
A. The design of the product must incorporate the basic quality requirements necessary to give the item the attributes (appearance, price, expected performance) identified through market research.
8. As discussed in class, efficiency refers to_____? A. The ratio between inputs & outputs (i.e. an efficient firm maximizes output per unit of input) B. A firm making cost minimization its highest priority & most important goal for supply chain managers C. "doing the right thing" D. The cost advantages achieved from total vertical integration
A. The ratio between inputs & outputs (i.e. an efficient firm maximizes output per unit of input)
26. As discussed in class, capacity available is____? A. The total amount of output the process can generate in a given amount of time B. Actual time minus down time C. Run time per unity times batch quality D. Total output minus defective output E. None
A. The total amount of output the process can generate in a given amount of time
30. In a make to stock environment, total production required for a level production plan is given by___? A. Total production required= total forecast + back orders + ending inventory - beginning inventory. B. Total production required= total forecast - backorders- ending inventory + beginning inventory. C. Total production required = total forecast - backorders + ending inventory - beginning inventory. D. Total production required= total forecast + back orders - ending inventory + beginning inventory. E. Total production required = total forecast + back orders - ending inventory - beginning inventory.
A. Total production required= total forecast + back orders + ending inventory - beginning inventory.
13. Supply and demand planning is needed to coordinate manufacturing, service and supply chain processes. A. True B. False
A. True
16. The term "value" refers to the relationship between quality and price paid by the consumer. A. True B. False
A. True
17. Effectiveness means doing the right things to create the most value for the company. A. True B. False
A. True
58. According to the video "lean production", visual control techniques can be used to indicate if a process is becoming unbalanced. A. True B. False C. Neither D. Either E. Cannot answer with info provided
A. True
121. TC= Q/2 x H + D/Q x S + D x C A company is planning for its financing needs t and uses the basic fixed order quantity inventory model. Calculate total annual cost given annual demand = 10,000 units, set up cost = $32 per set up, inventory carrying (holding) cost = $4 per unit year, order quantity = 400 units and value per unity of inventory = $150. A) 1,501,600 B) 1,498,200 C) 500,687 D) 499,313 E) Cant answer with the information provided.
B) 1,498,200
129. EDQ = (2ds/ iC) = (2DS/ H) ()= square root If annual demand is 35000 units, order cost = $50 per order and carrying (holding) cost = $0.65 per unit per year, the economic order quantity (edq) = __? Round mathematically to nearest integer! A. 5060 B. 2320 C. 2133 D. 2004 E. 1866
B. 2320
128. A company has recorded the last six days of demand (in units per day) on their only product: those values are 37,115, 93, 112, 73, and 110. The time from when a replenishment order is placed until it is delivered in 3 days. Calculate the reorder point ® assuming the firm uses a fixed order quantity inventory management approach and no safety stock is required. R= Daily demand * Lead Time A. 540 B. 270 C. 115 D. 90 E. 60
B. 270
158. Inventory turnover = (COGS/ Average aggregate inventory value) If the average aggregate inventory value equals 100,000 and the cost of goods sold is 450,000, inventory turnover of this item is? A. 19.23 B. 4.5 C. 0.8654 D. 0.2222 E. Cant answer with information provided
B. 4.5
127. Assuming no safety stock, what is the reorder point ® given average daily demand of 50 units, lead time of 10 days and 625 units on hand? R= Daily demand * Lead Time A. 550 B. 500 C. 715 D. 450 E. 475
B. 500
154. According to the textbook, ___ is defined as the total value (at cost) of all items held in inventory by the firm. A. Cost of goods to be sold B. Average aggregate inventory value C. Weeks supply of goods D. Inventory turnover E. None of the above
B. Average aggregate inventory value
139. _____ is where the inventory balances of parts that go into each unity of output are periodically adjusted based on actual production output. A. A frozen window B. Backflush C. Level schedule D. Group technology E. Kanban
B. Backflush
59. According to the video "lean production" which is not of the 5 C's? A. Custom and practice B. Coherency C. Configure D. Clean and check E. Conformity
B. Coherency
53. According to the video continuous process improvement ___ is a "fourth factor" influencing a firm's ability to gain and sustain competitive advantage from its supply chain. A. Information technology B. Computer- integrated manufacturing C. Partnerships with suppliers and customers D. Extrinsic innovation E. All of the above
B. Computer- integrated manufacturing
144. Which of these is NOT an improvement-driven reason for outsourcing? A. Improve quality and productivity B. Enhance effectiveness by focusing on what the firm does best. i.e., core competency strategy C. Improve risk management
B. Enhance effectiveness by focusing on what the firm does best. i.e., core competency strategy
155.Which of these is an improvement-driven reason for outsourcing? A. Shorten cycle times B. Improve effectiveness by focusing on what the firm does best, i.e, core competency strategy C. Increase product and service value by improving response to customer needs D. Turn fixed costs to variable costs
