Final Exam Cumulative
A zero defects quality strategy emphasizes:
"do it right the first time."
Three major challenges facing supply executives when setting supply strategies and objectives are:
(1) What is the effective interpretation of corporate objectives and supply objectives? (2) What is the appropriate action plan or strategy to achieve the desired objectives? and, (3) How can supply issues be identified and integrated into organizational objectives and strategies?
P3.4 Which of the following is NOT the appropriate measure of inventory turnover? (Ref: Dr. Spink's lecture note)
(Total carrying costs)/(Asset investment)
The following sequence shows four operations for a computer chip assembly process and the effective capacity of each. Step 1: 500 chips/hour Step 2: 250 chips/hour Step 3: 200 chips/hour Step 4: 550 chips/hour Suppose the utilization is 70 percent of effective capacity. What is the actual output of the process?
140 chips/hour
HighLife Corporation has the following information: Average demand = 30 units per day Average lead time = 40 days Item unit cost = $45 for orders of less than 400 units Item unit cost = $40 for orders of 400 units or more Ordering cost = $50 Inventory carrying cost = 15 percent The business year is 300 days. Standard deviation of demand during lead time = 90 Desired service level = 95 percent What is the safety stock that HighLife Corporation should carry for its desired service level of 95 percent? 1.28 standard deviations cover 90 percent 1.65 standard deviations cover 95 percent 1.96 standard deviations cover 97.5 percent
149
Currently, our system is characterized by a lack of fit between what the customer wants and what the SCM system is best able to provide. As a result, which of the following would apply? The only way to restore fit is for the firm to change the market segment it is going after. Unless something is done, our firm will not be the most effective and efficient long-term supplier. Any firm can successfully counter such inconsistencies through the use of patents and aggressive advertising.
2 only
The 80/20 rule, often called the Pareto principle means: ______.
20% of the SKU base will drive 80% of the demand
Alpha Company places 10 orders per year with its supplier. Each order is for an amount exactly equal to the EOQ. Alpha has determined its annual inventory carrying cost is $2,000. Alpha carries no safety stock at all. What is Alpha's order cost per order?
200
A process with Six Sigma quality is expected to produce how many defects?
3.4 defects per million opportunities
Some estimates place the total costs of quality to be:
30-40 % of the final product cost
An organization that provides non-asset-based global network, inbound and outbound optimization is generally characterized as ______.
4PL or logistics integrator
In manufacturing organizations, the dollars spent with suppliers fall into what range as a percent of revenues?
50 TO 80%
Alpha Company places 10 orders per year with its supplier. Each order is for an amount exactly equal to the EOQ. Alpha's order cost has been determined to be $50 per order. Alpha carries no safety stock at all. What is Alpha's annual inventory carrying cost?q
500
For an organization with annual sales of $500 million, purchases of $300 million and profit of $50 million, a 10 percent reduction in the cost of purchases would result in a profit-leverage effect of:
60 percent (sales increase of 60 percent would be required to achieve the same percentage increase in profit).
n 2016 US business logistics costs represented what portion of Gross Domestic Product (GDP)?
7.5%
For an organization with revenue of $100 million, purchases of $60 million, and profit of $8 million before tax, a 10 percent reduction in purchase spend would result in an increase in profit of:
75%
Under Juran's Law, whenever a problem occurs, what percentage of the time is the problem the result of a system/process error?
85%
Good reasons to reduce your setup times in a factory are: (Choose all that apply)
A down machine has no output. Long setup times create additional inventory.
The Plan-Do-Check-Act cycle is best defined as:
A method used to guide problem identification and solution.
A process is:
A system of activities that transforms inputs into valuable outputs.
ISCM7 - TPE-TCO-Life refers to:
A tradeoff of concerns
When planning for an increase in production, APS helps to ______.
APS is a tool that helps to calculate strategic options, determine what is best to service the customer, and know what is best from a profit point of view.
ISCM2 - The industry 4.0 focus is on:
Advancing from computer automation to cyber physical systems
Which of the following is NOT true about "order qualifiers"?
All of the items are true.: These are product traits that must meet a certain level in order for the product to even be considered by customers. The firm must perform acceptably on these traits, usually at least as well as competitors' offerings. Order qualifier traits may include availability, price, and conformance quality.
Utilization is equal to which of the following?
