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Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months. The company's expected monthly demand is given in the following chart. The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month. Following is other critical data: Production cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month. What is the inventory carrying cost of a chase plan accomplished through hiring and firing?

$2,000

Jones Corporation is preparing an aggregate production plan for washers for the next four quarters. The company's expected quarterly demand is given in the following chart. The company will have 1

000 washers in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter. Following is other critical data: Production cost per unit = $250 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Each worker can produce 100 units per quarter. Any worker on the staff at the end of the year will not be fired at that time. Given this data, what is the inventory carrying cost of a LEVEL plan?,$70,000

Jones Corporation is preparing an aggregate production plan for washers for the next four quarters. The company's expected quarterly demand is given in the following chart. The company will have 1

000 washers in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter. Following is other critical data: Production cost per unit = $250 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Each worker can produce 100 units per quarter. Any worker on the staff at the end of the year will not be fired at that time. If Jones prefers a level plan, what will be the regular production rate per quarter?,5,000 units

Alpha Company sold 2

000 widgets yesterday. It had forecasted sales of 1,900 units. Using exponential smoothing with a smoothing constant of 0.6, what is the forecast for today's sales of widgets?,1,960

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months. The company's expected monthly demand is given in the following chart. The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month. Following is other critical data: Production cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month What is the regular monthly actual production for a level plan?

1,250

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months. The company's expected monthly demand is given in the following chart. The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month. Following is other critical data: Production cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month. What is the regular monthly actual production for a level plan?

1,250

Alpha Company sold 2,000 widgets yesterday. It had forecasted sales of 1,900 units. Using exponential smoothing with a smoothing constant of 0.6, what is the forecast for today's sales of widgets? 2,040 2,060 1,940 1,960

1,960 1,900 + 0.6(2,000 - 1,900) = 1,960

An office manager forecasts demand for office stationery by exponential smoothing, with alpha = 0.4. Actual demand two weeks ago (i.e., the week before last) was 12 boxes, but the forecast for that period was only 10. Actual demand last week was 7. What was the forecast for last week? 11.0 11.2 8.2 10.8 8.8

10.8 Forecast = 10 + .4(12 - 10) = 10.8

Jones Company had sales of $100,000 last week. The company had forecasted that sales would be $120,000. Using exponential smoothing with a smoothing constant of 0.2, what is the forecast for this week's sales? $104,000 $112,000 $124,000 $116,000

120,000 + .2(100,000 − 120,000) = 116,000

End Item A is made by assembling 2 parts of B and 4 parts of C. Part C is made from 3 parts of D and 2 parts of E. Gross requirements for End item A are 100 units. What is the net requirement for Part C?

125

End item A is made by assembling 2 parts of B and 4 parts of C. Part C is made from 3 parts of D and 2 parts of E. Gross requirements for end item A are 100 units. What is the net requirement for part C?

125 The gross requirements for A is 100, but there are 50 units of A in inventory, so only 50 units of A need to be produced. There are 4 Cs for each A, so the gross requirement for C is 4 × 50 = 200, but there are 75 units of C in inventory, so only 125 Cs must be produced.

125 units

Task X is expected to take 3 days to complete. The maximum (latest) earliest finish date for any predecessors to task X is 10. Therefore, the earliest finish for task X is: 7 Cannot determine from the information given 10 13

13 The earliest start of a task is determined by the latest early finish of any of its predecessors. EF = ES + Task duration.

For Platinum Nugget Hotel in Las Vegas, Saturday is the best day of the week for business. The gambling take for the hotel on Saturdays over the past four weeks was: 1. $250,000 2. $190,000 3. $300,000 4. $280,000 Using a moving average with n = 3 terms, what would be the forecast for week 5? $256,667 $232,124 $246,667 $255,000

$256,667 (190,000 + 300,000 + 280,000)/3 = 256,667

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months. The company's expected monthly demand is given in the following chart. The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month. Following is other critical data: Production cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month. What is the total cost of a chase plan which uses only hiring/firing?

$257,000

Jones Company uses widgets as component parts. In a particular week, it has gross requirements for 250 units of widgets, beginning inventory of 50 widgets and it scheduled receipts of 350 widgets. Available inventory for the next period is

150 (350 + 50) - 250

Jones Company uses widgets as a component part. In a particular week it has gross requirements for 250 units of widgets, beginning inventory of 50 widgets, scheduled receipts of 300 widgets, and planned order receipts of 50 widgets. Available inventory for the next period is:

150 50 + 300 + 50 - 250 = 150.

$260,700

For Platinum Nugget Hotel in Las Vegas, Saturday is the best day of the week for business. The gambling take for the hotel on Saturdays over the past four weeks was: 1. $250,000 2. $190,000 3. $300,000 4. $280,000 Platinum Nugget uses a three-period weighted moving average to forecast demand, with at = 0.6, at-1 = 0.3, and at-2 = 0.1. What is the forecast for week 5? $295,000 $237,000 $232,000 → $277,000

$277,000 (.6(280,000) + .3(300,000) + .1(190,000))/3 = 277,000

Zanda Corporation is preparing an aggregate production plan for its product for the next four months. The company's expected monthly demand is given in the following chart. The company will have 100 units in inventory at the beginning of the month and wishes to maintain at least 100 units at the end of each month. Following is other critical data: Production cost per unit = $125 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $50 Firing cost per worker = $100 Beginning number of workers = 25 Each worker can produce 25 units per month. What is the total cost of a CHASE plan (using hiring/firing)?

$380,300

Zanda Corporation is preparing an aggregate production plan for its product for the next four months. The company's expected monthly demand is given in the following chart. The company will have 100 units in inventory at the beginning of the month and wishes to maintain at least 100 units at the end of each month. Following is other critical data: Production cost per unit = $125 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $50 Firing cost per worker = $100 Beginning number of workers = 25 Each worker can produce 25 units per month. The total inventory carrying cost of a chase plan is:

$4,000

Dave's Stove-Top Popcorn currently has three full-time employees who are each paid $1,500 per month. An employee can only work a maximum of 100 hours per month because production normally takes place at night. They do receive $1,500 even if they do not work 100 hours, however. Part-time employees can be hired at a cost of $25 per hour. Dave's Stove-Top Popcorn has forecasted that demand for the next six months will be as follows: What is the total cost if Dave hires one more full-time employee to meet additional demand? $36,000 $52,500 $40,750 $30,750

$40,750

Dave's Stove-Top Popcorn currently has three full-time employees who are each paid $1,500 per month. An employee can only work a maximum of 100 hours per month because production normally takes place at night. They do receive $1,500 even if they do not work 100 hours, however. Part-time employees can be hired at a cost of $25 per hour. Dave's Stove-Top Popcorn has forecasted that demand for the next six months will be as follows: What is the total cost if Dave relies on part-time employees to meet additional demand? $77,500 $43,500 $53,500 $70,500

$43,500

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months. The company's expected monthly demand is given in the following chart. The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month. Following is other critical data: Production cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month. What is the total cost of hiring and firing the workers in a chase plan which uses only hiring and firing?

$5,000

Jones Corporation is preparing an aggregate production plan for washers for the next four quarters. The company's expected quarterly demand is given in the following chart. The company will have 1,000 washers in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter. Following is other critical data: Production cost per unit = $250 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Each worker can produce 100 units per quarter. Given this data, what is the total cost of a LEVEL plan?

$5,110,000

Jones Corporation is preparing an aggregate production plan for washers for the next four quarters. The company's expected quarterly demand is given in the following chart. The company will have 1,000 washers in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter. Following is other critical data: Production cost per unit = $250 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Each worker can produce 100 units per quarter. Any worker on the staff at the end of the year will not be fired at that time. Given this data, what is the inventory carrying cost of a LEVEL plan? Regular production will vary each month. 5,000 units 4,000 units 6,000 units

$70,000 Inventory carrying cost = 7,000 × 10/unit = $70,000

$8,000

Over a six-month period, the demand for a product has been: June = 200, July = 210, August = 240, September = 240, October = 260, and November = 280. The three-month moving average forecast for December is 260. 300. 280. 240.

(240 + 260 + 280)/3 = 260

. A Master Production Schedule shows the following information: What is the available to promise for period 2? A. 0 B. -20 C. 20 D. None of the options are correct

End Item A is made by assembling 2 of Part B and 3 of Part C. Part C is made from 2 of component D and 2 of component E. Component D is considered to be a:

. Level 2 input

. MRP is a process that would be most applicable in which situation: A. Planning requirements for repair parts for production equipment in a manufacturing plant. B. Planning requirements for safety stocks of finished goods in a distribution center. C. Planning requirements for bicycle seats in a bicycle production plant. D. Planning requirements for repair parts for production equipment in a manufacturing plant AND Planning requirements for bicycle seats in a bicycle production plant E. None of the options are correct

MRP is a process that would be most applicable in which situation:

. Planning requirements for bicycle seats in a bicycle production plan

Every project is unique

...

A company uses actual demand data to develop its seasonal indices. It has the data shown below for each quarter of the previous two years.

0.732

A company uses actual demand data to develop its seasonal indices. It has the data shown below for each quarter of the previous two years. 0.732 1.25 0.750 0.714

0.732 Year 1 average demand = (50 + 60 + 90 + 80)/4 = 70 Year 2 average demand = (60 + 70 + 100 + 90)/4 = 80 Quarter 1 SI for year 1 = 50/70 = 0.714. Q1 SI for year 2 = 60/80 = 0.75. Q1 average SI = 0.732.

[The following information applies to the questions displayed below.] University Book Store buys women's polo T-shirts from a supplier according to the price schedule shown below. The store sells 500

000 T-shirts per year. The annual carrying cost of T-shirts is 25% and the ordering cost is $40. Answer the next two questions based on this information. What order quantity would give the Book Store the lowest total acquisition cost? A. 2139 B. 2237 C. 2500 D. 2614,C. 2500 EOQ @ $35 price = sqrt[(2 × 500,000 × $40)/($35 × .25)] = 2,138 units EOQ @ $32 price = sqrt[(2 × 500,000 × $40)/($32 × .25)] = 2,236 units

Jones Company had sales of $100

000 last week. The company had forecasted that sales would be $120,000. Using exponential smoothing with a smoothing constant of 0.2, what is the forecast for this week's sales?,$116,000

Jones Company has calculated that the EOQ for a particular item is 1

000 units. However, Jones does not have enough capital to order that many units each time, so it only orders 250 units at a time. This will result in:,Cannot be determined

Jones Corporation is preparing an aggregate production plan for washers for the next four quarters. The company's expected quarterly demand is given in the following chart. The company will have 1,000 washers in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter. Following is other critical data: Production cost per unit = $250 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Each worker can produce 100 units per quarter. Any worker on the staff at the end of the year will not be fired at that time. If Jones prefers a level plan, what will be the regular production rate per quarter?

5,000 units 20,000/4 = 5,000

Zanda Corp. has experienced demand in the last four years shown in the table below. What is the trend value (b) in the data (choose the closest answer)? 2.5 units/period −1.25 units/period 2.87 units/period 5.6 units/period

5.6 units/period

Zanda Corp. has experienced demand in the last four years shown in the table below. What is the trend value (b) in the data (choose the closest answer)?

5.6 units/period

Using the data below, what is the MAPE 5.0 percent correct 5.99 percent 7.25 percent 5.41 percent

5.99 percent

Alpha Company places 10 orders per year with its supplier. Each order is for an amount exactly equal to the EOQ. Alpha's order cost has been determined to be $50 per order. Alpha carries no safety stock at all. What is Alpha's annual inventory carrying cost? A. Cannot be determined without further information B. $50 C. $250 D. $500

500

Dave's Stove-Top Popcorn currently has three full-time employees who are each paid $1

500 per month. An employee can only work a maximum of 100 hours per month because production normally takes place at night. They do receive $1,500 even if they do not work 100 hours, however. Part-time employees can be hired at a cost of $25 per hour. Dave's Stove-Top Popcorn has forecasted that demand for the next six months will be as follows: What is the total cost if Dave hires one more full-time employee to meet additional demand?,$40,750

Dave's Stove-Top Popcorn currently has three full-time employees who are each paid $1

500 per month. An employee can only work a maximum of 100 hours per month because production normally takes place at night. They do receive $1,500 even if they do not work 100 hours, however. Part-time employees can be hired at a cost of $25 per hour. Dave's Stove-Top Popcorn has forecasted that demand for the next six months will be as follows: What is the total cost if Dave relies on part-time employees to meet additional demand?,$43,500

however you must order 2

500 to obtain the $32 price.

