MG 395 exam 3
Magnira Hotels is a leading chain of hotels. Its managers reserve 30% of the rooms available only to the members of its club. They also provide the rooms at subsidized prices to these members. In this scenario, which of the following components of revenue management system is most likely used by Magnira Hotels?
Allocation
___________ occur when the average unit cost of a good or service begins to increase as the capacity and or volume of throughput increases.
Diseconomies of scale
___________ are achieved when the average unit cost of a good or service decreases as the capacity and/ or volume throughput increases
Economies of scale
______ is the difference between the observed value of the time series and the forecast.
Forecast error
_____ are needed to plan workforce levels, allocate budgets among divisions, and schedule jobs and resources.
Intermediate-range forecasts
Which of the following is true of purchasing?
It can have a significant impact on total supply chain costs.
Which of the following statements is true of a fixed-period system (FPS)?
It orders sufficient stock at the time of review to bring the inventory position up to the replenishment level (M).
__________ is the discipline of managing that flow of materials and transportation activities to ensure adequate customer service at reasonable cost.
Logistics
_________ are necessary to plan for facility expansion.
Long-range forecasts
____________ is inventory that has been ordered but is in transit.
Pipeline inventory
______ is a method for building a statistical model that defines a relationship between a single dependent variable and one or more independent variables, all of which are numerical
Regression analysis
_____ is an additional amount of inventory that is kept over and above the average amount required to meet demand.
Safety stock inventory
_______ are used by operations managers to pan production schedules and assign workers to jobs.
Short-range forecasts
____ is a forecasting technique that uses a weight ed average of past-time series values to forecast the value of the time series in the next period.
Single exponential smoothing
_____ is based on the assumption that the future will be an extrapolation of the past
Statistical forecasting
______ applies to inventory situations in which one order is placed foe a good in anticipation of a future selling season where demand is uncertain.
The single period inventory model
In the context of ABC inventory analysis, which of the following statements is true of class C items?
They can be managed using automated computer systems
In the context of a fairly stable time series with relatively little random variability, which of the following statements is true of single exponential smoothing (SES)?
Values of the smoothing constant larger than 0.5 place more emphasis on recent data
consists of partially completed products in various stages of completion that are awaiting further processing.
Work-in-process inventory
A doctor's office charges no-show patients $30 if they do not cancel their appointment 24 hours prior to the appointment. In this scenario which of the can be used by the doctors office to handle the risk of idle service capacity?
a revenue management system
________ is a common approach to gather data for judgmental forecasts.
a survey questionnaire
Which of the following is a way to manage capacity by shifting and stimulating demand?
adding peripheral goods and or services
In the context of strategies for expanding capacity, which of the following statements is true of one large capacity increase?
an advantage of using this strategy is that the fixed costs of construction and operating system setup need to be incurred only once.
A tracking signal provides a method for monitoring a forecast by quantifying ____.
bias
In the context of forecasting, the term ____ refers to the tendency of forecasts to consistently be larger or smaller than the actual values of the time series.
bias
In the theory of constraints, a ________ is one that effectively limits the capacity of the entire process.
bottleneck work activity
A ________ is a strategy for expanding capacity that waits until demand has increased to a point where additional capacity is necessary.
capacity lag strategy
Blyrie Inc., a sports goods manufacturing company, follows a policy that involves manufacturing only when the demand exceeds the amount of goods already manufactured. Given this information, Blyrie Inc. most likely uses a ________ to expand its capacity.
capacity lag strategy
A ___________ matches capacity additions with demand as closely as possible/
capacity straddle strategy
The pharmaceutical manufactures association defines a ________ as one that, after extensive investigation, is found to provide material of such quality that routine testing on each lot received is unnecessary.
certified supplier
________ is inventory that results from purchasing or producing in larger lots than are needed for immediate consumption or sale.
cycle inventory
In the context of data patterns in a time series, regular patterns in a data series that take place over long periods of time are called__.
cyclical patterns
Managing orders, transportation, and distribution to provide goods and services is part of the ________ function of the Supply Chain Operations Reference (SCOR) model.
deliver
Moving average (MA) methods work best when:
demand is relatively stable and consistent
Unlike a focused factory, an unfocused factory is characterized by ________.
dissimilar product lines
The demand for trains between Marshdell and Deepbarrow varies throughout the year. The demand reaches its peak in summer and drops during winter. This demand for trains can be categorized as ________.
dynamic demand
In the context of fixed-order-quantity system, stockout occur whenever the lead time demand_______.
exceeds the reorder point
In the Delphi method of judgmental forecasting, ____.
experts are not consulted as a group to make predictions
If the time series in an exponential smoothing model exhibits a negative trend, the _____.
forecast will overshoot the actual values
Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is:
half of the order quantity
In the context of measuring supply chain performance, the goal of sustainability measures is to ________.
have a carbon-neutral supply chain.