Arrival rate divided by service rate
The purpose of the kanban card is to:
Be a signal from the user authorizing the maker to start producing the required parts
In process improvement projects, why should we focus our efforts on those processes that consume the most resources (e.g., labor, space, capital, etc.)?
Because that is where we get "the most bang for our buck."
Which of the following lean principles best communicates the notion of demand synchronization?
Build only as quickly as customers want them.
Taxes and insurance costs are an example of which of the following costs?
Carrying (or holding) costs.
Continual improvement of processes is important because:
Competitors are improving their processes. Customer preferences change over time. Technology is constantly changing.
We have a situation where we have many different processes; high quantities are required to deliver the product's value both on the factory floor and in the customer's use. Which of the following categories of waste in product design have we encountered in this situation?
Complexity
Scantron Inc. claims that its competitors have to recall 10 percent of their products to fix defects, while it only has to recall 5 percent. Scantron is emphasizing which dimension of quality?
Conformance
In its promotional material for bed linens, Scarsdale Corporation states that all sheets and pillowcases sold to customers should have and actually do have a thread count of exactly 600 threads per inch. Scarsdale is apparently emphasizing:
Conformance quality
Which statement best describes the performance curve of a queuing system as system utilization approaches 100%:
Congestion and delays skyrocket
Supply chain synchronization attempts to achieve which of the following?
Coordinate multiple firms activities across the supply chain.
The newsvendor model balances which two costs (choose all that apply)?
Cost of ordering too many Running out and losing profits
L2.5 Which of the following is the best definition of internal failure costs in major cost categories applicable to quality of goods and services?
Costs incurred within the operating system as a result of poor quality.
The focus of the first step in the DMAIC process is on:
Critical to Quality characteristics
"Zero defects" is a concept of quality management of which thought leader?
Crosby
A company strategy is defined and decided by
Customers and individuals
ISCM10 - A company strategy is defined and decided by:
Customers and individuals
Which of the following is NOT often associated with supplier-managed inventory (SMI) arrangements?
Customers recommend to suppliers how they should schedule production.
Suppose that you are the general manager of a hotel. For which of the following issues would you first seek help from an operations manager in your firm?
Customers' complaints are rising.
Which two of the following effects directly result from bottlenecks?
Decrease in output and increase in lead-times.
R3.2 What is the starting point in supply strategy? (Supply & Risk)
Define all aspects of what you need
At the heart of the Six Sigma program is a five-step process called D-M-A-I-C. These letters denote a major activity that must be completed to achieve the objectives of Six Sigma. These activities are:
Define, Measure, Analyze, Improve, and Control.
The idea that variability is the source of most quality problems was a major contribution of which quality management thought leader?
Deming
If a product includes features that customers care most about, we would say that it has high:
Design Quality
Lean design strives to achieve which of the following objectives?
Design products that exactly meet customers' needs
Which of the following statements is a reason why operations management is important?
Efficient and productive operations drive the economic well-being of nations Operations management is responsible for much of the value created by organizations. Operations management is a key source of competitive differentiation among firms.
M3.1 Which of the following is not a benefit of sales and operations planning
Eliminate the need to have finished goods inventory.
You are an upper-level manager in a firm. You believe that corporate objectives are not effectively disseminated throughout the organization and that line-level managers do not take them into account in their decision making. Which of the following would best help you to try to correct this problem?
Establish metric-based performance measures.
To facilitate classification of a large variety of different items being shipped on a single invoice or order, a traffic manager may want to consider ______.
FAK
If you want the consignee to be responsible for goods while they are in-transit you should ship products ______.
FOB ORIGIN
When lean systems are implemented:
Fixed and variable costs both tend to decrease.
The three elements of Value Proposition, Key Customers, and Capabilities operate within an environment. Which of the following is NOT part of that environment?
Founder's ideology
Which of the following statements is NOT true regarding supply chain management?
Globalization has slowed the growth of supply chain management.
R3.1 To reduce the risk of obsolescence and lower the asset investment are both characteristics of the following: (S07 Managing Inventories)
High turnover
Which of the following is not the most appropriate benefits of supply chain planning?
Higher safety stock level
What kinds of questions does an operations manager who is responsible for strategic-level planning address?
How many manufacturing plants should the company operate?
Which of the following is not a benefit that is offered by advanced planning and scheduling (APS)?
Improved forecast accuracy.
M3.4 In procurement, Total Cost of Ownership includes all of the following except:
In fact, total cost of ownership includes all of the above.
Which of the following is not a way to change process capacity?