B. Improve effectiveness by focusing on what the firm does best, i.e, core competency strategy
132. According to the text, which is true of a Kanban production control system? A. The authority to produce or supple addition parts comes from upstream operations B. In a paperless control system, containers can be used instead of cards C. The cards or containers make up the Kanban push system D. They require substantial quantitative analysis prior to implementation E. They have not been successful outside Japan and the U.S
B. In a paperless control system, containers can be used instead of cards
145. Which of these is NOT an improvement-driven for outsourcing? A. Improve risk management B. Increase commitment in a non-core area C. Shorten cycle times D. Improve quality and productivity E. Obtain expertise, skills and technologies not internally available to the buying firm
B. Increase commitment in a non-core area
41. If the order quantity is increased, the annual cost of carrying inventory will ___ because _____ will____ A. Decrease; average inventory; increase B. Increase; average inventory; increase C. Decrease; opportunity cost of capital; decrease D. Increase; opportunity cost of capital; increase E. None of the above
B. Increase; average inventory; increase
133. According to the text, which is a lean production technique that has been successfully implemented by service delivery firms? A. Decision tree analysis B. Level loading C. Linear programming
B. Level loading
137. According to the Textbook which is a type of waste a firm should eliminate? A. Excess quality B. Motion C. Excess capacity D. Underproduction E. Excess demand
B. Motion
138. According to the textbook which of these is a type of waste a firm should eliminate? A. Excess quality B. Overproduction C. Underproduction D. Environmental
B. Overproduction
57. According to the video continuous process improvement, a "critical challenge", firms face in gaining and sustaining competitive advantage from their supply chain is that their relationships with their supply chain allies (supplier and customers) must be ___ and not ____? A. Adversarial; collaborative B. Positive; characterized by suspicion and hostility C. Technical; legal D. Legal; technical E. None of the above
B. Positive; characterized by suspicion and hostility
21. As discussed in class, which is one of the three steps to achieving strategic fit? A. Accurately forecast future economic activity levels in global markets B. Understand the current capabilities of the firms supply chain processes C. Determine the optimal organization structure for the firm's sales force D. All of the above E. None of the above
B. Understand the current capabilities of the firms supply chain processes
60. According to the video "lean production", which is one of the 7 wastes? A. Unnecessary analysis B. Unnecessary transportation of work in process C. Unnecessary evaluation D. Unnecessary inspection E. All of the above
B. Unnecessary transportation of work in process
6. As discussed in class, supply chain priorities are defined in terms of___? A. The requirements of the most important single customer B. What products or services are needed, in what quantities, by what time C. What the CEO thinks is most important D. What financial market analysts recommend E. The consensus of the firms sales force regarding what they think they can sell
B. What products or services are needed, in what quantities, by what time
123. which is a reason firms hold inventory? A) to maintain dependence of operations B) to help labor for feel their jobs are secure C) To meet Variation in item demand D) To Hedge against wage increases
C) To meet Variation in item demand
157. Weeks of Supply = (Average aggregate Inventory Value/ Costs of goods Sold) * 52 weeks If the average aggregate inventory value equals $1,200,000 and the cost of goods sold is 600,000, weeks supple of this item = ___? A. 1040 B. 606 C. 104 D. 60.6 E. 2.0
C. 104
19. As discussed in class, which is not an obstacle to achieving strategic fit? A. Product proliferation B. Decreasing product life cycles C. Advanced information and communication technology D. Globalization E. Increasingly demanding customers
C. Advanced information and communication technology
38. The cost of failure to control quality includes which of these? A. Cost of scrap, rework & spoilage B. Cost of warranty claims C. All of the above D. None of the above
C. All of the above
12. According to the text, " success in today's global markets requires a business strategy that matches the preferences of customers with the realities of supply networks" as discussed in class, the challenge this presents in supply chain managers it to____? A. Balance priorities and capacities B. Find ways to minimize the cost of each and every supply chain activity C. Balance process efficiency with process responsiveness D. All of the above E. None of the above
C. Balance process efficiency with process responsiveness
146. ____ is the term used to describe the consequences of lack of coordination among supply chain members. A. Forward buying B. Continuous replenishment C. Bullwhip effect D. Metcalf's Law
C. Bullwhip effect
1. As discussed in class, business process capacity refers to_____? A. The production technology used to generate output B. The physical size of the facilities used to generate output C. Capability to produce & deliver whatever customers demand D. The cost of the labor of the firm uses to generate output E. None of the above
C. Capability to produce & deliver whatever customers demand