Nonbottleneck management principles differ from bottleneck management principles because according to non bottleneck management principles ________.
idle time is acceptable if there is no work to do
A(n)________ is an entity- real or virtual- that coordinates and shares information between buyers and sellers.
intermediary
In the context of data patterns in a time series, a (n) ____ is a one-time variation that is explainable.
irregular variation
At Rues and West Bros., a spare parts manufacturing company, the most important competitive priority is quality. Only a few key spare parts are produced using similar process designs. In this scenario, Rues and West Bros. ________.
is a focused factory
Which of the following statements is true of a work order?
it includes processing requirements for a type of work
Which of the following best defines inventory turnover?
it is a measure of how quickly goods are moving through the supply chain.
Which of the following statements is true of setup time?
it is independent of order size for manufacturing work orders
Which of the following statements is true of the independent demand for a stock-keeping unit? (SKU)
it needs to be forecasted
Which of the following is a disadvantage of vendor-managed inventory (VMI)?
it often results in high customer inventories than necessary
When no historical data are available, ____is the sole basis for predicting future demands.
judgmental forecasting
The ________ function of a supply chain is responsible for selecting transportation carriers and managing company owned fleets of vehicles.
logistics
A single-period inventory problem can be solved using a technique called:
marginal economic analysis
In a revenue management system, forecasting, allocation, overbooking, and pricing must work in unison if the objective is to:
maximize the revenue generated by a perishable asset
In the context of forecasting errors, _____ eliminates the measurement scale factor.
mean absolute percentage error
Lumeris Inc., an automobile manufacturer, has an inflexible work schedule and requires its workers to work nine hours a day and six days a week. Its laborers do not have adequate skills to perform their job efficiently. The inflexible work schedule and inadequate labor skills are examples of ______.
nonphysical constraints
Which of the following is true of order application?
order amplification in the supply chain leads to the bullwhip effect.
The earliest revenue management systems focused solely on
overbooking
________ is the supply chain function responsible for acquiring raw materials, component parts, tools, services, and other items required from external suppliers
procurement
____________ specialize in handling all aspects of customers giving back a manufactured good or delivered service and requesting their money back, repairing the manufactured good and giving it to the customer, and or invoking the service guarantee.
return facilitators
A ___________ consists of dynamic methods to forecast demand, allocate perishable assets across market segments, decide when to overbook and by how much, and determine what price to charge different customer classes.
revenue management system
___________ refers to managing the flow of finished goods, materials, or components that may be unusable or discarded suppliers, distributors, or manufacturers for the purpose of reuse, resale, or disposal.
reverse logistics
In the context of data patterns in a time series, _____ are characterized by repeatable periods of ups and downs over short periods of time.
seasonal patterns
In the context of inventory costs, ______ are incurred as a result of the work involved in configuring tools, equipment, and machines within a factory to produce an item.
setup costs
Which of the following is a way to manage capacity by adjusting short-term capacity levels?
shifting work to slack periods
In the context of the metrics used to identify improvements to the operation of supply chains, financial measures:
show how supply chain performance affects the bottom line
Stable demand is usually called__________.
static demand
The demand for bread in Ahoma City ranges 100 to 120 tons per day, everyday of the year. The demand is easily satisfied on a daily basis. This demand for bread can be categorized as______.
static demand
In the context of inventory management, a(n) _______ is a single item or asset stored at a particular location.
stock-keeping unit
In the context of inventory costs, _____ can reflect backorders or service interruptions for external customers.
stockout costs
In the context of inventory costs, ______ can reflect lost sales for external customers or costs associated with interruptions to assembly lines for internal customers.
stockout costs
The traditional operations management definition of throughput is:
the average number of goods or services completed per time period by process.
Harlose Suits owns more equipment than required for manufacturing goods during periods of regular demand in order to tackle sudden demand surges. It also has a certain reserve of produced goods to tackle material shortages. In this case, the reserve of equipment and produced goods are examples of ________.
the capacity cushion
In the context of managing inventories in supply chains, _______ is the time between placement of an order and its receipt.
the lead time
What is a trend?
the underlying pattern of growth or decline in a time series
In the context of ABC inventory analysis, which of the following statements is true of class A items?
they require close control by operations managers
Which of the following statements is true of backorders?
they result in additional costs
In service industries, capacity is often viewed as the ________.
units of resource availability
CarftWare Inc., a furniture manufacturer, uses ABC analysis to define its inventory value. The inventory contains wood, cast percent of the items and 5 percent of the total dollar value; cast iron accounts for 25% of the items and 18 percent of the total dollar value; and adhesive accounts for 15 percent of the items and 17 percent of the total dollar value, _____ can be classified as a class C item.
wood