Increase demand
Which of the following is not a characteristic of a global supply chain?
Increased standardization.
Which of the following is NOT a role of inventory?
Increasing quality of finished goods
Up until the latter parts of the 20th century, operations management mainly focused on:
Internal production
A well-designed value proposition possesses four characteristics. Which of the following is NOT one of those characteristics?
It offers the highest product quality in each quality dimension.
Mass production is to produce large quantities of standardized products by an automated mechanical process. Which of the following is NOT appropriate characteristics of mass production?
Longer cycle time of production
The TQM view of organizational structure states that:
Management must support employees.
The trend of globalization of supply chains has increased the complexity of purchasing responsibilities and made identification of risk more difficult. Which of the following is NOT true about the "Managing Supply Risk"?
Managing supply risks require "avoiding safety stock."
Which of the following is NOT a driver of consolidation in the third-party logistics industry?
Manufacturing capability.
Which of the following is NOT the primary examples of supply's role as a useful source of information?
Marketing
In working with downstream processes, internal operations managers typically work closely with:
Marketing and sales managers
Product fraud (including counterfeiting, stolen goods, substandard or mislabeled products):
None of the ab
The basic calculation in the newsvendor model will result in a calculation of:
Optimal probability of running out
Which of the following does NOT belong?
Order Proposition
P3.1Which of the following is the MOST appropriate explanation for Collaborate-Plan-Forecast-Replenishment (CPFR)
Order is generated jointly
An initial step in implementing lean is:
Outsource any non-core activity that can be done more efficiently by a supplier than by the firm.
The 20% of customers/products account for 80% of sales. This is known as which of the following?
Pareto principle
Within the supply chain and operations management system, the value proposition is most effectively communicated to the rest of the organization through which of the following mechanisms?
Performance measures
M3.2 Which of the following is not a reason for improving the operational efficiency of sales and operations planning?
Precise demands by key customers
Which of the following is not a reason for increased importance of S&OP?
Precise demands by key customers
The types of costs included in a cost of quality analysis include:
Prevention, appraisal, and failure.
Which of the following is the most appropriate definition of a core capability?
Production/design processes unique to the firm.
Which of the following statements is true of Push and Pull systems?
Push and Pull systems are opposite but can still be used together
Which of the following statements is false?
Quality dimensions are easy to measure for tangible goods, while they are difficult to measure for services.
Stu Johnson, CEO of Johnson, Inc., attended a seminar on Total Quality Management. Which of the following is NOT something he is likely to have learned at that seminar?
Quality is primarily the responsibility of operations management.
Fundamental areas of management in supply chain operations management include:
Quality, Inventories, and Processes.
Ball Corporation sells aluminum cans to Anheuser-Busch to use in making six-packs of Budweiser. Anheuser-Busch has a warehouse located at its plant in St. Louis that contains boxes of empty cans received from Ball. From Anheuser-Busch's perspective, the cans in this warehouse represent:
Raw materials and components inventory.
Falling political barriers have opened up new opportunities to develop global supply chains, this is best described by:
Reduction in Governmental Barriers to Trade
If a tangible good or service performs the promised function dependably, we say that it has high:
Reliability
What does the R stand for in CPFR?
Replenish
A production kanban authorizes a worker to:
Replenish an empty bin.
Which type of supplier provides equipment, product and process designs, and labor to support a firm's processes?
Resource and technology suppliers
All of the following represent external failure cost EXCEPT the cost of
Scrapping defective raw material.
The logistics value proposition is focused on which two main elements?
Service and Cost.
Implementation of a Six Sigma program typically involves:
Setting up training at various levels including green belt and black belt training
What is the great benefit of the P-system?
Simplicity in managing the system
Different levels of planning in supply chain operations management include:
Strategic, tactical, and operational planning.
Operations managers answer questions of what, how, when, where, and who by defining both the ___________ and _____________ aspects of the operations management system.
Structural and infrastructural
Achieving the goal of producing at the output rate that matches the rate of customer demand is the goal of:
TAKT time flow balancing.
Which of the following is not a benefit of sales and operations planning?
The S&OP process eliminates the need to have finished goods inventory.
The second, simpler formula is only valid for which condition?
The arrival and service rates are derived from a Poisson distribution
Operations management is:
The management of processes.
2.2: Which of the following best defines Yield Rate:
The percentage of units produce as a percentage of inputs.
