Operations Management Final
Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework?
...
A SRM strategy refers to a situation wherein a supplier's employee is permanently housed in the purchasing department of the buyer's organization.
False
A country that imposes high tariffs encourages foreign-based companies to import goods.
False
A lean system is also known as a push system.
False
According to the text, good queue management consists of managing only what the customer perceives to be as the waiting time.
False
According to the textbook, there are four key supply chain business processes: Purchasing, Manufacturing, Distribution, and Returns.
False
According to the textbook, third-party logistics providers do not offer assistance with helping products clear customers.
False
ERP Implosion is the process of converting a parent item's planned order releases into component gross requirements.
False
Generally speaking, motor carriers are less expensive than rail carriers to haul goods.
False
If a company is effectively focusing on its core competencies, its level of outsourcing is likely to decrease.
False
In a weighted-criteria evaluation system the weights of all the performance dimensions must add up to more than 1.00 and less than 100.
False
In general, performance measurement systems are mostly identical from company to company.
False
It is considered unethical for a firm to intentionally buy from women-owned businesses.
False
Organizations practicing lean production often increase their inventory levels in order to create a cushion against variability so that they can investigate and eliminate the weaknesses in their systems.
False
Pareto Analysis means that 20 percent of the items get about 80 percent of the safety stock.
False
The EOQ equation is derived by setting the annual purchase cost equal to the annual holding cost.
False
The batching of orders is unlikely to increase the likelihood of the bullwhip effect occurring.
False
The legacy MRP system was programmed to coordinate with other functional areas in the firm.
False
The objectives of any CRM initiative should be focused on what the company can reasonably achieve.
False
Your company is conducting forecasting that revolves around population growth in large cities. This type of forecasting can be referred to as what component of a time series?
Trend Variations
Statistical process control uses control charts to monitor the outputs of a process to identify variations due to assignable causes and variations due to common causes.
True
Supply chain analytics can be used along the supply chain to schedule production according to expected supplier deliveries
True
Supply chain management is concerned about how suppliers' products are designed, produced, and transported.
True
The Malcolm Baldrige National Quality Award recognizes firms for their quality achievements but is only given to U.S. firms.
True
Toyota initially designed their JIT program on Ford's manufacturing system.
True
The economic order quantity model (EOQ) is the optimal independent demand order quantity that minimizes total annual inventory costs.
True
Themed restaurants such as ESPN zone, Rainforest Cafe, and Chuck E. Cheese are all examples of Entertainment facilities.
True
To control and enhance the capabilities of companies within a supply chain, well-designed performance measurement systems must be implemented.
True
Two methods for managing supply chain risk include utilizing a supply chain IT system and identifying backup suppliers.
True
When both the demand and lead time of a product are variable, firms must keep a higher safety stock level compared to variations in just demand, to offer the same service level.
True
The optimal capacity utilization for an organization would be 100%.
False
The possibility of events like strikes, assembly line breakdowns, and natural disasters are all reasons a company should favor using a single supplier.
False
Which of the following would be considered a quality of life factor?
All of the above
Regional trade agreements assist with which of the following?
All of the above
Supply relationship management personnel routinely communicate with:
All of the above
Which of the following are intermodal transportation alternatives?
All of the above
Which of the following is a vital element in developing a strong supply chain through the practice of process integration?
All of the above
Which of the following is an example of how lean programs can help to protect the environment?
All of the above
Which of the following is a direct benefit from the adoption of NAFTA?
An increase in trade between U.S., Canada, and Mexico
According to the text, which of the following is considered a current trend in supply chain management?
Both A and B
An important outcome of statistical process control is:
Both A and B
Due to the success of NAFTA, the U.S________________.
Both A and B
Firms can safeguard customer information by doing which of the following?
Both A and B
The impact of poor communication and inaccurate forecasts resonates along the supply chain and results in the:
Bullwhip effect
When CRM applications are available 24/7 on smartphones, tablets, and desktops, this is referred to as:
Continuous connectivity
Which of the following are required elements of an effective CRM initiative?
Cross-selling customers after an initial purchase
Which of the following customer service elements can be classified as an example of posttransaction elements?
Customer complaint resolution
A customer approaches a firm with a question regarding her order status and shipping date; the information the firm provides is an example of which of the eight key supply chain business processes:
Customer service management process
As firms seek to improve the products they offer to the market, companies are seeking help from their suppliers in new product design and development through:
Early supplier involvement
All of the following may influence demand and should be considered when developing a forecast EXCEPT
Ergonomic conditions
Promoting diversity by intentionally buying from small firms or ethnic minority businesses is an example of:
Ethical Sourcing
When an organization attempts to offer the right products and services to customers at the right time through the offer of individual promotions tied to specific events like birthdays and anniversaries, this is referred to as:
Event based marketing
The Hormel company awards their Hormel Food Corporation's No. 1 Award to their top supplier. How often do they give this award?
