MANG 3402 FINAL EXAM

Which of the following is a function of​ inventory? A. to take advantage of quantity discounts B. to decouple various parts of the production process C. to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand D. to hedge against inflation E. All of the above are functions of inventory.

All of the above are functions of inventory.

Which of the following represents an opportunity for generating a new​ product? A. understanding the customer B. economic​ change, such as rising household incomes C. changes in professional standards D. demographic​ change, such as decreasing family size E. All of the above are such opportunities.

All of the above are such opportunities.

Which of the following represents the FIRST step to crash a​ project? A. Find the critical​ path(s) in the project network. B. Update all activity times. C. Select the best activity to be crashed and crash it by one period. D. Compute the crash cost per week for each activity in the network.

Compute the crash cost per week for each activity in the network.

Apple generates almost​ 60% of its revenue from products launched in the past 4 years.

True

A​ fast-food retailer that acquired a spice manufacturer would be practicing backward integration.

True

Every network has at least one critical path.

True

In ABC​ analysis, "A" items are the most tightly controlled.

True

One function of inventory is to take advantage of quantity discounts.

True

One responsibility of a project manager is to make sure that the project meets its quality goals.

True

Outsourcing is a form of specialization that allows the outsourcing firm to focus on its key success factors.

True

Rapidly developing products and moving them to the market is part of​ time-based competition.

True

Slack is the amount of time an activity can be delayed without delaying the entire project.

True

The reorder point is the inventory level at which action is taken to replenish the stocked item.

True

A supply chain ends with: A. distributors. B. manufacturers. C. a satisfied customer. D. suppliers.

a satisfied customer.

What are cooperative agreements that allow firms to remain​ independent, but pursue strategies consistent with their individual​ missions? A. enhancements and migration B. joint ventures C. acquisitions D. alliances

alliances

ABC analysis divides an​ organization's on-hand inventory into three classes based upon A. unit price. B. the number of units on hand. C. annual dollar volume. D. annual demand.

annual dollar volume.

Which of these statements regarding​ time-cost tradeoffs in CPM networks is​ true? A. Crashing a project often reduces the length of​ long-duration, but​ noncritical, activities. B. Activities not on the critical path can never be on the critical​ path, even after crashing. C. The crash time always exceeds the normal time. D. Crashing is not possible unless there are multiple critical paths. E. Crashing shortens the project duration by assigning more resources to one or more of the critical tasks.

Crashing shortens the project duration by assigning more resources to one or more of the critical tasks.

A project organization works best for an organization when the project resides in only one of its functional areas.

False

ABC analysis classifies inventoried items into three​ groups, usually based on annual units or quantities used.

False

At the economic order​ quantity, holding costs are equal to product costs.

False

Because service firms do not acquire goods and services​ externally, their supply chain management issues are insignificant.

False

In the simple EOQ​ model, if annual demand were to​ increase, the EOQ would increase proportionately.

False

Rapidly developing products and moving them to the market is part of​ time-based competition.

False

Shortening the​ project's duration by deleting unnecessary activities is called​ "project crashing."

False

Supply chain decisions are not generally strategic in​ nature, because purchasing is not a large expense for most firms.

False

The critical path can be determined by use of either the​ "forward pass" or the​ "backward pass."

False

The supply chain for a brewery would include raw ingredients such as hops and barley but not the manufactured goods such as bottles and cans.

False

With the​ "many suppliers" sourcing​ strategy, the order usually goes to the supplier that offers the highest quality.

False

Work-in-process inventory is devoted to​ maintenance, repair, and operating materials.

False

Manufacturability and value engineering has which of the following​ benefits? I. Reduced complexity of the product II. Reduction of environmental impact III. Additional standardization of components IV. Robust design V. Improved job design and safety A. I, III, IV B. IV C. I, II,​ III, IV, V D. I, III, V E. II, IV

I, II,​ III, IV, V

In a PERT​ network, non-critical activities that have little slack need to be monitored​ closely: A. because PERT treats all activities as equally important. B. because they have a high risk of not being completed. C. because slack is undesirable and needs to be eliminated. D. because​ near-critical paths could become critical paths with small delays in these activities. Your answer is correct. E. because they are causing the entire project to be delayed.

because​ near-critical paths could become critical paths with small delays in these activities. Your answer is correct.

Which of the following is NOT one of the phases of project​ management? A. controlling B. budgeting C. scheduling D. planning E. All of the above are project management phases.

budgeting

The appropriate level of safety stock is typically determined by A. minimizing the expected stockout cost. B. taking the square root of the economic order quantity. C. choosing the level of safety stock that assures a given service level. D. carrying sufficient safety stock so as to eliminate all stockouts.

choosing the level of safety stock that assures a given service level.

