3450 final
which of the following statements about strategies for meeting uneven demand is/are true
-many companies like the idea of a level workforce -a combination of both level output and chase demand strategies may be a good idea - a chase demand strategy can cause instability in the workplace because plans can change frequently
which of the following statements about supply options for dealing with demand-supply mismatches are true
-subcontracting allows less control over output and may lead to higher costs and quality problems -the cost of inventory includes more than simply the storage cost for the items -overtime is advantageous because it can be implemented quickly, with almost no additional overhead
in lean production design what is the ideal lot size in numbers of units
1
steps for aggregate planning
1. determine demand for each period 2. determine capacities for each period 3. identify relevant company/departmental policies 4. determine all relevant costs 5. develop alternative plans and compute the costs for each 6. select the best plan
place the following steps for the A-B-C approach in the correct order
1. multiply annual volume by the unit price for each item 2. arrange items in descending order by annual dollar value 3. classify the items as a,B, or C
match the following inventory categories with the APICS recommendations for accuracy
A = +-.2 B = +- 1 C = +- 5
Aggregate planning
Intermediate-range capacity planning that typically covers a time horizon of 2-12
planning term associated with general levels of employment, output and inventories.
Long term decisions
planning term associated with product and service selection, facility, size and location, equipment decisions, and layout of facilities
Long term decisions
Planning term associated with achieving results within the perimeters of long and intermediate term planning
Short term decisions
what statistic used to analyze path probabilities
Z-statistic
select the best definition of value stream mapping
a visual tool to systematically analyze the flow of materials and information involved in bringing a product or service to a customer
which of the following is/are reasons companies engage in aggregate planning
accurate forecasting timing is impossible it can help synchronize flow through the supply chain it takes time to implement plans
what is the ultimate goal of a lean system
achieve a smooth uninterrupted flow where supply equals demand
----- planners try to match supply and demand within the constrains dictated by ---- or agreements, at minimum cost
aggregate policies
what is strategic sourcing in supply chain
analyzing the procurement process to lower costs by reducing waste, increasing profits, reduce risks and improve performance
which of the following are assumptions of the eoq model
annual demand is known lead time is known
----- inventories is inventory that has not yet been committed to a customer
available-to-promise
the goal of inventory management is to find a ---- between ---- ----- and keeping inventory ---- reasonable
balance customer service costs
which of the following statements about the master schedule are false
because it is derived fro the aggregate plan, the numbers in the master plan match those in the aggregate plan it is used at the operational level, not by higher-level management
which of the following data sources is an input for the master schedule
beginning inventory
which of the following are inputs to the master schedule
beginning inventory forecast for each period customer orders
similar to the theory of constrains, critical chain project management uses what o support the critical path
buffers
a ------ ------ strategy matches planning ------- to expected demand fro each period
chase demand output
which are three important factors in choosing a strategy for meeting uneven demand
company policy, flexibility, costs
Trial and error approaches
consist of using tables or graphs that enable planner to visually compare projected demand requirements with existing capacity
which of the following are characteristics of a lean system
continuous improvement waist reduction quick changeovers
what are the main considerations to be made prior to adoption of lean operations
cost and other resources required to convert to lean length of time to convert from traditional systems whether running on a tight schedule is desired
the term used in project management to shorten an activity by applying additional resources to it is to ---- it
crash
in lean systems, production is based on which of the following inputs
customer demand
products are sometimes returned to companies or third-party handlers for which reasons
defective items or parts replaced in the field unsold or obsolete products obsolete or recalled items
when interpreting network diagrams in PERT/CRM, if the time estimates are fairly certain they are said to be what
deterministic
reducing one or more steps i the supply chain is known as what
disintermediation
supply chain ---- can inhibit operations due to minimal inventory levels
disruptions
at which point in an order cycle is the risk of a stockout occurring the greatest
during the lead time for an order that has been placed
in order to achieve a balanced, rapid flow through a lean system, disruptions must be minimized? what are some causes of disruptions in production
equipment breakdowns late deliveries from suppliers quality problems
all of the following about strategic sourcing except
focuses on purchase price instead of total cost
which are the correct descriptions of the three time fence phases
frozen, slushy, liquid
which of the following is not a way to deal with variations
get as accurate a forecast as possible for future demand
aggregate planning takes a high-level approach to planning, focusing on ----- of similar products and services rather than on ---- items
groups individual
what are some of the benefits of cross-training workers, a personnel management method often used in a lean organization
helps with system bottlenecks for line balancing purposes adds flexibility when a co-worker is absent
which of the following about aggregate planning is not true
if capacity and demand are approximately equal for the planning period, no additional work is required aggregate planners try to ensure that capacity always exceeds demand
which of the following are considered types of inventory in a manufacturing facility
in transit goods finished goods raw materials maintenance and repairs work in process
which of the following types of inventory are items that are ready to be sold
independent- demand items
techniques for aggregate planning fall into two categories: ------ techniques and ------- techniques
informal mathematical
sales and operations planning makes ------ range decisions to balance supply and demand, integrating financial and operations planning. It should be shared with supply chain partners
intermediate
Sales and operations planning
intermediate-range decisions to balance supply and demand, integrating financial and operations planning.
