Chapter 9 Master
Which of the following is true about MRP?
-MRP is an acronym for Material Requirements Planning -MRP is used to determined the number of the parts & other materials needed to produce a product
Which of the following is NOT a lot sizing technique used in MRP Systems
-fixed time cost
which of the following are sources of demand for products in a material requirements planning system
-inter department transaction -customer orders from sales personnel - orders for specific components needed in repair
Which of the following are sources of demand for products in a material requirements planning system?
-inter-department transaction -orders for specific components needed in repair -customer orders from sales personnel
Which of the following is/are a part of an MRP record?
-planned order receipts -gross requirements -net requirements
the BOM file is also known as
-product structure file -product tree
69. The BOM file is also known as:
-product structure file -product tree
which of the following is/ are issues a master scheduler must consider
-trade off manufacturing engineering and marketing conflicts -be involved with customer promising -never lose sight of the aggregate plan
From the highest level planning at the top to the lowest level planning on the bottom, rank the following:
1) aggregate planning 2)master production schedule 3)material requirements planning
25. Capacity has a time dimensional aspect for operations and supply chain management. A manager must consider capacity planning in how many time durations?
3
True
3 main inputs of MRP-bill of materials, master schedule, and inventory records file
make to stock
A firm fills its customers from finished goods inventory it is a
a company's strategic strategy
A firm should have a mix of projects that best support
True
A firm that controls most of its activities in the supply chain is said to be vertically integrated
analyze
A fishbone diagram is part of a six sigma quality improvement process might be found in which DMAIC category
low
A generic pizza box that can be used by multiple pizza shops is an example of a product with ____________ specificity.
True
A major challenge in inventory management is to maintain a balance between inventory investment and customer service
dissimilar
A manufacturing cell is generally made up of ___________ machines.
24. In OPMA, capacity must be stated relative to
A period of time
Benchmarking
A process in which one company studies the processes of another company for best practices is known as
False
A product will always be in the same stage of its product life cycle in all parts of the world regardless of the country
False
ABC analysis classifies inventory items into three groups based on annual units or quantities used
failure and appraisal
According to a rule of thumb, for every dollar that you spend in prevention, you can save $10 in what type(s) of costs?
air
According to the Logistics-System Design Matrix, which of the following modes of transporting products is the fastest but most expensive?
28. During the sales and operations planning process, both marketing and operations focus on the ____________ product and sales volumes.
Aggregate
False
An improvement in quality must increase costs
modular
An item that can be produced and stocked as a subassembly often uses a ___ bill-of-materials for planning
60. In which of the following product manufacturing scenarios, would MRP provide the highest benefit?
Appliances, motors, and trucks
In which of the following industry types would MRP provide high benefits?
Assemble-to-stock Engineer-to-order Assemble-to-order
time buckets
At any point in time, an MRP system can access the status segment of the inventory record according to specific time periods commonly known as
In industry, A bill-of-material also goes by the acronym (blank)
BOM
in industry Bill of materials goes by the acronym
BOM
a forecast is consistently too high or too low
Bias errors occur when _____.
53. Which of the following actions would be possible in a level strategy plan?
Building inventory during slow periods
rough cut aggregate plan
By simulating various master production schedules, and calculating corresponding capacity and labor and equipment requirements, one is developing a(n)..
True
Capacity can be defined as the amount of availability for inputs relative to the requirements for output over time
Three time dimensions (short, intermediate and long)
Capacity has a time dimensional aspect for operations and supply chain management. A manager must consider capacity planning in how many time durations?
capacity cushion
Capacity in excess of expected demand is known as
55. In production planning, adjusting the production rate by hiring and laying off employees to match the sales forecast is called a:
Chase strategy
True
Cross docking is used in warehouses where large shipments can be broken down into small shipments for local delivery. True/False
29. Aggregation on the demand side is done by groups of _______________.
Customers
Efficiency
Doing something at the lowest possible cost is known as
aggregate
During the sales and operations planning process, both marketing and operations focus on the _____ product and sales volumes.
14. The idea that multiple products can be combined and produced at one facility at a lower cost than they can be produced separately is known as
Economies of Scope
61. The master production schedule typically deals with what type of item?
End Items
73. The master production schedule typically deals with what type of item?
End Items
9. T/F: Service capacity is subject to less volatile demand functions.
False
Finished goods purchased by individuals external to the organization are considered dependent demand item
False
66. Which of the following is NOT a lot sizing technique used in MRP systems?
Fixed time costs
8. Capacity flexibility is achieved by using
Flexible plants, processes, and workers
A major drawback with lot-for-lot sizing is?