Using the data below, the company has forecasted next year's demand to be 400. What is the seasonally adjusted forecast for Quarter 1 (choose the closest answer). 71 73 75 125

73 Average/quarter = 100, seasonal adjustment for Q1 = 100(0.732) = 73.2.

An MRP record for a motor is shown in the following table. What is the planned order release for week 4?

8,000

A Master Production Schedule shows the following information: Using a lot-for-lot rule, what is the scheduled production for period 1?

An MRP record for a motor is shown in the following table. Picture What is the planned order release for week 4?

8000 The net requirement in week 6 is 8,000 units. Working backward by the two-week lead time, an order must be released for 8,000 units in week 4.

A simple sequential project (each task must be completed before the next one can begin) has the time estimates (in days) shown below: What is the expected total time for the path?

9.00 days

Annie will save $60 for every hour she can reduce from her plan. Annie has decided to crash her project and use the money she saves to purchase a larger gift for Gwendolyn. Which activity should she crash first?

joe Jones is a project manager on a major installation. He has been asked to provide weekly status reports on the project schedule. Joe should consider using which of the following: Gantt chart Network diagram Crashing reports WBS report

A Gantt chart A Gantt chart is a tool used in project management to provide schedule status.

A Master Production Schedule shows the following information: Using a lot-for-lot rule, what is the scheduled production for period 1? A. 90 B. 80 C. 100 D. 40

Advanced planning and scheduling systems:

A and C Use logic similar to the logic found in MRP. Integrate materials and capacity planning into one system.

Which of the following is true concerning sales and operations planning?

A benefit of the process is that the firm should achieve high service levels with lower inventory.

Which of the following is true concerning sales and operations planning? All of these are true. Once the plan is finalized, it should not be changed during the planning period. There is a specific set of steps all firms should follow in the sales and operations planning process. A benefit of the process is that the firm should achieve high service levels with lower inventory.

A benefit of the process is that the firm should achieve high service levels with lower inventory. A benefit of the process is that the firm should achieve high service levels with lower inventory.

A bill-of-materials file contains: A. Invoices for materials that must be paid in this period B. Lists of materials required to produce end item products C. Accounts payable for materials D. Invoices for materials that must be paid in this period AND Lists of materials required to produce end item products E. All options are correct.

The tracking signal will suggest to a manager that

A forecast mode's parameters may need adjustment.

The tracking signal will suggest to a manager that Demand for an item is changing. A forecast mode's parameters may need adjustment. There is seasonality in demand. All of these

A forecast mode's parameters may need adjustment. Tracking signal suggests to a manager that model parameters may need adjustment.

A primary advantage of a functional project organizational structure is:

A functional manager controls both the budget and the schedule.

A primary advantage of a functional project organizational structure is: The needs of the project client are prioritized over the needs of the function. All project team members report to one boss. A single project manager has full control over the entire project. A functional manager controls both the budget and the schedule.

A functional manager controls both the budget and the schedule. A functional structure allows the functional head to control both the budget and the way that activities get done.

Outsourcing is often a good choice when:

A product is in the mature phase of the life cycle.

Outsourcing is often a good choice when: There are only a few suppliers. A product is in the mature phase of the life cycle. Technology is new. The product is critical to a firm's competitiveness.

A product is in the mature phase of the life cycle.

33) How many months does the regular time output exceed plant capacity in the optimal solution to Scenario 8.2?

A) 0

24) Use the information from Scenario 8.1 to determine the number of decision variables in this scenario. Scenario 8.1 - Gang Aft Agley Gang Aft Agley, a manufacturing company, faces the aggregate planning problem shown in the table below. Cost of regular production is $5 per unit, the cost of producing the same unit on overtime is $7.50, the cost of subcontracting is $9 per unit, and the cost of carrying a unit in inventory from one month to the next is $2. The labor contract at the plant prohibits both overtime and subcontracting output to exceed 300 units in any five month window. The plant capacity is 600 units per month produced using two shifts, regardless of the number of days in a month. By policy, management wants to avoid stockouts. Note: Excel Table Omitted

A) 10

25) Use the information from Scenario 8.1 to determine the number of constraints in this scenario. Scenario 8.1 - Gang Aft Agley Gang Aft Agley, a manufacturing company, faces the aggregate planning problem shown in the table below. Cost of regular production is $5 per unit, the cost of producing the same unit on overtime is $7.50, the cost of subcontracting is $9 per unit, and the cost of carrying a unit in inventory from one month to the next is $2. The labor contract at the plant prohibits both overtime and subcontracting output to exceed 300 units in any five month window. The plant capacity is 600 units per month produced using two shifts, regardless of the number of days in a month. By policy, management wants to avoid stockouts. Note: Excel Table Omitted

A) 12

21) Demand is forecast for the next five months as 200, 300, 500, 300, 200. The production planner decides to adopt a chase strategy, so over the next five months they should produce

A) 200, 300, 500, 300, 200.

39) Which of the following is an approach a company can use to create a buffer for forecast error using safety inventory?

A) Overtime

44) Which of these software vendors offer advanced planning systems?

A) SAP

28) Which of these statements about Scenario 8.1 is evident without even developing an aggregate plan? Scenario 8.1 - Gang Aft Agley Gang Aft Agley, a manufacturing company, faces the aggregate planning problem shown in the table below. Cost of regular production is $5 per unit, the cost of producing the same unit on overtime is $7.50, the cost of subcontracting is $9 per unit, and the cost of carrying a unit in inventory from one month to the next is $2. The labor contract at the plant prohibits both overtime and subcontracting output to exceed 300 units in any five month window. The plant capacity is 600 units per month produced using two shifts, regardless of the number of days in a month. By policy, management wants to avoid stockouts. Note: Excel Table Omitted

A) Some overtime will be needed.

42) The earliest IT supply chain products were

A) aggregate planning modules.

1) The process by which a company determines levels of capacity, production, subcontracting, inventory, stockouts, and even pricing over a specified time horizon is

A) aggregate planning.

18) The strategy where workforce (capacity) is kept stable but the number of hours worked is varied over time in an effort to synchronize production with demand is the

A) flexibility strategy.

15) Aggregate planning should consider information from

A) only the enterprise as its breadth of scope. B) downstream partners to produce forecasts. C) upstream partners to determine constraints. D) all of the above (ANSWER)

6) The operational parameter concerned with the number of units completed per unit time (such as per week or per month) is

A) production rate.

10) The planning horizon is

A) the time period over which the aggregate plan is to produce a solution.

he network diagram below shows the five tasks required to complete a project and the associated times for those tasks. Which of the following identifies the critical path tasks?

A, B, E, F

The network diagram below shows the five tasks required to complete a project and the associated times for those tasks. Which of the following identifies the critical path tasks? A, B, C, D, E, F A, B, D, F A, B, E, F A, C, E, F

A, B, E, F The critical path is the path with the longest duration. Path A, B, E, F takes 24 weeks, the longest of any of the paths.

15. A relationship with a supplier that is characterized by lack of trust, little communication, and short-term transactions is called a(n): A. Adversarial relationship. B. Arms-length relationship. C. Acceptance of mutual goals. D. Full partnership.

A. Adversarial relationship.

13. Which of the following is (are) advantages of full partnerships with suppliers, as compared to traditional adversarial relationships? I. They help reduce uncertainties for both buyer and supplier. II. The full partnership is easier to establish and maintain than other relationships, so more suppliers can be dealt with. III. The full partnership assures the lowest material price. A. I only B. II only C. III only D. I and II only E. II and III only

A. I only

Which of the following might a company try to do to reduce the total amount of safety stock it holds?

A. Implement and use ABC analysis of inventory items. B. Attempt to reduce variation in supplier lead times. C. Implement demand management approaches. D. Implement and use ABC analysis of inventory items AND Attempt to reduce variation in supplier lead times E. All of the options are correct

12. A global food products company makes soups that are specifically tailored to the tastes of consumers in individual countries. What sourcing strategy is the company likely to use for its fresh ingredients such as vegetables? A. Local, close to its production plant when possible. B. National, using suppliers within each country. C. Global, using the same suppliers across the world. D. Low-cost country sourcing.

A. Local, close to its production plant when possible.

8. Jones Company has identified an item for which the supply risk is high and the value of the purchase to the firm is low. A recommended sourcing strategy for Jones is to: A. Multiple source. B. Increase efficiencies. C. Build partnerships. D. Consolidate purchases.

A. Multiple source.

19. All of the following are true about supplier scorecards EXCEPT: A. They reduce the need for incoming quality inspection. B. They are used to provide performance feedback to suppliers. C. They are often used to categorize suppliers based on an overall score. D. They are used to measure supplier performance based on key performance indicators.

A. They reduce the need for incoming quality inspection.

Advanced Planning and Scheduling Systems: A. Use logic similar to the logic found in MRP. B. Consolidate all business planning systems and data throughout an organization. C. Integrate materials and capacity planning into one system. D. Use logic similar to the logic found in MRP AND Integrate materials and capacity planning into one system. E. All of these options are correct.

A relationship with a supplier that is characterized by lack of trust, little communication, and short-term transactions is called a(n):

Adversarial relationship

A successful project is: Completed within budget B) Completed on time C) One that meets customer expectations D) One that meets team member and stakeholder expectations E) All of the above

All of the above

Maintaining inventory involves a which expense related to the cost of capital invested in inventory: A) Insurance B) Storage and obsolescence C) Taxes D) All of the above

All of the above

Managers can manage demand by: A) Influencing the timing or quantity of demand through pricing changes B) Influence the timing of order fulfillment C) Encourage customers to shift their orders from one product the another D) All of the above E) None of the above

All of the above

Soft benefits of S&OP include: Enhanced teamwork B) Better and faster decisions C) Greater accountability for results D) Both B & C E) Both A & C F) All of the above

All of the above

A "season" in the seasonality index can only occur: A) Daily B) Weekly C) Monthly D) In larger periods E) All of the above.

All of the above.

The following table shows capacity requirements data for making table tops. Picture Which of the following is TRUE?

All of the excess demand in days 4 and 5 can be shifted to day 3.

The following table shows capacity requirements data for making table tops. Which of the following is TRUE?

All of the excess demand in days 4 and 5 can be shifted to day 3.

Zanda Corp. and Jones Corp. are identical in every way (products produced, costs, demand, etc.) except for one. Zanda uses a level production plan while Jones prefers a chase production plan. Which of the following is most likely to be true/. l Jones will have higher hiring and firing costs. All of the options are true. Jones will have higher investment in plant and equipment. Jones will have lower inventory carrying costs.

All of the options are true Chase plans typically require more equipment investment, resulting in lower inventory carrying costs, and higher hiring/firing costs.

Which of the following factors should be considered when one designs a forecasting process? Time horizon for planning. Level of detail for planning. Availability of data. All of these

All of these Forecasting systems should be tailored to the users' needs.

What is a key factor that must be considered when an organization evaluates the potential of a project?

All of these.

Which of the following factors should be considered when one designs a forecasting process?

All of these.

Project manager Bill Jones has determined that task R has a high variation between "best case" and "worst case" estimated durations. Task R is probably a good candidate for: Contingency planning. All of these. Close monitoring and frequent status reporting. Buffering.

All of these. All of the methods shown are ways to manage uncertainty and risk.

what is a key factor that must be considered when an organization evaluates the potential of a project? The availability of resources to execute the project. The project's fit with overall organizational strategy. The business justification for investing in the project. All of these.

All of these. strategic fit, financial returns (or other business justification), and feasibility (including resource availability) are all key in the evaluation of projects.

