Supply Chain Final

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All of the following are general purpose quality analysis tools except: A cause and effect diagrams B pareto analysis C spreadsheets D statistical process control charts

C

Consider the number of standard deviations used to calculate the upper and lower control limits for a control chart (i.e. z = 3 on each side of the mean vs. z = 6 on each side of the mean). We would need to: A decrease the mean in order to move from three sigma quality to six sigma quality. B adjust the tolerances in order to move from three sigma quality to six sigma quality. C increase the standard deviation in order to move from three sigma quality to six sigma quality. D decrease the standard deviation in order to move from three sigma quality to six sigma quality.

Not C

The bullwhip effect is best defined as: a the increasing variability of demand as one moves upstream in the supply chain b what happens when cows go bad c the need for customers to "whip" suppliers into shape such that they meet delivery deadlines d the "bull" that is "whipped" up by customers in adversarial relations with certain suppliers

a

All of the following statements are true concerning statistical process control (SPC) except: a variability assignable to a specific known cause cannot be eliminated from the process. b SPC helps identify potential problems in a process before defects can occur. c common variability is inherent in all processes and comes from random fluctuations in the process. d SPC is a method for separating common variability from variability assignable to a specific known cause.

A

Process capability refers to: a determining whether a process can consistently meet specified tolerance limits such that the upper and lower control limits are always inside of the tolerance limits. b centering the tolerance limits of a part. c determining the control limits of a process. d determining the tolerance limits of a part.

A

Quality is best defined as: A conforming to customer specifications and expectations B ensuring long-term profitability C meeting desired production quotas D adding value to products and services

A

Suppose one shop is more productive with its labor hours while the other shop is more productive with its machine hours. The statement which best describes this situation is: A this is entirely possible since typically one shop will not be the best at everything it does B the only productivity measurement which is valid is the one that uses more expensive resources C a calculation error has most likely occurred D this is only a short-term problem since one shop will expand while the other declines

A

The control chart that is used to measure the amount of dispersion or variability present in each sample is known as a(n): R-Chart Xbar-Chart c-Chart p-Chart

A

The probability that a product will operate properly within an expected time frame is the dimension of quality known as: A reliability B serviceability C durability D courtesy

A

The ratio of a firm's monthly output to the number of labor hours used in the same month would be a measure of: A labor productivity B machine productivity C multifactor productivity D capital productivity

A

A process is generally considered to be in control when: there are no sample points outside of the control limits. most of the sample points are close to the center line without trending toward the control limits. All of the answers are true concerning an in control process. the sample points are randomly distributed with about the same number above the center line as below.

All correct

Operations management is concerned with all of the following except: A the operation of productive systems B the demise of productive systems C the improvement of productive systems D the design of productive systems

B

The strengths of a business (i.e. what the company does better than any other) can also be referred to as: A order winners B core competencies C order qualifiers D business strategies

B

Making sure that the product meets the specifications required by design during production is referred to as: A fitness for use B quality of design C quality of conformance D speed and flexibility

C

Walter Shewhart developed the: histogram check sheet control chart process flow chart

C

All of the following are true concerning transformation processes except: A Transformation processes are the series of activities along the value chain from supplier to customer. B All of the answers are true concerning transformation processes. C Transformation processes do not exist for service operations. D Transformation processes that do not add value should be eliminated from the value chain.

C?

All of the following are characteristics of Total Quality Management (TQM) except: A TQM emphasized continuous improvement in all aspects of the product or service being offered. B TQM requires a strategic approach by the company. C All of the answers are characteristics of TQM. D TQM is applicable only to manufacturing entities.

D

Dividing a job into a series of small tasks each performed by a different worker is known as: A craft production B scientific management C standardization D division of labor

D

External failure costs include all of the following except: A customer complaint costs B warranty claims costs C product liability costs D inspection and testing costs

D

Scientific management can best be described as: A determining whether to make or purchase a product component B deciding which products or services to offer C deciding which new markets to enter D systematically measuring and analyzing work methods

D

Scrap costs, rework costs, and process downtime costs are all examples of: A appraisal costs B prevention costs C external failure costs D internal failure costs

D

When converting inputs to outputs, all of the following are considered transformation processes except: A informational B locational C psychological D conversational

D

All of the following are characteristics of an effective design process except: a increasing the design time for new products and services b meeting customer requirements in the least costly manner c minimizing the number of revisions needed to make the design workable d matching product or service characteristics with customer requirements

a

All of the following are examples of incentives to entice a facility to a given community or location except: a increasing governmental regulation b providing tax credits to the facility/company c providing cash incentives to the facility/company d providing job training to potential employees

a

Information technology is critical for successful supply chain integration because: a All of the answers are correct b it allows for the creation of global supply chains between customers and suppliers c better information may reduce the need for larger quantities of inventory throughout the supply chain d it enables the online sharing of vital supplier-customer information in real-time

a

Obstacles to global supply chain management include all of the following except: a decreased supplier costs b security issues associated with a post-9/11 business environment c increased and/or different shipping documentation requirements for different countries d difficulty in communication and/or language barriers between countries

a

Specialized labor is primarily used in: projects batch production mass production continuous production

a

The ease with which resources can be adjusted in response to changes in demand, technology, products and services, and resource availability is known as: process flexibility capital intensity vertical integration customer involvement

a

The process of equalizing the amount of work at each workstation in a product layout is known as: line balancing precedence requirements cycle time analysis block diagramming

a

When customers switch lines hoping to move faster, the behavior is referred to as: a jockeying b reneging c smoothing d balking

a

With the traditional EOQ model, graphically the optimal order quantity occurs where: the slope of the total cost curve equals zero (i.e. is flat) the partial derivitave of the total cost equation with respect to order size equals zero All of the answers are correct the cost of ordering equals the cost of carrying inventory