High setup costs
2. Which of the following contribute to the development of economies of scale?
Higher capacity equipment typically has lower per unit costs b. Higher production volumes can often be achieved without additional support personnel
temporary
Hiring ______ employees is a way to avoid the costs of training and laying off personnel.
True
Hiring, training, and laying off are relevant costs
5. Which of the following type of service organization should aim for low utilization because of the high level of uncertainty
Hospitals
3.4
How many defects per million units are permitted to meet Six Sigma standards?
environmentally
ISO 14000 addresses the need to be ___ responsible.
Platform Project
Identify the type of project that primarily involves fundamental improvements to existing products.
12. Which of the following are reasons for the volatility of demand on a service delivery system?
Intangibility, customer behavior, and customer interaction
when changes occur because of stock receipts and disbursements, scrap losses, wrong parts, and canceled orders, the real time file capturing these changes is called
Inventory transaction file - the inventory transaction file tracks inventory changes as they occur
33. The aggregate operations plan is mainly concerned with
Labor and Production
integrated
Lean production requires that activities be __________________ to achieve production using minimal inventories.
______________ are the part quantities issued in the planned order receipt and planned order release sections of an MRP schedule.
Lot sizes
caused by items being withdrawn from inventory in lots
Lumpiness, or the tendency for uneven production, further down the creation sequence is
the system __________ ___________ is kept on each item managed by the MRP system and includes gross requirements scheduled receipts available balances net requirements planned order receipts and order release
MRP record
batches
MRP systems tend to work best in companies where products are made in ___ using the same productive equipment.
which of the following is true about MRP
MRP- Material requirements planning MRP is used to determine the number of parts and other material needed to produce a product
Level Strategy
Maintain a stable workforce and work schedule while using inventory to meet variation in demand.
inventory
Major information system activities for planning logistics involve allocating resources, managing _______ levels, scheduling, and order tracking.
43. Which of the following is NOT an operations and supply chain task performed in an intermediate-term plan?
Make Vs. Buy Assessment
False
Master production schedule is a sales forecast for family of parts.
25%
Most retailers estimate that annual inventory carrying costs equals _____ of what is paid for the product.
which of the following is/are issues a master scheduler must consider:
Never lose sight of the aggregate plan. Be involved with customer order promising. Trade-off manufacturing, engineering and marketing conflicts.
increase
Often, a(n) ___ in productivity occurs as a by-product of efforts to reduce the cost of quality.
Marketing
Order winners and qualifiers represent a link between operations and what other business function?
a schedule for when each of these should be produced or ordered.
Outside of determining parts, components, and materials, MRP provides
True
Outsourcing has expanded to become a major strategy in business due to the continuing move toward specialization in an increasingly technological society
Energy Usage
Ownership costs encouraged after the initial purchase and associated with beyond going use of the product or material
20. Which of the following can be used to operationalize the focused factory concept?
Plant within a plant
development of demand forecasts
Point-of-sale (POS) data would be used in which step of the CPFR process
36. Inventory on-hand is the amount of inventory carried over from the __________ period.
Previous
True
Product storage is an example of waste in the sense that no value is added
51. Hiring, training, and laying off personnel are costs associated with?
Production Rate Changes
Stable workforce - variable work schedule
Production output is varied by changing work schedules to include overtime (when more production is needed) and idle time (when less production is needed).
workforce size, inventory, and size of production facility
Production planning strategies involve trade-offs among
Chase Strategy
Production rate is matched to order rate by hiring and firing employees
Motion
Production system identifies which of the following types of waste to be eliminated
32. Short-term operations and supply chain tasks are focused mostly on scheduling ____________ and shipment _______________
Production/orders
outputs to inputs
Productivity is defined as the ratio of
True
Quality at the source requires factory workers to become their own inspectors
65. The first step in the MRP explosion process is?
Retrieve the gross requirements for end items from the MPS
True
Service blueprinting is a process analysis technique that focuses on customers and provides interaction with customers
19. The average number of customers than can be processed over a period of time when the facility is operating at max capacity is known as the
Service rate
3. Match time duration with it`s definition:
Short → less than 1 month b. Intermediate → the next 6 to 18 months c. Long → greater than one year
low;low
Spot purchases have ________ specificity and ________ transaction costs.
variations in the product
Standardization on the product-process matrix refers to
62. Which of the following is NOT a part of the material requirements planning system?
Supplier delivery schedule
True
TPS (Toyota Production System)
A least total cost lot sizing technique is a dynamic approach that continually looks for an optimal lot size where carrying costs & ordering costs are close to equal
TRUE
short; medium and long
Tactical forecasts are _________ term, while strategic forecasts are _____________ term.
False
The "triple bottom line" relates to the economic, employee, and customer impact of a firm's strategy.