A forecasting system that changes the value of the alpha parameter in response to the level of forecast error is known as: An adaptive model. A trend enhanced exponential smoothing model. A tracking signal. A time series model. A causal regression.

An adaptive model Adaptive forecasting automatically adjusts smoothing coefficients in an exponential smoothing model in response to a tracking signal.

A forecasting system that changes the value of the alpha parameter in response to the level of forecast error is known as:

An adaptive model.

If you are evaluating whether a supplier's workforce is receiving fair wages, you are most likely doing a(n):

Assessment of sustainability

If you are evaluating whether a supplier's workforce is receiving fair wages, you are most likely doing a(n): Spend analysis. Assessment of sustainability. ISO 9000 assessment. Total cost of ownership assessment.

Assessment of sustainability.

If the cumulative lead time is 8 weeks, to be feasible, the MPS planning horizon must be

At least 8 weeks

You are sitting next to a person in business class on a flight from Los Angeles to Sydney

Australia. You mention to that person that you got your ticket two months ago for only $12,500. The person responds that she bought her ticket two days ago for $7,800. This sometimes happens because airlines often use an approach called:,Yield management.

-------describes the relationship of current demand with past demand.

Autocorrelation

Which of the following are technological factors affecting the success of a project?

B & C Equipment, facilities, and communications systems. Organizational structure and reward systems.

29) What is the optimal total cost of the aggregate plan developed to address Scenario 8.1? Scenario 8.1 - Gang Aft Agley Gang Aft Agley, a manufacturing company, faces the aggregate planning problem shown in the table below. Cost of regular production is $5 per unit, the cost of producing the same unit on overtime is $7.50, the cost of subcontracting is $9 per unit, and the cost of carrying a unit in inventory from one month to the next is $2. The labor contract at the plant prohibits both overtime and subcontracting output to exceed 300 units in any five month window. The plant capacity is 600 units per month produced using two shifts, regardless of the number of days in a month. By policy, management wants to avoid stockouts. Note: Excel Table Omitted

B) $18,950

13) ________ is used to determine customer service levels.

B) Backlog/stockout quantity

40) What is the name of the plan that breaks apart the aggregate plan into distinct product families?

B) Rough cut capacity plan

17) The strategy where the production rate is synchronized with the demand rate by varying machine capacity or hiring and laying off employees as the demand rate varies is the

B) chase strategy.

46) The quality of the forecast can be improved by using information from

B) downstream partners.

35) When formulating aggregate plans,

B) forecast errors must be taken into account.

50) As capacity utilization increases,

B) it becomes more important to perform aggregate planning.

38) Capacity used to satisfy demand that is higher than forecasted is

B) safety capacity.

36) Forecasting errors are dealt with using

B) safety capacity. C) safety inventory. D) B and C only (ANSWER)

34) Without actually solving the aggregate planning problem, it is safe to conclude that in the optimal solution to Scenario 8.2,

B) the number of units made using subcontracting will exceed the number of units made using overtime.

11) The length of the planning horizon is usually between

B) three and eighteen months.

7) The operational parameter concerned with the number of workers/units of capacity needed for production is

B) workforce.

4. Outsourcing is often a good choice when: A. There are only a few suppliers. B. A product is in the mature phase of the life cycle. C. Technology is new. D. The product is critical to a firm's competitiveness.

B. A product is in the mature phase of the life cycle.

1. All of the following are supply management goals EXCEPT: A. Ensure timely availability of resources. B. Purchase at the lowest price. C. Enhance quality. D. Assess technology and innovation.

B. Purchase at the lowest price.

7. Aspen Corporation has discovered that it uses 10 different suppliers for a particular type of item, has bought 20 different models of that item, and total expenditures last year for the item were $100,000. Aspen most likely is conducting: A. Supplier audits. B. Spend analysis. C. Supplier certification. D. Make or buy analysis.

B. Spend analysis.

20. Williams Inc. has acquired software to help manage interactions with its supply base. This suggests that Williams Inc. is involved in: A. Vendor-managed inventory. B. Supplier relationship management. C. Online reverse auctions. D. Supplier auditing.

B. Supplier relationship management.

16. When you need to identify a supplier for a new purchase, the FIRST place that you should look is: A. A local trade show. B. The list of your company's current suppliers. C. The list of suppliers that your company has used in the past. D. The Web site of industry groups.

B. The list of your company's current suppliers.

In the case of lost sales, there is the: A) Direct loss of profit B) Ill-will cost of not being able to meet demand C) Both A and B

Both A and B

Moderate- to high-risk purchases with low to moderate levels of spend are categorized as:

Bottleneck

Moderate- to high-risk purchases with low to moderate levels of spend are categorized as: Noncritical. Leverage. Bottleneck. Strategic.

Bottleneck

30) What is the optimal total cost of the aggregate plan developed to address Scenario 8.2? Scenario 8.2 - Willow A company faces the aggregate planning problem shown in the table below. Cost of regular production is $8 per unit, the cost of producing the same unit on overtime is $15, the cost of subcontracting is $12 per unit, and the cost of carrying a unit in inventory from one month to the next is $6. The labor contract at the plant prohibits both overtime and subcontracting output to exceed 400 units in any five month window. The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week. By policy, management wants to avoid stockouts. Note: Excel Table Omitted

C) $31,400

26) Use the information from Scenario 8.1 to determine the objective function for this scenario. Scenario 8.1 - Gang Aft Agley Gang Aft Agley, a manufacturing company, faces the aggregate planning problem shown in the table below. Cost of regular production is $5 per unit, the cost of producing the same unit on overtime is $7.50, the cost of subcontracting is $9 per unit, and the cost of carrying a unit in inventory from one month to the next is $2. The labor contract at the plant prohibits both overtime and subcontracting output to exceed 300 units in any five month window. The plant capacity is 600 units per month produced using two shifts, regardless of the number of days in a month. By policy, management wants to avoid stockouts. Note: Excel Table Omitted

C) Min Cost = $5(Sigma)Regular + $7.5(Sigma)Overtime + $9(Sigma)Subcontracting + $2(Sigma)Ending Inventory

41) What information does a master production schedule provide that an aggregate plan does not?

C) Specific product family production information

3) Aggregate planning solves problems involving

C) aggregate decisions rather than stock keeping unit (SKU) level decisions.

16) The fundamental trade-offs available to an aggregate planner are between

C) capacity, inventory, and backlog costs.

48) The aggregate plan needs to

C) have some flexibility built into it because forecasts are always wrong.

19) The strategy where a stable machine capacity and workforce are maintained with a constant output rate, with inventory levels fluctuating over time, is the

C) level strategy.

37) Inventory held to satisfy demand that is higher than forecasted is

C) safety inventory.

2) The goal of aggregate planning is to

C) satisfy demand in a way that maximizes profit.

9) Aggregate planning is concerned with determining

C) the production level, inventory level, and capacity for each period.

5) Much of aggregate planning has traditionally been focused

C) within an enterprise.

14. Zanda Corp. is considering trying to develop a full partnership with a particular supplier. This suggests that the item Zanda buys from the supplier is: A. A noncritical part. B. A "bottleneck" item. C. A strategically important part. D. An item appropriate for a "leverage" strategy.

C. A strategically important part.

2. Zanda Corp. had outsourced its production to a company located in Asia. Recently it decided to continue to outsource but bring the production back to a company located in the United States. This decision was likely made after Zanda: A. Conducted a spend analysis. B. Conducted a make or buy analysis. C. Examined total cost of ownership. D. Developed supplier certification processes.

C. Examined total cost of ownership

Which of the following statements is true regarding a periodic review inventory system?

C. Inventory replenishment orders are placed in equal increments of time.

5. Which of the following is NOT a benefit of outsourcing? A. Greater flexibility to change product specifications B. Better access to market information C. Lower supply management costs D. Less capital needed for investment

C. Lower supply management costs

17. Advanced Manufacturing Company is evaluating two suppliers for a component sourcing. After much internal discussion, AMC's management has determined that the critical factors in choosing suppliers are: quality, delivery, price, and service. Further, management has rated the importance of these factors as 0.4, 0.3, 0.2, and 0.1, respectively. On a scale of 1 to 5, Supplier A is rated at 5, 3, 3, and 3, respectively. Supplier B's ratings are 4, 4, 3, and 4. Which supplier has the better weighted score? A. Supplier A B. Supplier B C. Neither, they both have the same weighted score.

C. Neither, they both have the same weighted score.

10. Squeaky Klean, a small consumer products company, purchases custom-designed plastic bottles for its cleaning products that are made at a single plant in Cleveland, Ohio. To make these bottles, specialized tooling must be purchased at a high cost and installed at a supplier's plant. Its sourcing strategy for bottles should be to: A. Use three or more suppliers. B. Dual source. C. Single source. D. Insource bottle production.

C. Single source.

The forward pass in a critical path algorithm involves:

Calculating the earliest possible start and finish times for each task.

The forward pass in a critical path algorithm involves: Calculating the late finish and late start for each task. Calculating the earliest possible start and finish times for each task. Calculating the late finish and the earliest possible start times for each task Calculating the earliest possible start and late start for each task.

Calculating the earliest possible start and finish times for each task.

An online auction used for sourcing: Typically drives prices up as suppliers compete against each other. Is used in situations similar to negotiation. Can hurt supplier relationships. Can only consider price.

Can hurt supplier relationships

An online auction used for sourcing:

Can hurt supplier relationships.

Which of the following is NOT one of the costs considered in aggregate production planning Inventory cost. Subcontracting cost. Capital equipment cost. Firing (layoff) cost. All of these are considered in aggregate production planning

Capital equipment cost Capital equipment is considered to be a constraint in aggregate production planning, but its cost is not included.

Which of the following is NOT one of the costs considered in aggregate production planning?

Capital equipment cost.

A specific analysis of the total greenhouse gases caused directly or indirectly by a product is called:

Carbon footprinting.

Significant changes in an MPS quantity several weeks into the planning horizon can

Cause inconsistencies in the MRP

Significant changes in an MPS quantity several weeks into the planning horizon can:

Cause inconsistencies in the MRP.

Significant changes in an MPS quantity several weeks into the planning horizon can: Cause inconsistencies in the MRP. Make the MRP more accurate. Increase safety stock. Reduce stockouts.

Cause inconsistencies in the MRP. Changes in the MPS during the planning horizon can cause nervousness, which is inconsistencies in the MRP plan.

In a ____ production plan, the objective is to match production in each period to the ______ in that period, thus avoiding the need to hold inventory.

Chase, demand

Project manager Bill Jones has determined that task R has a high variation between "best case" and "worst case" estimated durations. Task R is probably a good candidate for:

Close monitoring and frequent status reporting.

Collaborative planning, forecasting, and replenishment.

In recent years some companies have begun to work closely with their customers and/or suppliers by sharing information to develop demand plans and execute those plans. The procedure they are following is known as: Collaborative planning, forecasting, and replenishment. Conjoint analysis and forecasting. Joint planning of demand forecasts. Coordinated fore planning of requirements.

Collaborative planning, forecasting, and replenishment. Collaborative planning, forecasting, and replenishment is a process for sharing information and plans with supply chain partners.

Preparing an RFQ or RFP is an important step in: Negotiation. Online reverse auctions. Supplier scorecards. Competitive bidding.

Competitive bidding

Which of the following statements about projects and project management is NOT true?

Completing a project within budget is the most critical criterion for project success.

Which of the following statements about projects and project management is NOT true? A project is typically a one-time event. Completing a project within budget is the most critical criterion for project success. Projects are typically staffed with people from several different functional areas who may have more loyalty to their function than to the project. B and C .

Completing a project within budget is the most critical criterion for project success. There are three critical criteria for success: within budget, on-time, and meeting the deliverables of the project.

Which of the following would NOT be a step in conducting a make/buy analysis? Assessing quantitative costs of outsourcing Evaluating new suppliers who could make the SKU Assessing the relationship of the product to the firm's core competencies Conducting a detailed internal audit of purchasing practices

Conducting a detailed internal audit

Which of the following would NOT be a step in conducting a make/buy analysis?

Conduction a detailed internal audit of purchasing practices.

