Final Exam Review
.AMT Inc.'s net incomes for this quarter is $500,000. The publicized return on assets (ROA) is 34.5%. Estimate the firm's total access to the closest possible.
$1,450,000
Currently the firm has 100 workers to produce 1000 units per quarter each. The cost per unit is $35.00. The cost of building one unit per quarter is $1.50. The cost of hiring a worker is $100. The cost of firing a worker is $500. When using the pure chase strategy, what is the total cost for the year? The quarterly demand information is provided below. Q1: 20,000 units, Q2:100,000 units, Q3:60,000 units, Q4: 140,000 units
$11,276,000
Saad enterprises wants to determine the lowest cost order policy given the following purchase discounts offered: unit costs are eight dollars each for orders less than $1003 each for orders greater than 1000. The order cost = $100, annual demand forecast = 10,000 units, inventory carrying cost = 30% per year. What were the EOQs for each cost?
$8 = 913; $3 = 1491
What is the buyers risk when the probability of outsourced functions being disrupted is 2% and the cost of a disruption is $4 million?
$80,000
Capacity requirements planning is a capacity planning activity. At which resource levels does CRP operate? (1) all work centers (2) individual machine (3) Company (4) plants
1
Forecasting drives all of the key business functions. Among the following cases, select the cases that are the least suited for the use of quantitative forecasting (1) demand of radically innovative new product (2) supply of agricultural products (3) demand of commodities (4) the production rate of medical equipment
1
Material requirements planning operates on a component product level which is the level _________ also operates at. (1) component/supplier capacity planning (2) subassembly/input output analysis (3) raw material/supply chain planning (4) component/resource capacity planning
1
Select the activities not commonly associated with a manufacturing planning and control system (MP&CS). (1) establishing the annual sales goals (2) establishing capacity (3) developing detailed material flows (4) determining product demand
1
The duel kanban system uses more than one type of kanban cards. Choose the correct type of kanban cards for a dual kanban system (1) withdrawal kanban (2) inventory kanban (3) supermarket deposit kanban (4) transportation kanban
1
What is the proper description of kaizen event? (1) an activity associated with identifying hidden voice (2) an activity associated with cross functional morale building (3) an activity associated with increasing sales performance (4) an activity associated with maintenance scheduling
1
Which of the following statements regarding inventory are incorrect? (1) other than the cost, holding inventory is good for operations (2) inventories account for between 60 and 80% of a typical industrial firm's assets (3) WIP inventory is an acronym for work in process inventory (4) safety stock as hell to maintain a certain level of service regardless of uncertainty
1
Among the following choices select the ones that is closely associated with just in time philosophy (1) uniform production (2) large lots (3) concurrent problem-solving (4) push manufacturing
1,2
Choose among the following activities the ones that fit into the typical manufacturing planning and control framework (1) Master production scheduling (MPS) (2) aggregate planning (3) manufacturing resource planning (MRP II) (4) Enterprise resource planning (ERP)
1,2
Choose the correct choice regarding the descriptions of the primary functions of inventories (1) Pipeline inventory: inventories traveling from one location to another (2) seasonal inventories: inventories accumulated during low sales period and depleted during high usage period (3) decoupling stocks: inventories used to absorb random demand uncertainties (4) safety stocks: inventories used to replenish cycle stocks for major stocking points throughout the system
1,2
Select among the following statements regarding decoupling stocks, the correct statements (1) inventories at major talking points throughout the system (2) allows for work center to begin at the same starting time (3) used to absorb random demand uncertainties
1,2
Which of the following products is suited to a P system? (1) vending machine soda cans (2) supplies for local mom and pop grocery (3) jewelry
1,2
Which of the following situations are likely to happen to the suppliers with the implementation of JIT or lean? (1) the buyer will use only a little number of suppliers (2) most contracts will be based on long-term goals (3) the suppliers are likely to be subjected to reverse auctions (4) the focus of JIT relationships will be on reducing supplier power in the relationship
1,2
Which of the following statements regarding MPS is not correct? (1) MPS has customer orders as one of it's outputs (2) MPS is an aggregation of the disaggregate plan (3) MPS has finer time intervals then aggregate plans (4) MPS is the link between marketing and production
1,2
With a push system, it is more likely that defects will pass through to the next process without being detected. Choose among the following likely consequences of this situation (1) increase in rework cost (2) increase in customer returns (3) increase in asset utilization (4) increase in overall throughput
1,2
