LOGISTICS Flashcards
1
Q
A high-value ratio indicates that customers have a positive perception of a good or service. (TRUE OR FALSE)
A
TRUE
2
Q
The value of a product remains unchanged when the price and the perceived benefits change proportionally. That is, a
product does not become valuable if both the price and the benefits increase or decrease by the same percentage. TRUE OR FALSE
A
TRUE
3
Q
One way to show hospitality and courtesy to the guests who arrive at the hotel is to greet them warmly and politely at the reception desk. This is an instance of:
A
A MOMENT OF TRUTH
4
Q
In the context of customer benefit packages, _____ services are those that are not essential to the primary service but
enhance it.
A
PERIPHERAL
5
Q
Building a high-performing organization with a capable leadership and workforce is an example of _____ sustainability.
A
ECONOMIC
6
Q
Identify a difference between goods and services.
A
Goods can be stored as physical inventory, whereas services cannot be stored as physical inventory.
7
Q
_____ is an example of a nondurable good.
A
Software
8
Q
In the context of the pre-and postproduction services perspective of a value chain, which of the following are postproduction services of a value chain?
A
Recycling and remanufacturing initiatives
9
Q
The management of a corporation should find actionable performance measurements to be meaningful, and they should serve as the foundation for strategic organizational decisions. TRUE OR FALSE
A
False
10
Q
Which of the following is a quality performance measure at an operational level?
A
Service representative courtesy
11
Q
_____ measures the degree to which the output of a process meets customer requirements.
A
Quality
12
Q
Which of the following is a crucial criterion that customers use to evaluate service quality, according to research?
A
Emphaty
13
Q
13.Which of the following performance views uses metrics like productivity, flow, and asset utilization in the balanced scorecard
model??
A
The internal perspective
14
Q
Measures of _____ focus on an organization’s people and infrastructure.
A
innovation and learning
15
Q
The innovation and learning perspective in the balanced scorecard model includes measures such as:
A
training hours per employee, hiring process effectiveness, and revenue per employee.
16
Q
Airline revenue per passenger mile and hotel revenue per full-time employee are examples of _____ measures.
A
productivity
17
Q
Professor Terry Hill’s operations strategy framework cannot be applied to service-providing firms.
A
False
18
Q
Price, not product performance, is the key differentiator for businesses that make innovation a vital part of their business
strategy
A
False
19
Q
___ represent the strategic emphasis that a firm place on certain performance measures and operational capabilities
within a value chain.
A
Competitive priorities
20
Q
The style and fit of a jacket can be classified as a(n) _____ attribute.
A
search
21
Q
Which of the following distinctions exists between how customers evaluate products and services?
A
Customers cannot look at or touch services before the purchase decision, whereas they can feel a product prior to
purchase.
22
Q
Credence attributes stem from _____.
A
the nature of services
23
Q
Applying Professor Terry Hill’s generic strategy framework to McDonald’s, the operating design choices of resource
scheduling, inventory placement and control, and standardized operational and job procedures best relate to the corporate
objective of _____.
A
operational excellence
24
Q
Louis Litt is planning a vacation to an exotic island. Though he has pre-planned his accommodation and itinerary, he is
unsure of how the vacation will turn out. In this case, Louis’ vacation is high in _____ attributes.
A
experience
25
____ often drives simultaneous improvements in quality, cost, and productivity.
Time reductions
26
Which of the following statements regarding the importance of quality in establishing a competitive edge is accu
Businesses offering premium-quality goods usually have large market shares.
27
A significant difficulty in e-commerce is scalability.
True
28
Which of the following is true of radio-frequency identification (RFID) tags?
They can bring visibility and enhanced security to the handling and transportation of products.
29
_____ consists of two or more computer-controlled machines or robots linked by automated handling devices such as
transfer machines, conveyors, and transport systems.
Flexible manufacturing systems (FMSs)
30
Which of the following distinguishes businesses with high scalability from those with limited scalability?
Firms with high scalability serve additional customers at extremely low incremental costs, whereas firms with low
scalability serve additional customers at high incremental variable costs
31
_____ can be attached to objects and used to track and manage inventory and assets.
Radio-frequency identification tags
32
Which of the following is an advantage of technology use?
