ISDS 3115 Final Exam Multiple Choice
Prior to embarking on supply chain design, operations managers must first consider A. "make-or-buy" and outsourcing decisions. B. how to select suppliers. C. how to manage supply chain inventory. D. what kind of distribution network to have.
A. "make-or-buy" and outsourcing decisions.
A specific product has demand during lead time of 100 units, with a standard deviation during lead time of 25 units. What safety stock (approximately) provides an 85% service level? A. 26 B. 165 C. 41 D. 133 E. 126
A. 26
A production order quantity problem has a daily demand rate = 10 and a daily production rate = 50. The production order quantity for this problem is approximately 750 units. What is the average inventory for this problem? A. 300 B. 245 C. 600 D. 375 E. 61
A. 300
Which of the following statements is TRUE? A. Descriptive analytics characterizes and summaries data to facilitate understanding. B. Prescriptive analytics analyzes past data to predict the future. C. Prescriptive analytics characterizes and summaries data to facilitate understanding. D. Predictive analytics invokes advanced optimization tools to recommend a strategy or action. E. Descriptive analytics analyzes past data to predict the future.
A. Descriptive analytics characterizes and summaries data to facilitate understanding
JIT makes quality cheaper because: A. JIT prevents long runs of defects. B. the cost of low quality can be hidden in inventory. C. JIT adds more buffers to the system. D. B and C E. A, B and C
A. JIT prevents long runs of defects
What is the term for an approach that seeks efficiency of operations through the integration of all material acquisition, movement, and storage activities? A. Logistics management B. Third-party logistics C. E-procurement D. Distribution management
A. Logistics management
What is a dependent demand technique that uses a bill-of-material, inventory, expected receipts, and a master production schedule to determine material requirements? A. Material requirements planning (MRP) B. Periodic order planning (POP) C. Material requirements method (MRM) D. Economic order method (EOM)
A. Material requirements planning (MRP)
An analytics manager, Mark, highlighted all empty cells using Excel's Conditional Formatting tool for the following dataset. What steps did he take? An analytics manager, Mark, highlighted all empty cells using Excel's Conditional Formatting tool for the following dataset. What steps did he take? A. Select A6:H17; Rule type: Format only cells that contain, select Blanks; Color yellow. B. Select A6:H17; Rule type: Format only top or bottom ranked values, select bottom 5%; Color yellow. C. Select A6:H17; Rule type: Format only cells that contain, select 0; Color yellow. D. Select A1:H12; Rule type: Format only cells that contain, select Blanks; Color yellow. E. Select A1:H12; Rule type: Format only top or bottom ranked values, select bottom 10%; Color yellow.
A. Select A6:H17; Rule type: Format only cells that contain, select Blanks; Color yellow.
Which of the following lot-sizing techniques results in the lowest holding costs? A. lot-for-lot B. POQ C. the quantity discount model D. Wagner-Whitin algorithm E. EOQ
A. lot-for-lot
Which one of the following is a characteristic of a JIT partnership? A. removal of incoming inspection B. maximal product specifications imposed on supplier C. third-party logistics never used D. frequent deliveries in large lot quantities E. active pursuit of vertical integration
A. removal of incoming inspection
An advantage of the fixed-period inventory system is that: A. there is no physical count of inventory items when an item is withdrawn. B. no inventory records are required. C. safety stock will be lower than it would be under a fixed-quantity inventory system. D. orders usually are for smaller order quantities. E. the average inventory level is reduced.
A. there is no physical count of inventory items when an item is withdrawn.
A firm's probability of a stockout for a popular item is 2%. Given this information, what is its service level for this popular item? A. 2% B. 4% C. 96% D. 98%
D. 98%
A grill assembly takes 20 washers. Instead of listing these washers separately, they are grouped into a single kit for production. How is the bill of material for the washers classified? A. modular bill B. component bill C. low-level bill D. planning bill E. phantom bill
D. planning bill
How can a reduction of in-transit inventory be encouraged? A. use of trains, not trucks B. low-cost, global suppliers C. high setup costs D. supplier location near plants E. low carrying costs
D. supplier location near plants
Which of the following statements about quantity discounts is FALSE? A. The cost-minimizing solution may or may not be where annual holding costs equal annual ordering costs. B. The larger the annual demand, the less attractive a discount schedule will be. C. The smaller the ordering cost, the less attractive a discount schedule will be. D. In inventory management, item cost becomes relevant to order quantity decisions when a quantity discount is available. E. If carrying costs are expressed as a percentage of value, EOQ is larger at each lower price in the discount schedule.