Constant changing of the master production schedule and the resulting changes in the requirements for components is referred to as A. Master schedule dynamics B. System nervousness C. Bad planning D. MRP failure

Suppose management decides it wants to offer a 95% service level. That is

Cooper Company is willing to experience a stock-out probability of 5% during the order cycle. What is the annual cost of this safety stock policy?,A. $82.50

Which of the following factors was most responsible for the breakdown of the Daimler-Benz/Chrysler merger?

Cultural incompatibility

Which of the following sustainability issues has a significant impact on supply chain relationships?

Culture

The longest lead time path in the BOM (Bill of Materials) is the

Cumulative lead time

The longest lead time path in the BOM is the:

Cumulative lead time.

Annie has now crashed activity A by four hours at a cost of $130 and activity D by one hours at a cost of $50. What other activity could she crash to further profitably reduce the project?

Annie has now crashed activity A by four hours at a cost of $130. What other activity could she crash to further profitably reduce the project?

The network diagram below shows the five tasks required to complete a project and the associated times for those tasks. Which task has the greatest amount of slack?

27) Which of these is a constraint that is appropriate for Scenario 8.1? Scenario 8.1 - Gang Aft Agley Gang Aft Agley, a manufacturing company, faces the aggregate planning problem shown in the table below. Cost of regular production is $5 per unit, the cost of producing the same unit on overtime is $7.50, the cost of subcontracting is $9 per unit, and the cost of carrying a unit in inventory from one month to the next is $2. The labor contract at the plant prohibits both overtime and subcontracting output to exceed 300 units in any five month window. The plant capacity is 600 units per month produced using two shifts, regardless of the number of days in a month. By policy, management wants to avoid stockouts. Note: Excel Table Omitted

D) (Sigma)Subcontracting ≤ 300

31) How many units are produced using overtime in the optimal aggregate plan developed to address Scenario 8.2? Scenario 8.2 - Willow A company faces the aggregate planning problem shown in the table below. Cost of regular production is $8 per unit, the cost of producing the same unit on overtime is $15, the cost of subcontracting is $12 per unit, and the cost of carrying a unit in inventory from one month to the next is $6. The labor contract at the plant prohibits both overtime and subcontracting output to exceed 400 units in any five month window. The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week. By policy, management wants to avoid stockouts. Note: Excel Table Omitted

D) 280

32) How many units are produced using overtime in the optimal aggregate plan developed to address Scenario 8.2?

D) 280

20) Demand is forecast for the next five months as 200, 300, 500, 300, 200. The production planner decides to adopt a level strategy, so over the next five months they should produce

D) 300, 300, 300, 300, 300.

49) How frequently should the aggregate plan be rerun?

D) As inputs to the aggregate plan change

12) An aggregate planner requires information on constraints. Which of the following is one of the typical constraints for an aggregate planner?

D) Limits on overtime

45) The quality of the aggregate plan can be improved by using information from

D) all parts of the supply chain.

47) The aggregate plan should be communicated to

D) all supply chain partners who will be affected by it.

43) Advanced planning systems for aggregate planning rely heavily on ________ to deliver their full potential.

D) data accuracy

8) The operational parameter concerned with the planned inventory carried over the various periods in the planning horizon is

D) inventory on hand.

23) A highly effective tool for a company to use when it tries to maximize profits while being subjected to a series of constraints is

D) linear programming.

14) A poor aggregate plan can result in

D) lost sales and lost profits.

22) Most strategies that an aggregate planner actually uses are in combination and are referred to as the

D) mixed strategy.

4) Aggregate planning, to be effective, requires inputs from

D) throughout the supply chain.

What might a company do to reduce the amount of cycle stock it holds?

D. Attempt to reduce order costs.

3. Which of the following would NOT be a step in conducting a make/buy analysis? A. Assessing quantitative costs of outsourcing B. Evaluating new suppliers who could make the SKU C. Assessing the relationship of the product to the firm's core competencies D. Conducting a detailed internal audit of purchasing practices

D. Conducting a detailed internal audit of purchasing practices

9. Benefits of single sourcing include all of the following EXCEPT: A. Quantity discounts. B. More consistent quality. C. Better supplier relationships. D. Less supply risk.

D. Less supply risk.

6. The process of understanding how a firm is spending its money and with which suppliers is called: A. Strategic sourcing. B. Make or buy analysis. C. Market analysis. D. Spend analysis.

D. Spend analysis.

18. Which of the following is true about the use of weighted scoring models for supplier selection? A. Once developed, the model weights should never change. B. The supply management department should determine the weights. C. The highest-scoring supplier should always be selected to receive the business. D. There is a good deal of subjectivity in developing and using the model.

D. There is a good deal of subjectivity in developing and using the model.

11. A primary reason for using global suppliers is to: A. Improve sustainability. B. Reduce transportation costs. C. Take advantage of free trade agreements such as NAFTA. D. Work with the same suppliers in many different regions of the world.

D. Work with the same suppliers in many different regions of the world.

DPR RP (distribution requirements planning) is the system used to help in positioning and replenishing finished goods inventory in a system.

The positioning and replenishment of finished goods inventories at the retail level can be determined using

DRP (Distribution Requirements Planning)

DRP (Distribution requirements Planning

The positioning and replenishment of finished goods inventories at the retail level can be determined using:

DRP.

The positioning and replenishment of finished goods inventories at the retail level can be determined using: MRP. RFID. CRP. DRP.

DRR DRP (distribution requirements planning) is the system used to help in positioning and replenishing finished goods inventory in a system.

Nearly all projects seem to go through the same phases and in the following sequence:

Definition, planning, execution, and completion

Nearly all projects seem to go through the same phases and in the following sequence: Definition, planning, delivering, and closing Selection, planning, delivering and completion Definition, planning, execution, and completion Planning, definition, execution, completion

Definition, planning, execution, and completion There are four phases in a project's life: definition, planning, execution, and completion.

The ________ develops forecasts by asking a panel of experts to individually respond to a series of questions.

Delphi method

The primary difference between demand management and demand forecasting is:

Demand management is proactive, while forecasting attempts to predict.

The primary difference between demand management and demand forecasting is Forecasting is only possible when quantitative data are available. A firm cannot execute both approaches simultaneously. Demand management is proactive, while forecasting attempts to predict. One approach deals with uncertainty, while the other deals with known demand.

Demand management is proactive, while forecasting attempts to predict. Demand management proactively attempts to influence demand, while forecasting simply tries to predict demand.

What is the relationship between demand management and demand forecasting?

Demand management plans are usually an input to demand forecasting.

What is the relationship between demand management and demand forecasting? The two planning activities are managed independently. Demand management plans are usually an input to demand forecasting. Demand management is done by operations managers, while demand forecasting is done by marketing managers. Both B and C are correct.

Demand management plans are usually an input to demand forecasting. Demand management plans such as pricing and promotion are inputs needed to forecast demand.

A factor important to project success is: A vision of project objectives B) A talented project leader C) Top management support D) Sufficient resources E) All of the above

E) All of the above

Task slack is computed as the: A) Latest start date - earliest start date B) Latest start date - earliest finish date C) Latest finish date - earliest start date D) Latest finish date - earliest finish date E) Both A and D are correct

E) Both A and D are correct

Software that consolidates all of the business planning systems and data throughout an organization is:

ERP An ERP system consolidates all of the business planning systems and data throughout an organization.

Software that consolidates all of the business planning systems and data throughout an organization is

ERP (Enterprise Resource Planning)

Software that consolidates all of the business planning systems and data throughout an organization is:

ERP.

Negotiation is typically used when: Price is the most important factor. There are many equally qualified suppliers who are willing to compete. Early supplier involvement is needed in new product development.

Early supplier involvement is needed

Benefits of ERP systems include all of the following EXCEPT

Easy implementation

Benefits of ERP systems include all of the following EXCEPT:

Easy implementation.

Benefits of ERP systems include all of the following EXCEPT: More informed business decisions. Fewer data entry errors. Easy implementation. Improved customer service.

Easy implementation. ERP systems are complex and can be difficult to implement.

End Item A is made by assembling 2 of Part B and 3 of Part C. Part C is made from 2 of component D and 2 of component E. Component D is considered to be a: A. Level 0 B. Level 1 input C. Level 2 input D. Level 3 E. Level 0 AND Level 2 input

End Item A is made by assembling 2 parts of B and 4 parts of C. Part C is made from 3 parts of D and 2 parts of E. Gross requirements for End item A are 100 units. What is the gross requirement for part E? A. 175 B. 275 C. 375 D. 250

Zanda Corp. has outsourced its production to a company located in Asia. Recently it decided to continue to outsource but bring the production back to a company located in the United States. This decision was likely made after Zanda:

Examined total cost of ownership

Typically the resources required during a project's life are greatest in which stage of its life?

Execution

Typically the resources required during a project's life are greatest in which stage of its life? Execution Definition Completion Planning

Execution The resource load is typically highest in the execution stage of a project's life.

Suppose your firm is about to launch a radically new product. The type of demand forecasting system you would most likely use is:

Executive judgment.

Suppose your firm is about to launch a radically new product. The type of demand forecasting system you would most likely use is: Exponential smoothing. Time-series. Executive judgment. Moving average. Regression.

Executive judgment. Radically new products do not have any data to support quantitative forecasting. Only executive judgment is a qualitative technique.

The total annual acquisition cost for Book Store at that quantity is closest to:

16,018,000

A Master Production Schedule shows the following information: What is the available to promise for period 2?

A company has the data in the table below concerning its forecast performance over the past four time periods. 10 20 2 100

A company has the data in the table below concerning its forecast performance over the past four time periods. Complete the table and compute the MAD.

A master production schedule shows the following information: Picture What is the available to promise for period 2?

20 The available to promise in period 2 is the forecast minus the actual customer orders, which is 200 - 180 = 20.

What is the probability that the project shown in Exhibit 15S-5 will be completed within 8.5 days? (Choose the closest answer.)

20 percent

What is the available to promise for period 2?

20.

A company has the following information regarding its forecast performance in the past three periods. What is the mean absolute deviation (MAD)?

200

A company has the following information regarding its forecast performance in the past three periods. What is the mean absolute deviation (MAD)? 225 200 −66.67 1200

200 Summing the absolute values of the errors and determining the average results in (300 + 200 + 100)/3 = 200.

Consider the supply chain planning implementation project depicted in Figure 15S-1. Suppose that the client has offered a $9

200 bonus to us if we can complete the project five working days early. Crash Schedule for Planning System Installation Project Task Current Planned Duration Minimum Duration Crash Cost per Day *Select System Modules 9 6 $1,500 Prepare Data 5 4 $ 300 *Set System Protocols 3 1 $ 900 *Populate System Data 5 3 $ 1,100 Prepare Documentation 14 10 $ 700 Design Training Program 2 2 — Hold Training Sessions 1 1 — *Test System 6 3 $ 900 *Debug System 4 2 $ 1,300 *Pilot Test 3 2 $ 1,000 *Hold "Go Live" Meeting 1 1 — *Task is on the critical path Based upon the crash cost information provided in the above table, would you accept the client's proposal? By how many days could you profitably shorten the project?,Yes 8 days

Assume that the forecast for the last period is FITt = 200 units, and recent experience suggests a likely sales increase of 10 units each period. Actual sales for the last period reached 230 units. Assuming a smoothing coefficient of α = 0.20 and a trend smoothing coefficient of β = 0.10, what is the BASE forecast for the next period? 206 236 210 226

206 Ft+1 = FITt + α (dt - FITt) = 200 + 0.20 (230 - 200) = 206

The figure below shows the tasks required to complete a project and the expected duration for each task. How long should we expect it to take to complete this project?