It increases the quality and productivity of firms.
33
Pentronix, an electronics company, is currently in the preproduction stage of launching one of its new stereo systems. To
analyze the feasibility of the product, Pentronix adopts an integrated system that allows it to manufacture the product before
it physically exists, that is, the system allows Pentronix to finalize the design of the stereo, analyze it, and do a test run. In
this context, Pentronix is using a(n) _____.
Computer-aided engineering (CAE) system
34
Choose one advantage of utilizing technology.
Technology helps restructure old and less productive industries.
35
The proportion of time the customer must spend in the service delivery system compared to the overall amount of time
required to supply the service is used to measure customer interaction. TRUE OR FALSE
TRUE
36
An Energy Star dishwasher results in an increased release of carbon dioxide into the air. TRUE OR FALSE
True
37
he specifications for an automobile part (in inches) are 10.00 ± 0.15, and the Taguchi loss function is estimated to be L(x) =
9,300 (x – T)2. Determine the estimated loss per part if the concerned quality feature has an actual value of 10.20 inches.
$372
38
In the context of the Servicescape, in the service-delivery system design, building footprints are examples of:
spatial layout and functionality
39
39.The specifications for a refrigerator part (in cm) are 5.00 ± 0.10, and the Taguchi loss function is estimated to be L(x) = 5,500
(x – T) 2. Determine the estimated loss per part if the quality characteristic (i.e., actual process performance) under study
takes on a value of 4.91 cm.
More than $30 but less than or equal to $50
40
Which of the following is true of the House of Quality?
It contains key selling points and features.
41
Unlike the customer benefit package design and configuration stage of designing goods and services, the detailed goods,
services, and process design:
focuses on implementation.
42
Rachel is the owner of SouvenirStop, a chain of souvenir shops. One of the shops is located at the City Centre Mall. Though
the shop is popular, she does not get many tourists in the City Centre Mall branch. She is considering opening another store
near a popular tourist attraction to attract more tourists to her shop. Which of the following elements of service-delivery
system design is Rachel addressing?
Facility location and layout
43
At which of the following stages are the perceptions of a firm and its goods and services created?
The service-encounter design stage
44
The weighted distance between the facility to be located and its supply and demand points rises when using the center-of-
gravity method.
False
45
Which of the following is a disadvantage of push systems?
They result in higher costs when forecasting sales is difficult.
46
A _____ produces only what is needed at upstream stages in the supply chain in response to customer demand signals from
downstream stages.
pull system
47
In the context of sourcing, multiple suppliers:
lower the risk of supply disruption.
48
Ross Spec, Inc. is an automobile manufacturing firm. It produces and assembles all the parts of automobiles in its factory
and, later, ships the finished products to its storehouses. The managers at the storehouses distribute the goods to
wholesalers. Customers then buy the products from the wholesalers. In this scenario, the push–pull boundary for Ross Spec,
Inc. is at the _____.
Wholesalers
49
_____ 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.
Projects
50
When it is difficult to gather information on costs or volumes moved between departments, the first method of developing
process layouts is utilized. The second strategy focuses on the expenses related to transporting supplies. Find a key
distinction between these two methods.
The first approach relies on a preference table that specifies the importance of two departments being close to one
another while the second approach relies on materials-handling costs as the primary criterion.
51
Which of the following is a difference between flow shops and job shops?
Unlike flow shops, job shops require frequent machine changeovers and delays.
52
An accounting firm is capable of processing 20 income tax forms per day. The average number of forms in various stages of
processing at any one time in the firm is 64. What is the average processing time per income tax form?
More than 3 but less than or equal to 4 days
53
A _____ is a symbol used in process maps to denote an input or arrival into a process.
Double-headed arrow
54
In a process design, a _____ is a specific unit of work required to create an output.
Task
55
An automobile emissions testing center has six inspectors and tests 50 vehicles per hour. Each inspector can inspect 12
vehicles per hour. How many inspectors would the center require to have a target utilization of 90 percent?
FIVE
56
As one gets away from the diagonal in the product-process matrix, the most suitable match between the type of product and
the type of process occurs.
