Operations- Exam 3
Each R requires 4 of component S; each S requires 3 of part T. The lead time for assembly of R is 1 week. The lead time for the manufacture of S is 2 weeks. The lead time for the procurement of T is 6 weeks. The cumulative lead time for R is ____ weeks. A)6 B)9 C) 12 D) 18 E) 28
9 weeks
Which of the following statements about aggregate planning is TRUE? A) An advantage of the counterseasonal product and service mixing option is that it matches seasonal fluctuations without hiring/training costs. B) In aggregate planning, back orders are a means of manipulating supply while part-time workers are a way of manipulating product or service demand. C) A pure chase strategy allows lower inventories when compared to a pure level scheduling. D) A disadvantage of subcontracting is that it may require skills or equipment outside the firm's areas of expertise. E) The option of varying workforce size by hiring or layoffs is used where the size of the labor pool is small.
A pure chase strategy allows lower inventories when compared to a pure level scheduling.
Which of the following statements about aggregate planning is true? A) Aggregate planning uses the adjustable part of capacity to meet production requirements. B) Work station loading and job assignments are examples of aggregate production planning. C) Advertising/promotion is a way of manipulating product or service supply. D) Overtime / idle time is a way of manipulating product or service demand. E) All of the above are true.
Aggregate planning uses the adjustable part of capacity to meet production requirements.
Lean operations are known for their: A) employee development. B) supplier education. C) supplier partnerships. D) challenging jobs. E) All of the above are attributes of lean operations.
All of the above are attributes of lean operations.
Which of the following is consistent with a pure chase strategy? A) vary production levels to meet demand requirements B) vary work force to meet demand requirements C) vary production levels and work force to meet demand requirements D) little or no use of inventory to meet demand requirements E) All of the above are consistent with a pure chase strategy.
All of the above are consistent with a pure chase strategy.
Which of the following would NOT be considered (in addition to delivery speed) when choosing a mode of transportation? A) on-time delivery B) coordinating shipments to maintain a schedule C) getting new products to market D) keeping a customer happy E) All of the above may be considered.
All of the above may be considered
Characteristics of JIT partnerships with respect to suppliers include A) buyer plant pursues vertical integration to reduce the number of suppliers. B) competitive bidding encouraged. C) analysis and support to enable desirable suppliers to become / stay price competitive. D) most suppliers at considerable distance from purchasing organization. E) All of the above are characteristics of JIT partnerships.
Analysis and support to enable desirable suppliers to become / stay price competitive.
The is the input to materials requirements planning which lists the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product. A) bill of materials B) assembly time chart C) master production schedule D) net requirements chart E) inventory records
Bill of Materials
Which of the following is NOT a potential cause of the bullwhip effect? A) shortage gaming B) channel coordination C) order batching D) demand forecast errors E) price fluctuations
Channel coordination
What technique does the text use to determine the best number of suppliers to manage disaster risk? A) linear programming B) factor weighting technique C) transportation model D) decision tree E) simulation
Decision tree
What does the POQ interval equal? A) the number of periods of average demand covered by the safety stock B) the same number of periods that are on the "not to be rescheduled" side of the time fence C) EOQ / maximum gross requirement D) the number of periods until the incoming projected on hand runs out E) EOQ / average demand per period
EOQ / average demand per period
Which of the following is TRUE regarding the POQ lot-sizing method? A) Each POQ interval is recalculated at the time of the order release. B) Each order quantity and POQ interval are recalculated at the time of the order release. C) The POQ interval and all order quantities remain fixed throughout the planning horizon. D) Each order quantity is recalculated at the time of the order release. E) POQ lot sizes are always at least as large as the EOQ lot sizes would be.
Each order quantity is recalculated at the time of the order release.
A bullwhip measure value greater than zero indicates that the bullwhip effect exists.
False
Because most services cannot be inventoried, there is little place for JIT to help service organizations achieve competitive advantage.
False
If X consists of one A and one B, and each A consists of one F and two Gs, then A is the "child" component of G.
False
In MRP, a "bucket" refers to a fixed order quantity, such as an EOQ
False
In MRP, net requirements at one level generate the gross requirements at the next lower level.
False
In the disaster risk model, as the probability of a super-event (S) increases, the advantage of utilizing multiple suppliers increases.
False
Plans for new product development generally fall within the scope of aggregate planning.
False
Purchasing takes place only in manufacturing environments, not service environments.