True
The 3 main inputs to a MRP system are the bill of materials, the master schedule, and the inventory records file
precedes
The aggregate operations plan ___ the master schedule.
order winner
The feature that actually differentiates one product from the other candidates and is purchased is known as the?
economies of scale
The idea that as a plant volume increases, the average cost per unit drops is known as
ordering costs
The managerial and clerical costs to prepare purchase or production orders are called
75. The next level in the planning process down from an aggregate plan is called?
The master production schedule
end items
The master production schedule is used to plan
subassemblies
The master production schedule typically deals with end items, but can be broken down to __________ if the item is large or expensive
False
The multi factor measure of productivity of the numerator of the ratio
best operating level
The output level where average unit cost is minimized is known as the
sales and operations
The planning process that helps firms provide better customer service, shorter lead times, and allows top management to get a handle on the business is known as ____ planning.
31. T/F: Intermediate-term plan activities include forecasting.
True
45. T/F: Distribution and logistics is typically involved in sales and operations planning.
True
68. T/F: A least total cot lot sizing technique is a dynamic approach that continually looks for an optimal lot size where carrying costs and ordering costs are close to equal.
True
True or False: A process that places all identical parts at the same level in the bills-of-materials simplifies computations. This process is known as low level coding.
True
False
True or false: A firm can excel simultaneously on all competitive dimensions
True
True or false: A process is made up of one or more activities that transform inputs into outputs.
True
True or false: An operations and supply chain manager helps firms determine the best way to deliver its goods and services
False
True or false: An operations and supply chain strategy is independent of the corporate strategy.
False
True or false: An order qualifier today will be an order winner in the future
True
True or false: Capacity planning in the services industry has added pressure on location requirements versus that with manufacturing.
50. Yield management allocates capacity according to:
Type of capacity, Time, and Type of Customer
current and future states
Value stream mapping is a two-part process that details what?
67. Which of the following is not a type of time fence described in the text?
Variable
Inventory levels
What are internal factors that influence a production plan?
Pareto charts
Which analytical tool of Six Sigma breaks down a problem into the relative contributions of its components?
pareto charts
Which analytical tool of Six Sigma breaks down a problem into the relative contributions of its components?
random variation
Which component of demand reflects the effects of chance events?
third party
Which is the best form of ISO certification?
Trade-off
Which term defines when activities are incompatible so that more of one thing necessitates less of another activity?
required coordinated
Which type of supplier relationship should be used when there is a standardized interface between adjacent tasks?
Kaizen
___ bursts are specific, short-term projects designed to implement changes to a process.
level
____ strategy is executed by maintaining a stable workforce and producing output at a constant rate.
rough cut
_____ aggregate plan may be further modified by mathematical methods to develop a final and/or lower-cost plan.
dollar value
_______ cost implication schemes divide inventory items into 3 groupings what are these grouping usually
Least unit cost provides _________ as an advantage when taking variable ordering costs and setup costs into account. Multiple choice question. a more complete analysis a shorter computation a quick reference a simple return on investment
a more complete analysis
platform
a type of business that does not own inventory, they merely provide a means for connecting parties interested in conducting business.
46. The cut and try approach to aggregate planning may involve which of the following:
a. Analyzing a number of production planning alternatives b. Selecting the best alternative c. Use of spreadsheets and charts
54. Which of the following actions would be possible in a stable workforce - variable work hours plan?
a. Asking workers to work overtime b. Having workers take time off to reduce production
48. From an operation perspective, yield management is most effective when:
a. Demand can be segmented by customer b. Fixed costs are high and variable costs are low
42. Long range planning activities include:
a. Designing the logistics activities that deliver products to the customer. b. Designing the manufacturing and service processes that produce the products of the firm.
64. Which of the following are sources of demand for products in a material requirements planning system?
a. Inter-department transactions b. Customer orders from sales personnel c. Orders for specific components needed in repair
63. Which of the following is true about MRP?
a. MRP is an acronym for Material Requirements Planning b. MRP is used to determine the # of parts and other materials needed to produce a product.
11. Which of the following are important issues to consider when changing capacity?
a. Maintaining system balance b. Frequency of additions c. Use of external capacity
time fences
are a company's attempt to provide a controlled window of opportunity to make changes to the master production schedule.