The purpose of safety stock is​ to: A. eliminate the likelihood of a stockout due to erroneous inventory tally. B. control the likelihood of a stockout due to variable demand​ and/or lead time. Your answer is correct. C. eliminate the possibility of a stockout. D. replace failed units with good ones. E. protect the firm from a sudden decrease in demand.

control the likelihood of a stockout due to variable demand​ and/or lead time.

What is the shortest duration required to complete an​ activity? A. optimistic time B. most likely time C. pessimistic time D. crash time

crash time

Self-checkout at a grocery store is an example of A. focus B. delayed customization. C. separation D. customer participation in service delivery.

customer participation in service delivery.

Operation of a hair salon is an example of A. modularization. B. automation. C. delayed customization. D. an assembly line.

delayed customization.

Which of the following statements regarding critical paths is​ true? A. Every network has only one critical path. B. Some activities on the critical path may have slack. C. The duration of the critical path is the average duration of all paths in the project network. D. The shortest of all paths through the network is the critical path. E. On a specific​ project, there can be multiple critical​ paths, all with exactly the same duration.

On a specific​ project, there can be multiple critical​ paths, all with exactly the same duration.

Which of the following would likely cause a change in market opportunities based upon levels of income and​ wealth? A. economic change B. political change C. legal change D. technological change E. sociological and demographic change

economic change

The advantage of having few suppliers is to

form a​ long-term relationship.

A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors. This is an example of which of the​ following? A. forward integration B. keiretsu C. backward integration D. current transformation E. horizontal integration

forward integration

Which of the following is NOT a service design technique used to increase service​ efficiency? A. automation B. modularization C. limit the options D. delay customization E. increase customer interaction

increase customer interaction

Which of the following does NOT belong to ordering​ costs? A. order processing B. cost of inspection C. interest payments D. clerical support E. restocking

interest payments

In which stage of the product life cycle should product strategy focus on process modifications as the product is being​"fine-tuned" for the​ market? A. decline B. maturity C. growth D. incubation E. introduction

introduction

If the actual order quantity is the economic order quantity in a problem that meets the assumptions of the economic order quantity model shown​ below, the average amount of inventory on​ hand: ​Q*​ = SQUARE ROOT OF 2DS/H A. goes down if the holding cost per unit goes down. B. is smaller than the holding cost per unit. C. goes down if the setup cost per order goes up. D. is zero. E. is​ one-half of the economic order quantity.

is​ one-half of the economic order quantity.

If the actual order quantity is the economic order quantity in a problem that meets the assumptions of the economic order quantity model shown​ below, the average amount of inventory on​ hand: Q*​ = SQUARE ROOT OF 2DS/H A. goes down if the holding cost per unit goes down. B. is smaller than the holding cost per unit. C. goes down if the setup cost per order goes up. D. is zero. E. is​ one-half of the economic order quantity.

is​ one-half of the economic order quantity.

Which of the following is an external product development​ strategy? A. migrations of existing products B. new internally developed products C. enhancements to existing products D. joint ventures

joint ventures

Which of the following would NOT typically be considered as part of a manufacturing​ firm's supply​ chain?

landscaping contractors

Which sourcing strategy is particularly common when the products being sourced are​ commodities? A. keiretsu B. virtual companies C. vertical integration D. few suppliers E. many suppliers

many suppliers

A network has been crashed to the point where all activities are critical. Additional​ crashing: A. is prohibitively expensive. B. may require crashing multiple tasks simultaneously. C. is impossible. D. is unnecessary. E. can be​ done, but all critical tasks must be reduced in duration.

may require crashing multiple tasks simultaneously.

Which of the following represents an internal product development​ strategy? A. joint ventures B. migration of existing products C. purchase technology or expertise by acquiring the developer D. alliances

migration of existing products

Policies based on ABC analysis might include investing A. extra care in forecasting for C items. B. the most time and effort verifying the accuracy of records for B items. C. more in inventory security for C items. D. more in supplier development for A items.

more in supplier development for A items.

Which of the following product development strategies has the highest product development​ risk? A. new internally developed products Your answer is correct. B. acquiring the developer C. alliances D. purchasing technology E. joint ventures

new internally developed products

The advantage of having many potential suppliers is their willingness to

offer lower prices in the short term.

Which of the following does NOT belong to holding​ costs? A. order processing B. insurance on inventory C. pilferage, scrap, and obsolescence D. storage costs

order processing

What is transferring a​ firm's activities that have traditionally been internal to external​ suppliers?

outsourcing

The transfer of some of what are traditional internal activities and resources of a firm to outside vendors​ is: A. a standard use of the​ make-or-buy decision. B. offshoring. C. outsourcing. Your answer is correct. D. not allowed by the ethics code of the Supply Management Institute. E. keiretsu.

outsourcing.

Among the​ following, critical path and slack time analysis MOST help A. point out who is responsible for various activities. B. managers define the project activities. C. highlight relationships among project activities. D. pinpoint activities that need to be closely watched.

pinpoint activities that need to be closely watched.