False
The bullwhip effect describes the tendency for larger order size fluctuations in the supply chain as orders move from suppliers toward retailers.
False
The strategy of varying work force size by hiring is a demand option.
False
lIT's contribution to competitive advantage is to achieve faster response to the customer regardless of cost.
False
The Aggregate Production Plan, derived from the Master Production Schedule, specifies in more detail how much of which products is to be made at what times.
False 535, 567-568
What value of the bullwhip measure would indicate that the bullwhip effect exists? A) greater than 1 B) greater than 0 C) less than 0 D) less than 1 E) 1
Greater than 1
In the make-or-buy decision, one of the reasons for buying is A) to remove supplier collusion. B) inadequate capacity. C) to maintain organizational talents. D) to assure adequate supply. E) to obtain desired quality.
Inadequate Capacity
Which choice best describes level scheduling? A) Daily production is variable from period to period. B) Subcontracting, hiring, and layoffs manipulate supply. C) Price points are calculated to match demand to capacity. D) Inventory goes up or down to buffer the difference between demand and production. E) Overtime is used to handle seasonal demand fluctuations.
Inventory goes up or down to buffer the difference between demand and production.
Which of the following statements regarding aggregate planning is TRUE? A) In a pure level strategy, production rates or work force levels are adjusted to match demand requirements over the planning horizon. B) A pure level strategy allows lower inventories when compared to pure chase and hybrid strategies. C) Mixed strategies in aggregate planning may utilize inventory, work force, and production rate changes over the planning horizon. D) Because service firms have no inventory, the pure chase strategy does not apply. E) A disadvantage of the option of changing inventory levels is that it forces abrupt production changes.
Mixed strategies in aggregate planning may utilize inventory, work force, and production rate changes over the planning horizon.
Which of the following statements regarding a pull system is true? A) Large lots are pulled from upstream stations. B) Manufacturing cycle time is increased. C) Problems become more obvious. D) Work is pulled to the downstream work stations before it is actually needed. E) None of the above are true of a pull system.
Problems become more obvious
Dependence on an external source of supply is found in which of the following aggregate planning strategies? A) varying production rates through overtime or idle time B) subcontracting C) using part-time workers D) back ordering during high demand periods E) hiring and laying off
Subcontracting
Which of the following aggregate planning strategies might direct your client to a competitor? A) using part-time workers B) changing inventory level C) subcontracting D) varying work force size by hiring or layoffs E) varying production rates through overtime or idle time
Subcontracting
Which of the following statements regarding lot-sizing is TRUE? A) EOQ principles should be followed whenever economical. B) Too much concern with lot-sizing results in false accuracy. C) Lot-for-lot cannot be modified for scrap allowance or process constraints. D) The Wagner-Whitin algorithm simplifies lot size calculations. E) All of the above are true.
Too much concern with lot-sizing results in false accuracy.
Finding an ideal mixed strategy is complicated by the huge number of possible strategies.
True
Firms often use multiple suppliers for important components to mitigate the risks of total supply disruption.
True
In a JIT system, product inspection would be considered waste.
True
In the context of aggregate planning, "aggregate" means combining resources in general, or overall, terms.
True
Minimizing cost may not be the most important strategic issue in aggregate planning.
True
One benefit of MRP is faster response to market changes.
True
One key to effective supply chain management is to make the suppliers "partners" in the firm's strategy.
True
The bullwhip effect can occur when orders decrease as well as when they increase.
True
The objective of supply chain management is to build a chain of suppliers that focuses on maximizing value to the ultimate customer.
True
The overarching solution to the bullwhip effect is simply for supply chain members to share information and work together.
True
Which of these is among the demand options of aggregate planning? A) subcontracting B) back-ordering during high-demand periods C) changing inventory levels D) varying workforce size E) varying production rates through overtime or idle time
back-ordering during high-demand periods
Which of the following aggregate planning strategies is a capacity option? A) influencing demand by changing price B) counterseasonal product mixing C) influencing demand by extending lead times D) changing inventory levels E) influencing demand by back ordering
changing inventory levels
Which of the following aggregate planning strategies is a demand option? A) changing price B) subcontracting C) varying production levels D) changing inventory levels E) using part-time workers
changing price
Which choice below best describes the counterseasonal product demand option? A) producing such products as lawnmowers and sunglasses during the winter B) developing a mix of products that smoothes out their demands C) lowering prices when demand is slack D) using subcontractors only when demand is excessive E) the breaking of the aggregate plan into finer levels of detail
developing a mix of products that smoothes out their demands
Typically, a more expensive shipping option is: A) slower with a lower holding cost. B) slower with a higher holding cost. C) faster with a lower holding cost. D) faster with a higher holding cost. E) faster, but holding cost is unaffected by delivery speed.
faster with a lower holding cost.