all correct

All of the following are characteristics of services except: a services are intangible b services have lower customer contact (compared to products) c services are easy to copy by a competing firm d services are perishable and cannot be stored for future use

b

In an ABC inventory classification system, which type of items account for the greatest inventory dollar value even though numerically they represent only a small number of items held in inventory? None of the answers A items C items B items

b

Increased uncertainty and variability in a supply chain typically results in: faster deliveries more inventory more accurate order fulfillment lower costs

b

Industries where manufacturing facilities run 24 hours a day and individual units of product cannot be differentiated (such as steel, paper, paints, chemicals, etc.) typically use: batch production systems continuous production systems projects mass production systems

b

RFID tags have all of the following benefits over traditional bar codes except: real-time monitoring increased RFID tag expense increased inventory visibility no need for a direct "line of sight" to be read

b

Supply chain sustainability is best described as: a reducing the amount of carbon in a product b using electronic means to design a product/service rather than paper c meeting present customer needs without compromising the needs of future generations d using only recycled material in a product

c

The extent to which the firm will produce the inputs and control the outputs of each stage of the production process is known as: a process flexibility b vertical integration c process planning d capital intensity

b

The first diagram of the diagram of matrices used with Quality Function Deployment (QFD) to translate the voice of the customer into technical design requirements is referred to as the: a Crowded House b House of Quality c Value Stream Map d House of Horrors

b

The number of phases in a queuing process refers to: a the number of parallel servers available for processing customers as they arrive b the number of sequential servers that a customer must visit before exiting the process c the size of the queue length d the size of the calling population

b

Which of the following can improve a product's reliability? a improving the individual reliabilities of the product's components b All of the answers can improve the reliability of a product c simplifying the design of the product d adding redundancy to the product's components

b

The type of inventory where its demand is determined directly from customers in the marketplace is called: safety stock independent demand inventory dependent demand inventory value added inventory

b?

All of the following are considered costs associated with inventory except: shortage costs carrying costs hiring costs ordering costs

c

All of the following are true concerning the production quantity model (POQ) except: a POQ utilizes a daily production rate and a daily demand rate b All of the answers are true c orders are received all at once with POQ d the daily production rate must exceed the daily demand rate in order to have inventory buildup

c

An inventory system where the inventory on hand is counted at set times and an order is placed to bring the inventory being held to a predetermined desired level is know as: a an ABC inventory system b a fixed-quantity inventory system c a periodic inventory system d a continuous inventory system

c

Global location factors include all of the following except: a governmental stability b export and import regulations, duties, and tariffs c local customs d culture

c

Location decisions for service facilities differ from those for manufacturing facilities in that: a service facility location decisions are not made as often as those for manufacturing. b it is much more difficult to move a service facility than it is a manufacturing facility. c service facilities must be located in areas convenient and easily accessible to customers. d None of the other answers, i.e. there is no difference between service and manufacturing location decisions

c

The cooperation between suppliers and customers brought about by supply chain management adds value by: a reducing inventory throughout the supply chain b improving timeliness and reliability of deliveries c All of the answers are correct d increasing communication and sharing of information

c

The type of layout where similar activities are grouped together in departments or work centers according to the specific function they perform is known as a: product layout hybrid layout process layout fixed position layout

c

Transportation costs are an important factor when considering where to locate a facility and are generally a function of: a weight b distance c All of the answers affect transportation costs d time

c

Using a ship to deliver a cargo container to port, placing the cargo container on a rail car and to move inland, then placing the cargo container on a truck to deliver to its final destination is an example of: shipping aggregation e-procurement intermodal transportation container consolidation

c

Which of the following statements is true? a Product layouts are more flexible while process layouts are more efficient. b Product and process layouts are equally flexible but neither are all that efficient. c Product layouts are more efficient while process layouts are more flexible. d Product and process layout are equally efficient but neither are all that flexible.

c

All of the following are true concerning global supply chains except: a competitors can share suppliers and customers and even become allies for certain products and services b businesses use outsourcing to both reduce costs and to focus on their core competencies c businesses no longer have an overall goal of owning the entire supply chain d supply chains are always vertical arrangements such that competitors never conduct business together (i.e., they are not weblike)

d

An auction in which a business seeking a supplier runs the auction and potential sellers bid is known as: a dutch auction a reverse channel a channel marker a reverse auction

d

Combining inventories from multiple locations (i.e. individual Target stores) into one central warehouse (i.e. a centralized Target distribution center) is a concept known as: e-business or e-commerce Statistical Process Control (SPC) Supply Chain Management (SCM) risk pooling

d

Service level is best defined as: a the probabililty that a customer will not balk b a fixed amount of safety stock c All of the answers are correct d the probability that the amount of inventory on hand will be enough to satisfy customer demand until the next order arrives

d

The ability to meet present needs without compromising those of future generations is a concept in product design known as: a reusability b reliability c maintainability d sustainability

d

The classification of service with the highest level of customization and labor (and thus the highest cost) is: a service factory b mass service c professional service d service shop

d

The strengths of a business (or what a company does best) can also be referred to as: a order losers b business strategies c order winners d core competencies

d

Warehouse Management Systems are best described as: a an inventory control system used for raw materials b an automated procurement system for upstream suppliers c All of the answers describe WMS d an automated system that runs the day-to-day operations of a distribution center

d

When activities are arranged in a line according to the sequence of operations for assembling a particular product the layout is said to be a: fixed position layout hybrid layout process layout product layout

d

A continuous replenishment inventory management system requires a supplier to deliver smaller quantities of needed materials much more frequently according to a predetermined schedule: True False

true


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