Chapter 7 Master
The tripe bottom line is economic prosperity, environmental stewardship, and social responsibility. Modern companies need to focus on which aspect of the triple bottom line? social and economic social and environmental economic and environmental all of them
All of Them
Which of the following is NOT a step in the risk management process? Assess the potential impact of the risk Create an activity-system map Develop plans to mitigate risk Identify sources of potential disruptions
Create an activity-system map
a fixed order quantity model is also called a _______ check all that apply EOQ Q model P model Economic order quantity fixed order period model
EOQ Q model Economic Order quantity
The issue of balancing the level of finished inventory against the level of service to the customer occurs in which type of firm?
Make-to-stock
When the arrival process is random during some period T, what distribution should be used?
Poisson
which of the following are NOT outputs of the initiatives phase of formulating an operations and supply chain strategy? Specific project plan customer preferences product/platform changes
Specific project plan customer preferences
True or False: Operations effectiveness is related directly to the costs of doing business
True
true or false: The exponential distribution can be derived from the Poisson distribution
True
true or false: many product offerings are a combination of goods and services
True
Which of the following is an example of a goods producing business? The IT department of a large university a hospital a car manufacturer a call center an automobile manufacturer
a car manufacturer an automobile manufacturer
what is the relationship between response to customer demand and inventory investment?
a quicker response comes at the expense of greater inventory investment
A tool that shows how a company's strategy is delivered through a set of tailored activities is called
activity-system map
what term describes the expected number of customers that arrive each period?
arrival rate
in the exponential distribution, lambda represents the mean number of _____ per time period
arrivals
Which of the following is NOT a reason to use inventory as a safeguard against raw material delivery time variation? normal variation in shipping time as a supplement to vendor-managed inventory programs an unexpected strike at a vendor's plant shortage of material at the vendor's plant
as a supplement to vendor-managed inventory programs
Firms that combine a number of preassembled modules to meet a customer's specifications
assemble-to-order
what term describes the following scenario: a guest at an amusement park sees that the wait for the new roller coaster is one hour and decided to go on another ride
balking
a standard approach to choosing among alternative processes or equipment that uses fixed cost, variable costs, and revenues is known as
break-even analysis
which of the following is not an example of a limited line capacity? loading dock parking lot gas station bridge toll booth
bridge toll booth
which of the following goods would a continuous process be used?
chemicals
which of the following is/are manufacturing inventory items
component parts in manufacturing work in process finished products
what type of arrivals occur when customers arrive with exactly the same time between successive arrivals?
constant
where does an automobile manufacturer fall on the goods-service continuum?
core goods
which of the following is not required to make a good? decoupling sourcing delivering
decoupling
when the number of needed items are computer-based on the number of higher-level items produced, one is operating an ______demand environment
dependent
Which of the following affect safety stock levels in a fixed order quantity model? check all that apply desired service level standard deviation of usage during lead time lead time in days reorder points in units
desired service level standard deviation of usage during lead time
____inventory includes in transit items or at a warehouse ready for shipment to a customer
distribution
which of the following is not a way to manage queues: don't give customers information about what to expect segment customers train your servers to be friendly try to divert customers attention when waiting
don't give customers information about what to expect
Useful suggestions for managing queues based on research in the banking industry are which of the following? use loud colors to distract the customer from the wait encourage customers to come during slack periods inform your customers of what to expect segment the customers train your servers to be friendly try to shift customers to online banking try to divert the customer's attention
encourage the customers to come during slack periods inform your customers of what to expect segment the customers train your servers to be friendly try to divert the customers attention
which distribution is used to approximate random service times?
exponential
True or false: all firms compete on the same dimensions
false
true or false: A large party of 10 at a restaurant is an example of a single arrival size
false
true or false: an operations and supply chain strategy is independent of the corporate strategy
false
true or false: inventory is not an issue for services because services do not carry inventory
false
true or false: the choice of line format depends only on the volume of customers served
false
which of the following is considered to be warehouse inventory? finished goods inventory in a distribution center inventory at a vendor's facility awaiting shipment raw materials inventory awaiting a machining operation work in process inventory
finished goods inventory in a distribution center
arrival patterns are controllable in the following situations except? fire department grocery store department store bakery
fire department
which model is more likely to have a stock out? fixed time period fixed order quantity system
fixed time period
the higher the fixed cost the ____the break even volume
higher
the higher the variable cost, the _____ the break-even volume
higher
which of the following is not a strategy associated with operational effectiveness? quality assurance hiring more employees process redesign technology investments
hiring more employees
which of the following is NOT a major activity of a typical strategic planning process? translate the strategy implement the strategy develop the strategy plan operations and supply
implement the strategy
straddling occurs when a company seeks to match the benefits of a successful position while maintaining its existing position. Which of the following is NOT something a firm may try when using the straddling approach? add new services add new features increase prices add technology
increase prices
Cambell's soup makes product for kroger and other grocery stores based on sales to the final consumer. The inventory management environment is characterized as ______demand
independent
when dealing with customer arrivals, a(n)______ population is large enough that additions or subtractions of customers does not significantly affect the systems probabilities
infinite
Useful suggestions for managing queues based on research in the banking industry are which of the following? Check all the apply inform your customers of what to expect try to divert the customer's attention train your servers to be friendly try to shift customers to online banking segment the customers use loud colors to distract the customers from the wait encourage customers to come during slack periods
inform your customers of what to expect try to divert the customer's attention train your servers to be friendly segment the customers encourage customers to come during slack periods
a process that cannot be weighed or measured is known as
intangible
the stock of any item or resource used in an organization is called?