Depending on who you ask, you will get different answers regarding how to distinguish a pull system from a push system depending. Choose the likely basis for distinguishing a pull system for me push system depending. (1) information flow (2) order release (3) shop floor WIP levels (4) lot size
1,2,3
Which of the following statements are the disadvantage of the push system? (1) increases the workload at the management level (2) performance is dependent on forecasting ability (3) increases work in process inventory (4) require last managerial resources at a shop for level
1,2,3
Among the following choices, select the disadvantages to using a pure level strategy for aggregate planning (1) High level of access inventory (2) incurring subcontracting or overtime cost (3) High cost associated with changing production capacity (4) incurring back order cost
1,2,4
Which of the following activity times are considered in the MPS planning horizon? (1) procurement (2) engineering (3) promotion (4) production
1,2,4
Which of the following are either created or manipulated during the early portions of the production lead time? (1) components (2) minor subassemblies (3) major subassemblies (4) raw materials
1,2,4
Which of the following choices strive lean manufacturing/production? (1) cost (2) quality (3) push philosophy (4) morale
1,2,4
Which of the following statements about traditional SCOR framework is true? (1) plan process uses information from operations to balance supply and demand (2) make process includes practices that efficiently transformer materials and finished goods (3) source practices connects customers and suppliers (4) delivery or outbound logistics has become a critical link and sharing real time information with the supply chain partners
1,2,4
One type of inventory control system periodically evaluate inventory levels and places in order of to bring back the level to a predetermined level. Choose the systems that can be associated with this type of system (1) P system (2) Q system (3) periodic review system
1,3
When done properly the implementation of just in time philosophy increases the company's performance. Choose the effects that do not contribute to this phenomenon (1) increase in supplier dependency (2) increase of information sharing (3) increase in WIP inventory levels (4) reduction of process variability
1,3
Which of the following describes MPS? (1) an anticipated schedule of demand (2) long-term planning strategy (3) disaggregation of aggregate plan (4) monthly review by top executives
1,3
Which of the following statements regarding the manufacturing systems are correct? (1) for a MRP system, customer demand forecast is essential for material control (2) for a pull system, larger lot sizes and shorter lead times are required (3) for a pull system, a JIT philosophy needs to be solidified within the organization (4) for a kanban system, each workstation need to respond independently from other workstations
1,3
Choose among the following options, the inputs for capacity requirements planning (1) loading capacity (2) rescheduling data from MPS (3) routing data (4) planned and released order from MRP systems
1,3,4
Choose among the following trends the ones that contribute to the popularity of manufacturing planning and control system (MP & CS) in industry. (1) public awareness regarding sustainability (2) manufacturing and resource planning (MRP) development (3) the supply chain Revolution (4) laws encouraging remanufacturing
1,3,4
The popularity of outsourcing had increased drastically over the last few decades. Among the following statements about this phenomena, choose the ones most likely to be true (1) spy 2010, global business process outsourcing surpassed the US $7 trillion (2) only 5 to 10% of all outsourcing relationships fail within five years (3) it has become a trend to bring outsourced business functions back in House (4) 25 to 34% of a typical executives budget is outsourced
1,3,4
Below are statements regarding either push or pull manufacturing. Select the correct ones (1) pull manufacturing commonly results in relatively low inventory levels (2) comparatively planning for pull manufacturing is more dependent on the companies forecasting efforts (3) it is easier for problems with the manufacturing process to surface in a push manufacturing environment (4) Pull manufacturing is associated with JIT and lean manufacturing philosophies
1,4
Choose among the following which are the typical inventory issues operation managers have to deal with an inventory management? (1) upstream systems issues are hidden when high inventory exists in the system (2) High inventory allows for faster customer demanded changes (3) upstream system issues are hidden when low inventory exist in the systems (4) low inventory allows for faster customer demanded changes
1,4
With the popularity of outsourcing and global logistics, the manufacturing environment has seen several changes. Among the following choices select the changes that align with this current manufacturing environment. (1) shorter product life cycles (2) MRPII is being viewed as the system of the future (3) an increase in fabrication value added (4) popularity of customer driven supply chains
1,4
AMT. Inc.'s sales revenue for this quarter is $2,000,000. It incurred $1,200,000 in total cost. The total assets of the company to $6,000,000 . What the return on assets (ROA)?