If a company has more unites in the master production schedule than firm customer orders, the residual is called?
available to promise
if a company has more units in the master production schedule than firm customer orders the residual is called
available to promise - available units that are not committed to customer orders are called available promise
MRP systems tend to work best in companies where products are made in (blank) using the same productive equipment
batches
MRP systems tend to work best in companies where products are made in _________ using the same production equipment
batches
o Cost quality, delivery speed, delivery reliability, and flexibility
competitive dimensions of a firm
Level 0 items during the explosion process are typically referred to as ________ items, or gross requirements.
end
the master Production schedule is used to plan
end items
an _________ ___________ ____________ system is a computer system that integrates application programs from the functional areas of a firm
enterprise resource planning
true or false: finished goods purchased by individuals external to the org. are considered dependent demand items
false
The master production schedule TYPICALLY deals w/ what type of item?
finished goods/end items
A bill-of-materials that uses differences in alignment to indicate the order of assembly of components is using which type of structure?
indented structure
a BOM that uses differences in alignment to indicate the order of assembly of components is using which type of structure
indented structure
Using complex lot-sizing techniques, larger lot sizes can cause an increase in __________, complicating plant logistics.
inventory
a material requirements planning system interfaces with the master production schedule, bill of materials file and ___________ ________ ___________
inventory record file
At any point in time, an MRP system can reference the (blank-blank-blank) for information concerning parts availability to help meet gross requirements
inventory records file
When changes occur because of stock receipts and disbursements, scrap losses, wrong parts & cackled orders, the real-time file capturing these changes is called the:
inventory transactions file
The inventory records file contains information such as
lead time. safety stock. planned order releases. item description.
The(blank-blank-blank) lot sizing technique is a dynamic approach that adds ordering & inventory carrying costs for each trial lot size, divides the costs by the number of units, and chooses the lot size w/ the lower unit cost.
least unit cost
the __________ ___________ _____________ lot sizing technique is a dynamic approach that adds ordering and inventory carrying costs for each trial lot size. divides the costs by the number of units, and chooses the lot size with the lowest unit count
least unit cost
The step in the planning process from the master production schedule is called (blank-blank-blank)
material requirements planning
An item that can be produced & stocked as a subassembly often uses a (blank) bill-of-materials for planning.
modular
an item that can be produced and stocked as a sub-assembly often uses a _____________ BOM for planning
modular
After finding requirements, the next step in the MRP explosion process references inventory on hand and schedule orders to calculate ( blank) requirements
net
If a company has an MRP program that can reflect the exact
net change system
lot sizes are the part quantities issued in the planned order receipt planned _____________ section of an MRP schedule
order release
The file created by retracing a material requirement upward in the product structure to identify each parent item that crated the demands is called a (blank)record
peg
the file created by retracing a material requirement upward in the product structure to identify each parent item that created the demand is called a _________ record
peg
which of the following is/ are part of MRP record
planned order receipts gross requirements net requirements
The bill-of-matiral fils is also known as
product tree & product structure file
Matrix
project structure minimizes the duplication of resources
the first step in the MRP explosion process is
retrieve the gross requirements for end items from the MPS
Some benefits of an ERP system are Multiple select question. sales can track all the details of an order. human resources knows how many employees to schedule. quality management can develop inspection points for products during manufacturing. manufacturing knows about orders as soon as they are entered.
sales can track all the details of an order. quality management can develop inspection points for products during manufacturing. manufacturing knows about orders as soon as they are entered.
An EOQ lot sizing technique will try to minimize the sum of which of the following costs given fairly constant demand
set up inventory holding
an EOQ lot sizing technique will try to minimize the sum of which of the following costs given a fairly constant demand?
setup inventory holding
If ordering costs and setup costs remain constant then _________ is the easiest method for lot sizing. Multiple choice question. the least unit cost method any method the lowest total cost method the lot-for-lot method
the lowest total cost method
The next level in the planning process down from an aggregate plan is called
the master production schedule
(blank)(blank) are a company's attempt to provide a controlled window of opportunity to make changes to the master production schedule.
time fences
30. Short-range planning covers a period from one day to ______________ months.
6
26. A machine is capable of producing 1,000 units per day. Yesterday, the machine produced 950 units. What was the capacity utilization rate yesterday?
95%
Motivational impacts due to fear of being laid off during time of low production.
A chase strategy can create what major concern?
Super Bill of Materials
A company producing widgets only needs Part A for 40% of the widgets built. This company is likely using what type of bill-of-material?
third party logistics company
A company that manages all or part of another company's product delivery operations is known as which of the following?
focused factory
A facility designed around a limited set of production objectives is called a
False
A financially driven reason for outsourcing is that it can turn variable costs into manageable fixed costs
produce buffer inventories
A production manager may ___________ to prevent bottlenecks and ensure employees always have work to do.
tracking the flow of material through the system
A production process map is built by
It is possible to have multiple critical paths
A project has how many critical paths?
the difference between expected excellent performance and the current costs.
A purist view of the cost of quality is one that references all costs until 100% perfection is attained. A less stringent viewpoint is defined as
decision tree
A schematic model of the sequence of steps in a problem and the conditions and consequences of each step is called a
transportation method of linear programming
A special linear programming method that is useful for solving problems involving moving products from several sources to several destinations is known as which of the following?