44. In the plan do check act (PDCA) cycle, "check" means___ A. Set objectives B. Eliminate waste C. Compare actual outcomes to planned (desired) outcomes D. Reward managers E. In the PDCA cycle, "check" means all of the above
C. Compare actual outcomes to planned (desired) outcomes
11. As discussed in class, the objective of supply chain planning is to "define a set of operating policies to control operations and optimize process performance. The supply chain ___ imposes constraints on supply chain planning. A. Agglomeration B. Rhocreation C. Design D. All of the above impose constraints on supply chain planning E. None of the above impose constraints on supply chain planning
C. Design
151. When considering outsourcing, firms should be sure to avoid ___. A. Losing control on non-core activities which don't distinguish them B. Allowing outsourcing to become a substitute for innovation C. Giving the outsourcing partner opportunities to become a strong competitor D. Allowing employees transferred to the outsourcing partner to rejoin the firm E. Adverse corporate tax implications of asset transfers to outsourcing partners
C. Giving the outsourcing partner opportunities to become a strong competitor
125. Which of these represents all the costs considered in the fixed order quantity (EDQ) model of total annual cost function? A. Purchase cost, order cost, fixed cost. B. Holding cost, order cost, unit cost C. Holding cost, order cost, purchase cost D. Lead time cost, holding cost, purchase cost
C. Holding cost, order cost, purchase cost
148. Which of these examples of Fisher's product categories included fashionable clothing and other products that typically have a very brief life cycle? A. Functional B. Dysfunctional C. Innovative
C. Innovative
130. According to the text, implement a flow process in a lead production environment, a firm might do which of these? A. Improve capacity utilization B. Build product in anticipation of demand C. Reduce setup/changeover time D. Eliminate some fixed cost E. Implement groupware
C. Reduce setup/changeover time
156. According to the textbook, ownership costs include which of these? A. Environmental costs B. Warranty costs C. Supply Chain costs D. Quality costs E. Taxes
C. Supply Chain costs
153. A firm incurs ownership costs after the initial purchase. Ownership costs are associated with the ongoing use of an item. Which of these is not, according to the textbook, an ownership cost? A. Financing costs B. Energy costs C. Taxes
C. Taxes
34. The manufacturing dimension of quality refers to___? A. The number of "herbies" in the manufacturing process B. The tradeoff between capacity & priority C. The ability of the manufacturing process to achieve the precision necessary to meet the specification & tolerances established in the product design D. The tradeoff between efficiency responsiveness E. None of the above
C. The ability of the manufacturing process to achieve the precision necessary to meet the specification & tolerances established in the product design
48. The video "assembly line" describes manufacturing flexibility as: A. The ability to maximize output per unit input B. The ability to minimize labor cost per unit of output C. The ability to produce whatever the market demands, whenever they demand it D. The ability to minimize total cycle time E. The ability maximize output per unit of floor space
C. The ability to produce whatever the market demands, whenever they demand it
7. As discussed in class, supply chain efficiency is measured in terms of____? A. The total dollar investment in inventory required to operate the supply chain B. The total dollar axpendture on freight transportation incurred to operate the supply chain C. The cost of making & delivering products to customer D. The total supply chain cost of the dominant firm is the supply chain E. None of the above
C. The cost of making & delivering products to customer
136. Imagine comparing a manufacturing operation using regular lot-sizing and the same operation with a Kanban/lean production approach. What difference would you expect between the total cost (i.e., inventory holding cost + setup/ordering costs) of each approach? A. Inventory holding cost increases non-linearly with inventory investment B. Total cost will be lower for the regular lot size operation C. Total cost will be lower for the lean production/Kanban operation
C. Total cost will be lower for the lean production/Kanban operation
52. According to the video continuous process improvement, teamwork is important for achieving significant results from continuous process improvement (CPI) efforts because ___ A. Involving the people whose jobs are affected by improvement findings reduces feelings of alienation and resistance to change B. Teamwork increases understanding of the reasons why process methods are changing C. Teamwork helps disseminate best practices throughout an organization D. According to the video, all of the above E. According to the video, on B and C are correct.
D. According to the video, all of the above
50. According to the video continuous process improvement, which is not one of the dimensions of performance in which customers are demanding consistent improvements? A. Quality B. Cost C. Delivery D. Assortment E. According to the video, none of the above
D. Assortment
39. Which is not one of the six basic concepts of total quality management (TQM)? A. Focus on the customer B. Whole person concept C. Continuous process improvement D. Collaborative relationships with supply chain allies E. Senior management should not be involved in the initiation of TQM programs.