13.33%
Hey successful JIT organization requires the organization wide incorporation of elements such as __________, find the choices that do not fit into the blank space of the previous statement (1) a focused on increasing utilization (2) a hierarchical organization with limited communication between layers (3) an emphasis on productivity (4) a passion for operational efficiency
2
The focus of manufacturing systems while reviewing push versus pull systems is best described by which of the statements below? (1) how many specific units of products will be made? (2) when should the next unit of product be produced? (3) how should the products be built? (4) what units of production should be made next?
2
Which of the following is correct about inventory classifications? (1) A items have low dollar usage (2) B items have intermediate dollar usage (3) C items have high dollar usage
2
Which of the following statements do not correctly describe push manufacturing? (1) the serial operations are independently optimized (2) compared to pull, push manufacturing is a relatively new concept (3) forecast of demand is a significant factor in deciding on material flow (4) it focuses on maximizing inventory investment
2
Which of the following would motivate companies to choose chase strategy for aggregate planning (1) skilled labor shortage (2) inventory issues (3) capacity constraints (4) moral concerns
2
Within an outsourcing relationship, it has been shown that supplier sometimes do not behave in the manner expected. Choose a contributing factor of suppliers opportunistic behaviors (1) a precise and legally binding contract is made with a supplier (2) the location of the supplier is far from the buyer (3) there are many possible suppliers that can perform the same function (4) the information system of the two parties in the relationship is integrated
2
Among the following activities, choose ones that are key sales and operations planning activities (1) production schedule analysis (2) new product analysis (3) demand analysis (4) customer analysis
2,3
Among the following choices, select the ones that are not examples of qualitative forecasting methods (1) Delphi method (2) exponential smoothing Method (3) trial method (4) Focus groups
2,3
The classic EOQ model is the simplest form with incorporates all of the assumptions regarding uncertainties. Choose the cost component not included in the classic EOQ model but included in the extension models (1) ordering costs (2) safety stock costs (3) stock out costs (4) internal storage cost
2,3
The following are some of the functions of MPS. Choose the correct ones (1) ability to forecast product families (2) make customer delivery promises (3) make effective utilization of capacity (4) balance supply and demand
2,3
Which of the following are statements about planning horizon or correct? (1) excludes procurement and engineering time (2) covers lead time required for fabrication of MPS items (3) is the length of MPS plan (4) is the aggregation of the time of different components of the end product
2,3
With the increase of lean and JIT popularity, the number of attempts to implement them has increased. At the same time, a significant portion of these attempts have not been successful. Some of the well-known reasons for these failures are __________ and __________. Fill in the blanks correctly (1) relatively strong supplier power (2) geographical dispersion of suppliers (3) differences in natural cultures (4) the lack of information technology employed
2,3
With the popularity of outsourcing and global logistics, the manufacturing environment has seen several changes. Among the following changes, select the changes that don't align with the current manufacturing environment (1) shorter product life cycles (2) MRPII is being viewed as the system of the future (3) an increase in fabrication value added (4) popularity of customer driven supply chains
2,3
Which of the following concepts are associated with lean? (1) push (2) kanban (3) muda (waste) (4) kaizen
2,3,4
Which of the following is/are considered to be hidden cost of outsourcing? (1) transportation cost (2) Quality cost (3) internal coordination cost (4) supply chain risk management cost
2,3,4
Which of the following dual card kanban rules are not correct? (1) one kanban per container (2) the more kanban cards are in the system, the more smoothly manufacturing operates (3) standardize containers and loads (4) in some cases, parts can be made without a productions kanban
2,4
Among the following activities, choose ones that are not key sales and operations planning (S&OP) activities (1) Financial analysis (2) new product analysis (3) production schedule analysis (4) supply analysis
3
An outsourcing decision requires a detailed examination beforehand. Choose an activity that should be performed first one evaluating the business case for an outsourcing decision (1) vendor searching (2) vendor contracting (3) strategic evaluation (4) relationship management
3
Below are statements regarding either push or pull manufacturing. Select the incorrect ones (1) well implemented pull systems should have high levels of customer service (2) pull uses short and flexible production runs compared to push (3) Hershey's is short and flexible production runs compared to pull (4) push manufacturing typically has longer lead times
3