Project Milestone
A specific event that should be reached at a certain point in time is often referred to as?
Maintain independence of operations
A supply of materials at a work center allows workers to
57. Which of the following statements best characterizes an MRP system?
A system-driven logic that allows a company to tie the production functions together from a material planning and control view.
Activity-system maps
A tool that shows how a company's strategy is delivered through a set of tailored activities is called a(n)
net
After finding gross requirements, the next step in the MRP explosion process references inventory on hand and scheduled orders to calculate ___ requirements.
True
Aggregate planning occurs over the medium or intermediate future of three to 18 months
Customers
Aggregation on the demand side is done by groups of
10. The term that refers to the avg number of customers that come to a facility during a specific period of time is known as the
Arrival rate
decreasing costs until a minimum is reached, followed by increasing costs
As production volume increases, a system experiencing economies of scale will observe
True
Assembling to order means moving the customer order decoupling point from finished goods to components
70. If a company has more units in the master production schedule than firm customer orders, the residual is called
Available to promise
52. Which relevant costs are often the most difficult to measure?
Backordering Costs
labor
Basic production costs consist mainly of charges related to
perceived quality
Brand name recognition is an example of which dimension of quality?
independent
Campbell's Soup makes products for Kroger and other grocery stores based on sales to the final consumer. This inventory management environment is characterized as ________ demand.
13. The ability to hold, receive, store, or accommodate describes which of the following terms
Capacity
6. ____________ is the output that a system is capable of achieving over a period of time
Capacity
True
Constant WIP aid input/output control by limiting the amount of work in work center or production floor
1. Which of the following is not of the differences between planning capacity for services vs. manufacturing?
Cost
True
Cost incurred in hiring training and laying off persons are considered relevant aggregate operations planning costs
manufacturing manager
Cost of quality (COQ) is a primary function for the
True
Cross docking definition-break down large shipments into small shipments for local delivery
23. When building a decision tree, one should use squares to represent which of the following?
Decision Points
setup costs
Delta Company uses special equipment and personnel to changeover production runs quickly. The costs associated with this changeover approach are considered
Which is the correct equation used to calculate economic order quantity (EOQ)?
EOQ= √(2DS/H)
An (blank-blank-blank) system is a computer system that integrates application programs form the functional areas of the firm.
Enterprise resource planning
16. T/F: Economies of scope can be achieved when a company focuses on a single product
False
22. T/F: When changing capacity a firm should ensure the output of one stage provides the exact input for the next stage.
False
27. T/F: It is not necessary for the operational plan to align with the business plan.
False
47. T/F: The cut and try approach will always identify the aggregate plan with the lowest overall cost.
False
49. T/F: Yield management is most effective when fixed costs are low and variable costs are high
False
74. T/F: Finished goods purchased by individuals external to the organization are considered dependent demand items.
False
15. A facility designed around a limited set of production objectives is called a
Focused factory
False
For a location decision, labor productivity may be important but low wage rates are more important
True
Forecast of individual products tend to be less accurate than forecasted product families
4. List the steps from first to last required to determine capacity requirement
Forecast to predict sales b. Calculate equipment and labor requirements c. Project labor and equipment availabilities
False
Forecasts of individual products tend to be more accurate that forecasts of product families
An EOQ lot sizing technique will try to balance the sum of which of the following costs given a fairly constant demand?
Holding costs Setup
Available to Promise
If a company has more units in the master production schedule than firm customer orders, the residual is called?
is on the critical path
If a delay of an activity delays the entire project, then this activity
random
If an error cannot be explained by the forecast model being used, it is called ________ error.
multiplying the inverse of inventory turn by 365
If inventory turn is known, days-of-supply is calculated by
procurement
In a lean supply chain, which component includes automation for sourcing, bidding, and auctions?
multiplying the number of each choice together
In an assemble-to-order system, the total number of unique combinations possible is calculated by
True
In inventory models a high holding costs tend to favor low inventory levels in frequent replenishment
a period of time
In operations management, capacity must be stated relative to
respect
In the Toyota Production System, ___ for people is exemplified by providing opportunities and job security for employees.
True
In the past half century, while the number of people employed in manufacturing has decreased slightly, the output per worker has increased significantly.
Logistics
In which part of a lean supply chain would you expect to see lean concepts applied to the movement of materials through the system?