Which of the following best describes vertical​ integration? A. sell products to a supplier or a distributor B. produce goods or services previously purchased C. develop the ability to produce the specified good more efficiently than before D. develop the ability to produce products that complement the original product E. build​ long-term partnerships with a few suppliers

produce goods or services previously purchased

Listing products in descending order of their individual dollar contribution to the firm is called A. product-by-value analysis. B. brainstorming. C. product decision. D. product life cycle.

product-by-value analysis

The analysis tool that lists products in descending order of their individual dollar contribution to the firm​ is: A. breakeven analysis. B. product life cycle analysis. C. Pareto analysis. D. product-by-value analysis. E. decision tree analysis.

product-by-value analysis.

Which of the following types of inventory describes inventory that has been purchased but not​ processed? A. raw material inventory B. work-in-process inventory C. maintenance/repair/operating supply inventory D. finished-goods inventory

raw material inventory

Which of the following is NOT a benefit generated by manufacturability and value​ engineering? A. improved job design and job safety B. reduced standardization of components C. reduced complexity of the product D. reduction of environmental impact

reduced standardization of components

Extra units that are held in inventory to reduce stockouts are called: A. reorder point. B. just-in-time inventory. C. demand variance. D. safety stock.

safety stock.

The proper quantity of safety stock is typically determined​ by: A. setting the level of safety stock so that a given stockout risk is not exceeded. Your answer is correct. B. carrying sufficient safety stock so as to eliminate all stockouts. C. multiplying the EOQ by the desired service level. D. using a​ single-period model. E. minimizing total costs.

setting the level of safety stock so that a given stockout risk is not exceeded.

The objective of inventory management is to A. take advantage of quantity discounts. B. strike a balance between inventory investment and customer service. C. provide a selection of goods for anticipated customer demand. D. decouple various parts of the production process.

strike a balance between inventory investment and customer service.

In​ general, the supply chain starts with A. final customers at the retail store. B. a distributor. C. research and development. D. the provider of basic raw materials.

the provider of basic raw materials.

The two most basic inventory questions answered by the typical inventory model​ are:

timing of orders and order quantity.

What is the primary purpose of the basic economic order quantity model shown​ below? ​Q*​ = SQUARE ROOT OF 2DS/H A. to calculate the optimum safety stock B. to minimize the sum of carrying cost and holding cost C. to minimize the sum of setup cost and holding cost Your answer is correct. D. to calculate the reorder​ point, so that replenishments take place at the proper time E. to maximize the customer service level

to minimize the sum of setup cost and holding cost

What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a​ distributor?

vertical integration

Which of the following statements is NOT​ true? A. 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. B. 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. C. There are three flows along the supply​ chain; information, product and payment. D. A supply chain rarely pays attention to intergraton of internal business functions such as purchasing​ department, production​ department, and delivery​department, etc. Your answer is correct. E. Supply chain management describes the coordination of all supply chain​ activities, starting with raw​ materials, and ending with a satisfied customer.

A supply chain rarely pays attention to intergraton of internal business functions such as purchasing​ department, production​ department, and delivery​ department, etc.

​Outsourcing: A. allows the outsourcing firm to focus on its key success factors. B. utilizes the efficiency that comes with specialization. C. transfers traditional internal activities to outside vendors. D. All of the above are true of outsourcing. Your answer is correct.

A. allows the outsourcing firm to focus on its key success factors. B. utilizes the efficiency that comes with specialization. C. transfers traditional internal activities to outside vendors. D. All of the above are true of outsourcing. Your answer is correct.

Which one of the following is one of the sourcing​ strategies? A. negotiation with many suppliers B. all of the choices C. vertical integration D. short-term relationships with few suppliers

A. negotiation with many suppliers B. all of the choices C. vertical integration D. short-term relationships with few suppliers

The control of projects involves close monitoring of which of the​ following? A. quality B. resources C. budgets D. costs E. All of the above.

All of the above

Which of the following statements is TRUE regarding the approach Japanese organizations use for product​development? A. Japanese organizations bypass the team issue by not subdividing organizations into research and​development, engineering,​ production, and so forth. B. The Japanese approach to product development is an organization with distinct departments. C. Japanese organizations use teams to develop products. D. Japanese organizations assign a product manager to​ "champion" the product.

Japanese organizations bypass the team issue by not subdividing organizations into research and​development, engineering,​ production, and so forth.

Which of the following is NOT a type of​ inventory? A. raw material B. work-in-process C. finished goods D. MRP

MRP

Which of the following is most closely related to the increased demand for international food in the​ US? A. understanding the customer B. Regulation change C. Society change D. Economic change E. Technology change

Society change

Which of the following statements is NOT​ true? A. The objective of the product decision is to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage. B. The product decision includes the​ selection, definition, and design of products. C. Many service firms refer to their offerings as​ "products." D. The term​ "products" refers to tangible goods only.

The term​ "products" refers to tangible goods only.