MSC Final

False

An 80% learning curve describes an improvement rate of 80% each time production doubles.

False

An important advantage of a process layout over a product layout is efficiency.

True

An important factor in supply chain management is determining the lowest-cost transportation when considering several alternatives.

True

Cellular layouts combine the flexibility of process layouts with the efficiency of product layouts.

True

Companies with a quality focus generally give their employees the authority to make decisions that will improve quality.

True

In ABC analysis, each class of inventory requires different levels of inventory monitoring and control.

True

In lean production, waste is defined as anything that does not add value to the product.

False

Increasing supply chain transparency only magnifies the bullwhip effect.

True

Information is the essential link for coordination among all supply chain members.

True

A graph that reflects the fact that repetition of tasks improves worker performance is referred to as a learning curve.

True

As the level of inventory increases to provide better customer service, quality-related customer service costs decrease.

True

Capacity can be increased in one large step or incrementally.

maximum capability to produce.

Capacity is defined as the

True

Determining worker capabilities and responsibilities for a job is known as worker analysis.

True

Empowerment involves giving employees the authority and responsibility to innovate and act on their own.

False

Equipment utilization is typically very high in processes with a fixed-position layout.

True

General purpose machines are an example of flexible resources in lean production.

True

Globalization and advances in information technology are primary reasons why supply chain management has become a competitive priority for companies.

True

Job design includes determining the characteristics a worker needs to meet the job requirements.

True

Job rotation requires cross-training of employees.

False

Kaizen is a Japanese term that means fool proofing to prevent defects.

False

Line balancing strives to minimize bottlenecks in a process layout.

False

Manufacturing cells are comprised of groups of similar machines that process a family of parts.

False

Mass production means doing more with fewer workers, less inventory, and less space.

True

Precedence requirements reflect physical restrictions on the order in which operations are performed in a product layout.

True

Producing items before they are needed is considered waste under the principles of lean production.

False

Product layouts are sometimes referred to as functional layouts because they group similar activities together.

1660

SAIC is closing three of its existing plants and intends to transfer some of it its more skilled employees to three plants that will remain open. The number of employees available for transfer from each closing plant is as follows: Closing Plant Transferable Employees 1 60 2 105 3 70 235 The following number of employees can be accommodated at the three plants remaining open: Open Plants Employees Demanded A 55 B 80 C 40 175 Each transferred employee will increase product output (units) per day at each plant as follows: to from A B C 1 5 8 6 2 10 9 12 3 7 6 8 Determine the best way for SAIC to transfer employees in order to ensure the maximum increase in product output. Tip: Use SCM Module: Excel Supplements 4 and 5 as a reference. Note: This example is purely fictional and not a SAIC example.

True

Scientific management divides jobs into their most elemental activities to simplify job design.

hiring only highly trained workers.

Scientific management involves all the following except

True

Seasonal inventory allows firms located in the Huntsville/Decatur market to maintain a smooth production flow throughout the year.

True

Successful quality-oriented firms recognize the importance of their employees when developing a competitive strategy.

False

Supply chains for services are easier to define than supply chains for manufactured goods.

False

Takt time is the pace at which production output is maximum.

True

The ABC classification system is a method for classifying inventory based on the percentage of total value and the percentage of total quantity.

False

The EOQ model determines the optimal order size that minimizes the sum of carrying costs and shortage costs.

True

The economic order quantity (EOQ) model determines the optimal order size that minimizes total annual inventory costs.

True

The efficiency of a flexible manufacturing system (FMS) comes from reductions in setup and waiting times.

False

The individual generally credited with the development of lean production is an American.

False

The major advantage of a process layout over a product layout is efficiency.

False

The objective of inventory management is to keep enough inventory on-hand to satisfy customer demand without regard to cost effectiveness.

True

The reorder point is the level of inventory that promts a new order to be placed in a continuous inventory system.

upstream

The suppliers in a supply chain are referred to as ______________ supply chain members.

True

The supply chain for a service tends to be more compacted and less extended than a supply chain for a manufactured good.

True

The three basic costs associated with inventory are holding costs, ordering costs and shortage costs.

True

The time required for a worker to complete one pass through the operations assigned to her is called the operator cycle time.

False

The transportation model is usually solved via a manual method because the computational steps are easy and require very little time.

500

The vendor sells the jackets to the store for $38 each. The cost to the bookstore for placing and order is $120, and the annual carrying cost is 25% of the cost of the jacket. The bookstore manager estimates that 1700 jackets will be sold during the year. The vendor has offered the bookstore the following volume discount schedule: Order Size Discount 1-299 300-499 500-799 800+ 0% 2% 4% 5% What is the bookstore optimal order quantity, give this quantity discount information?

False

Use of radio frequency identification (RFID) technology makes it possible for a customer to determine production schedules.

False

Waiting for parts to arrive or for machines to finish production is considered a form of waste under the principles of mass production.