B. The larger the annual demand, the less attractive a discount schedule will be.
The proper quantity of safety stock is typically determined by A. using a single-period model. B. setting the level of safety stock so that a given stockout risk is not exceeded. C. carrying sufficient safety stock so as to eliminate all stockouts. D. multiplying the EOQ by the desired service level. E. minimizing total costs.
B. setting the level of safety stock so that a given stockout risk is not exceeded
What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor? A. virtual companies B. vertical integration C. outsourcing D. horizontal integration
B. vertical integration
Which of the following is an element of inventory holding costs? A.material handling costs B. investment costs C. housing costs D. pilferage, scrap, and obsolescence E. All of the above are elements of inventory holding costs.
E. All of the above are elements of inventory holding costs.
Which of the following is NOT a goal of JIT partnerships? A. removal of unnecessary activities B. obtain improved quality and reliability C. removal of in-transit inventory D. removal of in-plant inventory E. All of the above are goals of JIT partnerships.
E. All of the above are goals of JIT partnerships.
Which of the following is NOT a goal of JIT partnerships? A. removal of in-plant inventory B. obtain improved quality and reliability C. removal of in-transit inventory D. removal of unnecessary activities E. All of the above are goals of JIT partnerships.
E. All of the above are goals of JIT partnerships.
Which of the following statements is TRUE? A. Prescriptive analytics characterizes and summaries data to facilitate understanding. B. Prescriptive analytics analyzes past data to predict the future. C. Predictive analytics invokes advanced optimization tools to recommend a strategy or action. D. Descriptive analytics analyzes past data to predict the future. E. Descriptive analytics characterizes and summaries data to facilitate understanding.
E. Descriptive analytics characterizes and summaries data to facilitate understanding.
Which of the following is NOT a source of variability? A. Drawings or specifications are incomplete. B. Employees, machines, and suppliers produce units late. C. Customer demand is unknown. D. Engineering drawings are inaccurate. E. Employees, machines, and suppliers produce units that conform to standards.
E. Employees, machines, and suppliers produce units that conform to standards.
Which of the following is specifically characterized by the elimination of waste through a focus on exactly what the customer wants? A. Material requirements planning (MRP) B. Toyota Production System (TPS) C. kanban D. Just-in-time (JIT) E. Lean operations
E. Lean operations
Because most services cannot be inventoried, there is little place for JIT to help service organizations achieve competitive advantage. True or False.
False
MRP can be effective only if very accurate lot sizes are calculated in advance. True or False.
False
A lawnmower assembly plant uses a variety of nuts, bolts, screws, and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule. This is an example of A. postponement. B. single stage control of replenishment. C. vendor-managed inventory. D. e-procurement.
C. vendor-managed inventory.
Demand for dishwater water pumps is 8 per day. The standard deviation of demand is 3 per day, and the order lead time is four days. The service level is 95%. What should the reorder point be?
more than 40
Speech recognition and self-driving cars are applications of A. cluster analysis. B. mapping and tracking. C. opinion mining. D. machine learning. E. cohort analysis.
D. machine learning.
Perform a visual inspection on the following dataset. Identify the number of cells that need to be cleaned in Column D.
4
Using the data provided below, supply chain manager Jonathan Jackson wishes to use Excel's Conditional Formatting to highlight any entries in column B that are at least as large as the individual threshold levels for distributor bonuses contained in cells Upper C2 :C10 (not shown in the figure). What formula should go into the box Format values where this formula is true?
=B2 > =C2
Kanban is associated with all EXCEPT which of the following? A. increased material handling B. moving inventory only as needed C. signals, such as cards, lights, or flags D. reductions in inventory E. small lot sizes
A. increased material handling
Which of the following statements is NOT true regarding the bullwhip effect? A. The bullwhip effect occurs as order are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations decreasing at each step in the sequence. B. Bullwhip fluctuations in the supply chain increase the costs associated with inventory, transportation, shipping and receiving. C. Inaccurate information results in distortions and fluctuations, causing what is known as the bullwhip effect. D. Bullwhip fluctuations in the supply chain decrease customer service and profitability.
A. The bullwhip effect occurs as order are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations decreasing at each step in the sequence.