manufacturing firms have used ---- as buffers between successive operations to maintain continuity of production that would otherwise be disrupted by events such as breakdowns of equipment and accidents that cause a portion of the operation to shut down temporarily
inventories
which of the following statements about the economic production quantity is/are true
inventory "trickles in" as it is produced unlike the eoq model, there are no ordering costs
which of the following is the correct formula for projected on-hand inventory
inventory from previous week - current week's requirement
what is meant by the term bullwhip effect in inventory management
inventory oscillations become progressively larger looking backwards through the supply chain
which of the following are differences between manufacturing and service aggregate planning
it can be difficult to measure or define capacity availability in services services cannot be inventoried employees in services are often able to handle a wider variety of tasks, making labor a little more flexible
what is the main disadvantage of a linear programming approach to aggregate planning
it can only optimize one objective
which of the following statements about intermediate and aggregate planning is/are true
it is included in business plans along with long-term planning aggregate planning decisions define the framework in which operating decisions will be made
which of the following statements about single-period model is/are true
it is used for ordering items that have a limited lifespan it minimizes costs of shortage and excess
which of the following statements about intermediate planning is true
it relates to general levels of employment, output, and inventories
which of the following data sources is not an input for aggregate planning
lead times for purchased parts and components
a ---- ------ strategy maintains a ------ rate of regular-time output while meeting variations in demand by a combination of options
level capacity steady
in order to make JIT/Lean system flexible to handle a variety of products what two things must be reduced
long setup/changeover times and long lead times for vendors
which of the following is not a benefit of lean systems
lower cost due to economies of scale in production
is correct about planning a successful conversion to Lean/just-in-time operations
management and employees must be convinced of benefit and receive training prior to conversion to avoid obstacles
select the four building blocks which support the goals of lean/just-in-time systems from the following list
manufacturing, planning and control process design personnel and organizational elements product design
a value stream map looks for waste and improvement opportunities and collects which of the following data about the process
mistakes distances times
advantages that RFID tags have over bar codes
multiple RFID tags can be read simultaneously, whereas bar codes must be scanned individually more info line of sight
what is the supplier relationship like when the vendor is viewed as an partner
openness and sharing of strategic and tactical information readily occurs price is moderately important but flexibility is very important one or few number of suppliers
customer ------ refer to the units that have already been committed to customers
orders
which of the following statements about the EOQ model is/are true
orders are placed when there is just enough inventory left to cover the lead time demand the EOQ minimizes the sum of annual ordering and holding costs
supply chain partners should be consulted during the ----- stage, especially if new or ---- products are involved
planning changed
which of the following describes the aggregate planning strategies for dealing with mismatched supply and demand
proactive, reactive, mixed
JIT/Lean, a low-inventory scheduling system with minimal waist where supply equals demand must have what in place to work properly
processes and equipment with high reliability to minimize breakdowns flexibility to handle a variety of products/services employees who continuously improve the process no disruptions from quality problems
select the best definition of level loading
producing at the same rate or quantity each day
which of the following are outputs of the aggregate planning process
projected levels of subcontracting projected levels of inventory total cost of a plan projected levels of output projected levels of employment
which of the following are possible demand options for dealing with demand-capacity mismatches
promotion new demand pricing back orders
The master production schedule indicated the ------ and ----- of planned complete production
quantity timing
---- ----- enable process flexibility and output variety in a lean system
quick changeovers
which of the following statements about reorder point ordering is/are true
safely stock is required if lead time is variable safety stock is required if demand is variable
----- cost is the unit unrealized profit while ---- cost is the difference between the purchase price and salvage value of an item
shortage excess
a gantt chart showing process of activities is best used for what type of project
simple project
how does setup time reduction contribute to lean process design
smaller lot sizes mean more setups (changeovers of equipment). Smooth, rapid flow is the goal
which of the following statements about inventory control systems is/are true
some businesses are moving toward using RDIF tags to track inventory orders in two-bin systems may not be placed at the right time
inventory is a ---- stock or ---- of goods
stock store
what are some of the major obstacles encountered when converting to lean/just-in-time operations from traditional methods
suppliers may resist... management may resist... the organization's culture may not be....
which of the following statements are correct about PERT/CRM
tells how long an activity can be delayed without delaying the project useful for large-scale projects to indicate the most critical activities provides an estimate of completion time for the overall project schedule
rough-cut capacity planning is the validation of a ---- master schedule. It ensures the ----- of a master schedule
tentative feasibility
in PERT/CPM if a time estimate is said to be probabilistic what does that mean
the activity duration is subject to variation
which of the following statements about disaggregating the aggregate plan is not true
the aggregate plan must be broken down by units
what is the definition of holding cost in the EOQ model
the cost to carry a single unit of inventory for a length of time
which of the following statements about demand options for dealing with demand-supply mismatches are true
the degree of price elasticity affects how well pricing strategies will work promotions could exacerbate the demand-capacity mismatch automatic back orders are a useful way to shift demand fulfillment from one period to the next
which of the following is not a reason for using the fixed-order-interval model
the firm desires to minimize inventory requirements
which of the following statements about time fences is true
the further out a proposed change is, the easier it is to make it.
what is the best definition of supply chain
the sequence of organizations-their facilities, functions, and activities-that are involved in producing and delivering a product or service
which of the following best describes the two parts of the value chain- the supply and demand components
the supply component starts at raw materials and ends in the organization. The demand component is from delivery of output to the final customer
which of the following is the main disadvantage of trial-and-error techniques using spreadsheets for aggregate planning
they do not necessarily result in an optimal plan
the aggregate planners for a plan that is a ----- projection of service staff requirements
time-phased
why is it essential to take supply chain capabilities into account when doing aggregate planning
to make sure there are no timing issues to make sure there are no quantity issues
which of the following is an example of "elimination of disruptions" for lean services
try to avoid having workers who are servicing employees also and telephones
match the formulas for stock level in the single-period model to their corresponding distributions
uniform distribution = mean + Z... normal distribution = mean + SL...
a supply chain is alternatively referred to by what name
value chain
in the kaizen philosophy --- is the enemy
waste
when is production triggered
when the projected on-hand inventory becomes negative
lean manufacturing started in Japan
which of the following statements about lean manufacturing is true
