CH5-7 QUIZZES
Supply planning uses requirements from demand management to develop a realistic manufacturing plan. Which one of the following represents the Basic Planning Formula? A. Beginning Inv +Production -Demand=Ending Inv B. Beginning Inv (BI) - Demand =Production C. Production - Demand = Ending Inv D. Demand-Production=End Inv
A. Beginning Inv +Production -Demand=Ending Inv
Which of the following terms is commonly used to describe the point where annual ordering costs and annual inventory carrying costs are equal? A. Economic Order Quantity (EOQ) B. Quantity Discounts C. Reorder Point D. Normal Distribution Curve
A. Economic Order Quantity (EOQ)
Which manufacturing strategy is described as a manufacturing process in which the product is designed, engineered, and built to specifications only after the order has been received? A. Engineer to Order B. Make to Order C. Assemble to Order D. Make to Stock
A. Engineer to Order
Which manufacturing strategy is described as a manufacturing process in which the product is designed,engineered, and built to specifications only after the order has been received? A. Engineer to Order B. Assemble to Order C. Make to Order D. Make to Stock
A. Engineer to Order
Which of the following is NOT a valid reason to hold inventory? A. Decouple dependencies in the supply chain B. Efficient utilization of warehouse space C. Buffering against uncertainty in demand or supply D. Decouple supply from demand
B. Efficient utilization of warehouse space
Which Inventory Metric measures how much it costs a company to store inventory over a given period of time? A. Inventory Days of Supply B. Inventory Carrying Cost C. Inventory Turnover D. Inventory Accuracy
B. Inventory Carrying Cost
Which one of the following is an intermittent (i.e., occurring at irregular intervals, not continuous or steady) manufacturing process? A. Continuous Flow Production Process B. Job Shop Production Process C. Line Flow Production Process D. Repetitive Production Process
B. Job Shop Production Process
Which of the following is NOT one of the elements of the Forecasting Process? A. Support System B. Order Fulfillment C. Techniques D. Administration
B. Order Fulfillment
Which one of the following is NOT a constraint on the practical use of EOQ? A. Storage Capacity B. Overproduction C. Unitization D. Transportation
B. Overproduction
In which facility layout are resources grouped by process, and then the product is moved between groupings based on need? A. Fixed Position Layout B. Process Layout C. Product Layout D. Cellular Layout
B. Process Layout
Inventory (i.e., total inventory) can be described as the difference between A. What we manufacture versus what we sell B. What we purchase and what we manufacture versus what we sell C. What we manufacture versus what we purchase D. What we sell versus what is returned
B. What we purchase and what we manufacture versus what we sell
Which of the following forecasting techniques "focuses entirely on historical patterns and pattern changes to generate forecasts"? A. Qualitative B. Time Series C. Casual D. Regression
B.Time Series
The production plan for any business must consider which of the following: A Processes B People C Packages D Programs A. A, B, and C only B. B,C, and D only C. A, B, and D only D. All of the above
C. A, B, and D only
Which of the following would be the most appropriate business practice/process to use if you were trying to analyze the implications of alternative decisions through "What If" scenarios, highlight problems, and consequences, and recommend the best overall solution that considers both material and resource availability? A. Collaborative Planning, Forecasting, and Replenishment B. Demand Planning and Forecasting C. Advanced Planning and Scheduling D. Sales & Operations Planning
C. Advanced Planning and Scheduling
Which of the following would be the most appropriate business practice/process to use if you were trying to analyze the implications of alternative decisions through "What If" scenarios, highlight problems, and consequences, and recommend the best overall solution that considers both material and resource availability? A. Collaborative Planning, Forecasting, and Replenishment B. Sales and Operations Planning C. Advanced Planning and Scheduling D. Demand Planning and Forecasting
C. Advanced Planning and Scheduling
Which of the following forecasting techniques uses one or more factors (i.e., independent variables) to predict future demand? A. Time Series B. Qualitative C. Casual / Cause & Effect D. Speculation
C. Casual / Cause & Effect
A steel manufacturing plant never allows its blast furnaces to stop or cool down. What type of manufacturing process is being used? A. Batch Production B. Line Flow Production C. Continuous Flow Production D. Job Shop Production
C. Continuous Flow Production
There are 8 keys to successful S&OP implementation. Which of the following is NOT one of them? A. Executing the process every month B. Process ownership and clarity of roles and responsibilities C. Focus of the short-term D. One plan that integrates the actions of the entire organization E. Senior management decision making (bottom up/ top down)
C. Focus of the short-term
Which of the following is NOT one of the 8 wastes described in Lean Production A. Transportation B. Excess Inventory C. Small Batch Scheduling D. Over Processing
C. Small Batch Scheduling
Inventory ordering cost components include all of the following EXCEPT? A. Order Receipt Processing B. Transportation C. Storage D. Material Handling
C. Storage
In which facility layout strategy are products grouped based on similar processing characteristics and workstations are arranged to form a number of small assembly lines? A. Cellular Layout B. Fixed Position Layout C. Process Layout D. Product Layout
Cellular layout
Which of the following is NOT one of the 8 dimensions of product quality? A. Performance B. Conformance C. Features D. Constraints
D. Constraints
Which of the following is the most common KPI used by managers in measuring the efficiency in the supply chain? A. Perfect Order Measurement B. Inventory Days of Supply C. Inventory Turnover D. Days of Supply
D. Days of Supply
Which Inventory Metric measures how much it costs a company to store inventory over a given period of time? A. Inventory Turnover B. Inventory Days of Supply C. Inventory Accuracy D. Inventory Carrying Cost
D. Inventory Carrying Cost
The forecasting model component that includes random or unpredictable quantities that do not fit other components is known as? A. Seasonal Component B. Cyclic Component C. Promotional Component D. Irregular Component