False
Individual products are less accurate than families
56. Spoilage and obsolescence costs are considered what type of relevant cost?
Inventory Holding Costs
41. Which of the following are internal factors that influence a production plan?
Inventory levels
59. At any point in time, an MRP system can reference the ____ ____ ____ for information concerning parts availability to help gross requirements
Inventory records file
False
Lean production requires a push and pull system of inventory
the next level in the planning process after aggregate plan is called
MPS
In industry materials requirements planning also goes by the acronym
MRP
The (blank-blank) is kept on each item managed by the MRP system, and includes gross requirements, scheduled receipts, available balances, net requirements, planned order receipts and order releases.
MRP Record
True
MRP is generally used for items with dependent demand.
surveys and interviews
Market research uses data collection methods that are primarily
38. If an organization is using overtime, hiring/firing employees, and subcontracting to modify production plans, it is likely deploying which type of production strategy.
Mixed Strategy
Companies should focus on all aspects: social, economic, and environmental
Modern companies need to focus on which aspect of the triple bottom line?
product families
On the supply side of the business, aggregate planning is done by
When safety stock is needed, what is reduced by the safety stock?
On-hand balance
accurate
One key to a successful budgeting process is a(n) _______ aggregate plan.
continuous replenishment
One program for automatically resupplying customers on a regular basis is
production scheduling
One purpose of inventory is to provide flexibility in ___ , this can increase lead times but reduce setup costs.
Operation and improvement of systems that create the firm's primary products, and design of delivery systems
Operations and supply chain management includes which of the following activities?
40. The main purpose of an aggregate plan is to specify the:
Optimal combo of production rate, workforce level, and inventory on hand.
Operations effectiveness
Performing activities in a manner that best implements strategic priorities without incurring excess costs is known as
58. Which of the following is/are a part of an MRP record?
Planned order receipts, and Net and Gross requirements
Projected balance, the amount of inventory expected at the end of a period, is calculated using which equation? Multiple choice question. Projected available balance = sum of on-hand inventory + gross requirements + scheduled receipts - planned orders Projected available balance = sum of on-hand inventory + gross requirements - scheduled receipts + planned orders Projected available balance = sum of on-hand inventory + gross requirements - scheduled receipts - planned orders Projected available balance = sum of on-hand inventory - gross requirements + scheduled receipts + planned orders
Projected available balance = sum of on-hand inventory - gross requirements + scheduled receipts + planned orders
a measure of the number of times receivables are collected, on average, during the fiscal year.
Receivables turnover is
44. By stimulating various master production schedules and calculating corresponding capacity, labor and equipment requirements, one is developing a(n):
Rough cut aggregate plan
39. What process gives senior management a better handle on the meeting customer demand over a 3-18 month time horizon?
Sales and Operations Plan
72. An EOG lot sizing technique will try to minimize the sum of which of the following costs given a fairly constant demand?
Setup and Inventory Holding
six
Short-range planning covers a period from one day to _____ months.
true
Simple exponential smoothing lags changes in demand
True
Simple exponential smoothing lies changes in demand
71. A company producing widgets only needs part a for 40% of the widgets built. This company is likely using what type of BOM?
Super
a company producing widgets only needs part A for 40% of the widgets built this company is most likely using what BOM
Super -a super bill of material allows components to be specified with a fractional usage
Japan
The Malcolm Baldrige National Quality Award was created as a response to the US quality shortfalls compared with which country?
economies of scope
The ability to rapidly and inexpensively switch production from one product to another enables what
Capacity Flexibility
The ability to rapidly increase or decrease production levels, or shift from one product or service to another is known as
workforce levels and production rates
The aggregate operations plan is mainly concerned with optimal
Production
The aggregate operations plan's objective is to set _____ rates for the intermediate term, from 3 to 18 months
False
The aggregate planning process usually includes expediting and dispatching of individual finished products
Toyota Production System (TPS)
The benchmark for lean manufacturing is known as the
The file containing the complete product description, parts listing, quantity needed and product build sequence is called?
The bill-of-material
Synchronizing
The bullwhip effect can be reduced by ___ efforts among members of the supply chain.
Delivery Reliability
The competitive dimension that deals with getting the product to the customer when promised is called
37. A common approach to developing an aggregate operations plan is from:
The corporate annual plan
15-20%
The cost of quality has been estimated at what percentage of every sales dollar?