Every 5 years
When a single company that is implementing an ERP system chooses to use one company to provide an operations module, another to provide the sales and marketing application, and yet another company to provide the finance and accounting module, that single company has chosen to utilize the single integrator approach.
False
When customer expectations are met or exceeded, the service is deemed to possess low quality.
False
A customer's lifetime value is calculated by:
Finding the NPV of a customer's projected lifetime profits for the firm
According to the text, which of the following is a service strategy characterized by the idea that a service can serve a narrow target market better than a broad market?
Focus Strategy
Organizations that primarily compete on speed of delivery, such as FedEx and UPS, utilize which of the following approaches for location determination?
Hub and Spoke
Which of the following has made external integration more difficult to achieve?
Increase number of franchise operators
The Quick Response program, developed in the 1980's, was an offshoot of the following supply chain concept:
Just-in-Time
______________ creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized.
Logisitcs
Customer relationship management, distribution network, transportation management, and service response logistics are all important issues that are most closely related to:
Logistics
The ___________ planning horizon is shorter than the aggregate production plan's, but must be longer than a firm's production lead time to ensure the end item can be completed within the planning horizon?
Master production schedule
Information technology advances, for example, have made cyber-attacks:
More common
In the text, Table 9.1 shows that for-hire logistics expenditures in the U.S., have _____________ in the past thirty-one years.
More than quadrupled
Waste in Japan is also referred to as:
Muda
When salespeople need to fill end-of-quarter or end-of-year sales quotas they might use ___________, which creates greater use of safety stock causing the bullwhip effect.
Order batching
Which of the following is true?
Performance metrics and personal business relationships are both keys to building successful partnerships.
A form of purchasing that is placed directly to the supplier and suitable when firms use the same components to make standard goods over a relatively long period of time is referred to as:
Planned order release
You are a manager at Sunnydale Appliances. A customer who recently purchased a dishwasher contacts you with a problem and requests warranty information. According to the text, this is an example of:
Posttransaction customer service
___________________ are for-profit organizations that contract out or lease a wide range of light manufacturing, warehousing, and distribution services to other companies.
Public Warehouses
Intermodal marketing companies (IMCs) are companies that act as intermediaries between intermodal
Railroad companies
According to the SCM profile Honda ___________ based on a supplier relations index developed by Planning Perspectives.
Ranked near the top in 2015
Streamlining the processes and communications between the buyer and supplier using software applications that enable these processes to be managed more efficiently and effectively can be referred to as:
SRM
What component of a time series has variations in demand which show peaks and valleys that repeat over a consistent interval such as hours, days, weeks, months, or years?
Seasonal Variations
When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT:
Select the key dimensions of performance based on what is important to the end consumer
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
An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as:
Supplier certifications
Encouraging or helping a firm's suppliers to perform in a desired fashion can be referred to as:
Supplier management
An internal or external event that causes a disruption or failure of supply chain operations is an example of
Supply chain risk
According to the textbook, the five basic modes of transportation are motor, rail, air, water, and pipeline.
True
As tighter control limits are instituted for the tracking signal, there is a greater probability of finding exceptions that require no action, but it also means catching changes in demand earlier.
True
At a service facility it has been calculated that they can handle the demand per hour approximately 76 percent of the time at a rate of 4 per hour. This means that approximately 24 percent of the time, demand per hour will be greater than four customers, causing queues to develop.
True
Automating procurement activities can lead to significant cost savings as buyers move toward managing processes by exception.
True
Criteria to evaluate a purchasing department's performance should include both quantitative and qualitative assessments.
True
Foreign suppliers located farther away may be able to deliver goods faster than domestic suppliers due to more efficient transportation and logistical systems.
True
In Europe, rail transportation tends to be much more prevalent and reliable than rail transportation in the U.S. because European track, facilities and equipment are newer and better maintained.
True
Lack of internal or external collaboration will create quality, cost, delivery timing, and other customer service problems that are detrimental to supply chains.
True
One of the assumptions of the economic order quantity model (EOQ) is that purchase price must remain constant.
True
Poor logistics management can bring a supply chain to its knees, regardless of the quality of the products
True
Procurement credit cards can be used for small purchases including meals, lodging, and travel expenses.
True
Reverse logistics has become an important trend in ethical and sustainable sourcing.
True
Reverse logistics refers to the movement and storage of returned goods.
True
Rewarding suppliers for maintaining high levels of performance is an important step used in maintaining a successful strategic alliance program.
True
Before supplier relationship management (SRM), buyers typically spent 40% of their time on expediting orders. After SRM implementation buyers spent about:
10% of their time on expediting orders
Which of the following would be a good reason to outsource (buy) versus making?
A firm lacks the technology or expertise to produce an item
Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility.
False
Volatile currency exchange rates do not have an impact on location decisions.
False
While a company's Internet presence may be desirable for finding information or conducting product transfers, touching products and talking face-to-face with company representatives remains an integral part of the supplier-customer interface.
True
Which of the following modes of cargo transport can be characterized as being the most inexpensive and very slow, yet good for transporting very heavy goods a long-distance?
Water Carriers