D. Collaborative relationships with supply chain allies
143. Which of these is one of the strategic characteristic to consider when deciding how supplier relationships should be structured on the continuum between vertical integration (do not outsource) to arm's length relationships (outsource)? A. Cost B. Location C. Investment D. Coordination E. Control
D. Coordination
15. As discussed in class, which is not one of the process cycles of supply chain? A. Replenishment cycle B. Manufacturing cycle C. Procurement cycle D. Financial cycle E. As discussed in class all of the above are process cycles of the supply chain
D. Financial cycle
140. According to the text, which lean production technique has not been successfully implemented in service firms? A. Organize problem-solving groups B. Upgrade housekeeping C. Upgrade quality D. Freeze windows
D. Freeze windows
160. According to the textbook, Which of these is NOT a criterion that influences manufacturing plant or warehouse facility location decisions? A. Suppliers B. Free trade rumors C. Political risk D. Gross national product E. Tariffs & customs duties
D. Gross national product
152. Which of these is NOT an organizationally-driven reason for outsourcing? A. Improve effectiveness by focusing on what the firm does best. i.e, core competency strategy B. Improve flexibility to meet changing demand from products and services C. Increase product and service value by improving response to customer needs D. Improve credibility an image by associating with superior suppliers E. All of the above are organizationally-driven reasons for outsourcing
D. Improve credibility an image by associating with superior suppliers
51. According to the video continuous process improvement, which is not an advantage of increasing "right first time" quality? A. Decreased re-work B. Decrease in labor time spent replacing defective output C. Decrease wasteful consumption of materials D. Increased labor availability for value-added production E. According to the video, all of the above.
D. Increased labor availability for value-added production
37. Performance measurement is one of the six basic concepts of total quality management (TQM) which, in a TQM environment, is not a use for performance measurement data? A. Identifying processes that need improvement B. Comparing actual performance with planned performance so corrective action can be taken C. Evaluate alternative processes D. Minimize the number of equipment setups required to complete scheduled production E. Evaluate employee performance
D. Minimize the number of equipment setups required to complete scheduled production
2. As discussed in class, business process priorities come from ____? A. Senior management B. Financial markets C. Simulation modeling results D. Process customers E. None of the above
D. Process customers
134. According to the textbook which of these is a type of waste a firm should eliminate? A. Underproduction B. Excess Quality C. Preventive maintenance D. Product defects E. Kaizen
D. Product defects
20. As discussed in class, which is not a component of operations and supply strategy? A. Supplier strategy B. Logistics strategy C. Production strategy D. Promotion strategy E. None of the above are components of operations and supply strategy
D. Promotion strategy
10. As discussed in class, cash to cash cycle time refers to___? A. The credit terms a firm grants its customers B. The credit terms a firm gets form its suppliers C. The amount of time it takes a firm's bank to post deposits to the firms account D. The amount of time it takes a firm to collect accounts recievables from customers once the firm has paid its accounts payable to suppliers E. As discussed in class, cash to cash cycle time refers to none of the above.
D. The amount of time it takes a firm to collect accounts recievables from customers once the firm has paid its accounts payable to suppliers
5. As discussed in class, the short run, business process capacity is____? A. Variable over a very wide range of output levels ( from very small to huge) B. Absolutely fixed, with no ability whatsoever to adjust (increase or decrease) output levels even slightly C. Not an issue for business process managers D. The quantity of work that labor & equipment can perform in a given time period E. None of the above are true about business process capacity
D. The quantity of work that labor & equipment can perform in a given time period
29. Which is not a question for production planning? A. What are we going to make? B. What does it take to make it (labor, equipment, materials)? C. What do we have? D. What do we want? E. What do we need?
D. What do we want?
126. TC= Q/2 x H + D/Q x S + D x C Using the basic total annual cost formula for the fixed order quantity model, calculate annual order cost given annul demand = 36,000 units, cost per order = $80, inventory carrying (holding cost = $4 per unit per year and order quantity = 1200 units. A. 849 B. 1200 C. 1889 D. 2267 E. 2400
E. 2400
3. As discussed in class, a firms business process capacity depends on resources such as: A. Equipment B. Labor C. Material D. Capital E. All of the above
E. All of the above
46. Which is not a key characteristic of lean production A. Flow manufacturing B. Uniform plant loading C. Pull system D. Level scheduling E. All of the above
E. All of the above
56. According to the video Continuous process improvement, which is not an order qualifier in today's competitive environment? A. High quality standards B. Zero defects C. Tight delivery schedules D. Reduced costs E. All of the above
E. All of the above
22. As discussed in class, which is not an aspect of supply chain responsiveness? A. Ability to respond to a wide range of demand quantities B. Ability to meet short lead times C. Ability to handle a wide variety of products D. Ability to develop highly innovative products E. All of the above are aspects of supply chain responsiveness
E. All of the above are aspects of supply chain responsiveness
54. According to the video continuous process improvement, which is not an important factor for achieving significant results from continuous process improvement efforts? A. Structured approach B. Systematic investigation C. In company teams D. Support and commitment form senior management E. All of the above.