P2.4: Which of the following is the best definition of reliability in quality dimensions?
The probability of failure within a specified time period
There is increasing consolidation for the major logistics and supply chain service providers. Which of the following is the major justification for this consolidation?
To offer a broad platform of integrated services.
P3.5 Which of the following is NOT the appropriate reason for keeping inventories?
To prevent excess of orders
Safety stock exists for which of the following reasons?
To provide protection against the uncertainties of supply and demand.
Which of the following is not an example of transportation safety regulation?
Transitioning from stage three to stage four diesel engines to reduce emissions
Inventory strategy for an item stored in two different locations is known as:
Two-bin system
Which one of these concepts is not part of logistical integration objectives?
Using less parcel shipping
Adam Smith described his company's process as follows: "Under ideal conditions we can produce 10,000 units a day. However, our normal production is 6,000 units a day. Today, we actually produced 8,000 units." Which of the following is true?
Utilization was 133 percent of effective capacity.
Echelon logistics operating arrangements accomplish which of the following?
Utilize warehouses to create inventory assortments and achieve consolidation economies
Which of the following is NOT related to the reliability of Supply Chain Operations Reference model?
Value added per employee
ISCM12 - Which is correct:
Value: the amount buyers are willing to pay (measured by total revenue which is price and volume) for what a firm provides to them
Corporate strategic planning involves decisions related to:
What businesses should we be in?
Internal questions that may be addressed in a SWOT analysis include:
What do we do better than anyone else?
Functional strategic planning involves decisions related to:
What metrics should be used to ensure progress in operations management
A batch of Raisin Bran that has been made at Kellogg's but not yet packaged in its final cereal box would be an example of what type of inventory?
Work in process
ISCM9 - An 'enterprise' could be:
a non-governmental organization a governmental organization a company a company or governmental organization
The profit-leverage effect of supply savings means that:
a reduction in purchase spend increases profit more than an equivalent increase in sales.
Which of these is a true statement? (Choose all that apply)
a system can have more than one bottleneck a factory's bottleneck can change depending on what products are being made
Vulnerability, as applied in this chapter, is:
a system weakness
Steve's shop sells seashells by the seashore. Steve buys shells from local collectors for an average price of $0.50 per shell. Steve sells on average 1,000 shells each month. Each time he orders shells from collectors, there is a $20 shipping and handling fee. Steve estimates a unit holding cost of $0.50 per shell per year (many of them get broken if held in inventory too long). How often should Steve order seashells?
about one time each month
An example of a short-term capacity increase decision is:
adding low skilled labor
Which of the following is not an objective of industrial packaging?
advertising
Facility network design is concerned with which of the following
all
Logistics is ______.
all
Which of the following are the major reasons for supply chain outsourcing?
all
Which of the following is the rationale for plastic packaging?
all
Total Cost Logistics Model takes into consideration ______.q
all expenditures necessary to perform logistical requirements
otal Cost Logistics Model takes into consideration ______.
all expenditures necessary to perform logistical requirements
R3.5 What cross-functional owned processes align within Sales & Operations Planning?
all of the above
Inventory held due to bottlenecks in a process causes:
all of these: Increased storage requirements quality issues increased labor costs
Best warehousing practice is to ______.
allow the fast moving product to move quickly through the warehouse
Which of the following is not a theoretical factor of forecasting?
amount
A strategy is:
an action plan to achieve specific long-term goals and objectives.
Strategic planning can be defined as:
an action plan to achieve specific long-term goals and objectives.
Factors contributing to the success of a TQM effort do not include:
an uncomplicated product
ISCM3 - For our class and enterprise risk management, and "enterprise" could be:
any entity or group
Supply may contribute to the containment of the costs of poor quality by addressing:
appraisal costs, internal costs, external costs and prevention costs
Throughput is generally equal to which thing?
arrival date
The definition of "Supply chain risk management"
as with related SCM definitions, there is not 100% agreement
Supply strategies that are based on changes in demand and supply are known as:
assurance-of-supply strategies.
Which type of material handling system typically has the highest fixed cost and the lowest variable cost?
automated
When small changes generated by a customer produce progressively larger changes at each stage upstream in the supply chain, this is known as:q
bull whip effect
Deming's 14 points stress the importance of:
ceasing dependence on inspection.
Process variation that are intrinsic to the process are:
common, nonassignable causes of variation.