What is the term for a company that relies on a variety of supplier relationships to provide services on demand? A. Virtual company B. Keiretsu network C. Kanban company D. Integrated network
A. Virtual company
Low-level coding means that: A. a component item is coded at the lowest level at which it appears in the BOM structure. B. the lowest-paid staff member in the production department performs the coding. C. the top level of the BOM is below level zero and that BOMs are not organized around the finished product. D. the code being used is the code for the lowest level in the BOM structure. E. a final item has only a few levels in the BOM structure.
A. a component item is coded at the lowest level at which it appears in the BOM structure.
Which of the following is NOT one of the Seven Wastes? A. assignment B. motion C. defective product D. overproduction E. transportation
A. assignment
Which of the following statements is NOT one of the response strategy decisions? A. gather and communicate market research data B. fast transportation C. use buffer stocks to ensure speedy supply D. low setup time
A. gather and communicate market research data
Which of the following statements is NOT one of the response strategy decisions? A. gather and communicate market research data B. low setup time C. use buffer stocks to ensure speedy supply D. fast transportation
A. gather and communicate market research data
In a ________, the highest and lowest values are highlighted. A. heat map B. PivotTable C. color map D. visual inspection E. heat zone
A. heat map
Which of the following statements about ABC analysis is FALSE? A. In ABC analysis, forecasting methods for "C" items may be less sophisticated than for "A" items. B. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings. C. Criteria other than annual dollar volume, such as high holding cost or delivery problems, can determine item classification in ABC analysis. D. In ABC analysis, "A" items should have tighter physical inventory control than "B" or "C" items have. E. ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings.
B. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.
Which of the following is FALSE regarding the links between JIT and quality? A. As quality improves, fewer inventory buffers are needed; in turn, JIT performs better. B. JIT increases the cost of obtaining good quality. C. JIT reduces the number of potential sources of error by shrinking queues and lead times. D. Inventory hides bad quality; JIT immediately exposes it. E. If consistent quality exists, JIT allows firms to reduce all costs associated with inventory.
B. JIT increases the cost of obtaining good quality
Which of the following is specifically characterized by continuous and forced problem solving via a focus on throughput and reduced inventory? A. Toyota Production System (TPS) B. Just-in-time (JIT) C. kanban D. Material requirements planning (MRP) E. Lean operations
B. Just-in-time (JIT)
Which of the following statements is TRUE about the MRP plan when using lot-for-lot ordering? A. The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent. B. The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly. C. The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent. D. The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent. E. All of the above are true.
B. The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly.
Which of the following is specifically characterized by a focus on continuous improvement, respect for people, and standard work practices? A. Just-in-time (JIT) B. Toyota Production System (TPS) C. Material requirements planning (MRP) D. Lean operations E. kanban
B. Toyota Production System (TPS)
The fixed−period inventory system requires more safety stock than a fixed-quantity system because: A. this model is used for products that require very high service levels. B. a stockout can occur during the review period as well as during the lead time. Your answer is correct. C. setup costs and holding costs are large. D. replenishment is not instantaneous. E. this model is used for products that have large standard deviations of demand.
B. a stockout can occur during the review period as well as during the lead time.
Which of the following mitigation tactics is NOT designed to reduce the risk of information loss or distortion? A. redundant databases B. alternate sourcing C. secure IT systems D. training of supply chain partners on the proper interpretations and use of information
B. alternate sourcing
Which of the following mitigation tactics is NOT designed to reduce the risk of information loss or distortion? A. training of supply chain partners on the proper interpretations and use of information B. alternate sourcing C. redundant databases D. secure IT systems
B. alternate sourcing
Enterprise resource planning (ERP): A. is inexpensive to implement. B. automates and integrates the majority of business processes. C. does not integrate well with functional areas other than operations. D. seldom requires software upgrade or enhancement. E. all of the above
B. automates and integrates the majority of business processes.
Which of the following could reduce distribution risk? A. secure IT systems B. careful selection, monitoring and effective contracts with penalties C. use multiple suppliers D. cross-country diversification
B. careful selection, monitoring and effective contracts with penalties
Supply chain managers outsource logistics to meet three goals: A. drive down inventory investment, lower delivery costs, and provide better market response. B. drive down inventory investment, lower delivery costs, and improve delivery reliability and speed. C. lower delivery costs, improve delivery reliability and speed, and provide better market response. D. drive down inventory investment, improve delivery reliability and speed, and provide better market response.