E. All of the above.
23. As discussed in class, which is not true regarding tradeoffs? A. A tradeoff is an operational relationship between two elements of a process B. Tradeoffs arise when the cost or performance of one process element affects the cost or performance of another process element C. The effectiveness of a firm's operations and supply chain to support the firms competitive strategy depends significantly on whether the firm's supply chain strategy appropriately balances the tradeoffs inherent in the supply chain process D. The firm should always manage tradeoffs to minimize the cost of the process elements that make up the tradeoff E. Balancing efficiency and responsiveness is a strategic tradeoff
E. Balancing efficiency and responsiveness is a strategic tradeoff
45. In the plan do check act (PDCA) cycle, "act" means___ A. Perform according to plan B. Set objectives C. Compare actual outcomes to planned (desired) outcomes D. Gather & display all performances data relevant to the task E. Correct assignable causes of variation between planned & actual outcomes
E. Correct assignable causes of variation between planned & actual outcomes
24. As discussed in class, which is not an example of a customer priority significant for operations and supply strategy? A. Cost B. Response time C. Variety D. Quality E. Digital advertising
E. Digital advertising
14. As discussed in class, which is not an advantage of a responsive supply chain? A. Reduce waiting time B. Reduction in defective work in process C. Shorter cash to cash cycle time D. Faster discovery of production defects E. Inherently lower cost of inventory
E. Inherently lower cost of inventory
4. As discussed in class which is not a dimension of supply chain responsiveness? A. Effectively satisfy a wide range of demand quantities B. Effectively meet short lead times C. Provide high availability D. Effectively produce & distribute a wide variety of products or services E. Maximize the number of geographic locations in which the supply chain maintains physical facilities (e.g. manufacturing plans and/or warehousing distribution centers)
E. Maximize the number of geographic locations in which the supply chain maintains physical facilities (e.g. manufacturing plans and/or warehousing distribution centers)
40. Given the total cost formula presented in ch 13 of the textbook TC = DC + D/Q S + Q/2 H, the cost expressed as DC is annual ___? A. Inventory carrying cost B. Order/set up cost C. Warehousing cost D. Transportation cost E. Purchase (procurement) cost
E. Purchase (procurement) cost
98. NR2= (GR2 +SS)- PAB T-1 + SRt ) If safety stock is ) , gross requirement is 1,250, the projected inventory at the end of the previous period is 50 and the scheduled receipts are 0, the net requirement is _____? a) 1,200 b) 1,300 c) 1,150
a) 1,200
112. Statistical process control (SPC) charts usually have a central line and upper and lower control limit lines. When looking at an SPC chart, which of these is a reason to investigate the process the chart monitors? a) A single plotted point on the chart falls outside (above or below) the control limit line b) Normal behavior c) A large number of plotted points on the chart are on or near the central line d) No real trend in any direction e) No points plotted on the chart
a) A single plotted point on the chart falls outside (above or below) the control limit line
102. Which of these is a dimension of design quality? a) Aesthetics b) Price c) Quality at the source d) Distribution e) Leadership
a) Aesthetics
104. Costs such as inspection and testing belong in which category of quality costs? a) Appraisal cost b) Prevention cost c) External failure cost d) Internal failure cost e) Value-added cost
a) Appraisal cost
103. For which of these should a "p-chart" be used to monitor process quality? a) Defects found in electric switches b) Errors in the length of a pencil c) Errors in the weight of cans of soup d) Temperature of meals served by a restaurant e) A "p-chart" could be used for any of above
a) Defects found in electric switches
107. In a six sigma quality improvement program, a flow chart is likely to be used during which DMAIC category? a) Define b) Measure c) Analyze d) Improve e) Control
a) Define
95. According to the textbook, which is a basic category of production planning strategy? a) Level b) Strategic c) Balanced d) Synchronous e) Optimal
a) Level
63. Which, according to the video "Aligning Supply & Demand: Creating the Right Supply Chain" is not one of the activities making up the physical function of the supply chain? a) New product development b) Production c) Logistics (inbound & outbound) d) all of the above are activities making up the "physical function" of the supply chain e) none of the above are activities making up "physical" function of the supply chain
a) New product development
72. According to the text, which of these is a partial measure of productivity? a) Output/Materials b) Output/(Labor + Capital + Energy) c) Output/(All resources used d) Output/inputs e) All of the above
a) Output/Materials
99. The philosophical leaders of the quality movement, Philip Crosby, W. Edwards Deming, and Joseph M. Juran had the same general message about what it took to achieve outstanding quality. Which of these was NOT part of that message? a) Quality is free b) Leadership from senior management c) Customer focus d) Total involvement of the workforce e) Continuous improvement
a) Quality is free
77. According to the text, in general, which forecasting time frame compensates most effectively for random variation and short term changes? a) Short-term forecasts b) Quick-time forecasts c) Long range forecasts d) Medium Term forecasts e) Rapid change forecasts
a) Short-term forecasts