Capacity planning is the creation of a series of interrelated hierarchical plans. The levels of these plans correlate with the levels of the manufacturing framework. Which of the following capacity plan and manufacturing process matches are at the same level? (1) sales and operations planning <-> purchase order planning (2) shop floor control <-> rough cut capacity planning (3) material requirements planning <-> capacity requirements planning (4) Master production scheduling <-> input/output analysis
3
Choose the statement that differentiate the resource profile method from the alternative RCCP approaches (1) it is easier to perform (2) it has longer time buckets (3) it includes a timing dimension (4) it only requires a partial information
3
Depending on the person being asked, the perception of JIT differs. Choose the perceptions that are not commonly associated with JIT (1) variant of a conventional reorder point system (2) also known as the lean production (3) a periodic system with fixed lot size (4) a sophisticated pull systems
3
Qualitative forecasting approach do not include which of the following? (1) the Delphi method (2) market research (3) simple moving average (4) customer surveys (5) educated guesses
3
Select the choices that are not typical benefits gained from using the SCOR model? (1) less inventory (2) faster access to important customer information (3) slower cycle times (4) improve visability of the supply chain
3
The following are some of the requirements of supplier development. Which are not correct? (1) reduce supplier lead time (2) implements judoka program (3) Focus on inspections after receipt (4) require frequent deliveries
3
Which of the following choice are not included as one of the 5 elements of lean? (1) efficient flows (2) specify value (3) push philosophy (4) Quality perfection
3
Which of the following descriptions are not correct for a push system? (1) there is no clear visibility between processes (2) the workers on shop floor lack the autonomy to stop the manufacturing on their own initiative (3) production is only initiated when the downstream process initiate its own activity (4) the WIP inventory levels are high at most locations
3
Which of the following is/are correct paper Kaizen guidelines? (1) do not include automation as a factor for the work elements (2) do not include any breaks for operators as work elements (3) do not include any walking as a work element (4) do not include any in cycle work for operators as work elements
3
Which of the following statements do not correctly describe pull manufacturing? (1) material flow is determined by the need of the downstream workstation (2) Control is transferred from the beginning of the line to the end (3) a single piece flow is ideal for a push system and not a pull system (4) tries to minimize the number of items pulled at the same time
3
Among the following choices, find the choices that are not a criterion for an outsourcing decisions consensus transitions plan (1) personnel criteria (2) transition criteria (3) Financial criteria (4) performance criteria
3,4
Choose among the following activities the ones that do not fit into the typical manufacturing planning and control framework. (1) Master production scheduling (MPS) (2) aggregate planning (3) manufacturing resource planning (MRPII) (4) Enterprise resource planning (ERP)
3,4
Calculate the EOQ size for the following cases. Which is the EOQ size in the number of orders placed per year? For your answer, round up the figures up to 0 decimal points The annual demand for the item at prices auto parts is 3600 units. They cost $250 to place an order and cost $20 per item to carry a year without passing it to the customer
300 units/12 times
Saldana incorporation custom makes furniture. It has 20 workers who produce 125 units per quarter each. The company is using a pure level strategy. When there is 2000 units on hand at the start of the first quarter, what should be your optimal level production the set to? The quarterly demand information is provided below. Q1:3000 units, Q2:500 units, Q3:4500 units, Q4: 6000 units
3000 units per quarter
Among the following relative advantage claims for a pull manufacturing, which ones are likely to be true? (1) the system operates with essentially no inventory (2) less maintenance is required (3) there is not much need to forecast demand (4) work in process inventory is forced to remain at a given level
4
Choose among the following statements the ones which correctly describe the inner workings of a basic kanban Production system (1) a kanban card is attached to every 10th container of items that has been produced (2) a kanban card is an easily understood virtual signal (3) kanban is the Japanese word for container (4) the kanban card stays with the container until the contents are used once attached
4
Find the terms associated with appraisal cost when discussing outsourcing among the following choices? (1) rework (2) returns (3) IT investment (4) monitoring mechanisms
4
Nica is tasked with purchasing some new containers to use in the companies kanban system. While he has most of the kanban system configuration information, he cannot find the container size information. Find the container size using the kanban system configuration information. The average demand during lead time is 940 units and safety stock level is set at 60 units. There are currently 25 kanban cards in the system. Find the container size
40 units
At Janet cake shop, the demand rate is normally distributed, with an average of 200 cakes per week. The lead time is two weeks and the standard deviation of weekly demand is 10 cakes. What reorder point results in a cycle service level of 95%?