Which of the following is not a stage in the S&OP maturity model?
competing
Which of the following is not a supply chain planning application?
competition
The degree to which the product meets its' design specifications is called:
conformance quality
Which phrase/word best captures what lean is?
corporate philosophy
Promotions such as "buy one get one free" are somewhat risky in terms of forecasting. Why?
could decrease future sales
Supply Chain Disruptions could impact:
counterfeit product co-mingled in the marketplace manufacturing operations planning software outgoing goods delays incoming goods delays
If you maintain inventory at a constant level and keep the throughput rate constant:
customer delivery dates become more reliable
Which of the following groups is NOT likely to be stakeholders for operations in a local bank?
customers regulators employees
The resource management module of an advanced planning and scheduling (APS) system ______.
defines and coordinates supply chain system resources and constraints
ISO 9001: 2015:
defines the requirements a quality system must meet but does not dictate how they should be met.
The characteristic of a service that has the greatest impact on the ability to define, measure and control service quality is:
degree of tangibility
You walk into a hair stylist shop. All stylists are busy and you sit in the waiting area. You are in which of the following basic activity types in a process?
delay
The best type of inspection to use is:
dependent on the nature of the purchase
Which of these is not a cost of quality?
design cost (external failure cost, prevention cost, inspection cost )
An application of the DMAIC process to product design is known as:
design for 6 sigma
Organizational objectives and supply objectives typically are expressed:
differently, making it difficult to translate organizational objectives into supply objectives.
In a lean system, waste is any action that
does not generate value
When orders are shipped directly to the customer, it is called ______
drop shipping
Interest in the supply function as a managerial activity began:
during World Wars I and II because of global materials shortages
Declining transport rates per unit of weight as the weight shipped increases represents ______.
economy of scale
Three major challenges exist when setting supply objectives and strategies:
effectively interpreting corporate and supply objectives, selecting appropriate actions to achieve objectives, and integrating supply information into organizational strategies.
Quality improvement programs for goods are initiated by a desire to:
eliminate incoming inspection
Which of the following represent Stakeholders with an interest in the well-being of an operation?
employees local community govenrment social groups
Supply strategies that are designed to anticipate and recognize shifts in the economy, organization, people, legal, government regulations and controls, and technologies are:
environmental change strategies.
Linking supply strategy to corporate strategy is:
essential in all organizations, and many lack the mechanisms to link them.
John Jones is a plant manager. He believes his plant is guilty of "waste of overproduction." Which of the following symptoms might he have observed that led to this belief?
excess inventory
What helps a person most with their forecasting abilities?
experience
"Economies of scale" means that large factories operating a planned capacity are able to make many different products at the same time and promise short delivery times.
false
"Queuing" means the scientific study of the use of the letter Q in the English language.
false
A Push system requires a high degree of coordination between production stations.
false
Assurance-of-supply strategies must consider changes in supply but not demand.
false
Because they are paying for the contract, the buyer's company should receive the cost savings from a learning-curve application.
false
Design-for-Six-Sigma programs offer a set of quality standards accepted by all industries.
false
Internal failure costs include the costs of inspection, testing, and measuring product or service quality.
false
R2.1: Leveraging Juran's Law, we should focus our attention first on human error to improve operations.
false
R2.3: Kanban scheduling is an effective push production technique:
false
Scheduling major change-overs sequentially helps to shorten overall setup times for the factory.
false
The P-system of inventory submits inventory orders at random times.
false
The saturation effect says that queuing performance changes with utilization in a steady, straight line.
false
The simplest way to think about throughput is the quantity of work completed.
false
The trend is to decentralize risk management, and allow each function to assess its risk exposure and develop strategies to best manage functional risks.
false
Throughput, sometimes referred to as output rate, is expressed in units produced per hour.
false
Which of the following is not an APS application issue?
financial flow
___________ inventory is the costliest form of inventory one can hold.
finished goods
L2.3: Little's law shows a relationship between flow time, inventory level, and throughput rate. In this sense, Little's law implies the underlying ________) of the production and transportation rates. Which of the following is the MOST appropriate term to fill in the given blank?
finiteness
An electronics firm produces smart phones for sale to the worldwide market. One of the most crucial process-related competitive operational priorities for this firm is:
flexibility
Foundries owe much of their success to:
flexibility
A six sigma (6σ) approach to quality:
focuses on preventing defects by using data to reduce variation and waste
Which of these in not an approach to capacity planning?