21 weeks

The figure below shows the tasks required to complete a project and the expected duration for each task. How long should we expect it to take to complete this project? 20 weeks None of these is correct 38 weeks correct 21 weeks

21 weeks he critical path defines the project length. It is the path with the longest duration. Path A, B, D, F takes 21 weeks, the longest of any of the paths.

assume that the forecast for the last period is FITt = 200 units, and recent experience suggests a likely sales increase of 10 units each period. Actual sales for the last period reached 230 units. Assuming a smoothing coefficient of α = 0.20 and a trend smoothing coefficient of β = 0.10, what is the ADJUSTED forecast for the next period? 216.0 210.6 210.0 216.6

216.6 Tt+1 = Tt + β (Ft+1 - FITt) = 10 + 0.10 (206 - 200) = 10 + 0.6 = 10.6. FITt+1 = Ft+1 + Tt+1 = 206 + 10.6 = 216.6.

Assume that the forecast for the last period is FITt = 200 units, and recent experience suggests a likely sales increase of 10 units each period. Actual sales for the last period reached 230 units. Assuming a smoothing coefficient of α = 0.20 and a trend smoothing coefficient of β = 0.10, if demand in period t+1 turned out to be 220, what is the adjusted forecast for period t+2 (choose the closes answer)? 217.3 221.3 227.3 215.9

227.3

What is the duration of the fully crashed project?

23 hours

The network diagram below shows the five tasks required to complete a project and the associated times for those tasks. What is the earliest completion of the project diagrammed? 23 weeks 37 weeks 28 weeks 24 weeks

24 weeks

The network diagram below shows the five tasks required to complete a project and the associated times for those tasks. What is the earliest completion of the project diagrammed?

24 weeks

Colson Corp. has planned a simple project having four tasks. The task information for the project is shown below: What is the estimated completion time for the project?

25 days

250

End item A is made by assembling 2 parts of B and 4 parts of C. Part C is made from 3 parts of D and 2 parts of E. Gross requirements for end item A are 100 units. Picture What is the gross requirement for part E?

250

End item A is made by assembling 2 parts of B and 4 parts of C. Part C is made from 3 parts of D and 2 parts of E. Gross requirements for end item A are 100 units. What is the gross requirement for part E?

250

What is the reorder point for Jonson Company if Johnson decides on a 99% service level instead of the 95% service level?

257 units

Jude Strohsal can't bear to see her lawn all dug up so she has decided to visit her mother on the day the work is to be done. Jude wants to return home at 6:45 p.m. What is the probability the work will be complete when she arrives home? (Round your intermediate calculations and final answer to 2 decimal places.)

26.76 ± 0.5% probability

Jones Corp. has noticed that sales of its product seem to be related to a variable it calls Gamma. It has developed the data shown below. Develop a simple linear regression from the data and tell Jones what the sales forecast will be if Jones expects Gamma to be 16 (round your forecast to the nearest number of whole units). 31 33 28 34

Using the data below and the regression model, what is the sales forecast if Gamma is expected to be 21? (Round your forecast to the nearest number of whole units.) 39 48 36 42

39 Sales = 6.12 + 1.55(21) = 6.12 + 32.55 = 38.67

Using the data in the table below for Zanda, what is the linear regression forecast for period 5 (choose the nearest number of whole units)? 42 28 44 34

44 F5 = 16 + 5(5.6) = 44 units

The network diagram below shows the five tasks required to complete a project and the associated times for those tasks What is the latest start date for task C 2 weeks 7 weeks → 5 weeks 6 weeks

5 weeks

The network diagram below shows the five tasks required to complete a project and the associated times for those tasks. What is the latest start date for task C?

5 weeks

Zanda Corp. and Jones Corp. are identical in every way (products produced

costs, demand, etc.) except for one. Zanda uses a level production plan while Jones prefers a chase production plan. Which of the following is most likely to be true? ...,All of the options are true.

Zanda Corp. and Jones Corp. are identical in every way (products produced

costs, demand, etc.) except for one. Zanda uses a level production plan while Jones prefers a chase production plan. Which of the following is most likely to be true?,Zanda will have higher inventory carrying costs.

Blue Star Co. has been using the production order quantity inventory model. If annual demand

daily demand, and the production rate increase to 4 times their original amounts, which of the following is/ are possible consequence(s)?,. The order quantity will double

Given the tasks

estimated durations, and crash costs shown below, if the benefit to crash the project by each day is a maximum of $750, how many days would it be worthwhile to crash the project?,1

Given the tasks

estimated durations, and crash costs shown below, what is the total cost of the steps needed to provide the cheapest way to reduce the project length by three days?,$2,500

When people and profit intersect

from a sustainability perspective, which of the following areas is most impacted?,Equitability

Bill's Food Emporium uses the periodic system to order cans of Cajun seasoning every 30 days. It typically takes the supplier 10 days to resupply Bill. Sales average 8 units per day with a standard deviation of 2 units per day. Bill does not carry any safety stock of Cajun seasoning. If he runs out for a period of time

he doesn't care. Bill just counted his inventory of Cajun seasoning and found 22 cans on the shelf. How many cans should Bill order?,. 298

Colson Corp. has planned a simple project having four tasks. The task information for the project is shown below: Does any task have slack? If so

how much?,Task C has 3 days of slack.

Using the BOM

if 2 units of A are needed, how many used of K will be required? Assume that there is no on-hand inventory of any items.,104

Using the BOM

if 2 units of A are needed, how many used of K will be required? Assume that there is no on-hand inventory of any items.,104 Ks are used in B and C. In B, 4 Ks are needed (4 × 1). For C, the number of Ks is 4 × 4 = 16. To make one A requires 1 B and 3 Cs, so the number of Ks is 4 × 1 + 3 × 16 = 52. Two As requires 52 × 2 = 104 Ks.

The focus of an aggregate production plan

in general, is on all of the following EXCEPT:,Facilities and capital equipment rather than labor and inventory.

Annie is planning a large surprise party for her sister Gwendolyn. She has developed the plan below

including estimates of the time (in hours) and cost necessary to perform each of the activities required at the currently planned pace and at the crashed pace. Annie is most interested in reducing the time associated with plan menu. What is the crash cost per hour for that activity? (Round your answer to 2 decimal places.),50.00 ± 0.01

Annie is planning a large surprise party for her sister Gwendolyn. She has developed the following plan

including estimates of the time (in hours) and cost necessary to perform each of the tasks required. Annie will save $40 for every hour she can reduce from her plan. Annie has decided to crash her project and use the money she saves to purchase a larger gift for Gwendolyn. Which task should she crash first?,A

see question Colson Corp. has planned a simple project having four tasks. The task information for the project is shown below: What is the estimated completion time for the project? 25 days (7) The critical path is A, B, D. Completion time = 10 + 7 + 8 = 25 days. 8 ,9,10,11,12

message

part 2

part 3

Which of the following statements is true of projects? Once a project plan is made, it is impossible to simultaneously improve the speed, quality, and cost of a project. Projects usually involve greater unknowns and uncertainty than repeated routine operations do. Technological factors are almost always more important than social factors in affecting project success. Projects are usually more important than repeated routine operations.

projects usually involve greater unknowns and uncertainty than repeated routine operations do. message Because projects are one-time events, managers have less experience upon which to draw regarding the specifics of any given project.

Jude and Pat Strohsal have a crack in their water line and need to replace it. This will require digging up the water line

replacing it, filling the hole, leveling the soil, and reseeding the grass. The Strohsal's plumber suggests that, because they will have the water line dug up, they also should replace the foot valve. Below are the plumber's estimates of the time (in hours) necessary to perform each of the activities required. If the plumber and his crew begin working at 7:00 a.m., how much time is expected for them to take to finish the job? (Round your answer to 2 decimal places.),12.47 ± 0.1 hours

John Jones

senior VP for Zanda Corp., is looking at three alternative aggregate production plans for the next six-month period. At his company, demand varies by month with substantial month-to-month differences. The three alternatives are a "pure level plan," which keeps an absolutely constant workforce, a "pure chase plan" relying on hiring and layoffs, and a hybrid plan. He is most likely to find that the hybrid plan:,Has lower inventory carrying cost than the level plan and lower hiring/layoff cost than the chase plan.

John Jones

From an operations standpoint

sustainability means that:,Firms should pursue profit without damaging the environment or the well-being of future generations.

At each of its home games

the Washington Check-Kiters football team sells programs that give statistics of the teams involved in the current game's contest. Since each game brings a different visiting team, a program is only of value for one contest, and no returns will be accepted by the supplier. On a per program basis, the selling price is twice the cost. The Target Service Level that will yield the most profits is:,50%

As technology and cultures evolve

the best approach for operations managers is to:,Adapt their business models.

Given the data below

the bias of these forecasts is:,Negative.

Using the data below

the company has forecasted next year's demand to be 400. What is the seasonally adjusted forecast for Quarter 1 (choose the closest answer).,73

Over a six-month period

the demand for a product has been: June = 200, July = 210, August = 240, September = 240, October = 260, and November = 280. The three-month moving average forecast for December is,260.

Task X is expected to take 3 days to complete. The maximum (latest) earliest finish date for any predecessors to task X is 10. Therefore

the earliest finish for task X is:,7

In examining the data below

the manager exclaimed that he was very happy to see no bias in the forecasts. How would you respond to the manager?,I'm sorry, but there appears to be a very strong positive bias.

Generally speaking

the sales function and operations function differ in objectives. Which of the following is NOT one of those differences?,Sales prefers detailed forecasts for setting bonuses, operations prefers aggregate forecasts.

The demand for housing is characterized by a regular pattern of increasing to a peak

then falling. When the demand reaches a low point, it then repeats the pattern. This pattern usually takes place over a three- to five-year period. This is an example of which type of demand pattern?,Seasonality and cycles

If a company strongly prefers that its aggregate output plan be closer to a level plan than a chase plan

this implies that it is concerned about minimizing:,Hiring and layoff costs.

If the cumulative lead time is 8 weeks

to be feasible the MPS planning horizon must be:,At least 8 weeks.

If the cumulative lead time is 8 weeks

to be feasible the MPS planning horizon must be:,At least 8 weeks. The MPS planning horizon must be equal to or greater than the cumulative lead time to ensure that there is enough time to plan, order, receive material, and make the end items.

Demand planning is the combined process of forecasting and managing customer demands to create a planned pattern of demand that meets the firm's operational and financial goals.

true

Linear regression seeks to minimize the sum of the squared errors between the actual values or demand and the values of demand predicted by the straight line.

true

Many times forecasters can make a good approximation of a trend by simply hand-drawing a line through the data to estimate a trend.

true

Projects are often staffed with people who are permanently taken from functional groups that perform routine operations.

true

The ultimate goal of demand management is to match demand and operational capacity in order to attain the business's competitive objectives

true

In evaluating time-cost trade-offs

we start by crashing the task on the critical path that:,Has the lowest cost to reduce by one unit of time.

Using the data below

what is the MAPE?,5.99 percent

Using a lot-for-lot rule

what is the MPS quantity for period 1?,80

A master production schedule shows the following information: Using a lot-for-lot rule

what is the MPS quantity for period 1?,correct 80 The MPS quantity in period 1 is the greater of the forecast or actual orders minus the beginning inventory. The actual orders are the greatest, so the MPS is 100 - 20 = 80.

A master production schedule shows the following information: Picture Using a lot-for-lot rule

what is the MSP quantity for week 4?,500

Using a lot-for-lot rule

what is the MSP quantity for week 4?,500

A master production schedule shows the following information: Picture Based on the information in the MPS

what is the amount that is available to promise in week 4?,500

Based on the information in the MPS

what is the amount that is available to promise in week 4?,500

Using the data in the table below for Zanda

what is the linear regression forecast for period 5 (choose the nearest number of whole units)?,44

Annie turns her attention to crashing another task in her project. If she wants to benefit even more

what is the next task to crash?,E

If a project path has an expected duration of 10 days and a standard deviation of 3 days

what is the probability that the path will be completed in 10 days or less?,50 percent

If a project path has an expected duration of 10 days and a standard deviation of 3 days

what is the probability that the path will be completed in 13 days or less?,84 percent

The plumber has scheduled another small job at 6:00 p.m. If it takes 1/2 hour to drive from the Strohsals' to the other job

what is the probability the plumber will be able to make the 6:00 p.m. appointment on time? (Round your intermediate calculations and final answer to 2 decimal places.),probability 4.46 ± 0.5%

Using the data below and the regression model

what is the sales forecast if Gamma is expected to be 21? (Round your forecast to the nearest number of whole units.),39

Given the project data below

what is the standard deviation of durations for path A, B, C?,1.4

If the project is crashed so that all work can be completed in 45 hours

what is the total crash cost?,$1,150

BMW has introduced a program of covered scheduled maintenance for its cars. That is

when you bring in your vehicle for maintenance at a BMW dealership, BMW will cover the costs of everything (except for worn-out tires). This practice specifically targets which stage of the product life cycle?,Usage

When calculating a Reorder Point (ROP)

which of the following factors WOULD NOT affect the calculation?,A. Item's EOQ

If a make-to-stock manufacturing firm with highly seasonal demand follows a level production strategy

which of the following is likely to be true?,Inventory will fluctuate significantly during the year.