B. drive down inventory investment, lower delivery costs, and improve delivery reliability and speed.
A grill assembly takes 20 washers. Instead of listing these washers separately, they are grouped into a single kit for production. How is the bill of material for the washers classified? A. phantom bill B. planning bill C. low-level bill D. component bill E. modular bill
B. planning bill
Which of the following should be higher in P systems than Q systems? A. demand B. safety stock C. lead time D. order size E. order spacing
B. safety stock
Which of the following statements about ABC analysis is FALSE? A. Criteria other than annual dollar volume, such as high holding cost or delivery problems, can determine item classification in ABC analysis. B. In ABC analysis, "A" items should have tighter physical inventory control than "B" or "C" items have. C. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings. Your answer is correct. D. ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings. E. In ABC analysis, forecasting methods for "C" items may be less sophisticated than for "A" items.
C. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.
Which of these statements about the production order quantity model is FALSE? A. The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is noninstantaneous. B. Because receipt is noninstantaneous, some units are used immediately and not stored in inventory. C. Average inventory is more than one-half of the production order quantity. D. All else equal, the smaller the ratio of demand rate to production rate, the smaller is the production order quantity. Your answer is not correct. E. None of the above is false.
C. Average inventory is more than one-half of the production order quantity.
Which of the following is NOT one of the four categories (areas) to click-and-drag fields into when using the PivotTable function? A. Values B. Filters C. Buckets D. Rows E. Columns
C. Buckets
What is a dependent demand technique that uses a bill-of-material, inventory, expected receipts, and a master production schedule to determine material requirements? A. Periodic order planning (POP) B. Material requirements method (MRM) C. Material requirements planning (MRP) D. Economic order method (EOM)
C. Material requirements planning (MRP)
Which of the following Excel functions is NOT used to facilitate quick accuracy checks on the extreme values? A. SMALL B. MIN C. MEDIAN D. MAX E. LARGE
C. Median
Which of the following statements is NOT true regarding the bullwhip effect? A. Bullwhip fluctuations in the supply chain decrease customer service and profitability. B. Inaccurate information results in distortions and fluctuations, causing what is known as the bullwhip effect. C. The bullwhip effect occurs as order are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations decreasing at each step in the sequence. D. Bullwhip fluctuations in the supply chain increase the costs associated with inventory, transportation, shipping and receiving.
C. The bullwhip effect occurs as order are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations decreasing at each step in the sequence.
A supply chain ends with A. suppliers. B. manufacturers. C. a satisfied customer. D. distributors.
C. a satisfied customer.
The fixed-period inventory system requires more safety stock than a fixed-quantity system because: The fixedminus−period inventory system requires more safety stock than a fixed-quantity system because: A. this model is used for products that have large standard deviations of demand. B. replenishment is not instantaneous. C. a stockout can occur during the review period as well as during the lead time. D. this model is used for products that require very high service levels. E. setup costs and holding costs are large.
C. a stockout can occur during the review period as well as during the lead time.
The units in inventory that have been assigned to specific future production but have not yet been used or issued from the stockroom are known as A. planned order releases. B. planned order receipts. C. allocated items. D. safety stock.
C. allocated items
A single-period inventory model is NOT applicable for A. seasonal goods. B. newspapers. C. furniture. D. milk
C. furniture
Trucking A. does not play a role in multimodal shipping. B. is one of the least flexible transportation modes. C. is increasingly using computers to manage its operations. D. is the least used transportation mode for manufacturing goods.
C. is increasingly using computers to manage its operations.
Which of the following strategies is part collaboration, part purchasing from few suppliers, and part vertical integration? A. virtual companies B. joint ventures C. keiretsu networks D. horizontal integration
C. keiretsu networks
Which of the following lot-sizing techniques results in the lowest holding costs? A. EOQ B. Wagner-Whitin algorithm C. lot-for-lot D. POQ E. the quantity discount model
C. lot-for-lot
Which of the following mitigation tactics could reduce economic risk? A. subcontractors on retainer B. multiple transportation modes and warehouses C. purchasing contracts that address price fluctuations D. franchising and licensing
C. purchasing contracts that address price fluctuations
Which of the following statements is NOT true? A. The objective of supply chain management is to coordinate activities within the supply chain to maximize the supply chain's competitive advantage and benefits to the ultimate consumer. B. Supply chain management describes the coordination of all supply chain activities, starting with raw materials, and ending with a satisfied customer. C. A supply chain includes suppliers; manufacturers and/or service providers; and distributors, wholesalers, and/or retailers who deliver the product and/or service to the final customer. D. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.
D. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.
Which of the following is FALSE regarding the links between JIT and quality? A. JIT reduces the number of potential sources of error by shrinking queues and lead times. B. If consistent quality exists, JIT allows firms to reduce all costs associated with inventory. C. As quality improves, fewer inventory buffers are needed; in turn, JIT performs better. D. JIT increases the cost of obtaining good quality. E. Inventory hides bad quality; JIT immediately exposes it.
D. JIT increases the cost of obtaining good quality.
Which of the following is specifically characterized by the elimination of waste through a focus on exactly what the customer wants? A. Just-in-time (JIT) B. kanban C. Toyota Production System (TPS) D. Lean operations E. Material requirements planning (MRP)
D. Lean operations
What is the term for an approach that seeks efficiency of operations through the integration of all material acquisition, movement, and storage activities? A. E-procurement B. Third-party logistics C. Distribution management D. Logistics management
D. Logistics management
Which of the following statements regarding a pull system is TRUE? A. Manufacturing cycle time is increased. B. Work is pulled to the downstream stations before it is actually needed. C. Large lots are pulled from upstream stations. D. Problems become more obvious. E. None of the above is true of a pull system.
D. Problems become more obvious.
An analytics manager, Petra, wants to clean the following dataset using Excel's Conditional Formatting tool. What steps should she take if she wants to highlight any percentages in Column E that are not between 0% and 100% using a light blue color? A. Select A6:EH7; Rule type: Format only cells that contain, select Cell value, then less than, then 1; Color light blue. B. Select E1:E17; Rule type: Format only cells that contain, select Cell value, then more than, then 1; Color light blue. C. Select C6:F17; Rule type: Format only cells that contain, select Cell value, then not between, then 0 and 1; Color light blue. D. Select E6:E17; Rule type: Format only cells that contain, select Cell value, then not between, then 0 and 1; Color light blue. E. Select E6:F17; Rule type: Format only cells that contain, select Cell value, then not between, then 0 and 1; Color light blue.
D. Select E6:E17; Rule type: Format only cells that contain, select Cell value, then not between, then 0 and 1; Color light blue.
Which of the following statements is NOT true regarding the bullwhip effect? A. Bullwhip fluctuations in the supply chain increase the costs associated with inventory, transportation, shipping and receiving. B. Inaccurate information results in distortions and fluctuations, causing what is known as the bullwhip effect. C. Bullwhip fluctuations in the supply chain decrease customer service and profitability. D. The bullwhip effect occurs as order are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations decreasing at each step in the sequence.
D. The bullwhip effect occurs as order are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations decreasing at each step in the sequence.
A grocery store is attempting to implement a kanban system. Which of the following would NOT be an application of kanbans? A. A red light on top of the cashier's lane signals that the cashier needs additional change replenished. B. An empty doughnut tray signaling the bakery to produce 2 dozen glazed doughnuts. C. A line of 5 people in the Chinese department signaling the department to heat 5 orders of crab rangoon. D. The meat department stocking up on turkeys before Thanksgiving. E. All of the above are kanban applications.
D. The meat department stocking up on turkeys before Thanksgiving.
The units in inventory that have been assigned to specific future production but have not yet been used or issued from the stockroom are known as A. planned order releases. B. safety stock. C. planned order receipts. D. allocated items.
D. allocated items
Which of the following is NOT one of the Seven Wastes? A. overproduction B. defective product C. motion D. assignment E. transportation
D. assignment
Which of the following business analytics tools presents an overview of the most important metrics (i.e., key success indicators) all in one place? A. heat map B. COUNTIF C. PivotTable D. dashboard E. Conditional Formatting
D. dashboard
Which of the following data visualization graphs shows the frequency of occurrences of a variable? A. slope graph B. line graph C. regression line D. histogram E. network diagram
D. histogram
Which of the following is not a goal of JIT partnerships? A. removal of in-plant inventory B. removal of in-transit inventory C. removal of unnecessary activities D. inspect all incoming shipments to ensure zero defects E. All of the above are goals of JIT partnerships.