Which one of the following is NOT a layout tactic in a JIT environment? A) work cells for families of products B) fixed equipment C) minimizing distance D) little space for inventory E) poka-yoke devices??? wtf
fixed equipment
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) queues C) transportation D) inventory E) defective product
inventory
A firm uses the pure chase strategy of aggregate planning. It produced 1000 units in the last period. Demand in the next period is estimated at 800, and demand over the next six periods (its aggregate planning horizon) is estimated to average 900 units. Which of the following tactics would be most representative of following a chase strategy? A) add 100 units to inventory in the next period B) add 200 units to inventory in the next period C) hire workers to match the 100-unit difference D) lay off workers to match the 200-unit difference E) implement a lower price point to increase demand
lay off workers to match the 200-unit difference
Which MRP lot-sizing technique should be considered to be the goal (i.e., the technique of choice under ideal conditions)? A) Wagner-Whitin B) EOQ C) lot-for-lot D) POQ E) Silver-Meal
lot-for-lot
Which of the following is characteristic of lean operations? A) inventory buffers between each workstation to minimize system downtime B) easy, mindless jobs C) specialty workers with no cross-training D) low space requirements E) no supplier partnerships
low space requirements
Which of the following is NOT an advantage of level scheduling? A) stable employment B) lower absenteeism C) matching production exactly with sales D) lower turnover E) more employee commitment
matching production exactly with sales
Which lot-sizing technique orders the quantity needed during a predetermined time between orders? A) economic order quantity B) periodic order quantity C) lot-for-lot D) time fencing E) part-period balancing
periodic order quantity
Aggregate planning for service firms that provide intangible output deals mainly with: A) smoothing the production rate and finding the optimal size of the workforce. B) capital investment decisions. C) centralized purchasing. D) centralized production. E) planning for human resource requirements and managing demand.
planning for human resource requirements and managing demand.
Which of the following aggregate planning options attempts to manipulate product or service demand? A) inventories B) part-time workers C) subcontracting D) overtime/idle time E) price cuts
price cuts
In level scheduling, what is kept uniform from month to month? A) product mix B) inventory levels C) production/workforce levels D) demand levels E) sub-contracting levels
production/workforce levels
Which of the following is NOT an attribute of lean operations? A) eliminating almost all inventory through just-in-time techniques B) minimizing space requirements by reducing the distance a part travels C) pushing responsibility to the highest level possible through centralized decision making D) educating suppliers to accept responsibility for helping meet customer needs E) building worker flexibility through cross-training and reducing job classifications
pushing responsibility to the highest level possible through centralized decision making
In aggregate planning, which one of the following is not a basic option for altering demand? A) promotion B) subcontracting C) back ordering D) pricing E) personal selling
subcontracting
In the service sector, which of the following aggregate planning strategies might direct your client to a competitor? A) using part-time workers B) subcontracting C) changing inventory level D) varying production rates through overtime or idle time E) varying work force size by hiring or layoffs
subcontracting
Which of the following aggregate planning options is NOT associated with manipulation of product or service demand? A) price cuts or discounts B) promotion C) subcontracting D) counterseasonal products or services E) advertising
subcontracting
Which of the following actions is consistent with the use of level scheduling? A) use inventory to meet demand requirements B) use overtime to meet higher-than-average demand requirements C) vary production levels to meet demand requirements D) vary work force to meet demand requirements E) none of the above
use inventory to meet demand requirements
Which of these aggregate planning strategies is a capacity option? A) back ordering B) using part-time workers C) counterseasonal product mixing D) changing price E) promotion
using part-time workers
Which of the following is NOT consistent with level scheduling? A) varying the use of subcontracting B) finding alternative work for employees during low-demand periods C) using built-up inventory to meet demand requirements D) varying production levels and/or work force to meet demand requirements E) All of the above are inconsistent with the pure level strategy.
varying production levels and/or work force to meet demand requirements
Which of the following aggregate planning strategies is known to lower employee morale? A) yield management B) counterseasonal product and service mixing C) changing inventory levels D) varying work force size by hiring or layoffs E) back ordering during high demand periods
varying work force size by hiring or layoffs