If a make-to-stock manufacturing firm with highly seasonal demand follows a chase demand strategy

which of the following is likely to be true?,The firm likely will have higher capital investment than if it followed a level plan.

If there is a desire to crash the project

which task should be crashed first?,A

An office manager forecasts demand for office stationery by exponential smoothing

with alpha = 0.4. Actual demand two weeks ago (i.e., the week before last) was 12 boxes, but the forecast for that period was only 10. Actual demand last week was 7. What was the forecast for last week?,10.8

1) The goal of aggregate planning is to satisfy demand in a way that minimizes profit.

FALSE

12) Forecasting errors are dealt with in aggregate plans using either safety backlog or safety capacity.

FALSE

13) Safety inventory is defined as inventory held to satisfy demand that is higher than forecasted.

FALSE

14) Safety capacity is defined as capacity used to satisfy demand that is lower than forecasted.

FALSE

17) As inputs into the aggregate plan change, managers do not need to make changes to the aggregate plan.

FALSE

18) As capacity utilization increases, it becomes less important to perform aggregate planning.

FALSE

19) The goal of aggregate planning is to build a plan that satisfies demand while minimizing downtime.

FALSE

4) Short-term production serves as a broad blueprint for operations and establishes the parameters within which aggregate planning decisions are made.

FALSE

7) A planning horizon is usually between three and five years.

FALSE

The focus of an aggregate production plan, in general, is on all of the following EXCEPT: Facilities and capital equipment rather than labor and inventory. Product lines rather than specific items. The intermediate-term future rather than the very short-term future. All of these are the focus of an aggregate production plan. Inventory levels rather than new plants.

Facilities and capital equipment rather than labor and inventory. Aggregate production plans are intermediate-term plans for product lines (families), where facilities and equipment are considered constraints.

Which of the following programs/initiatives strives to improve the lives of suppliers and their families?

FairTrade

A tracking signal is the ratio of the MAD to a running total of forecast error that indicates when the pattern of forecast error is changing significantly.

False

Advantages of a functional project include enhanced interfunctional communications, pinpointed responsibility, and minimal duplication of resources along with functional homes for team members.

False

In the critical path method, tasks are dependent and the duration of one task depends on the duration of another

False

The critical path is defined as the shortest path from the beginning node to the end node in the project.

False

The pure project approach is probably the most commonly used organizational structure and utilizes people from different functional areas loaned to the project from time to time.

False

A ______ project is housed and controlled within a single functional department during each project stage:

Functional project

Joe Jones is a project manager on a major installation. He has been asked to provide weekly status reports on the project schedule. Joe should consider using which of the following:

Gantt chart

A forecasting technique that seeks inputs from people who are in close contact with customers is known as:

Grassroots forecasting.

A forecasting technique that seeks inputs from people who are in close contact with customers is known as: Historical analogy. Focused forecasting. Grassroots forecasting. Marketing research.

Grassroots forecasting.

John Jones, senior VP for Zanda Corp., is looking at three alternative aggregate production plans for the next six-month period. At his company, demand varies by month with substantial month-to-month differences. The three alternatives are a "pure level plan," which keeps an absolutely constant workforce, a "pure chase plan" relying on hiring and layoffs, and a hybrid plan. He is most likely to find that the hybrid plan: Has higher hiring/layoff cost than the chase plan and higher inventory carrying cost than the level plan. Has lower inventory carrying cost than the chase plan and higher hiring/layoff cost than the level plan. None of these. Has lower inventory carrying cost than the level plan and lower hiring/layoff cost than the chase plan.

Has lower inventory carrying cost than the level plan and lower hiring/layoff cost than the chase plan. Since hybrid plans combine aspects of level and chase, they typically have less inventory than level, but more than chase. They also typically have more hiring/layoff than level, but less than chase.

Good project managers typically have:

High ethical standards

Which of the following is true about the use of weighted scoring models for supplier selection? Once developed, the model weights should never change. The supply management department should determine the weights. The highest-scoring supplier should always be selected to receive the business.

Highest scoring supplier should be chosen

If a company strongly prefers that its aggregate output plan be closer to a level plan than a chase plan, this implies that it is concerned about minimizing: Inventory carrying costs. Hiring and layoff costs. Cost of subcontracting. Both A and C. Both B and C.

Hiring and layoff costs

Which of the following is (are) advantages of full partnerships with suppliers, as compared to traditional adversarial relationships?

I only. I. They help reduce uncertainties for both buyer and supplier.

In examining the data below, the manager exclaimed that he was very happy to see no bias in the forecasts. How would you respond to the manager? I'm sorry, but there appears to be a very strong positive bias.

I'm sorry, but there appears to be a very strong positive bias.

Which of the following environmental initiatives/programs deals most specifically with the firm's environmental management system?

ISO 14000

If a make-to-stock manufacturing firm with highly seasonal demand follows a level production strategy, which of the following is likely to be true? The firm must make sure that its maximum capacity is at least as high as the heaviest demand period. The production rate must be set equal to the demand in the heaviest demand period, and stay at that level all year. It will be difficult to keep the workforce size stable. Inventory will fluctuate significantly during the year.

Inventory will fluctuate significantly during the year. When using a level plan, inventory will increase during periods of low demand and decrease during periods of high demand

Which of the following statements most accurately represents the challenge of being environmentally sustainable?

It is not easy to be environmentally responsible since the choices facing management involve trade-offs.

Lean systems thinking in operations management can extend to sustainability in what way?

Its focus on reducing waste of all types.

Johnson Manufacturing has decided to consolidate its warehouses and reduce the number of locations from twelve to four. However

Johnson desires to maintain the same service level in terms of the risks of running out of stock in attempting to fill customer demand. As a result, Johnson can expect that,The required safety stock will decline by approximately 58%.

Which of the following environmental initiatives/programs deals most specifically with building design and construction?

LEED certification

Benefits of single sourcing include all of the following EXCEPT:

Less supply risk

End item A is made by assembling 2 of part B and 3 of part C. Part C is made from 2 of component D and 2 of component E. Component D is considered to be a

Level 2 input

End item A is made by assembling 2 of part B and 3 of part C. Part C is made from 2 of component D and 2 of component E. Component D is considered to be a:

Level 2 input.

End item A is made by assembling 2 of part B and 3 of part C. Part C is made from 2 of component D and 2 of component E. Component D is considered to be a:

Level 2 input. Component D is needed to make part C, which is a level 1 input to the end item. Thus, component D is a level 2 input.

Which type of aggregate production plan is likely to have the LEAST negative impact on the local community and the workforce?

Level plan

Which type of aggregate production plan is likely to have the LEAST negative impact on the local community and the workforce? Chase plan with overtime Chase plan with hiring and firing The plans do not differ in their impact on the local community and the workforce. Level plan impact on the local community and the workforce. correct Level plan

Level plan Chase with hiring/firing or with overtime both have potential negative impacts on the community and/or the workforce. Level plans tend to minimize these.

Which of the following approaches provides management with an appropriate tool for assessing the full impact from "seed to sewer" (from creation to disposal)?

Life cycle analysis

A bill of materials file contains

Lists of materials required to produce end item products

A bill-of-materials file contains:

Lists of materials required to produce end item products

A bill-of-materials file contains:

Lists of materials required to produce end item products.

A bill-of-materials file contains:Invoices for materials that

Lists of materials required to produce end item products. The BOM lists all of the materials required to produce an item.

The following table shows capacity requirements data for making Blodgetts. Picture A load profile would show:

Load below capacity in periods 1 and 3.

The following table shows capacity requirements data for making Blodgetts. A load profile would show:

Load below capacity in periods 1 and 3.

he following table shows capacity requirements data for making Blodgetts. A load profile would show:

Load never is exactly equal to capacity

A global food products company makes soups that are specifically tailored to the tastes of consumers in individual countries. What sourcing strategy is the company likely to use for its fresh ingredients such as vegetables? Local, close to its production plant when possible. National, using suppliers within each country. Global, using the same suppliers across the world. Low-cost country sourcing.

Local

Local, close to its production plant when possible.

Which of the following is an advantage of a chase production strategy (as compared to a level plan)?

Lower inventory investment.

Which of the following is an advantage of a chase production strategy (as compared to a level plan)? All of these. High inventory carrying cost. Lower inventory investment. Low investment in equipment.

Lower inventory investment. In chase plans, production rates are equal to demand, so inventory does not accumulate during periods of low demand.

Which of the following is NOT a benefit of outsourcing?

Lower supply management costs

Which of the following is NOT a benefit of outsourcing? Greater flexibility to change product specifications Better access to market information Lower supply management costs Less capital needed for investment

Lower supply management costs

For purposes of comparability across products, forecasters sometimes adjust the MAD to create a related metric, the _______.

MAPE

The quantities of end items to be completed in each time period into the future is shown in an

MPS (Master Production Schedule)

The quantities of end items to be completed in each time period into the future is shown in a(n):

MPS.

The quantities of end items to be completed in each time period into the future is shown in a(n): ERP. MPS. BOM. MRP.

MPS. An MPS shows the quantities of end items that are to be completed during each time period over the planning horizon

Materials requirement planning (MRP) systems are used primarily to A. Plan materials B. Plan lead time C. Plan production D. Plan distribution E. Plan materials AND Plan production

The project organizational structure that provides the greatest balance between speed and efficiency is:

Matrix organizational structure.

The project organizational structure that provides the greatest balance between speed and efficiency is: Pure project structure. Functional project structure. Matrix organizational structure. Line and staff organization structure.

Matrix organizational structure. Matrix structure shares resources for efficiency, but has a single project manager to maintain priority and speed.

S&OP results in:

More stable supply rates

How does aggregate planning for services differ from aggregate production planning for products?

Most service plans are based primarily on labor requirements.

How does aggregate planning for services differ from aggregate production planning for products? Service plans make extensive use of inventory to meet demand. correct Most service plans are based primarily on labor requirements. Demand for products typically is stated as the number of hours of labor required, whereas demand for services is generally stated as the number of units of service desired. There is no difference. Since services can't be put in inventory

Most service plans are based primarily on labor requirements. Since services can't be put in inventory, they generally are based on human resource requirements.

Designing postponable products has the potential to allow operations managers to:

Move from build-to-stock to assemble or make-to-order operations.

Designing postponable products has the potential to allow operations managers to: Ignore forecasts. Move from build-to-stock to assemble or make-to-order operations. Influence the timing of demand. All of these.

Move from build-to-stock to assemble or make-to-order operations. Postponable products obtain final form after customer demand is actually known. Some forecasts are still necessary (for components), and the timing of demand is not changed.

The ___________ forecasting model computes a forecast as the average of demands over a number of immediate past periods.

Moving average

Jones Company has identified an item for which the supply risk is high and the value of the purchase to the firm is low. A recommended sourcing strategy for Jones is to:

Multiple source

Jones Company has identified an item for which the supply risk is high and the value of the purchase to the firm is low. A recommended sourcing strategy for Jones is to: Multiple source. Increase efficiencies. Build partnerships. Consolidate purchases.

Multiple source

Advanced Manufacturing Company is evaluating two suppliers for a component sourcing. After much internal discussion, AMC's management has determined that the critical factors in choosing suppliers are: quality, delivery, price, and service. Further, management has rated the importance of these factors as 0.4, 0.3, 0.2, and 0.1, respectively. On a scale of 1 to 5, Supplier A is rated at 5, 3, 3, and 3, respectively. Supplier B's ratings are 4, 4, 3, and 4. Which supplier has the better weighted score? Supplier A Supplier B Neither, they both have the same weighted score.