FALSED
57
58
Three work study analysts are rating an employee. Work study analyst 1 rates the employee at a performance rating factor =
1.0 and an observed time of 2.8 minutes per unit. Work study analyst 2 rates the employee at PRF = 1.1 and an OT of 3.1
minutes per unit. Work study analyst 3 rates the employee at PRF = 0.8 and an OT of 3.0 minutes per unit. What should the
standard time be, assuming an allowance factor of 20%?
3.444 minutes per unit
59
Which of the following is true of a cellular layout?
It is not designed according to the functional characteristics of equipment.
60
Trend Specter, Inc., a handbag manufacturing company, assembles handbags in an assembly line using 10 workstations.
The target output for an 8-hour workday is 120 bags. The sum of the task times is 30 minutes/bag. The cycle time is 4
minutes/bag. The assembly-line efficiency is _____.
75%
61
Identify the most suitable layout for a facility that handles a wide variety of customized orders.
A process layout
62
In the context of assembly-line balancing, _____ is the difference between the total time available and the sum of the actual
times for productive tasks.
Idle time
63
Which of the following is an objective of ergonomics?
To reduce energy requirements while increasing accuracy
64
____ is the interval between successive outputs coming off the assembly line.
Cycle time
65
The layout of service facilities must be skillfully integrated with the Servicescape and process design to facilitate service
encounters.
True
66
According to a study by Software Advice, even when a product's manufacture has less of an impact on the environment,
consumers' propensity to purchase that product is unchanged.
False
67
In the Delphi method of judgmental forecasting, _____.
experts are not consulted as a group to make predictions.
68
In the context of a fairly stable time series with relatively little random variability, which of the following statements is true of
single exponential smoothing (SES)?
Values of the smoothing constant larger than 0.5 place more emphasis on recent data.
69
In the context of data patterns in a time series, regular patterns in a data series that take place over long periods are called
_____ patterns.
cyclical
70
An exponential smoothing model must have a smoothing constant (α) _____ to be roughly equivalent to a moving average
model with a seven-month moving average.
more than 0.20
71
Mike, a manager at Astra, Inc., plotted the company's total energy costs of 1 billion dollars over the past 10 years on a chart.
The chart suggested that the energy costs appear to be increasing in a fairly predictable linear fashion and that the energy
costs are related to time by a linear function Yt =3+5t, where Yt represents the estimate of the energy cost in year t. Given
the equation, which of the following is the value of the intercept of the straight line that best fits the time series?
3
72
Moving average (MA) methods work best when:
demand is relatively stable and consistent
73
If the time series in an exponential smoothing model exhibits a negative trend, the _____.
forecast will overshoot the actual values
74
A moving average (MA) method is most appropriate for data with major identifiable trends.
FALSE
75
When making forecasts, judgmental forecasting uses past data.
FALSE
76
In the context of causal forecasting models with multiple regression, an R-squared (R2) value of 0.70 means that 30 percent
of the variation in the dependent variable is explained by the independent variable.
FALSE
77
A doctor's office charges no-show patients $30 if they do not cancel their appointment 24 hours before the appointment. In
this scenario, which of the following can be used by the doctor's office to handle the risk of idle service capacity?
A revenue management system
78
.Greyson Spinning Mills Inc. owns 600 spinning machines. Out of these, only 500 are used each year. Given this information,
the utilization of spinning machines at Greyson Spinning Mills Inc. is _____.
0.83
79
A work order is a description of the work that has to be done for a client or customer.
FALSE
80
.Avalon Pharmaceutical Laboratories is an international group of companies that manufactures antiepileptic prescription
drugs in huge volumes. The setup time for manufacturing the drug is 75 minutes, the processing time is 8 minutes, and the
order size is 700 units. In this case, which of the following is the total time required to meet the given production volume?
5675 minutes
81
Scoria Corp. is an apparel manufacturing factory. Its average resource utilization per year is calculated as 70%. The average
safety capacity of Scoria Corp. is _____.
30%
82
Unlike a focused factory, an unfocused factory is characterized by:
Dissimilar product lines.
83
Which of the following statements is true of setup time?