424 cakes
Joshi Manufacturing has 60 machine hour every day. Joshi manufacturing two products, A and B. When changing over the producing product B to A, there is no change over/set up time. When changing over from purchasing product A to B, it takes 8 machine hours. If the previous day ended with producing product be, what is the effective capacity of the previous day, when Joshi Manufacturing has the following schedule: product a, product fee, product a
52 machine hours per day
Michelle is tasked with purchasing some new containers to use in the companies kanban system. While she has most of the kanban system configuration information, she cannot find the container size information. Find the container size using the kanban system configuration information. The average daily demand is 2050 units and lead time is three days. The safety stock level is set at 200 units. There are currently 10 kanban cards in the system. Find the optimal container size
635 units
What is the ending inventory for period 8 when the MPS is 0 units? The ending inventory for period 7 was 89 units. The forecasted demand for period 7 was 120 units while, for period 8 it is 20 units. The customer order for period 8 is 25 minutes
64
The movie theater has scheduled 6 showings a day. The movie theater can play a maximum of 8 trailers for every movie showing. However because of the time needed to clean the theater each showing, only 32 trailers are played every day. What is the effective capacity utilization?
66.70%
The typical planning horizon for the sales and operations planning process covers ________ period. Fill in the blank space.
6~18 months
Product MX-V6 requires a sequence of five work centers. What is the capacity efficiency when the total output is 2000 units per period? The following is the period production volume for each WC. WC1: 2500 units, WC2: 2250 units, WC3: 3100 units, WC4: 2500 units, WC5: 2150 units
93.02%
For Elisabeth's factory, the economic order quantity Q is 5 units, and the expected number of units short Paris order cycle E (S) is 0.30 What is the associated customer service level (CSL)?
94%
Which of the following is true about final assembly schedule?
A time fence marking the start of committing final subassemblies to specific configurations
For a forecast to be usable, it needs to pass criteria which include aspects such as ________ and _______. Fill in the blanks
Accuracy/simplicity
According to the manufacturing framework what is the immediate proceeding process that provides input for the MPS process?
Aggregate planning
Choose the following assumptions that can be considered a classic EOQ assumption (1) constant lead time (2) instantaneous replenishment (3) no quantity discounts available (4) fixed holding cost per unit
All of these
Hey systematic forecasting process includes which of the following? (1) how will the forecast be used? (2) select a forecasting technique (3) continuously validate and revise the forecast (4) establish the forecast interval
All of these
The avoidable cost of operating pure inventory system include which of the following?
All of these Holding cost, ordering cost
Included among the various MPS languages is ________?
All of these Marketing planning, demand management, aggregate planning
The production inventory system taxonomy consist of which of the following?
All of these Types of products, positioning policy, process technology
The _________ manufacturing environments tries to supply a large variety of final product configurations from standard components and subassemblies within a relatively short lead time. Fill in the blanks
Assemble to order
When the order acceptance occurs during the early portions of the production lead time, how would you describe the current manufacturing environment?
Assemble to order
In order to make products with a relative degree of high complexity, which manufacturing environment will be most effective?