Neither

Neither, they both have the same weighted score.

Which of the following is not included in the information of the inventory records file for an item?

Net Requirements

Which of the following is NOT included in the information about the inventory records file for an item?

Net requirements

Which of the following is NOT included in the information about the inventory records file for an item? Preferred order quantity Safety stock Lead time Net requirements

Net requirements Net requirements are an output of MRP and are not in an inventory records file.

John Jones, senior VP for Zanda Corp., is looking at three alternative aggregate production plans for the next six-month period. At his company, demand varies by month with substantial month-to-month differences. The three alternatives are a "pure level plan," which keeps an absolutely constant workforce, a "pure chase plan" relying on hiring and layoffs, and a hybrid plan. He is most likely to find that the pure level plan: Has lower inventory carrying cost than the hybrid plan. Has higher hiring/layoff cost than the hybrid plan. None of these. Has higher hiring/layoff cost than the chase plan.

None of these.

Which of the following best describes organizational culture?

Organizational culture is critical to long-term success.

Over which stage of the product's life cycle does operations management have the greatest amount of direct control?

Packaging/transportation

The "triple bottom line" suggests that efforts should be devoted to assessing the impact of activities on:

People, planet, profit.

Which of the following is NOT a good reason to kill a project?

Personnel problems on the project.

Which of the following is NOT a good reason to kill a project? Personnel problems on the project. Consistent budget and schedule overruns. The project objectives are no longer of value to the firm. Inadequate resources to complete the project successfully.

Personnel problems on the project. Personnel problems might be remedied if the project is still of value to the firm.

Materials requirement planning (MRP) systems are used primarily to

Plan lead time

Materials requirement planning (MRP) systems are used primarily to:

Plan materials.

Materials requirement planning (MRP) systems are used primarily to: Plan materials. Plan lead time. Plan production. Plan distribution. A and C

Plan materials. MRP is a system for planning materials

Materials requirement planning (MRP) systems are primarily used to

Plan orders

Which of the following is not an input into the MRP?

Planned Order Release

Which of the following is NOT an input into the MRP?

Planned order release

Which of the following is NOT an input into the MRP? Inventory records file Planned order release Master production schedule Bill of materials

Planned order release The BOM, inventory records file, and the MPS are the inputs.

A project manager usually has the greatest ability to affect social and technical success factors of a project in what stage of the project?

Planning

A project manager usually has the greatest ability to affect social and technical success factors of a project in what stage of the project? Planning Execution Completion A project manager has equal ability to affect success factors across all stages.

Planning In the planning stage, the project manager can shape the schedules, budgets, and resources to influence the project. These choices form constraints within which the project must be executed in subsequent stages.

MRP is a process that would be most applicable in which situation?

Planning requirements for bicycle seats in a bicycle production plant

MRP is a process that would be most applicable in which situation?

Planning requirements for bicycle seats in a bicycle production plant.

MRP is a process that would be most applicable in which situation? Planning requirements for repair parts for production equipment in a manufacturing plant. Planning requirements for safety stocks of finished goods in a distribution center . Planning requirements for bicycle seats in a bicycle production plant. A and C. None of these.

Planning requirements for bicycle seats in a bicycle production plant. MRP is used for dependent demand items

How does product design affect forecasting accuracy?

Postponable product designs remove the need to forecast demand for final product configurations.

How does product design affect forecasting accuracy? A popular product design improves the demand volume and forecast. None of these statements are true. Forecast accuracy is not related to product design. Postponable product designs remove the need to forecast demand for final product configurations.

Postponable product designs remove the need to forecast demand for final product configurations. Postponements allow forecasting at the component level, which is more accurate.

Why do businesses often NOT pursue the best mix of projects in their project portfolio?

Projects are selected based on criteria that are not always consistent with the business strategy.

Why do businesses often NOT pursue the best mix of projects in their project portfolio? Too much emphasis is placed on feasibility. Businesses do not use enough financial metrics in selecting projects. Projects are selected based on criteria that are not always consistent with the business strategy. Selection committees neglect to use a portfolio value matrix.

Projects are selected based on criteria that are not always consistent with the business strategy. Strategic fit is important, but it is often difficult to assess. Managers are often too focused on financial returns

Why does project management often involve the management of conflict?

Projects often compete with routine operations and other projects for resources and personnel and Projects are often staffed with personnel who may have greater allegiance to their functional managers than to the project managers.

Which of the following statements is true of projects?

Projects usually involve greater unknowns and uncertainty than repeated routine operations do.

All of the following are supply management goals EXCEPT:

Purchase at the lowest price.

A legally binding document that signals to a supplier that goods and services are needed is a(n): Purchase requisition. Electronic data interchange. Purchase order. Supplier relationship management document.

Purchase order

The ____ project has several disadvantages including duplication of resources, difficulty in transferring technology and learning, and ignoring organizational goals and policies

Pure

Zanda Corp. has decided that it needs a project team to implement a new ERP system. It wants the system implemented as soon as possible. Given this criterion, Zanda should choose a: Pure project structure. Matrix organizational structure. Line and staff organization structure. Functional project structure.

Pure project structure Pure project structure is most appropriate when speed is critical.

A postponable product is one that can be configured to its final form ______ and ______ once actual customer demand is known.

Quickly, inexpensively

You sir are one lazy person. Odds are after copying and pasting all these questions for your McGraw-Hill homework...you still won't understand.

READ THE BOOK! DONT LOOK FOR THE EASY WAY OUT!

The _________ gives an approximation of the forecast error standard deviation

RMSE

Zanda Corp. has been testing the performance of two different forecasting models to see which it should adopt for use. It wants to choose the model that has the smaller standard deviation of the forecast errors. Zanda should compare which of the following to make its choice?

RMSE of the two models

RMSE of the two models RMSE provides a good approximation of the standard deviations of a model's forecast errors.

Capacity requirements planning does all of the following EXCEPT

Recalculate the MRP plan

Rough-cut capacity planning does all of the following EXCEPT: Uses planned order releases and scheduled receipts to estimate work center loads. Develops a load profile. Determines if a work center has the capacity to implement the MRP plan. Recalculates the MRP plan.

Recalculates the MRP plan

Rough-cut capacity planning does all of the following EXCEPT:

Recalculates the MRP plan.

All of the following are true about supplier scorecards EXCEPT: They reduce the need for incoming quality inspection. They are used to provide performance feedback to suppliers. They are often used to categorize suppliers based on an overall score. They are used to measure supplier performance based on key performance indicators.

Reduce the need for incoming quality

Which of the following environmental initiatives/programs is an example of an industry-specific program aimed at improving environmental performance?

Responsible Care

Each month the sales and operations team at Johnson Company meets to develop plans for each of the next six months. This process is known as:

Rolling planning horizons.

Each month the sales and operations team at Johnson Company meets to develop plans for each of the next six months. This process is known as Rolling planning horizons. Unconstrained planning. Continuous planning. Collaborative planning and forecasting.

Rolling planning horizons. Replanning each month for a given number of periods into the future is known as rolling planning horizons

Generally speaking, the sales function and operations function differ in objectives. Which of the following is NOT one of those differences? Sales prefers detailed forecasts for setting bonuses, operations prefers aggregate forecasts. All of these. Sales emphasizes revenue, operations emphasizes cost minimization. Sales prefers many product variations, operations prefers few variations.

Sales prefers detailed forecasts for setting bonuses, operations prefers aggregate forecasts. Generally, the sales function only wants aggregate forecasts, while operations needs detailed forecasts for planning purposes

A primary reason for using global suppliers is to: Improve sustainability. Reduce transportation costs. Take advantage of free trade agreements such as NAFTA. Work with the same suppliers in many different regions of the world.

Same suppliers in different regions of the world

For Platinum Nugget Hotel in Las Vegas

Saturday is the best day of the week for business. The gambling take for the hotel on Saturdays over the past four weeks was: 1. $250,000 2. $190,000 3. $300,000 4. $280,000 Platinum Nugget uses a three-period weighted moving average to forecast demand, with at = 0.6, at-1 = 0.3, and at-2 = 0.1. What is the forecast for week 5?,$277,000

For Platinum Nugget Hotel in Las Vegas

Saturday is the best day of the week for business. The gambling take for the hotel on Saturdays over the past four weeks was: 1. $250,000 2. $190,000 3. $300,000 4. $280,000 Using a moving average with n = 3 terms, what would be the forecast for week 5?,$256,667

A project objective statement includes

Scope, major deliverables, schedule and resources required

The demand for housing is characterized by a regular pattern of increasing to a peak, then falling. When the demand reaches a low point, it then repeats the pattern. This pattern usually takes place over a three- to five-year period. This is an example of which type of demand pattern? Autocorrelation Step change Trend Seasonality and cycles

Seasonality and cycles Seasonality and cycles are regular patterns of repeating highs and lows, as described in this example

Planning for which of the following products would see the LEAST benefit from the use of an MRP

Shampoo

Planning for which of the following products would see the LEAST benefit from the use of an MRP system?

Shampoo

Planning for which of the following products would see the LEAST benefit from the use of an MRP system? Power lawnmowers Microwave ovens Shampoo Mobile phones

Shampoo The greatest benefit from MRP is attained when planning complex, discrete products that are assembled such as microwave ovens, mobile phones, and power lawnmowers.

Squeaky Klean, a small consumer products company, purchases custom-designed plastic bottles for its cleaning products that are made at a single plant in Cleveland, Ohio. To make these bottles, specialized tooling must be purchased at a high cost and installed at a supplier's plant. Its sourcing strategy for bottles should be to: Use three or more suppliers. Dual source. Single source. Insource bottle production.

Single

Single source

"Crashing" in a project refers to:

Speeding up an activity.

"Crashing" in a project refers to: Deciding to terminate a project. Speeding up an activity. Extending the deadline for completion of the project. Attempting to reduce the project scope.

Speeding up an activity.

Aspen Corporation has discovered that it uses 10 different suppliers for a particular type of item, has bought 20 different models of that item, and total expenditures last year for the item were $100,000. Aspen most likely is conducting:

Spend analysis

The process of understanding how a firm is spending its money and with which suppliers is called:

Spend analysis

The process of understanding how a firm is spending its money and with which suppliers is called: Strategic sourcing. Make or buy analysis. Market analysis. Spend analysis.

Spend analysis

Which approach is likely to be used for leverage purchases?

Standardizing purchases

Which approach is likely to be used for leverage purchases? Purchasing cards Vendor-managed inventory Using executive champions Standardizing purchases

Standardizing purchases

A company has decided that it no longer needs to extensively count and inspect the products it receives from a particular supplier. This suggests that the purchasing company has begun:

Supplier certification

A company has decided that it no longer needs to extensively count and inspect the products it receives from a particular supplier. This suggests that the purchasing company has begun: Spend analysis. Supplier certification. Process simplification. Time reduction analysis.

Supplier certification

Williams Inc. has acquired software to help manage interactions with its supply base. This suggests that Williams Inc. is involved in:

Supplier relationship management

Williams Inc. has acquired software to help manage interactions with its supply base. This suggests that Williams Inc. is involved in: Vendor-managed inventory. Supplier relationship management. Online reverse auctions. Supplier auditing.

Supplier relationship management

In its own country, a former supplier to your company recently began selling its own product that is identical to a product that was developed by your company. This is an example of: Supply risk. Sustainability. Insourcing. Strategic sourcing.

Supply risk

Which of the following terms best describes the impact of sustainability initiatives on the business model?

Sustainability affects the entire business model.

Which of the following statements best describes the role of sustainability measurement and reporting in many of today's firms?

Sustainability reporting is becoming more important with more metrics being provided by different organizations.

Constant changing of the master production schedule and the resulting changes in the requirements for components is referred to as

System nervousness

Constant changing of the master schedule and the resulting changes in the requirements for components is referred to as

System nervousness

Constant changing of the master schedule and the resulting changes in the requirements for components is referred to as:

System nervousness.