D. inspect all incoming shipments to ensure zero defects
Excess bags of basic commodities such as flour and sugar that are stored in a restaurant's kitchen represent which of the following wastes? A. overproduction B. transportation C. defective product D. inventory E. queues
D. inventory
Which of the following is a characteristic of lean operations? A. easy, mindless jobs B. inventory buffers between each workstation to minimize system downtime C. no supplier partnerships D. low space requirements E. specialty workers with no cross-training
D. low space requirements
Which of the following is characteristic of lean operations? A. no supplier partnerships B. easy, mindless jobs C. inventory buffers between each workstation to minimize system downtime D. low space requirements E. specialty workers with no cross-training
D. low space requirements
An analytics manager, Mark, highlighted all empty cells using Excel's Conditional Formatting tool for the following dataset. What steps did he take? A. Select A1:H12; Rule type: Format only cells that contain, select Blanks; Color yellow. B. Select A6:H17; Rule type: Format only top or bottom ranked values, select bottom 5%; Color yellow. C. Select A6:H17; Rule type: Format only cells that contain, select 0; Color yellow. D. Select A1:H12; Rule type: Format only top or bottom ranked values, select bottom 10%; Color yellow. E. Select A6:H17; Rule type: Format only cells that contain, select Blanks; Color yellow.
E. Select A6:H17; Rule type: Format only cells that contain, select Blanks; Color yellow.
Which one of the following statements is TRUE about the kanban system? A. The supplier workstation signals the customer workstation as soon as a batch is completed. B. It is useful to smooth operations when numerous quality problems occur. C. It is associated with a push system. D. The quantities in the containers are usually large to reduce setup costs. E. The customer workstation signals to the supplier workstation when production is needed.
E. The customer workstation signals to the supplier workstation when production is needed.
ABC analysis divides on-hand inventory into three classes, generally based upon which of the following? A. the number of units on hand B. annual demand C. item quality D. unit price E. annual dollar volume
E. annual dollar volume
Which of the following business analytics tools identifies and organizes data into groups with similar attributes? A. linear programming B. mapping and tracking C. opinion mining D. cohort analysis E. cluster analysis
E. cluster analysis
Which of the following business analytics tools identifies and organizes data into groups with similar attributes? A. linear programming B. opinion mining C. mapping and tracking D. cohort analysis E. cluster analysis
E. cluster analysis
The main trait of a single-period model is that: A. supply is limited. B. the cost of a shortage cannot be determined accurately. C. the order quantity should usually equal the expected value of demand. D. it has the largest EOQ sizes. E. inventory has limited value after a certain period of time.
E. inventory has limited value after a certain period of time.
Which of the following lot-sizing techniques results in the lowest holding costs? A. POQ B. Wagner-Whitin algorithm C. EOQ D. the quantity discount model E. lot-for-lot
E. lot-for-lot
Speech recognition and self-driving cars are applications of A. cohort analysis. B. cluster analysis. C. mapping and tracking. D. opinion mining. E. machine learning.
E. machine learning
When quantity discounts are allowed, the cost-minimizing order quantity: A. may be a quantity below that at which one qualifies for that price. B. minimizes the sum of holding and ordering costs. C. is always an EOQ quantity. D. minimizes the unit purchase price. E. minimizes the sum of holding, ordering, and product costs.
E. minimizes the sum of holding, ordering, and product costs.
Which of the following data visualization graphs represents percentages or portions of a whole? A. slope graph B. scatter diagram C. bar graph D. line graph E. pie chart
E. pie chart
A grill assembly takes 20 washers. Instead of listing these washers separately, they are grouped into a single kit for production. How is the bill of material for the washers classified? A. modular bill B. component bill C. phantom bill D. low-level bill E. planning bill
E. planning bill
How can a reduction of in-transit inventory be encouraged? A. low-cost, global suppliers B. low carrying costs C. use of trains, not trucks D. high setup costs E. supplier location near plants
E. supplier location near plants
ABC analysis is based upon the principle that: A. as with grade distributions in many MBA courses, there should be more medium-level "B" items than either "A" or "C" items. B. more time should be spent on class "C" items because there are many more of them. C. an item is critical if its usage is high. D. all items in inventory must be monitored very closely. E. there are usually a few critical items, and many items that are less critical.
E. there are usually a few critical items, and many items that are less critical
Which of the following would NOT generally be a motive for a firm to hold inventories? A. to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand B. to hedge against inflation C. to decouple various parts of the production process D. to take advantage of quantity discounts E. to minimize holding costs
E. to minimize holding costs