inventory
what does selection of decoupling points determine? select all that apply final quality of the product inventory investment customer lead times production lead times
inventory investment customer lead times
how many elements must a population have before it can be defined as infinite?
it depends
Time between placing an order and receiving the order is called
lead time
the higher the per unit revenue the ____the break even volume
lower
firms that make the customer's product from raw materials, parts, and components are called
make-to-order
firms that service customers from finished goods inventory are known as
make-to-stock firms
According to the inventory control system matrix, independent demand with HIGH transaction costs, it is likely to deploy what type of inventory control process?
manual two-bin
work-in-process is considered ____inventory
manufacturing
when calculating productivity, if you compare the output to a group of inputs (but not all inputs), you are conducting which type of productivity measure
multi factor measure
Identify the two terms that describe marketing-oriented dimensions that are key to competitive success (check all that apply) order straddling order winner order strategy order qualifier
order winner order qualifier
productivity is defined as the ratio of
outputs to inputs
what type of arrival rate will wait as long as necessary until the service facility is ready to serve him or her
patient
Looking at the service encounter from the Chase and Dasu perspective has led to which of the following behaviorally based principles for service encounter design and management. Check all that apply the front end and the back end of the encounter are created equal pay attention to norms and rituals people are easier to blame than systems let the punishment fit the crime in service recovery be sure to control the process segment the pleasure; combine the pain
pay attention to norms and rituals people are easier to blame than systems let the punishment fit the crime in service recovery segment the pleasure, combine the pain
fixed time_____ models tend to have greater safety stock than fixed-order quantity models because the inventory is not tracked as closely
period
safety stock inventory levels are determined by the _______of stock out at a given desired service level
probability
one or more activities that transform inputs into outputs is/are called what?
process
product-service bundling refers to a company building service activities into it product offerings for its customers. Which of these service activities would not be include in the product-service bundle? maintenance spare part provisioning training product design
product design
Which of the following approaches to delivering a service was made famous by McDonald's Corporation
product-line approach
where do food products fall on the goods-service continuum?
pure goods
Where does medical care fall on the goods-service continuum
pure services
many customers like self-service approach, what is the main reason?
puts them in control
what term describes a line of waiting persons, jobs, things, or the like?
queue
what is the term that refers to a process where customers wait in line for service
queuing system
Which of the following is not an example of the priority rule? random service best customers first reservations first first come first served
random service
when a customer decides to leave the line after being in it for a while describes what term
reneging
in companies using fixed order quantity inventory systems, a consistent inventory levels is used as a trigger to order more product. this inventory level is called
reorder point
which tool involves assessing the probability or relative frequency of an event against the aggregate severity of the loss?
risk mapping
which of the following terms describes the number of customers that can be handled during a given time period?
service rate
the_____ are individuals or organizations that legally own one or more shares of stock in the company
shareholders
Which of the following processes involves the selection of suppliers?
sourcing
which of the following describes the step where parts are procured from one or more suppliers?
sourcing
When a company seeks to match the benefits of a successful position and maintain their current position in the marketplace it is attempting an_________ approach
straddling
which of the following is not a main factor to consider with waiting lines regarding line structure and service rate? the number of lines the line length the distribution utilized the queue discipline
the distribution utilized
Which of the following are the aspects of the service encounter that Chase and Dasu suggest applying behavioral concepts? select all that apply judging the cost of providing the service the flow of the service experience judging encounter performance the flow of time
the flow of the service experience judging encounter performance the flow of time
What is Q (opt)
the order quantity that minimizes total annual cost
When a queuing system is referred to as finite or infinite, to what is it referring
the population
The queuing system consists essentially of three primary components. What are they? check all that apply. the servicing system the condition of the customers on exit the source population and how it arrives if the waiting line is inside or outside
the servicing system the condition of the customers on exit the source population and how it arrives
The queuing system consists primarily of what? check all the apply. percentage of customers who balk the waiting line percentage of customers who renege number of available servers
the waiting line number of available servers
When a customer exits the queue, there is a chance that the customer may return to the source population to be served again or what?
there is a low chance of reservice
the term that defines when some activities are incompatible and that necessitates less of another activity is:
trade-off
which of the following is not a cost associated with inventory management? holding costs set up costs transportation costs shortage costs
transportation costs
True or False: A process is made up of one or more activities that transform inputs into outputs
true
True or False: Operations and supply chain management is focused on the systems that create and deliver an organization's products and services
true
true or false: an operations strategy must consider the risk in a supply chain
true
true or false: carrying finished goods inventory is more expensive than carrying raw material inventory
true
true or false: the Poisson distribution is a discrete distribution
true
true or false: the cost trade-off decision in the management of queues is often straight forward
true
true or false: the customer order decoupling point is where inventory is positioned in the supply chain
true
there are ___ dimensions depicted on a product-process matrix
two
which of the following is not a way to control arrivals? have short wait lines use a faster machine run a special establish specific hours for customers
use a faster machine
How can the waiting line be controlled on the server side? Check all that apply. use express or special purpose lines using faster servers use faster setup use a different layout having the server use faster (or slower) machines
using faster servers use faster setup use a different layout having the server use faster (or slower) machines
Which of the following is a policy and control of an inventory system
when stock should be replenished