67. According to the video "Aligning Supply & Demand: Creating the Right Supply Chain," which is not a factor considered in categorizing an item as function or innovative? a) Susceptibility to loss & damage b) Contribution margin c) Expected contribution to profit lost as a result of stockouts d) Expected stockout rate e) All of the above
a) Susceptibility to loss & damage
55. According to the video continuous process improvement, the reality that, in today's competitive environment, "cost down" (the ability to consistently, reduce cost), is an order qualifier, puts pressure on firms to continuously improve their___? a. Process methods b. Financing c. Marketing d. Accounting e. Information technology
a. Process methods
28. In production planning, the concept of priority refers to____? a. The sequence of activities that make up the business process b. What outputs are needed, how much is needed & when is it needed c. Business process bottleneck operations d. Cost minimization e. Time minimization
a. The sequence of activities that make up the business process
86. Efficiency= Sum of tasks time/ Actual number of work stations * works station cycle time Using the assembly line balancing procedure, you have just determined that the actual number of workstations to be used on an assembly line is 6. The cycle time of line is 5 minutes and the sum of all the tasks required on the line is 25 minutes. Which is the correct value for the resulting line's efficiency? a) 0.500 b) 0.833 c) 0.973 d) 0.990 e) None of the above
b) 0.833
74.The total output from a production system in one day is 500 units and the total labor necessary to produce the 500 units is 350 hours. Using the appropriate productivity measure, which represent the correct productivity ratio? a) 1.000 b) 1.428 c) 0.700 d) 0.411 e) None of the above
b) 1.428
80. If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, the capacity cushion = _________. a) 25 units per hour b) 100 units per hour c) 75 units per hour d) 125 units per hour e) 133 units per hour
b) 100 units per hour
119. Which IS a component of inventory carrying (holding) cost? a) Order placing b) Breakage c) Typing up an order d) Quantity discounts
b) Breakage
96. A ______ production planning strategy involves matching the production output to demand by hiring and laying off employees as demand varies. a) Hybrid b) Chase c) Level d) Inventory balancing e) Risk Minimization
b) Chase
69. According to the text, one of the "package of features" that make up a service is: a) Appearance b) Facilitating goods c) Packaging d) Cost e) Implied use
b) Facilitating goods
101. Which of these is a dimension of design quality? a) Price b) Features c) Color d) Weight e) Quality at the source
b) Features
116. In a six sigma quality improvement program, a Pareto chart is likely to be used during which DMAIC category? a) define b) Measure c) Analyze d) Improve
b) Measure
110. Which of these IS NOT an analytical tool used in a six sigma quality improvement program? a) Run charts b) Pass Charts c) Cause and effect diagrams d) Flow charts e) Pareto charts
b) Pass Charts
76. According to text, the exponential smoothing method requires which data to generate a forecast? a) The most recent forecast b) Precise actual demand for the past several years c) The value of the smoothing constant delta d) Overall industry demand data e) Tracking values
b) Precise actual demand for the past several years
106. Which of these is a category of quality costs? a) Material cost b) Prevention cost c) Variable overhead cost d) Direct labor cost e) Inventory cost
b) Prevention cost
79. According to the text, a way to increase the flexibility of production workers is to ____. a) Pay higher wages to motivate a willingness to do a variety to tasks b) Provide a broader range of training c) Provide a wide variety of technology to augment workers skills d) Institute a "pay for skills" program e) Use part-time employees with specialized skills as needed
b) Provide a broader range of training
70. According to the text, the Goods-Services Continuum consists of which set of categories? a) no goods, some goods, even mix, some service, no service b) Pure goods, core goods, core services, pure services c) No Service, some service, good service, excellent service d) Self-service, help desk service, face-to-face service, service-with-a-smile e) None of the above
b) Pure goods, core goods, core services, pure services
122. Which is not a component of order cost? A) Phone Calls b) Taxes C) Clerical d)Calculating replenishment quantity e) Postage
b) Taxes
64. Which, according to the video "Aligning Supply & Demand: Creating the Right Supply Chain", supply chain risk is defined as _______________ ? a) The firms ability to efficiently and effectively minimize demand fulfillment process time b) The firms ability to efficiently and effectively coordinate (i.e, balance) supply and demand c) The firms ability to efficiently and effectively implement push based production methods d) The firms ability to efficiently and effectively access financial markets e) none of the above
b) The firms ability to efficiently and effectively coordinate (i.e, balance) supply and demand
83. You have just performed a critical path method (CPM) analysis and have found more than one path through the project network has zero slack. What does this tell you (what can you conclude)? a) You made a mistake in performing your CPM analysis b) There are multiple critical paths through the project network c) Only one path is optimal d) There are no optimal paths e) The project will not be completed by the deadline
b) There are multiple critical paths through the project network
114. For which of these should an "X-bar chart" be used to monitor process quality? a) Grades in a "pass/fail" course b) Tire pressures in an auto assembly plant c) Vehicles passing emissions inspection d) Computer software errors