Assemble to order (ATO)
The manufacturing concepts of JIT and lean have been originally developed by companies in the __________ industry located in ________ and then popularized internationally.
Automobile/Japan
Of the following solutions for overloaded work centers, which is the least effective solution?
Back ordering
Within an outsourcing relationship, it has been shown that suppliers sometimes do not behave in the manner expected. Creating a comprehensive contract can prevent some of these behaviors. Which of the following contract specifications could prevent opportunistic behaviors on the part of the outdoor service provide?
Clearly outline a dispute resolution process
A consensus transition plan involves the following
Communication, personal, and transition criteria
The production processing technology is divided into two categories. The _______ produce standardized products through an assembly line, while _________ are used to produce non-standardized products through a job shop
Continuous system/intermediate systems
Among the following which is not an expected benefit from outsourcing
Conversation of variable cost into fixed cost
Which of the following reasons seem to be the largest specific contributor to the failure of outsourcing relationships and the process being brought back in house?
Cost of monitoring and controlling suppliers
The assemble to order (ATO) environment is characterized by __________ and ___________.
Customization/modular product architecture
The assemble to order (ATO) environment is characterized by ________ and _________.
Customization/modular products
By incorporating the demand uncertainty into EOQ model the concept of service level is introduced. Service level is associated with how much safety stock to be carried. There are two types of service levels. ____________ uses the probability of stockouts as a measure while _________ uses expected number of units short her re-order cycle. Choose the correct words to fill in the blanks
Cycle service level/customer service levels
Capacity is the measure of productive capability of a facility for a unit of time. Which of the following capacity types measures the company's total effective capacity under perfect conditions?
Design capacity
Currently Edward Bros. Firm is using a pure level strategy. It has 60 workers to produce 1200 units per quarter each. The cost per unit is $35. The cost of holding one unit per quarter is $1.50. Of the following descriptions of the situation, what is true? The quarterly demand information is provided below. Q1: 120,000 units, Q2: 100,000 units, Q3: 80,000 units, Q4: 92,000 units
During the first quarter, 48,000 units were back ordered
Capacity is a measure of productive capability of a facility for a unit of time. Name the capacity measure that divides effective capacity with design capacity
Effective capacity utilization
A primary guideline for the periodic review system is that demand forecast are for lead times minus the inventory on hand
False
A pure level production strategy seeks to maintain reduced inventory levels
False
Average rate of output per unit of time is a formal definition of capacity
False
Carefully constructed surveys of customer expectations is a quantitative forecasting technique
False
Demand for dependent items should be forecast independently
False
Due to focus on cost and profits, inventory is typically low and push manufacturing
False
Forecasting is the same as making predictions
False
Kanban controlled manufacturing this generally regarded as a push system
False
Operations management is focused primarily on the application of technology and manufacturing
False
Outsourcing is immune to facts of economic volatility
False
Outsourcing is relatively straight forward with you hidden cost
False
Return on assets measured the amount of revenue a company achieves as a percent of the value of its total assets
False
The closer the coefficient of determination (R^2) is to the value 100, the better line fit to the data
False
The master production schedule is developed in the same manner, no matter the type of industry (make to stock versus make to order) and the number of items produced (few or many)
False
The process of producing large quantities of items as a group before they are transferred to the next operation is known as outsourcing
False
The quality of supply chain relationships is not especially important in JIT systems
False
Seely Inc. Custom makes furniture. It has 20 workers who produced 150 units per quarter each. The cost per unit is $2500.00. If a pure chase strategy is used, how many workers are fired or hired during quarter to? Be as closest possible. Assume hiring or firing happens on first day of the quarter. The quarterly demand information is provided below Q1:3000 units, Q2:500 units, Q3:4500 units, Q4: 6000 units
Fired 16 workers
Mean Absolute Deviation (MAD) is an indicator of
Forecast models tendency regarding magnitude of forecaster errors
The following statements are concerned with the location specific complexities for outsourcing relationships. Choose the least likely statement
Geographic dispersion decreases the information asymmetry and uncertainty
The make to order (MTO) environment is characterized by _________ and ________.
