Supply chain management exam #2 - Matheson - multiple choice only

If at the end of the year, the cost of revenue =$2500, total revenue = $12,000 and inventory value =$2000, the inventory turnover ratio would be: A. 0.208 B. 0.375 C. 2.667 D. 0.800 E. 1.250

E. 1.250

Which of the following would be considered a dependent demand item? A. Bicycle tires used to assemble a bicycle B. Televisions C. Furniture D. Retail customers

A. Bicycle tires used to assemble a bicycle

The impact of poor communication and inaccurate forecasts resonates along the supply chain and results in the: A. Bullwhip effect B. Delphi effect C. CPFR effect D. Mean deviation

A. Bullwhip effect

Which is a tool of Six Sigma A. DMAIC B. DADIC C. MADIC D. DDADIC

A. DMAIC

Six Sigma is the statistical likelihood of non-defects 99.999966% of the time, how many defects per million observations is that?

3.4

Which of the following would refer to the 80/20 rule when applied to the ABC inventory control system. A. 80 percent of the items account for 20 percent of the groups B. 20 percent of the items account for 80 percent of the tasks C. 80 percent of the units cost account for 20 percent of the items D. 80 percent of the total annual $ usage is accounted for, by 20 percent of the items. E. none of the above

A. 80 percent of the items account for 20 percent of the groups

The ___________ specifies which end product is to be made, how many are required, and when they need to be completed. A. Aggregate production plan B. Master production plan C. Bill of Material D. Super bill of Material

A. Aggregate production plan

Which is the main benefit for decentralized warehousing? A. Delivery lead times & late deliveries decrease B. inventory increases C. Cost reduce D. complexity is reduced

A. Delivery lead times & late deliveries decrease

Which person was a key figure in developing Japanese industry after world war 2, and developed 14 points of management? A. Deming B. Ohno C. Toyoda D. Shingo

A. Deming

Which of the following is a disadvantage of carrying too much inventory? A. It creates an unnecessary waste of scarce resources B. It leads to higher annual inventory ordering costs C. It leads to lower average finished goods inventories D. It increases the need to purchase items E. It reduces the need to conduct cycle counts

A. It creates an unnecessary waste of scarce resources

Lean production systems are sometimes referred to as pull systems because demand from customers activates the production actions of the manufacturing facilities. In order for this demand to be communicated to everyone in the supply chain/manufacturing facility a signal must be passed from downstream processing centers. This system of relaying signals is referred to as a: A. Kanban System B. Semaphore System C. Keiretsu System D. TQM System

A. Kanban System

Common carriers... A. not bound to serve the general public. Contract carriers serve specific customers under contractual agreements B. offer transportation services to all shippers at published rates between designated locations without discrimination C. exempt from regulation of services & rates & if they transport certain exempt products like produce, livestock, coal, or newspapers D. not subject to economic regulation & typically transports goods for the company owning the carrier

B. offer transportation services to all shippers at published rates between designated locations without discrimination

A __________ is a document that shows an inclusive listing of all component parts & assemblies making up the final product - shown in various levels A. Master production schedule B. Bullwhip effect C. Bill of Material D. ERP System

C. Bill of Material

Which of the following results from using the chase production strategy? A. The workforce fluctuates in response to the demand pattern B. Finished goods inventories remain constant C. Both A & B D. None of the above

C. Both A & B

A firm designed to receive, breakdown, repackage, & distribute components to a manufacturing location or finished products to customers warehouse A. Distribution Center B. 3PL C. Cross dock D. Warehouse

C. Cross dock

Crossdocking is typically used in what mode of trucking? A. FTL B. TL C. LTL D. FTT

C. LTL

Which mode of transportation is described as expensive relative to other modes but fast A. Pipeline B. water carriers C. Rail carriers D. Air Carriers

D. Air Carriers

A short-range capacity planning technique that checks feasibility of the material requirements plan refers to: A. Capacity system B. Resource Requirement Planning (RRP) C. Rough-cut capacity plan (RCCP) D. Capacity requirement planning (CRP)

D. Capacity requirement planning (CRP)

Which of the following basic production strategies work best with make-to-order manufacturing firms? A. Capacity production strategy B. Mixed production strategy C. Level production strategy D. Chase production strategy

D. Chase production strategy

Lean production emphasizes all of the following except: A. Continuous improvement B. Reduction of waste C. Synchronization of material flows D. Long production runs

D. Long production runs

Which of the following layouts is primarily designed to process parts, components, or jobs requiring the same or similar processing steps, saving duplication of equipment and labor: A. Work Centers B. Production Kanbans C. Work-in-process D. Manufacturing Cells

D. Manufacturing Cells

______________ are the most flexible mode of transportation and account for 70 percent of all the freight tonnage moved in the U.S. A. Water Carriers B. Rail Carriers C. Air Carriers D. Motor Carriers

D. Motor Carriers

Which option is not an advantage of Third Party Logistic firm (3PL)? A. provide network optimization, light manufacturing, and other services B. Allows firms to concentrate more on core competencies C. Provides people, process and facilities when demand is growing rapidly D. Provides brokerage services for consolidation services

D. Provides brokerage services for consolidation services

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? A. Trend Variations B. Cyclical Variations C. Random Variations D. Seasonal Variations