D. Irregular Component
Which of the following is NOT one of the constraints evaluated by Advanced Planning and Scheduling? A. Machines B. Methods C. Money D. Management
D. Management
Which forecasting techniques uses multiple variables to create a forecast where each variable depends on its past values, and also has some dependency on other variables? A. Exponential Smoothing B. Regression C. Weighted Moving Average D. Multivariate
D. Multivariate
Which one of the following is NOT once of the primary objectives of Lean Manufacturing? A. Produce products with methods that reinforce the occupational development of workers B. Produce products with perfect quality C. Produce products only as quickly as customers want them D. Produce products with a variety of features and options
D. Produce products with a variety of features and options
Which dimension of product quality involves the likelihood that the product will perform throughout its expected life? A. Conformance B. Performance C. Durability D. Reliability
D. Reliability
Which of the following would be the most appropriate business practice/process to use if you were trying to determine the need to increase or decrease major resources in the near to intermediate-term in support of demand, and then gain senior management approval to implement the necessary changes? A. Advanced Planning and Scheduling B. Demand Planning and Forecasting C. Collaborative Planning, Forecasting, and Replenishment D. Sales & Operations Planning
D. Sales & Operations Planning
Which of the following is NOT once of the three drives of effective supply chain planning? A. Simultaneous Resource Considerations B. Efficient Resource Utilization C. Supply Chain Visibility D. Sales and Operations Planning
D. Sales and Operations Planning
Which of the following inventory types is characterized as "inventory bought to hedge a currency exchange or to take advantage of a discount"? A. Safety stock B. Cycle stock C. Pipeline inventory D. Strategic stock
D. Strategic stock
If you successfully implemented Lean Manufacturing, you would expect your overall manufacturing leadtime to?" A.Decrease B.Increase
Decrease
Which one of the following is NOT one of the Key Dimensions of Product Quality? A. Durability B. Delivery C. Aesthetics D. Conformance
Delivery
Which of the following is NOT a benefit of Integrated Operations Planning? A. Greater Integration with enterprise financial plans B. Increased inclusion of strategic initiatives and activities C. Improved simulation and modeling of alternatives D. Easier translation between aggregate and detailed planning levels E. Only A,B, and D are benefits of Integrated Operations Planning F. All of the above are benefits of Integrated Operations Planning
F. All of the above are benefits of Integrated Operations Planning
Assuming that all other variables remain the same, if the cost per unit of an item increases, the EconomicOrder Quantity (EOQ) for that item will also increase True False
False
If a company practices Total Quality Management (TQM), all quality processes are managed exclusively by the company's Quality Department True False
False
Improving the accuracy of forecasting requires error measurement followed by analysis, and the best method for measuring forecast accuracy is to calculate the simple average error True False
False
The Sales and Operations Planning (S&OP) process is typically executed (or conducted) about every 3 to 18months. True False
False
The process of physically counting a defined portion of the total inventory items on a regular/cyclical basis describes the Inventory Turnover Ratio. True False
False
True/False: "Days of Supply" is the term used to describe the level of inventory which triggers an action to replenish the inventory for an item. It is typically calculated as the demand during the replenishment lead time plus safety stock
False
True/False: A Project Process (aka Job Shop) is an inflexible manufacturing process that requires high capital investment.
False
True/False: CPFR improves customer service by driving inventories up through collaboration with customers on their demand
False
True/False: Companies using a make-to-order manufacturing strategy typically maintain safety stock for independent demand items.
False
True/False: In the context of Total Cost of Manufacturing; in general terms, the manufacturing, procurement, and transportation COSTS PER UNIT all go down as volume goes down.
False
True/False: Safety Time is defined as discrete increments of time used to facilitate planning activities
False
In which facility layout strategy are resources arranged in a sequence, and work is divided into a series of standardized tasks, to enable efficient production? A. Product Layout B. Cellular Layout C. Process Layout D. Fixed Position Layout
Product Layout
Mean Absolute Deviation (MAD) is a measure of forecast error calculated by dividing the sum of the absolute error in each time period by the number of time periods being measured. True False
True
The desired level of customer service (for example, case fill rate or order fill rate) can have a direct impact on the amount of safety stock that is carried for a particular product True False
True
True/False: Improving the accuracy of forecasting requires error measurement followed by analysis, and some of the best methods for measuring forecast accuracy are to calculate the Mean Absolute Deviation or the Mean Absolute Percentage Error
True
True/False: Inventory Ordering Cost components include the cost of material handling
True
True/False: Manufacturing processes that are designed to facilitate the rapid switch in production from one product to another while retaining efficiency, are said to provide economies of scope.
True
True/False: The desired level of customer service (for example, case fill rate or order fill rate) can have a direct impact on the amount of safety stock that is carried for a particular product
True
True/False: The goals of LEAN are the elimination of waste and the minimization of all of the resources used in the manufacture of a company's products
True
True/False: The methods and tools that companies use to create a forecast for their products can and frequently do change over the life cycle of the product
True
True/False: The objective of Mass Customization is to increase variety for customers while also realizing the cost advantages of high volume continuous and line flow processes?
True
True/False: While demand uncertainty can be mitigated by maintaining safety stock, supply uncertainty can only be mitigated by maintaining flexibility and responsiveness
True