High customization/inaccurate forecasts
For markets with _________ demand variability, the _____________ manufacturing environment is most effective. Fill in the blanks
High/engineering to order (ETO)
In inventory management, the operations manager makes all of the following decisions except
How many people to hire
Which of the following is not consistent with the lean philosophy?
Increasing batch size to take advantage of economies of scale
Which of the following is not true about core competence when discussing outsourcing?
It can be built over a short period
Which of the following statements is false?
It is generally not recommended to use a combination of both quantitive and qualitative methods
Which of the following Japanese terms are not associated with JIT?
Kenji
In the _____________ manufacturing environment, order acceptance occurs before the production lead time. Fill in he blank
Make to order
Which of the following is not a term used to indicate one of the typical manufacturing environments?
Make to ship (MTS)
Which of the following environments is best suited for process manufacturing?
Make to stock
______________ is a major function of the planning process named __________. Select the right terms
Monitoring work center capacity and balances/short range capacity planning
Wild assumptions make the EOQ system easier to use, the model becomes less reflective of reality. The incorporation of safety stock relaxes the _________ assumption. The addition of back orders relaxes the ________ assumption.
No demand uncertainty/no stockouts allowed
Domestic industries incorporation is relocating its manufacturing facilities from Ohio to Mexico. What term could we use for this decision?
Off shoring
Among the following activities, which choice does the party who originated the order has the least amount of control?
Outsourcing
Which of the following descriptions accurately describes "internal coordination" for outsourcing?
Payroll, benefits management are expected to be eliminated with outsourcing
Among the following relative disadvantage claims for a pull manufacturing, which one is most likely to be true?
People may be idle at times
Which of the following is a correct description of capacity requirements planning?
Process of reconciling the difference between available capacity and load
The implementation of JIT moves beyond an adoption of a tool set. It is an organization wide philosophical change. One method of managing change is The Kotter's 8 steps. Which of the following is not included in Kotter's 8 steps as a step?
Produce long term wins
The sales and operations planning operate at the product level of ________. Complete the sentence.
Product lines and families
Uniform production is an element of JIT production which requires _________. choose an option that does not fit in the blank correctly
Reduction of WIP inventory levels
Evidence has shown that the implementation of just in time philosophy is most successful in a __________ environment fill in the blank with the correct answer
Repetitive manufacturing
There are 3 workstations with the following capacity WC1 2000 units, WC2 2500 units, and WC3 1500 units. While the load could be shifted from WC one to WC two and also in the opposite direction, WC3 load cannot be shifted to other WCs as a result of specialized equipment. In the following load situation, what is not a good solution/option?
Rerouting Work to another work center
Which of the following is not considered a quality cost category when discussing outsourcing?
Return cost
The conceptual forecasting framework does not exclude human judgments. When does the framework suggest these judgments should be used?
Right after mathematical model is generated
Supply chain risk management involves several activities to reduce supply chain risk including _________ and _________. Filling the blanks correctly
Risk mitigation/contingency planning
Among the alternative RCCP approaches, name the approach that applies planning factors derived from historical data for the end item to MPS data and are used to estimate overall labor in order to estimate overall labor on machine our capacity requirements
Rough cut capacity check using overall factors (RCOF)
The manufacturing and control framework (M & CF) is composed of many different plans with different scope and focuses. Below are M & CF processes listed according to their position within the framework hierarchy starting with the higher level process on the left
S&OP -> aggregate planning -> MPS -> MRP
The initial factors for generating a MPS record include ________ and __________. Fill in the blanks
Safety stock/on hand inventory
Forecasting framework illustrates the sequence that should be followed. According to the framework, what is the next step once the forecast interval is established?
Select a forecasting technique
Of the following capacity planning horizons, which horizon is more concerned with capacity control over the next four weeks?
Short range capacity planning
Practices such as ________ are associated with just in time philosophy. However practices such as ___________ are contradictive to JIT. Fill in the blanks with the correct answers
Small lots/inspections at arrival
Which of the following is not a well-known response by manufacturing to the changes in the current manufacturing environment?