17. The 2 types of costs to consider when adding capacity are
The cost of upgrading too frequently AND infrequently
False
The critical path of a CPM analysis is found by locating activities with large slack times
False
The critical ratio rule will prioritize jobs based on importance or value of customers who have placed the orders
bullwhip effect
The effect of the lack of synchronization amongst supply chain members is referred to as which of the following
The most recent forecast
The exponential smoothing method requires which of the following data to forecast the future
time series analysis
The forecasting technique that uses past demand to predict future demand is known as
True
The four phases of the product life cycle are introduction, maturity, growth, and decline
Logistics-System Design Matrix
The framework used to describe logistics processes is which of the following?
economies of scope
The idea that multiple products can be combined and produced at one facility at a lower cost than they can be produced separately is known as
location clustering near high customer traffic flows
The main reason fast food restaurants are often found in close proximity to each other is
False
The service system with a high degree of customer contact is less difficult to control than a low degree of contact
False
The term conformance quality refers to the relative level of performance of a product as compared to competing product
lead time
The time required to respond to a customer order is known as
false
The triple bottom line relates to the economic employee and customer impacts of a firms strategy
production/production rate
The workforce level can be determined by which calculation?
18. T/F: The presence of the customer in a service delivery system increases the volatility of demand.
True
21. T/F: Capacity can be looked at as both resource inputs and product outputs
True
7. T/F: When the size of a plant becomes too large, diseconomies of scale become a problem.
True
True
True or false: Distribution and logistics is typically involved in sales and operations planning.
True
True or false: Innovative products have higher profit margins than functional products.
True
True or false: Lean production uses a pull system for production.
True
True or false: One advantage of the pure project structure is that the project manager has full authority over the project
True
True or false: Operations effectiveness is related directly to the costs of doing business.
True
True or false: Product-service bundling occurs when a firm adds a service activity to a product.
True
True or false: The presence of the customer in a service delivery system increases the volatility of demand.
True
True or false: When all the activities are completed, the project is finished.
false
True or false: When comparing service processes and manufacturing, the same sources of variation cause waste.
34. The production rate is the number of ____________ completed per unit of time.
Units
True
Variation in production systems that is caused by factors that can be clearly identified is called common variation?
building inventory during slow periods
What action would be possible in a level strategy plan?
receivables turnover, asset turnover, and net income per employee
What are common measures of efficiency used by Wall Street?
outsourcing or shared capacity
What are the two strategies an organization can use when adding in-house capacity is not cost effective?
Other Product-Specific Criteria
What competitive dimension relates to environmental impact?
Centroid Method
What is a technique for locating single facilities that considers the existing facilities, the distances between them, and the volumes of goods to be shipped?
A call center
What is an example of a service business?
waste
What is defined as anything that does not add value from the customer's perspective?
generate access to new markets
What is not an organizationally driven reason to outsource?
Assess the Opportunity
What is the first step in the process for green sourcing?
Value Stream
What is the technique used to identify all of the value adding as well as non value adding processes
free trade zone
What is the term for a closed facility where goods can be brought in without being subject to normal import duties?
Sales and Operations Planning
What process gives senior management a better handle on meeting customer demand over a 3 to 18 month time horizon?
Statement of Work
What term best describes the written description of the objectives to be achieved in a project?
Work Package
What term describes the group of activities assigned to a single organizational unit?
Kaizen
What term is used to describe a philosophy that focuses on continuous improvement?
Six Sigma
What term refers to the philosophy and methods that companies use to eliminate defects in their products and processes?
Risk Mapping
What tool involves assessing the probability or relative frequency of an event against the aggregate severity of the loss?
value adding activities
What type of activities transform materials and information into something the customer wants?
Strategic
What type of forecast should be used for strategy, sourcing, and location decisions?
lean
What type of production focuses on eliminating as much waste as possible?
innovative
What type of products have a life cycle of just a few months?
functional
What type of products have low profit margins, long product life, and predictable demand?
CPFR
What web-based tool is being used as a means to integrate members of a supply chain?
Straddling
When a company seeks to match the benefits of a successful position and maintain their current position in the marketplace it is attempting a(n) ________________ approach.
second party
When a customer audits its supplier in regards to ISO certification, this is referred to as a ____________ certification
shortage
When a customer cancels an order because of item backlogs, that lost revenue is a(n) ___ cost.
task and subtasks
When breaking down a project into smaller elements, what terms are used to describe the subdivisions?
less
When comparing service processes to manufacturing processes, one would say that they are _________ controllable.
vendor managed inventory
When purchasing items that are highly specified and a long contract is desirable, which sourcing process should be used?
False
When using the low cost strategy for supply chain management, the firm should invest aggressively to reduce lead time.
Social
Which dimension of the triple bottom line seeks to benefit its employees, the local community, and other entities that are impacted by the firm's existence?
ISO 9000
Which is the ISO certification regarding quality management requirements in business-to-business dealings?
manufacturing cell
Which layout format groups machines to work on products that have similar processing requirements?
Backordering costs
Which of the following costs are relevant aggregate operations planning
project managers may "hoard" resources for their own projects
Which of the following is a disadvantage of the matrix project structure?
project team members may be worried about their employment after completing a project
Which of the following is a disadvantage of the pure project structure?