It is independent of order size for manufacturing work orders.
84
The earliest revenue management systems focused solely on _____.
overbooking
85
The amount of other entities that are in the work-in-process stage also affects flow time, in addition to how long it takes to
complete the necessary tasks.
True
86
Little’s Law uses short-term averages to explain relationships.
FALSE
87
_____ is the fraction of time a workstation or individual is busy over the long run.
Utilization
88
A hotel has 200 rooms. If, on a given day, 150 rooms are occupied, which number represents the utilization of hotel rooms?
75%
89
____ = Throughput × Flow time.
WORK IN PROCESS
90
Which of the following is NOT part of a queueing system?
A map of processes and functions.
91
In an analytical queueing model, service times measure _____.
rates
92
Which of the following is another term for one simulation run?
Replication
93
Which of the following best defines the Theory of Constraints?
A set of principles that focuses on increasing total process throughput by maximizing the utilization of all bottleneck
work activities.
94
Which of the following is an example of a bottleneck management principle?
Use large order sizes at bottleneck workstations.
95
When there are things that can be carried in inventory and sold at a later time, single-period inventory models are used
FALSE
96
In the Pareto Principle, a vital few control a high percentage of the wealth.
TRUE
97
Vision Toys uses a fixed-quantity system to manage its inventories. The inventory includes plastic and LED bulbs. It was
observed that the company often faces a stockout of plastic. The average weekly demand for plastic is 100 pounds, and
historical data show that the standard deviation of weekly demand is about 7. The lead time from the plastic supplier is 2
weeks. If the company's acceptable service level is 95 percent and the number of standard deviations necessary to achieve
the acceptable service level is 1.645, the reorder point for plastic with safety stock is
more than 175 pounds but less than or equal to 225 pounds.
98
In the context of ABC inventory analysis, which of the following statements is true of class A items?
They require close control by operations managers.
99
In the context of inventory costs, _____ costs can reflect backorders or service interruptions for external customers.
stockout
100
____ inventory is an additional amount of inventory that is kept over and above the average amount required to meet
demand.
Safety stock
101
____ inventory is inventory that results from purchasing or producing in larger lots than are needed for immediate
consumption or sale.
Cycle
102
103
Which of the following statements is true of the independent demand for a stock-keeping unit (SKU)?
It needs to be forecasted.
104
Which of the following statements is true of backorders?
They result in additional costs.
105
Security threats can be reduced with the aid of technological improvements, backup sites, and systems.
TRUE
106
The time it takes on average to turn a dollar spent on purchasing raw materials into a dollar collected for a finished good is
known as the cash-to-cash conversion cycle.
TRUE
107
Air shipments have the lowest transportation cost and can carry unlimited weight.
FALSE
108
The _____ function of a supply chain is responsible for selecting transportation carriers and managing company-owned
fleets of vehicles.
logistics
109
Managing orders, transportation, and distribution to provide goods and services is part of the _____ function of the Supply
Chain Operations Reference (SCOR) model.
DELIVER
110
_____ is the discipline of managing the flow of materials and transportation activities to ensure adequate customer service
at a reasonable cost.
Logistics
111
In the context of measuring supply chain performance, the goal of sustainability measures is to:
have a carbon-neutral supply chain.
112
Foot Walkers, a sportswear store, held an average sportswear inventory of $10 million last year and reported an inventory
turnover of 5 times per year. What was its cost of goods sold?
$50 million
113
Which of the following is NOT true about returns of sold goods?
The cost of returns averages between 7 to 10 percent of the cost of goods sold, but it is decreasing.
114
In the context of the metrics used to identify improvements to the operation of supply chains, financial measures:
show how supply chain performance affects the bottom line.
115
The purpose of a master production schedule (MPS) is to break down the aggregate planning decisions into such details as
order sizes and schedules for individual subassemblies and resources by week and DAY
FALSE
116
Enterprise resource planning (ERP) systems integrate all aspects of a business into a unified information system.
TRUE
117
Which of the following is true of process selection models?
The objective is usually to minimize cost, and typical constraints are meeting demand requirements and resource
limitations.