forecasting
The root cause of a supply chain disruption could be:
from a natural disaster from a manufacturing non-conformity unintentional intentional
L2.4: Which of the following is NOT included in the dimensions of a formal service quality evaluation process?
function (assurance tangibles responsiveness)
General supply chain risk management and supply chain disruption prevention is based on:
general quality management and risk management concepts
One function of a distribution warehouse is consolidation, which means the facility is being used to ______.
group small inbound shipments into one large outbound shipment
R2.4: Which lean system tool or technique would be appropriate to facilitate the optimum sequence?
group technology
Which of the following is not a demand planning requirement?
handle time fences
When consideration total cost of ownership and total product experience (TCO-TPE), supply chain risk management:
helps balance the enterprise-wide decisions
P3.2 Which of the following is NOT the benefit of Collaborate-Plan-Forecast-Replenishment (CPFR)?
higher inventory levels
The first step in the Theory of Constraints is to:
identify the bottleneck
Process thinking causes managers to address critical process elements, including:
if you don't like the outcome, change the process
R3.4 The end user of the supply chain/consumer demand drives which type of demand?? (Swink Ch 5. Integrated Operations Planning)
independent demand
Which of the following material handling systems offers the most flexibility?
information directed
Which of the following would you NOT expect to find in a company attempting to implement lean/just-in-time production?
inspections after each piece is porduced
Which of the following is not input needed for an APS?
inventories
Logistics systems should be designed to achieve customer service goals while maintaining lowest possible financial investment in ______.
inventory
Little's Law states there is a relationship between: (Choose all that apply)
inventory flow time throughput
Logistical operations have two main flows: ______
inventory and information
Evidence of the growth and influence of supply management in an organization includes:
involvement in strategic planning and executive status of the chief supply officer.
On average, the dollars spent with suppliers as a percent of revenues:
is greater in manufacturing organizations than in service organizations.
Total Quality Management: (Choose all that apply)
is managed proactively focuses in the customer
The optimization module of an advanced planning and scheduling (APS) system ______.
is the computational engine of the supply chain planning system
If organizational objectives and supply objectives are incongruent:
it will be difficult to translate organizational objectives into supply objectives.
What are the two main challenges of the P-system? (select two)
length of review period amount of inventory to have
In the lean systems approach, as a system improves, it should have ____________ inventory on hand.
less
nternal operations managers work with what function to coordinate inbound and outbound flows of materials and information?
logistics
A manufacturer of generic prescription drugs must excel at delivering which of the following product traits?
low cost
Public warehouses typically have ______.
low fixed and high variable cost
Benefits received from "economies of scale" include: (Choose all that apply)
lower cost per unit produced steady stream of customer orders more you do something, the better you get at it
Which of the following is NOT the benefit of integrated supply chain?
lower purchasing volume requirements
Decision making regarding customers and products is often led by the:
marketing management
Lean quality management philosophy is based on:
maximizing customer value and minimizing waste.
Lean is a management philosophy that focuses on:
maximizing customer value while eliminating waste.
A supplier certification program:
may enable the buyer and seller to lower costs and improve quality.
What can managers do with queuing theory?
measure and predict performance
A formal service quality evaluation process:
measures the gap between service expectations and performance perceptions
Subcontracting is typically considered at what time horizon when doing capacity planning?
medium term
P2.3: Which of the following is NOT the appropriate example of quality dimensions?
modularity
Quality control in services is:
more difficult for customized services delivered by highly skilled workers.
Which of the following transportation modes is the best for end-to-end delivery?
motor
The majority of the laborers for 3PL and 4PL organizations are typically ______.
non union
If a company can eliminate all sources of variance in a process:
none of these are true: It will be able to operate at maximum capacity at all times. There will be no constraints in the process Continuous improvement will not be necessary.
Evaluation of the supply function's contribution to organizational goals and strategies can be viewed in the context of:
operational and strategic direct and indirect
L2.1: On-time delivery is an aspect of a firm's performance in ______.
operational performance
A company with a number of physically separate plants has a centralized tool room. This tool room in the past has been responsible for emergency repairs. Whenever equipment (e.g., a spindle, boring machine, transfer line) in one of these separate plants breaks down, the affected items are brought to the tool room, where they are repaired. In some cases, the breakdowns affect production schedules. In other cases, the breakdowns are more annoying but do not adversely affect schedules. Complicating the operations in the tool room is the fact that many of the plans for the equipment are incomplete or out-of-date, thus resulting in "make from sample"; requests (the broken part is provided and the tool room is asked to make the replacement piece just like the broken part). It is difficult to predict what equipment will break down and when. Furthermore, the company owns a wide variety of equipment. What are the order winners and order qualifiers in this scenario?