b) Tire pressures in an auto assembly plant
97. Which of these is one of the main purposes of a materials requirements planning (MRP) system? a) Educate personnel in the basic work rules b) To determine the amount of material needed to produce each end item c) Stimulate the work force d) Decrease labor requirements e) Increase materials handling requirements
b) To determine the amount of material needed to produce each end item
105. Design of experiments is a statistical methodology often used in a six sigma quality improvement projects. Which of these is a goal of design of experiments in a six sigma project? a) To keep careful track of the number of occurrences of each possible defect b) To determine the cause and effect relationships between process variables and output c) To report defects to management on a Pareto Chart d) To carefully change each individual process variable until the cause of a defect is found e) To eliminate defects by finding out who or what is causing them
b) To determine the cause and effect relationships between process variables and output
65. Which, according to the video "Aligning Supply & Demand: Creating the Right Supply Chain" is not one of the key characteristics of innovative product (e.g., fashion sunglasses that most influences supply chain strategy/design for such items? a) unpredictable demand b) lengthy research/development lead time c) short product life cycle d) high contribution margin e) none of the above are key characteristics of innovative product that most influence supply chain strategy/design
b) lengthy research/development lead time
68. According to the video "Aligning Supply & Demand: Creating the Right Supply Chain," the most important environmental characteristic to consider in formulating supply chain strategy/design is: a) the number of suppliers used to support manufacturing b) nature of demand for the item c) the number of customers the firm supports d) the market structure of the firm's industry
b) nature of demand for the item
36. Chance (random) variation in a process can be caused by___? a. People b. Equipment c. Materials d. All of the above e. None
b. Equipment
73. According to the text, which best describes an activity-system map? a) A network guide to route airless b) A listing of activities that make up a project c) A diagram that shows how a company's strategy is delivered to customers d) A facility layout schematic noting what is done where e) A timeline displaying major planned events
c) A diagram that shows how a company's strategy is delivered to customers
111. In a six sigma quality improvement program, a fishbone diagram is likely to be used during which DMAIC category? a) Define b) Measure c) Analyze d) Improve e) Control
c) Analyze
117. Failure mode and effect analysis IS an analytical tool used in a six sigma quality improvement program. Failure mode and effect analysis involves which of these? a) closely examining each rejected part to determine the cause b) A careful sampling plan c) Calculating a risk priority number for each possible failure d) Reporting the effect each failure has had on a customer e) Multivariate testing
c) Calculating a risk priority number for each possible failure
87. According to the textbook, which is not a suggestion for managing queues? a) Train your servers to be friendly b) Segment the customers c) Determine an acceptable waiting time for your customers d) Encourage customers to come during slack periods e) Inform your customers of what to expect
c) Determine an acceptable waiting time for your customers
92. According to the textbook, which is not a suggestion for managing queues? a) Try to divert your customers' attention while waiting b) Segment the customers c) Encourage customers to come during a slack period d) Train servers to be friendly e) Periodically close the service channel to temporarily disperse the line
c) Encourage customers to come during a slack period
113. Costs such as customer warranty replacements or handling customer complaints belong in which category of quality costs? a) appraisal cost b) Prevention cost c) External failure cost d) Internal failure cost e) Ergonomic cost
c) External failure cost
62. Which, according to the video "Aligning Supply & Demand: Creating the Right Supply Chain" is not one of the key characteristics of functional products (e.g., soup) that most influences supply chain strategy/design for such items? a) stable demand b) low contribution margin c) High physical density (weight/space ratio) d) Long product life cycle e) all of the above are key characteristics of functional products that most influence supply chain strategy/design
c) High physical density (weight/space ratio)
94. A _________ production planning strategy involves maintain a stable workforce working at a constant output rate while shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs and allowing lost sales a) Subcontracting b) Chase c) Level d) Full Employment e) Skill maintenance
c) Level
88. According to the textbook, which is a suggestion for managing queues? a) Use a serpentine line to keep people from jumping ahead in the line b) Use humor to defuse potentially irritating situations c) Segment customers d) Assure customers their wait is fair and inform them of the queue discipline e) Tell People in the queue that each will be served as soon as possible
c) Segment customers
108. For which of these should an "R-char" be used to monitor process quality? a) Weight of trucks at a highway inspection station b) Deciding whether a commercial jet passenger aircraft has enough fuel for its scheduled trip c) Student test scores measured on a scale from 1 to 100 d) Determining whether or not vehicle from a motor pool will start e) Determining the accuracy of a weather forecast