118
The majority of service-providing firms typically require as many intermediate stages of planning for resource management
as they do for manufacturing.
False
119
Which of the following is true of a master production schedule (MPS)?
It provides a means for evaluating alternative schedules in terms of capacity requirements.
120
A company currently has no items in inventory. The demand for the next four months is 200, 400, 250, and 350 units.
Assuming a level production rate of 350 units per month, determine the ending inventory at the end of the fourth month.
200
121
In the context of sequencing, _____ is the amount of time by which the completion time exceeds the due date of a job.
Tardiness
122
.In the context of sequencing, _____ is the time needed to process a given set of jobs.
Makespan
123
In the context of operations management, triage nurses deciding on the order in which emergency patients are to be
treated is an example of _____.
sequencing
124
A requirement of the two-resource sequencing rule is that:
each job must be processed first on the first resource and then on the second.
125
In a two-resource sequencing problem, _____.
the goal is to minimize makespan.
126
In the context of sequencing, the shortest processing time (SPT) rule tends to:
minimize work-in-process inventory.
127
.The Clarke-Wright Heuristic Method is used to solve the common scheduling problem in logistics that involves determining
routes from a central depot or warehouse to many customers.
True
128
.In priority dispatching rules, the acronym FNO stands for a feasible number of operations remaining.
False
129
In the context of operations management, _____ refers to the assignment of start and completion times to particular jobs,
people, or equipment.
scheduling
130
The GAP model helps managers analyze goods and services and the processes that make and deliver them to identify and
close the largest gaps and improve performance.
TRUE
131
A kaizen event is an approach for mistake-proofing processes, using automatic devices or methods to avoid simple human
erro
False
132
In-process control is typically performed by people who run the back-end processes.
False
133
Which of the following is true of control charts?
Standard control charts are not effective when the rate of defects is extremely low.
134
Which of the following is true of common cause variation?
Standard control charts are not effective when the rate of defects is extremely low.
135
If supplier documentation is completed correctly, incoming inspection in the framework of quality control methods in
production can be completely removed.
True
136
The fundamental goal of statistical quality control is to prevent special cause variance.
TRUE
137
Total productive maintenance (TPM) seeks to reduce worker ownership of production equipment by excluding employees
from maintenance activities.
FALSE
138
Kanban is a Japanese word that means elimination of waste.
FALSE
139
Which of the following is not true about lean principles?
They are always transferable to front-office services that involve high customer contact.
140
In the context of lean tools and approaches, _____ are indicators for operating activities that are placed in plain sight of all
employees so that everyone can quickly and easily understand the status and performance of the work system.
VISUAL CONTROLS
141
142
A company is using a Kanban system with 2 containers, each holding 50 parts, between a downstream (using) and an
upstream (producing) work center. The use of a work center can handle 250 jobs per day. The average elapsed time for the
entire cycle is currently 0.25 days. The company is concerned about the safety factor for the operation. Which of the
following is the safety factor (α) of the current operation?
60 percent
143
.In the context of the major categories of waste classified by the Toyota Motor Company, which of the following is true of
overproduction?
It ties up production facilities, and the resulting excess inventory simply sits idle.
144
.Lean operating systems value idle stock and extra storage because it eliminates wait times to replenish stock.
FALSE
145
In the context of lean tools and approaches, _____, one of the components of the 5S principles, refers to a clean work
area.
SHINE
146
Which of the following is true of crashing a project?
It increases the total cost of the project.
147
In the context of the Project Evaluation and Review Technique (PERT), which of the following is true of the beta probability
distribution approach?
It allows managers to identify the best case, worst case, and most likely case for activity times
148
Which of the following is true of a typical functional organization?
A project cuts across organizational boundaries in a typical functional organization.
149
Which of the following stages of the project life cycle entails the scheduling of activities?
The Critical Path Method (CPM) allows us to investigate the effects of uncertainty of activity times on the project completion
time.
FALSE
150
Which of the following stages of the project life cycle entails the scheduling of activities?
The planning stage
151
The calculation (a + 4m + b) / 6 is used to find _____ time.
expected
152
_____ refers to reducing the total time to complete the project to meet a revised due date.
Crashing a project