order winner: speed, flexibility order qualifiers: quality , cost
Capacity is directly related to: (Choose all that apply)
output machines time processes
Misuse of automation is a root cause of which of the following types of waste?
overproduction
A process having the same activity being performed by two or more resources simultaneously is said to have what kind of structure?
parallel
The ABC analysis used for analyzing inventory is an example of:
paretos law
Two dimensions of product quality are hard to measure objectively and are therefore subject to subjective assessment. One of those subjective dimensions is:
perceived quality
Xanadu makes HD televisions. It claims that its HD televisions have the clearest picture clarity in the industry. Xanadu is emphasizing which dimension of quality?
performance
What is another name for the "P-system" of inventory?
periodic review
When a firm "spot stocks" inventory they are engaged in ______.
placing inventory in a local warehouse in anticipation of future need
A firm that groups small shipments for delivery to a retail mall is doing ______.
pooled delivery
The Jones Company learned that several other shippers located in its hometown had customers located in the same markets it serves. With this information, Jones could find it advantageous to investigate the potential of ______.
pooled delivery consolidation
The supply area is a good training ground for managers because it provides exposure to:
pressure of decision making under uncertainty and various levels and functions in the organization.
Xanadu Inc. decided to increase the training received by new employees. The expense of this training is an example of which of the following costs of quality?
prevention costs
Kaizen events are most effective when applied to problems involving which of the following elements?
processes
A successful supply chain management strategy integrates:
processes and systems within and across organizations.
We observe a man working on a setup. During the process of setting up, the man positions the die at a first position. He then runs through a few pieces to check whether or not they are acceptable. He then repositions the die and repeats the process. What we have observed is which of the following forms of waste?
processing waste
A supplier of materials used in manufactured goods is a member of:
product supply chain
In a situation where there are low economies of scale and a long response time, the supply chain strategy should focus on ______.
production flexibility since detailed and accurate forecasting is not of critical importance
Supply has the potential to contribute to:
profitability, competitive position and sustainability performance.
ISO 9001:2015 provides a tested framework for a systematic approach to consistently delivering product that satisfies customers' expectations by:
providing a set of standardized requirements a quality system must meet.
McGreen Burger Shop sells about two burgers per minute. Although the cook can cook up to 10 burgers per minute, he starts to cook another burger only after the salesperson removes a burger from the ramp. The ramp is large enough to hold only five burgers and keep them warm until a sale is made. This is an example of a:
pull system
ISO 9000 defines a set of internationally accepted standards for:
quality business management
ch of the following modes of transportation has high fixed and low variable costs?
rail
A sampling technique in which every element in the population has an equal chance of being selected is called:
random sampling
Throughput is a ...?
rate
Advanced planning and scheduling (APS) facilitates improvements in customer service by ______.
reducing the time to make accurate commitments to customers
the learning curve means
reduction in direct labor costs
An omnichannel supply chain is one that:
refers to the firm's ability to serve consumers direct and through many other channel partners
economic regulation of transportation includes all the following, EXCEPT ______.
regulation of drivers
Which of the following is NOT a basic activity type in processes?
reporting
The impact of supply management actions on the balance sheet is measured by the:
return on assets effect
P3.3 Which of the following is NOT related to primary components of Inventory? (Ref: Dr. Spink's lecture note in the managing inventory content)
returned items
Economic profit is influenced by:
revenue expenses asset utilization
he real costs of quality:
rise significantly as defects increase in the finished product.
R3.3 Which is the board-based amount of risk a company or other entity is willing to accept in pursuit of its mission? (Supply & Risk)
risk appetite
SCM5 - Cross functional activities include:
risk, quality, sustainability
Quality function deployment:
seeks to understand what value represents to the customer, and provides direction on the appropriate level of product performance and which features should be included.
