AD 680 test quiz questioins 2 Flashcards
Backorders May occur as a result of a ________
-Stockout
-blank out
-Failed inventory
stockout.
Inventory that acts as a buffer between workstations in work-in-process (WIP).flow shops or departments in job shops is called _____ inventory.
- progressive Inventory
-Work-in-progress Inventory
-agile Inventory
Work-in-progress Inventory
Costs associated with back ordering a product are called _____ costs.
-Shortage
-open
-procurment
Shortage
Using a fixed quantity system (FQS) as the reorder point increases ______
Target fill Price
-Safety Stock Prices
Procurement price point
Safety Stock Prices
_____________ Demand varies over time
-Dynamic
-Agile
-Flexible
Dynamic
The inability to satisfy the demand for an item is the definition of a
- Stock out
- inventory management
- inventory procurement
- copasity buffering
Stock out
Costs associated with inspecting, unpacking and putting into storage incoming inventory are components of ____ costs
-dependant demand
-Independant demand
-postive demand
-Independant demand
For “single-Period inventory model, solving the optimal order quantity involves using:
- Target fill rate
- Marginal Economic Analysis
- Independent Analysis
Marginal Economic Analysis
In ABC inventory analysis this is true:
-All items are equally important for inventory control.
-‘C’ items are the most valuable items in the inventory.
- Items make up a lower percentage of total inventory value ($)
Items make up a lower percentage of total inventory value ($)
What demand is stable over time:
Seasonal demand
Static
Dynamic demand
Static
A ______ is a statement of how many finished items are to be produced and when they are to be produced:
Master Production Schedule
Bill of Materials (BOM)
Forecast
Master Production Schedule
____ are the total demand for an item derived from all of its parents:
Net requirements
Planned order releases
Gross requirements
Gross requirements
The Lot-for-lot (LFL) rule:
-Is best used when setup/order costs are high and inventory carrying costs are low
-Is best used when inventory carrying costs are high and setup/order is low
-Always recommends a constant order quantity
Is best used when inventory carrying costs are high and setup/order is low
Which sizing rule may base the order quantity on a standard-size container or pallet:
Fixed order quantity
Economic Order Quantity (EOQ)
Periodic Order Quantity (POQ)
Fixed order quantity
Inventory items can be:
Only parent, never component
Only component, never parent
Both parent and component
Both parent and component
If forecast demand exceeds the total factory or supply capacity, managers might simply decide not to meet forecast demand. This demand would most likely be made at which planning level?
Master Scheduling-Level 2
Aggregate planning-Level 1.
Material Requirements Planning-Level 3
Aggregate planning-Level 1.
Which aggregate planning strategy generally would result in the least amount of inventory?
Chase demand.
Level strategy
Hybrid strategy
Chase demand.
Which of the following is not an aggregate planning decision option?
Building a new plant.
Subcontracting
Backordering
Building a new plant.
Which of the following is not correct regarding aggregate planning?
It deals with demand fluctuations
It involves capacity planning
Costs are sunk and irrelevant.
Costs are sunk and irrelevant.
In an aggregate planning system, the so-called “PSI” plan shows:
The inventory level at the end of each period
The number of workers needed in each period
The level of planned production by period.
The level of planned production by period.
Which of the following is NOT a goal for an aggregate planning system for a company?
Set prices for purchased goods.
Manage customer service level
Minimize production cost
Set prices for purchased goods.
The following is not a goal for an aggregate planning system for a company:
:Determine product pricing
:Determine product levels for products.
:Determine the capacity needed to meet forecasted demand.
:Determine how many workers to hire/fire to meet the forecast demand
Determine product pricing
Development of a firm’s supply chain strategy:
:Is independent of its marketing strategy
:Integrates its marketing strategy with its supply chaindesign.
:Contradicts its marketing strategy
Integrates its marketing strategy with its supply chaindesign.
When the global supply chain expands:
:Certainty decreases
:Uncertainty grows
:Variability decreases
Uncertainty grows
In a global supply chain, the impact of the bullwhip effect can be reduced:
:Coordinating activities across the supply chain.
:By increasing the number of tiers in the supply chain
:By maintaining independent forecasts at each stage of the supply chain
Coordinating activities across the supply chain.
When you outsource production:
:Suppliers must always be located overseas
:Suppliers are never physically located within the firm’s premises
:Suppliers can still be physically located within the firms premises
Suppliers can still be physically located within the firms premises
Responsive supply chains tend to work well for innovative products because:
:The level of uncertainty of the forecast for innovative products is low
:The level of uncertainty of the forecast for innovative products is high
:The demand for innovative products is stable
The level of uncertainty of the forecast for innovative products is high
A global supply chain operated by a U.S. hospital:
-Would consist of both information flow and tangible item flow.
-Only involves tangible item flow
Would consist of both information flow and tangible item flow.