D. Seasonal Variations

Which one of the following is NOT a type of qualitative forecasting? A. Sales force composite B. Consumer Survey C. Jury of executive opinion D. Simple moving average

D. Simple moving average

Which of the following are among the MOST important elements of the lean production philosophy? A. Quality inspections and a standardized product line B. Fully automated assembly lines and a large supplier base C. Large inventories and quality inspections D. Waste reduction and continuous improvement

D. Waste reduction and continuous improvement

Logistics provides both Time utility (products are delivered at the right time) and Place utility (products are delivered to the desired location)

True

Products have little value to the customer until they are moved to the customer's point of consumption

True

A software system designed to track and control the flow of goods from receiving dock to outbound shipment is? A. WMS B. TMS C. GTM D. ERP

WMS

When there is not a lot of currently relevant data available it is generally best to use: A. Qualitative forecasting B. Time series forecasting C. Naïve forecasting D. Simple moving average

A. Qualitative forecasting

Which mode of transportation is described as competing when the distance is long & the shipments are heavy or bulky? A. Rail carriers B. Motor carriers C. pipeline D. Air carriers

A. Rail carriers

Which strategy allows finished goods inventories to accrue and relies on backlogs to handle the demand? A. The Level Production Strategy B. Mixed Production Strategy C. The Chase Production Strategy D. The Aggregate Production Strategy

A. The Level Production Strategy

______________ carry the majority of the world's water-transported manufactured goods A. Supertankers B. Container Ships C. Barges D. None of the above

B. Container Ships

Independent demand is the: A. Internal demand for all end-item parts and materials B. Demand for a firm's end products C. Forecasted demand for purchased items D. Absolute demand for all items

B. Demand for a firm's end products

The objectives of transportation are all but... A. Maximize value to firm through negotiation to provide profit contribution B. Ensure inventory and labor is reduced to drive value to the business C. Make sure service is provided effectively D. Satisfy customer requirements while minimizing costs

B. Ensure inventory and labor is reduced to drive value to the business

Which of the following is NOT one of the Seven Wastes? A. Excess Inventory B. Environmental waste C. Waiting D. Scrap and rework

B. Environmental waste

Which of the following seeks to develop short range plans seeking to effectively and efficiently manage components and/or subassemblies over a few days to a few weeks? A. Resource requirements plan B. Material requirements plan C. Rough-cut capacity plan D. Material production schedule

B. Material requirements plan

Which strategy uses overtime and subcontracting to cope with high demand periods? A. The Level Production Strategy B. Mixed Production Strategy C. The Chase Production Strategy D. The Aggregate Production Strategy

B. Mixed Production Strategy

Which one of the following is NOT a time series forecast: A. Naïve forecast B. Multiple regression forecast C. Weight moving average D. Exponential Smoothing forecast

B. Multiple regression forecast

A software system designed to select the best mix of transportation services and pricing is? A. WMS B. TMS C. GTM D./ERP

B. TMS

Which one of the following is NOT a reason for firms to carry inventory? A. To meet variations in product demand B. To increase production change/setup cost C. To allow for production scheduling flexibility D. To take advantage of quantity discounts E. To maintain independence of operations

B. To increase production change/setup cost

Random variations in a Time Series component are due to: A. Population growth B. Unpredictable events C. Using a large value for the exponential smoothing constant D. Inaccurate response of the expert participants

B. Unpredictable events

The difference between actual quantity and the forecast is? A. Mean Absolute Deviation B. Running sum of forecast errors C. Forecast error D. None of the above

C. Forecast error

Which is not an impact of Reverse Logistics on the Supply Chain A. Effective returns process B. Data used to eliminate errors and find root cause C. Improve worker productivity and eliminate waste D. create value as original products, refurbished products, or repair parts

C. Improve worker productivity and eliminate waste

Which of the following is NOT consistent with the lean Philosophy? A. Cross-Training employees to increase processing flexibility B. Developing a culture of continuous improvement within the organization C. Increasing batch sizes to take advantage of economies of scale D. Positioning WIP inventories near each processing center

C. Increasing batch sizes to take advantage of economies of scale

The Five-Ss refer to: A. Overspending habits B. Keiretsu relationships C. Industrial housekeeping D. Robust evaluation techniques

C. Industrial housekeeping

_____________ creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized A. Operations B. Transportation planning C. Logistics D. Procurement

C. Logistics

Lubricants for production equipment which are not parts of the final products are called: A. Raw Materials B. Work-in-process C. Maintenance, repair and operating supplies (MRO) D. Finished goods E. Cycle Stock

C. Maintenance, repair and operating supplies (MRO)

Which is not a result of centralized warehousing? A. Delivery lead times & late deliveries increase B. Stockouts decrease C. Warehouse capital and operating costs increase D. Outbound transportation costs increase

C. Warehouse capital and operating costs increase

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? A. Air Carriers B. Rail Carriers C. Water Carriers D. Motor Carriers

C. Water Carriers

Exempt carriers... A. offer transportation services to all shippers at published rates between designated locations without discrimination B. not bound to serve the general public. Contract carriers serve specific customers under contractual agreements C. not subject to economic regulation & typically transports goods for the company owning the carrier D. free from regulation of services & rates & if they transport certain exempt products like produce, livestock, coal, or newspapers

D. free from regulation of services & rates & if they transport certain exempt products like produce, livestock, coal, or newspapers