Centroid Method
Which of the following is a plant location methodology for locating a facility based on distances and volumes of goods
TL 9000
Which of the following is a quality management standard developed specifically for the telecommunications industry?
Specificity
Which of the following is a sourcing term to describe how common an item is and/or how many substitutes may be available?
activity
Which of the following is a term used to refer to pieces of work that consume time?
warehouse loading factor
Which of the following is not a lot sizing technique used in MRP systems
annualized cost of materials
Which of the following is not included in inventory holding costs
Volume
Which of the following is one of the dimensions depicted on a product-process matrix?
bullwhip effect
Which of the following terms describes the phenomenon of variability magnification as one moves upstream in the supply chain from customer to producer?
flow and run charts
Which of the following tools can be used in the Define step of the DMAIC cycle?
Crashing shortens the project by assigning more resources to critical tasks
Which of these statements regarding time costs in CPM networks is true
Matrix
Which project organizational structure blends properties of functional and pure strategies?
Panel Consensus
Which qualitative forecasting technique is based upon the idea that a group of people with various backgrounds can develop a more reliable forecast than a narrower group?
Delphi Method
Which qualitative technique develops a forecast by polling participants multiple times on expected forecasts?
conformance
Which quality term refers to the degree to which the product or service design specifications are met?
Backordering costs
Which relevant costs are often the most difficult to measure?
Request for Proposal (RFP)
Which sourcing process is used for complex items where there are a number of potential vendors?
make to stock
Which type of firm invests in lean manufacturing programs in order to improve customer service levels for a given inventory investment?
slushy
Which type of time fence allows for changes to a specific product so long as parts are available?
Manufacturing
Work-in-process is considered ___ inventory.
one type of operation
Workcenters are often focused on
35. The number of workers needed to meet production requirements is called?
Workforce Level
The inventory records files contains an (blank-blank) data segment that contain a detailed detailed description of the item, lead time information, safety, stock level and other records.
item master
the inventory record file contains _______ _____________ data segment that contains a detailed description of the item, lead time info and safety stock levels
item master
if an item is quite __________ or _________ the master production schedule may include major sub assemblies and complex components
large expensive
One of the limitations with least total coast (LTC) is the influence by the Multiple choice question. number of parts ordered. selection of suppliers. length of the planning horizon. size of the manufacturing site.
length of the planning horizon.
setting planned orders to match the net requirements exactly is what type of lot sizing
lot for lot
Setting planned orders to match the net requirements exactly is what type of lot sizing technique
lot-for-lot
a process that places all identical parts at the same level in the BOM simplifies computations, this is known as
low level coding
a process that places all identical parts at the same level in the bills-of-materials simplifies computations. The process is known as (blank-blank-blank)
low-level coding
after finding gross requirements the next step in MRP explosion process references inventory on hand and scheduled orders to calculate _________ requirements
net
a (blank) requirement is the amount needed when the projected available balance plus the scheduled receipts in a period are not sufficient to cover the (blank) requirements.
net gross
A ________ requirement is the amount needed when the projected available balance plus the the schedule receipts in a period are not sufficient to cover ________ requirements
net gross
if a company has an MRP program that can reflect the exact status of each item in real time this program is called
net change MRP system
Which of the following would be located on the MPS plan? Multiple select question. pens ordered from an office supply company. pen caps ordered by a pen manufacturer from a supplier. vehicle engine purchased for a production line. a new vehicle purchased from an automotive dealer.
pens ordered from an office supply company. a new vehicle purchased from an automotive dealer.
the ultimate goal of any MRP lot sizing approach is to balance the _________ or _______ cost and the ____________ costs associated with meeting the net requirements generated by the MRP planning process
setup order holding
the ultimate goal of any MRP lot sizing approach is to balance the (blank) or (blank) costs and the ( blank) costs associated with meeting the net requirements generated by the MRP planning process.
setup order costs holding
which type of time fence allows for changes to a specific product as long as parts are available
slushy
A company production widgets only needs Part A for 40% of the widgets built. This company is likely using what type of bill-of-material?
super
Which of the following is NOT a part of the material requirements planning system?
supplier delivery schedule
which of the following is nor part of the material requirements planning system
supplier delivery schedule
functional project structure
team members do not report to a dedicated manager, but remain part of their functional units.
____________ ______________ are companys attempt to provide a controlled window of opportunity to make changes to the master production schedule
time fences
in which of the following product manufacturing scenarios would MRP provide the highest benefit
trucks appliances motors
true or false: a least total cost lot sizing technique is a dynamic approach that continually looks for an optimal lot size where carrying costs and ordering costs are close to equal
true
which of the following is not a type of time fence described in the text?
variable