Exam #2 Review Flashcards
Which of the following is a disadvantage of pull systems?
a. they are not effective when sales patterns are consistent
b. they are not effective when there are few distribution centers and products
c. they result in shortages if schedules are missed
d. they result in higher costs when forecasting sales is difficult
c. they result in shortages if schedules are missed
Which of the following is a disadvantage of push systems?
a. they are not effective when sales patterns are consistent
b. they are not effective when there are few distribution centers and products
c. they result in shortages if schedules are missed
d. they result in higher costs when forecasting sales is difficult
d. they result in higher costs when forecasting sales is difficult
Describe how a product moves through a push system
Push system: produce goods in advance of customer demand using a forecast of sales
push the product through
supplier – factory – warehouse – retailer – customer
Describe how a product moves through a pull system
Pull system: goods produced based on demand
goods are pulled by customer demand
Receive order from the customer – decide production based on orders – get materials – produce product – send to customer
The center-of-gravity method is often used to locate _____.
a. availability of raw materials
b. demand markets
c. site locations
d. service facilities
d. service facilities
A _____ produces only what is needed at upstream stages in the supply chain in response to customer demand signals for downstream stages.
a. third-party logistics provider
b. push system
c. pull system
d. distribution system
c. pull system
_____ refers to acquiring capabilities toward distribution, or even customers.
a. Contract manufacturing
b. Outsourcing
c. Backward integration
d. Forward integration
d. Forward integration
supplier <– factory –> warehouse –> retailer –> customer
Compare forward and backward integration
supplier <– factory –> warehouse –> retailer –> customer
Forward integration acquires capabilities toward customers
Backward integration acquires capabilities toward suppliers
Unlike firms that outsource, firms engaged in offshoring:
a. manage to reduce travel expenses
b. are able to enforce intellectual property rights easily
c. maintain ownership of the facility in another country
d. have better control on quality
c. maintain ownership of the facility in another country
A difference between efficient supply chains and responsive supply chains is that responsive supply chains _____.
a. focus on flexibility and responsive service
b. focus on maximizing efficiencies in process flow
c. seek to balance capacity and demand, resulting in low levels of inventory
d. seek to minimize cost of routing products from factory to customers
a. focus on flexibility and responsive service
One advantage of a distributive system, such as blockchain technology, it that:
a. accountability among value chain participants are dependent on a single supplier
b. transactions cannot be traced back to the original source
c. control of information is in the hands of one individual, rather than multiple people
d. no single individual or organization has total control of the information
d. no single individual or organization has total control of the information
How would you use the center of gravity method to find the optimal location for a warehouse?
To find x, take each x-value and multiply it by its respective distance then add them together
To find y, take each y-value and multiply it by its respective distance then add them together
A process _____ is the beginning or end of a process.
a. design
b. map
c. boundary
d. bottleneck
c. boundary
_____ are organized around particular types of general-purpose equipment that are flexible and capable of customizing work for individual customers.
a. Assembly line processes
b. Flow shop processes
c. Continuous flow processes
d. Job shop processes
d. Job shop processes
What are the four principal types of processes?
Which process produces the most product?
Which process produces the most customized product?
Projects
Job shop processes
Flow shop processes
Continuous flow processes
Continuous
Projects
_____ are large‐scale, customized initiatives that consist of many smaller tasks and activities that must be coordinated and completed to finish on time and within budget.
a. Projects
b. Flow shop processes
c. Continuous flow processes
d. Job shop processes
a. Projects
_____ are organized around a fixed sequence of activities and process steps, such as an assembly line, to produce a limited variety of similar goods or services.
a. Assembly line processes
b. Flow shop processes
c. Continuous flow processes
d. Job shop processes
b. Flow shop processes
_____ create highly standardized goods or services, usually around the clock in very high volumes.
a. Assembly line processes
b. Flow shop processes
c. Continuous flow processes
d. Job shop processes
c. Continuous flow processes