Constant changing of the master schedule and the resulting changes in the requirements for components is referred to as: Bad planning. Master schedule dynamics. System nervousness. MRP failure.

System nervousness. Changes in the MPS during the planning horizon can cause nervousness, which is inconsistencies in the MRP plan

10) Most strategies that an aggregate planner actually uses are in combination, and are referred to as hybrid strategies.

TRUE

11) To improve the quality of aggregate plans, forecast errors must be taken into account when formulating aggregate plans.

TRUE

15) Companies should work with downstream partners to produce forecasts and with upstream partners to determine constraints when doing aggregate planning.

TRUE

16) Given that forecasts are always wrong to some degree, the aggregate plan needs to have some flexibility built into it if it is to be useful.

TRUE

2) Aggregate planning is a process by which a company determines levels of capacity, production, subcontracting, inventory, stockouts, and even pricing over a specified time horizon.

TRUE

20) Linear programming finds the solution that creates the highest profit while satisfying the constraints that a company faces.

TRUE

3) Traditionally, much of aggregate planning is focused within an enterprise and may not always be seen as a part of supply chain management.

TRUE

5) The aggregate planning problem is concerned with determining the production level, inventory level, and capacity level (internal and outsourced) for each period that maximizes the firm's profit over the planning horizon.

TRUE

6) To create an aggregate plan, a company must specify the planning horizon for the plan and the duration of each period within the planning horizon.

TRUE

8) A poor aggregate plan may result in a large amount of excess inventory and capacity, thereby raising costs.

TRUE

9) The aggregate planner must make a trade-off between capacity, inventory, and backlog costs.

TRUE

Decisions being made about the aggregate production plans represent what type of planning?

Tactical planning

Decisions being made about the aggregate production plans represent what type of planning? Tactical planning Detailed operational planning Long-term planning Strategic level planning

Tactical planning Aggregate production plans generally cover a period of three to nine months, which is considered to be tactical planning

Colson Corp. has planned a simple project having four tasks. The task information for the project is shown below Does any task have slack? If so, how much?

Task C has 3 days of slack. Task C must finish at the end of 17 days. It could finish at the end of 14 days. Thus slack for B = 3 days.

The network diagram below shows the five tasks required to complete a project and the associated times for those tasks. Which task has the greatest amount of slack E B A C D

Task D has the greatest amount of slack.

In the FITt formula, Ft is:

The "base" forecast for period t from the simple exponential smoothing model

Qualitative factors that should be assessed when making an insourcing/outsourcing decision include all of the following EXCEPT:

The costs incurred at the start of the contract

Given the data below, the bias of these forecasts is: There is no bias. Positive. Negative.

The error for period 1 is −300, therefore the MFE is −66.7. This is a negative bias. Negative.

If a make-to-stock manufacturing firm with highly seasonal demand follows a chase demand strategy, which of the following is likely to be true? The production rate must be set equal to the demand in the heaviest demand period, and it must stay at that level all year. It will be easy to keep the workforce size stable. Inventory will fluctuate significantly during the year. The firm likely will have higher capital investment than if it followed a level plan.

The firm likely will have higher capital investment than if it followed a level plan. Chase plans require sufficient investment in plant and equipment to produce enough output to meet demand in the highest period.

The following table shows capacity requirements data for making Blodgetts. A load profile would show: A. Load above capacity in periods 3 and 5. B. Load below capacity in periods 1 and 3. C. Load never is exactly equal to capacity. D. None of the options are correct.

Zanda Corp. has always operated within one country. It is contemplating opening production facilities in another country. Zanda should realize:

The means of motivating the workforce domestically may not work well in a different country.

All of the following are true about supplier scorecards EXCEPT:

They reduce the need for incoming quality inspection.

Strategic demand planning would best be utilized:

To decide whether or not to close a manufacturing plant.

strategic demand planning would best be utilized: All of these. To determine plans for hiring or laying off employees. To determine plans for employee overtime. To decide whether or not to close a manufacturing plant. To direct day-to-day operations in a manufacturing plant.

To decide whether or not to close a manufacturing plant. Strategic demand planning is necessary for long-term decisions such as building or closing a plant. The others described are shorter-term decisions.

Long-term/strategic demand planning is typically done using what units?

Total business unit sales

Long-term/strategic demand planning is typically done using what units? Sales at a given location Total business unit sales Total product item sales Total product family sales

Total business unit sales Strategic demand planning supports total business level decisions.

How much money did Annie save by crashing the project?

Total cost saved $130.00

Convex Computer Company makes many different forecasts. Which of the following forecasts is probably the least accurate?

Total number of laptops with 2 gigabyte RAM, 80 gigabyte hard drive, and 16 x DVD drive to be sold next year.

Convex Computer Company makes many different forecasts. Which of the following forecasts is probably the least accurate? Total number of desktops to be sold next year. Total number of laptops to be sold next month. Total number of computers (laptops and desktops) to be sold next month. Total number of laptops with 2 gigabyte RAM, 80 gigabyte hard drive, and 16 x DVD drive to be sold next year.

Total number of laptops with 2 gigabyte RAM, 80 gigabyte hard drive, and 16 x DVD drive to be sold next year. The more detailed the forecast, the less accurate it is likely to be. D is the most detailed.

An excellent way to summarize the project definition and organizational design is by means of a project charter.

True

having a discrete beginning and end and thus all can use the same management techniques.

True

Advanced planning and scheduling systems (APS)

Use a simpler logic than the logic used in MRP

Advanced Planning and Scheduling Systems

Use logic similar to the logic found in MRP AND Integrate materials and capacity planning into one system

Use logic similar to the logic found in MRP. Consolidate all business planning systems and data throughout an organization. Integrate materials and capacity planning into one system. A and C All of these.

Use logic similar to the logic found in MRP. Integrate materials and capacity planning into one system. (A and C) APS does not consolidate all planning (ERP does that). APS does use logic similar to MRP and integrates materials and capacity planning.

Which of the following statements about a work breakdown structure (WBS) is/are true?

WBS is a hierarchical listing of project activities

Walmart has announced that suppliers must attempt to improve their efforts in environmental management. In this announcement

Walmart could have included a requirement that suppliers meet the standards of:,ISO 14000.

Independent demand inventory models can be used to determine

When to buy and how much to buy. B. How to reduce stockouts. C. Stock levels for regular and one-time buys. D. All of the options are correct

Which of the following is not an input into the MRP? A. Bill of Materials B. Inventory Records File C. Master Production Schedule D. Planned Order Release E. All listed answers are inputs

Which of the following is not included in the information of the inventory records file for an item? A. Safety stock B. Preferred order quantity C. Net Requirements D. Lead Time E. Item identification number

You are sitting next to a person in business class on a flight from Los Angeles to Sydney, Australia. You mention to that person that you got your ticket two months ago for only $12,500. The person responds that she bought her ticket two days ago for $7,800. This sometimes happens because airlines often use an approach called: Capacity management. Load management. Yield management. Workforce leveling.

Yield management. Yield management is an approach that adjusts prices for a service as demand occurs - or fails to occur

Zanda Company is looking for a requirements planning system to help plan replenishment of its finished goods throughout its network of distribution centers. The type of system Zanda should consider is known as: A. CRP (Capacity Requirements Planning) B. DRP (Distribution requirements Planning) C. MRP (Materials Requirements Planning) D. ERP (Enterprise Resource Planning)

Zanda Corp. has decided that it needs a project team to implement a new ERP system. It wants the system implemented as soon as possible. Given this criterion

Zanda should choose a:,Pure project structure.

Zanda Corp. and Jones Corp. are identical in every way (products produced, costs, demand, etc.) except for one. Zanda uses a level production plan while Jones prefers a chase production plan. Which of the following is most likely to be true Zanda will have higher investment in plant and equipment. Zanda will have lower total production costs. Zanda will have higher inventory carrying costs. Zanda will have higher hiring and firing costs.

Zanda will have higher inventory carrying costs.

Why does project management often involve the management of conflict? Projects often compete with routine operations and other projects for resources and personnel . Project managers are under greater pressures than other managers in a firm. Projects are often staffed with personnel who may have greater allegiance to their functional managers than to the project managers. correct A and C are both correct.

a and c Projects often compete with routine operations and other projects for resources and personnel. Projects are often staffed with personnel who may have greater allegiance to their functional managers than to the project managers. message Projects are often set within organizational structures that favor routine operations.

Task X has a best-case duration of 4 days

a worst-case duration of 10 days, and a most likely duration of 6 days. Using this information, we can estimate a 50 percent probability that the task will be completed in no more than how many days?,6.3 days

Assume that the forecast for the last period is FITt = 200 units

and recent experience suggests a likely sales increase of 10 units each period. Actual sales for the last period reached 230 units. Assuming a smoothing coefficient of α = 0.20 and a trend smoothing coefficient of β = 0.10, if demand in period t+1 turned out to be 220, what is the adjusted forecast for period t+2 (choose the closes answer)?,227.3

Assume that the forecast for the last period is FITt = 200 units

and recent experience suggests a likely sales increase of 10 units each period. Actual sales for the last period reached 230 units. Assuming a smoothing coefficient of α = 0.20 and a trend smoothing coefficient of β = 0.10, what is the ADJUSTED forecast for the next period?,216.6

Assume that the forecast for the last period is FITt = 200 units

Which of the following is NOT a stakeholder

as considered from the P-People perspective of sustainability?,Government

Downcycling

as described in the chapter, is a critical consideration during which stage of the product life cycle?,Disposal

Which of the following phrases BEST defines the concept of sustainability

as set out by the United Nations Brundtland Commission:,To meet the needs of the present without compromising the ability of future generations to meet their needs.

Which of the following are technological factors affecting the success of a project? Experience and authority of team members. Equipment, facilities, and communications systems. Organizational structure and reward systems. B and C. All of these.

b and c Equipment, facilities, and communications systems. Organizational structure and reward systems. Technology factors affecting project success include hard and soft technologies. Equipment, facilities, and communication systems are hard technologies. Organizational structure and reward systems are examples of soft technologies

Jones Company uses widgets as component parts. In a particular week it has gross requirements for 250 units of widgets

beginning inventory of 50 widgets, and scheduled receipts of 350 widgets. Available inventory for the next period is:,150 Beginning inventory (50) + scheduled receipts (350) − gross requirements (250) = 150.

Jones Company uses widgets as component parts. In a particular week it has gross requirements for 250 units of widgets

beginning inventory of 50 widgets, and scheduled receipts of 350 widgets. Available inventory for the next period is:,150.

The following environmentally responsible process/material matrix was developed for Zanda Corp. Zanda has determined that a score of 40 is its goal at this time

but efforts to lower its score will continue regardless. What is Zanda's current score, and what is your conclusion?,47, Zanda is doing worse than its goal.

The following environmentally responsible process/material matrix was developed for Zanda Corp. Zanda has determined that a score of 50 is its goal at this time

but efforts to lower its score will continue regardless. What is Zanda's current score, and what is your conclusion?,47, but Zanda must do something about solid residue during extraction now.

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months. The company's expected monthly demand is given in the following chart. The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month. Following is other critical data: Production cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month. What is the total cost of a chase plan which uses only hiring/firing?

correct $257,000

correct $260,700

correct $380,300

Zanda Corporation is preparing an aggregate production plan for its product for the next four months. The company's expected monthly demand is given in the following chart. The company will have 100 units in inventory at the beginning of the month and wishes to maintain at least 100 units at the end of each month. Following is other critical data: Production cost per unit = $125 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $50 Firing cost per worker = $100 Beginning number of workers = 25 Each worker can produce 25 units per month. The total inventory carrying cost of a chase plan is:

correct $4,000

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months. The company's expected monthly demand is given in the following chart. The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month. Following is other critical data: Production cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month. What is the total cost of hiring and firing the workers in a chase plan which uses only hiring and firing?

correct $5,000

the longest lead time path in the BOM is the: Planning horizon. Cumulative lead time. Time window. Time bucket.

correct Cumulative lead time. The cumulative lead time is the longest lead time path in the BOM.

Too Good

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