c) Student test scores measured on a scale from 1 to 100
66. Which, according to the video "Aligning Supply & Demand: Creating the Right Supply Chain" is not one of the primary cost centers of the "market mediation" function of the supply chain? a) stockout cost b) production planning cost c) excess inventory cost d) inventory risk cost e) none of the above
c) excess inventory cost
31. In a basic materials requirement planning (MRP) time phased schedule, projected available balance represents___? a. Planned replenishment orders for the item that will be released as of the beginning of the period indicated b. The difference between what we have and what we need c. Projected inventory status as of the end of the period indicated d. Work in process or existing replenishment orders due in at the beginning of the period indicated e. None of the above
c. Projected inventory status as of the end of the period indicated
82. A simple project listing of five activities, their predecessors, and their respective time estimate are presented below. Activity Immediate Predecessor Time (days) A None 3 B A 2 C A 1 D B and C 3 E D 4 Using the critical path method (CPM), what is the Latest Finish Time for the last activity in this project, i.e., the total time to complete the project. HINT: find the critical path. a) 10 days b) 7 days c) 8 days d) 12 days e) 9 days
d) 12 days
78. According to the text, which is true of manufacturing capacity but is not true of service capacity? a) More dependent on time and location b) Subject to more volatile demand fluctuations c) Utilization more directly impacts quality d) Demand can be smoothed by inventory policies e) More capable of reacting to demand fluctuations
d) Demand can be smoothed by inventory policies
61. Which, according to the video "Aligning Supply & Demand: Creating the Right Supply Chain" is not one of the primary cost centers of the "physical function of the supply chain? a) Production b) Holding inventory c) Transportation d) Demand management
d) Demand management
71. According to the text, which is not a measure of operations and supply chain management efficiency used by Wall Street? a) Inventory turnover b) Revenue per employee c) Receivable Turnover d) Earnings Per Share e) Asset Turnover
d) Earnings Per Share
118. Which costs do not need to considered in making any inventory management decision? a) carrying (holding) cost b) Setup cost c) Order cost d) Fixed cost e) Shortage cost
d) Fixed cost
100. In a six sigma quality improvement program, an opportunity diagram is likely to be used during which DMAIC category? a) Define b) Measure c) Analyze d) Improve
d) Improve
115. Costs such as scrap and rework belong in which category of quality costs? a) appraisal cost b) Prevention cost c) External failure cost d) Internal failure cost e) Wastage cost
d) Internal failure cost
85. According to Little's Law, as presented in the textbook, which ratio is used to find throughput rate? a) Cycle time divided by process time b) Throughput time divided by process velocity c) Process velocity divided by throughput time d) Inventory divided by flow time e) Value-added time divided by process velocity
d) Inventory divided by flow time
75. In most cases, demand for products or services can be broken down into several components. Which, according to the text, is not considered a component of demand? a) Average demand for a period b) A trend c) Seasonal elements d) Past Data e) Auto-correlation
d) Past Data
91. According to the textbook, which is a suggestion for managing queues? a) train your servers to be friendly b) Tell your customers the line should encourage them to come during slack periods c) Give each customer a number d) Periodically close the service channel to temporarily disperse the line e) Use humor defuse potentially irritating situations
d) Periodically close the service channel to temporarily disperse the line
84. When balancing an assembly line, which, according to the textbook, is not a way to reduce the longest task time, so it's less than the required workstation cycle time? a) Upgrade the equipment b) Assign a roaming helper to support the process c) Split the task between two workstations d) Speed up the process transfer mechanism
d) Speed up the process transfer mechanism
93. According to the textbook, which of these is considered a "pure" production planning strategy? a) Variable workforce, stable hours b) Lag demand c) Level Playing field d) Stable workforce, variable hours e) Product warehouse
d) Stable workforce, variable hours
90. There are many applications poka-yokes in service organizations. Which is one of the three T's used to classify poka-yokes? a) Talent b) Teamwork c) Trust d) Treatment
d) Treatment
33. Which is (are) included in the cost of preventing poor quality? a. Operator training b. Final inspection c. Incoming inspection d. All of the above e. None of the above
d. All of the above
43. In the Plan-Do-Check-Act (PDCA) cycle, "plan" means ___ a. Design production technology b. Evaluate performance c. Reward managers d. Set objectives e. In the PDCA cycle, "Plan" Means all the above
d. Set objectives
109. Which of these IS an analytical tool used in a six sigma quality improvement program? a) Leadership b) Continuous improvement c) Quick response d) Partnership diagrams e) Check sheets
e) Check sheets
120. Which IS NOT a reason firms hold inventory? a) To provide a safeguard for variation in delivery lead time b) To take advantage of replenishment economies of scale c) To maintain independence of operations d) To meet variation in item demand e) So competitors can't acquire the material
e) So competitors can't acquire the material