Statistical process control (SPC) manufacturing
The ________ complexity can be described as being related to the skill in breadth of the outsourcing service. Fill in the blanks with the correct answer
Task specific
Among the following relationship cases, select the customer supplier relationship you think is the healthiest
The customer involves the supplier of a core component in its product design process
There are 8 types of lean waste. Which of the following is not a clear example of motion waste?
The process of connecting to the school website it takes eight steps compared to the normal three steps
Choose the correct statement regarding a kanban system
The upper bound on the work in process inventory is set by the number of kanban cards
The goal of S&OP process is ___________. Complete the sentence.
To optimize resources to support the company's business objectives
There are seven types of waste identified by the lean philosophy. Some of the type is defective units, ________, and __________. Fill in the blanks
Transportation/motion
"A" items have a high dollar usage
True
A clean and organized work area is an important principle of lean thinking
True
A measure of capacity is the number of seats in an airplane
True
A pull production system overhead may not be absorbed, creating an accounting variance
True
Aggregate planning strategies seek to minimize production costs and maximize plant and equipment utilization
True
An overstated MPS without additional capacity causes past due orders
True
Effective external sourcing involves considerable management time and coordination
True
Flexible manufacturing systems focus on making different parts with minimal retooling.
True
In a push system, production is pushed in anticipation of future demand
True
JIT applies primarily to repetitive manufacturing processes
True
Kanbans can be a production kanbans or withdrawal kanbans
True
MPS provides the basis for making customer delivery promises
True
Make to stock goods and services are made according to a fixed design, and the customer has no options from which to choose
True
Once aggregate plan has been developed, it's necessary to perform a feasibility check to ensure the plan will not overburden limited resources
True
Return on assets measures the amount of profit a company achieves as a percent of the value of its total assets
True
Rough cut capacity planning is the process of converting the master production schedule into requirements for key resources
True
Rough cut capacity validation approach is straight forward and easy to measure
True
Safety stock must provide protection against stockouts during the review period and the lead times
True
Strategic outsourcing has become the building block for globalization
True
The BOM is an inclusive list of a final product items, ingredients, or materials
True
The SCP is concerned with information sharing with key suppliers
True
The classical EOQ model assumes that the per-unit material price is fixed
True
The tracking signal is the ratio of cumulative error to average deviation in the forecast
True
The ultimate goals of JIT are to solve problems concurrently and measure performance and he continuously
True
There rarely exist a pure JIT production system and practice
True
To properly manage the MPS, changes must be made as soon as possible once the need is recognized
True
Trend and seasonality adjustments can vastly improve forecast
True
In the simplest form, what is the sales and operations planning (S&0P)?
Typically, monthly review of all functional areas of the company process by top management
What cannot be defined as an aggregate resource?
Units of finished products
There are seven types of waste identified by the lean philosophy. Some of the type is motion, ________, and ___________. Fill in the blanks
Waiting/over processing
Options to manage demand to match capacity include the following - (a) pricing (b) hire/fire (c) backorders (d) inventory
a & c
Options to increase or decrease capacity to match current demand include the following (1) inventory (2) hiring/firing (3) promotion (4) new demand creation
a and b
Evolutionarily trends in supply chain include which of the following (a) outsourcing supply (b) reduced technological advances (c) predictable demand volatility (d) speed of production innovation
a and d
In a JIT philosophy, inventory is viewed as ________ while set ups are classified as __________. Choose an option that correctly fills in the blanks
a liability/a waste
Which of the following are used as inputs for MPS? (1) forecast (2) safety stock (3) customer orders (4) leadtimes
all of these
Your company is conducting forecasting that revolves around the recession and expansion of the US economy. This type of forecasting can be referred to as what type of a time series?
cyclical variations
The nature of demand is an important attribute of demand. That nature can be
dependent
A supply chain cannot be a combination of pushing pull systems
false
The elimination or waste just referred to as judoka
false
Choose the proper historical sequence of development and manufacturing planning and control starting from the left
push --> pull --> flexible --> adaptive
The following time series approach to forecasting uses historical data to generate a forecast and works well when demand is fairly stable over time:
simple moving average
S&OP is intended to organize resources to support a firm's goals
true
The pure trade strategy matches demand and capacity period by period
true