Cost-efficient supply chains tend to work well for functional products because:
-The level of uncertainty of the forecast for functional products is low
-The level of uncertainty of the forecast for functional products is high
-Cost-efficient supply chains do not depend on the level of uncertainty of the forecast
The level of uncertainty of the forecast for functional products is low
A major difference between a manufacturing and a service process is:
-Service activities are more predictable than manufacturing activities
-Manufacturing processes are always faster than service processes
-Service activity durations are more variable than manufacturing activity durations
Service activity durations are more variable than manufacturing activity durations
The following can be said regarding push and pull in a supply chain:
: Pull systems produce products in anticipation of future demand
:Push systems make products in anticipation of future demand
:Both push and pull systems produce products without considering future demand-
Push systems make products in anticipation of future demand
A time series forecasting model would NOT account for:
: Seasonal variations in demand
: Long term trend in demand
: Risk of supply disruption
Risk of supply disruption
The following is NOT a risk factor in a global supply chain that operates across many countries:
: Political instability
: Demand that varies from the systematic component of the forecast
: Exchange rate fluctuations
Demand that varies from the systematic component of the forecast
The information provided by forecasters to supply managers should include:
: A measure of forecast uncertainty
: Detailed explanation of the forecasting model
: The personal opinion of the forecaster
A measure of forecast uncertainty
A forecaster would be considered effective only when:
: Demand falls within the range of uncertainty specified by the forecaster about 70-75% of the time
: Demand always equals the forecast
: Demand falls within the range of uncertainty specified by the forecaster about 90-95% of the time
Demand falls within the range of uncertainty specified by the forecaster about 90-95% of the time
For a stable functional product, the random component of a forecast should be developed based on:
: The systematic component of the forecast
: The difference between actual demand and forecasted demand
: The sales history of the last month
The difference between actual demand and forecasted demand
The following is a good action for mitigating risk:
: Ignoring potential risks
: Purchasing insurance
: Only relying on a single supplier
Purchasing insurance
Modular product designs reduce the following supply chain risk:
: Production delays
: Raw material shortage
: Obsolete inventory
Obsolete inventory
Setting a priority among a list of potential supply chain disruptions would include (multiple):
: The likelihood of disruption
: The opinions of the employees
: The chance of detection by an internal system
: The cost of disruption
: The distance between the supplier and the manufacturer
The likelihood of disruption
The cost of disruption
The chance of detection by an internal system
As a global supply chain grows due to more outsourcing the probability of a disruption increases because:
: Outsourcing always improves the resilience of the supply chain
: Outsourcing reduces the number of potential points of failure in the supply chain
: More opportunities will exist for a disruption
More opportunities will exist for a disruption
It is fair to say that a qualitative forecasting model (such as surveys and expert opinions) is better for:
: Innovative products that are new to the market.
: Established products with a long history of demand data.
: Products with little to no variability in demand.
Innovative products that are new to the market.
A performance management system would be considered good if it included:
: Analysis to see if changes in a metric were due to random variation.
: Analysis only when there is a significant drop in performance.
: Analysis based on employees’ intuition and judgement.
Analysis to see if changes in a metric were due to random variation.
In a global supply chain, a performance metric is typically NOT used for the following purpose:
: To evaluate the efficiency of the supply chain.
: To measure the distance between two offshore suppliers.
: To monitor and control the quality of the products.
To measure the distance between two offshore suppliers
A process-oriented system for managing performance metrics would include:
: Displays that solely focus on financial metrics.
: Displays that help to find root causes of problems.
: Displays that only show data from the past year.
Displays that help to find root causes of problems.
A goal value for a performance metric associated with the driver “Quality” could include:
: The overall profit margin of the company.
: The number of units produced in an hour.
: Target defect rate of a facility’s parts.
Target defect rate of a facility’s parts.
A well-designed performance management system can have five drivers of performance.
: True
: False
True
Delayed differentiation can be implemented when:
: Products use the same common set of component parts.
: Each product has a unique set of component parts.
: The demand for all products is identical.
Products use the same common set of component parts.
An inventory buffer is designed to effectively guard against demand uncertainty when:
: Actual demand falls within the forecast range of uncertainty.
: Actual demand exceeds the forecast range of uncertainty.
: There is no uncertainty in demand.
Actual demand falls within the forecast range of uncertainty.
When sales for a group of products are independent, the CV (coefficient of variation) for their aggregation will be:
: Equal to the sum of the products’ individual forecast CV’s.
: Greater than the sum of the products’ individual forecast CV’s.
: Less than the sum of the products’ individual forecast CV’s.
Less than the sum of the products’ individual forecast CV’s.
When calculating an order up to level (OUL), increasing target fill rate from 95% to 99% will:
: Increase the OUL.
: Decrease the OUL.
: Have no effect on the OUL.
Increase the OUL.
The purpose of delayed differentiation could be to:
: Increase product customization.
: Decrease inventory levels.
: Simplify manufacturing processes.
Decrease inventory levels.
An inventory buffer (safety inventory) calculation would include the following:
: The lead time for supplier deliveries.
: The target fill rate.
: The cost of raw materials.
The target fill rate.
A capacity buffer calculation would include:
: The maximum product demand.
: The total number of available machines.
: The average product batch size.
The average product batch size.
If delayed differentiation is implemented, but the demand across end-products is more highly positively correlated than anticipated, a supply chain manager could expect:
: Higher than the predicted product shortages.
: Lower than the predicted product shortages.
:No change in the predicted product shortages.
Higher than the predicted product shortages.
Aggregating products is most effective when:
-Product sales are independent of one another.
- Product sales are identical.
-Product sales are negatively correlated.
Product sales are independent of one another.
A consumption map can be helpful because it:
-Represents the purchasing power of different customer segments.
-Displays how a customer interacts with the service provider.
-Shows the geographical distribution of customers.
Displays how a customer interacts with the service provider.
True or False: Offshoring should be avoided by all means.
-False
-True
False
A service supply chain differs from a manufacturing supply chain because:
-Services cannot be inventoried.
-Services do not involve any tangible goods.
-Services do not require any supply chain.
Services cannot be inventoried.
The following is NOT considered a professional service:
- Legal consulting services.
- Medical services.
-Check processing services.
Check processing services.
The following would NOT be a service performance dimension:
-Responsiveness to customer needs.
-Number of metrics used in the supply chain.
-Quality of the service delivered.
Number of metrics used in the supply chain.