A firm that supports an automotive assembly plant by providing just-in time inventory is engaged in ______.
sequencing
A sampling technique that is based on the cumulative effect of information that every additional item in the sample adds as it is inspected is called:
sequential sampling
Which of the following are the components of a queuing system? (select all that apply)
servers waiting area arrivals
"tp" stands for "average service" time and can be found by taking the inverse of which thing?
service rate
Little's Law suggests that the key to increased throughput is
shorter flow times
The ability to include demand, capacity, material requirements, and constraints in defining alternatives is referred to as ______.
simultaneous resource consideration
Which of these is a concept for reducing setup times?
single minute exchange of die
R2.5: Which of the following is not one of the 7 basic types of waste:
standardization
The match between a commercially available material, good or service and the intended function is known as:
suitability.
A systems approach to managing the flow of information, materials, and services from tiers of suppliers through the buying organization to tiers of customers is:
supply chain management
The design and management of seamless, value-added processes across organizational boundaries to meet the needs of the end customer is called:
supply chain management
When consideration total cost of ownership and total product experience (TCO-TPE), supply chain risk management is a concept developed by:
supply chain managers who were trying to evaluate their risks
When consideration total cost of ownership and total product experience (TCO-TPE), supply chain risk management is a concept developed by::
supply chain managers who were trying to evaluate their risks
The goal of logistics is to ______.
support procurement, manufacturing, and customer accommodation
Normally, most organizational objectives can be summarized as:
survival, growth, financial, and sustainability.
ormally, most organizational objectives can be summarized under four categories:
survival, growth, financial, and sustainability.
When developing strategies related to "how to buy," decisions must be made about:
systems and proceses
Taichi Ohno, the founder of lean/just-in-time, when he came to America in the 1950s was most impressed with which of the following American developments?
the American supermarket
An organizational culture is shaped by:
the actions taken by leadership
ISCM4 - Integrated Supply Chain Management is:
the consideration of all supply chain activities into one seamless system
The return on assets effect (ROA) quantifies and measures:
the impact of supply actions on inventory and the balance sheet.
Supply decisions can affect:
the income statement and the balance sheet.
Performance cycle uncertainty has the following trait: ______.
the larger the variance to desired goal, the bigger the impact
The answer to the question, "How much to buy?" depends on:
the level of uncertainty throughout the supply chain.
The use of the concepts of purchasing, procurement, supply, and supply chain management will vary from organization to organization depending on:
the organization's stage of development and/or sophistication, the industry in which they operate and the organization's competitive position.
ISCM6 - "Amazonization" is:
the shift to online ordering and direct delivery to a business or home
The logistics value proposition is ______.
the unique commitment of a firm to an individual or customer group
Supply chain risk is a function of considerations such as:
threat, vulnerability, consequence
Determination of the "best buy" is based on:
trade-offs among stakeholders (e.g., marketing, operations, and supply).
The tapering principle of transportation rates suggests that ______.
transportation charges increase at a decreasing rate with distance traveled
L2.2: Which of the following optimizes resources to move materials and goods within supply chains to minimize cost while meeting deadline constraints?
transportation planning
Which of the following optimizes resources to move materials and goods within supply chains to minimize cost while meeting deadline constraints?
transportation planning
The work of logistics involves ______.
transportation, inventory, order processing, warehousing, and facility network design
Company image may be directly influenced by:
treating suppliers in a fair and equitable manner, complying with regulatory requirements and sustainability practices of suppliers.
A Pull system is likely to struggle to meet demand during demand spikes.
true
Equipment utilization is normally expressed as a percentage of design capacity.
true
Supply chain sustainability performance must comply with legal obligations and meet the values and standards of the organization's stakeholders, including employees, shareholders, and customers.
true
The "C's" in the equation for the general queue stand for "Coefficient of Variation."
true
The key decisions and plans in corporate strategy address: What business are we in and how will we allocate resources among these businesses?
true
The newsvendor model works well for perishable products
true
The output of a factory can be no higher than the output of the slowest machine, the constraint of the system.
true
In which operational setting has lean/just-in-time experienced the lowest levels of acceptance/implementation?
turbulent business settings
Which of the following is not a benefit of public warehousing?
typically unionized
Supply chain disruptions are:
unplanned and unanticipated
Which of the following results in waiting lines?
variability
Increasing which of the following causes degraded queuing performance according to the saturation effect? (choose all that apply)
variability utilization
M3.3 Knowing the location and status of inventory and resources is referred to as
visibility
An example of an external failure cost is:
warranty cost
When developing supply strategies, the supply manager must determine:
what to make or buy, when to buy, how much to buy and how it should be ordered.
Which of these is a proper application of the learning curve?
when labor content is high when the supplier is using a new process when the supplier has a stable direct-labor workforce
