Old quiz questions Flashcards
When implementing a modular system, what jobs are most affected
-Product designer
-Quality analyst
-Performance manager
-Legal service provider
Product designer
Delayed differentiation can be implemented when
-Products use the same common set of components
-Products are functional
-Products are innovative
-Resources are flexible
Products use the same common set of components
If delayed differentiation is implemented, but the demand across end-products is more highly positively correlated than anticipated, a supply chain manager could expect
-Lower than predicted shortages
-No change for predicted product shortages
-Higher than predicted product shortages
-An impact product shortages unknown if the will increase or decrease
Higher than predicted product shortages
An Inventory Buffer (safety inventory) calculations would include the following
-The current inventory level
-The pipeline inventory level
-The target fill rate
-The average product batch size
The target fill rate
An inventory buffer is designed to guard against demand uncertainty when
-The product is not functional
-Actual demand falls within the forecast range of uncertainty
-The product is functional
-Actual demand falls outside the forecast range of uncertainty
Actual demand falls within the forecast range of uncertainty
The purpose of delayed differentiation could be to
-Increase the number of component parts
-Improve product fill rate
-Decrease inventory levels
-Increase inventory levels
Decrease inventory levels
When calculating an order up to Level (OUL), increasing the target fill rate from 99% to 95% will
-Decrease OUL
-Not affect OUL
-increase OUL
Decrease OUL
Aggregating products is most effective when,
-Holding costs are high
-Capacity cast are high
-Product sales are independent on one another
-Product sales have a positive correlation
Product sales are independent on one another
A capacity buffer calculation would include the following
-The current inventory level
-The pipeline inventory level
-The target fill rate
-The average batch size
The average batch size
When sales for a group of products are independent, the CV (coefficient of variation) for their aggression will be
-Less than the sum of the products’ individual forecast CV’s
-Equal to the sum of the products’ individual forecast CV’s
-More than the sum of the products’ individual forecast CV’s
Less than the sum of the products’ individual forecast CV’s
The extended enterprise includes all the upstream entities from the origin the material suppliers, suppliers of suppliers and suppliers to producers and service providers and all the downstream entities from customers, stakeholders, strategic partners, related industries, competition, and infrastructure to end-of-life considerations.
-True
-False
True
When running a Monte Carlo simulation model 1000 times, the following is true:
-Results will always follow a normal distribution.
-Only the output mean value will be displayed .
-Results will vary randomly.
-The optimal order quantity will be determined.
Results will vary randomly.
A goal value for a performance metric associated with the driver “Quality” could include:
-Target defect rate of a facility’s parts.
-Target utilization of a facility’s resources.
-Target for percentage of time a facility delivers parts as scheduled.
-Target for level of courtesy for call center operators.
target defect rate of a facility’s parts.
A process-oriented system for managing performance metrics would include:
-Displays that help to find root causes of problems.
-Only metrics associated with service-related processes
-Only those metrics associated with outsourced processes.
-Only metrics associated with manufacturing processes (i.e., no service-related metrics).
Displays that help to find root causes of problems.
A performance management system would be considered good if it included:
-Bonuses for managers who met stated goals.
-Pay raises for employees whose performance metrics were better than the previous year’s value.
-Analysis to see if changes in a metric were due to random variation.
-Decisions made based on a color-coded performance dashboard.
Analysis to see if changes in a metric were due to random variation.
A time series forecasting model would NOT account for:
-Seasonal sales patterns.
-Risks of supply distribution.
-Sales declines.
-Sales growth.
Risks of supply distribution.
The information provided by forecasters to supply managers should include:
-A measure of forecast uncertainty.
-The recommended capacity buffer size.
-The location of production facilities.
-An estimation of overall supply chain risk.
A measure of forecast uncertainty.
It is fair to say that a qualitative forecasting model (such as surveys and expert opinions) is better for:
-Functional products with past sales history.
-Innovative products that are new to the market.
-Products with stable sales history.
-Products whose sales are increasing over time.
Innovative products that are new to the market.
For a stable functional product, the random component of a forecast should be developed based on:
-The difference between actual demand and forecasted demand.
-The estimation provided by the sales force.
-The estimation provided by the supply planner.
-The production lead time.
The difference between actual demand and forecasted demand.
A forecaster would be considered effective only when:
-Demand has seasonality and trend.
-Sales increase year by year.
-Demand increases year over year.
-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.
A well-designed performance management system can have five drivers of performance.
-True
-False
True
In a global supply chain, a performance metric is typically NOT used for the following purpose:
-To measure the quality of an offshore supplier’s products.
-To show the percentage of time an offshore supplier delivers a part on time.
-To measure the distance between two offshore suppliers.
-To measure the level of friendliness of an offshore call center’s operators.
To measure the distance between two offshore suppliers.
Business function integration depends on the involvement of all the entities across the business enterprise. It includes which of the following?
-Product Design Department
-Environmental Health and Safety Department
-Finance Department
-All of the above
All of the above
Cross-company integration involves developing and enhancing the competencies and capabilities and the transfer of know-how and management wherewithal across company boundaries to improve all facets of the business enterprises. Leadership and talent development are crucial for assuring the going commitment across the global supply chains.
-True
-False
True
The following variables are NOT included in the traditional newsvendor model:
-Production cost
-Salvage cost
-Demand forecast CV
-Target fill rate
Target fill rate
One of the main features of a fully integrated supply chain is the alignment of incentives. The alignment of incentives across the operating system and supply chain may include which of the following:
-Maximizing profits by cutting suppliers’ pricing in a responsive supply chain.
-Minimizing resource idle time in a cost efficient supply chain.
-Minimizing production costs in a responsive supply chain.
-None of the above.
None of the above.
If the traditional newsvendor model is modified by including inventory holding (i.e., carrying) cost, the following will occur:
-The order quantity will decrease compared to the model results without holding cost.
-order quantity will be unaffected compared to the model results without holding cost.
-The order quantity will increase compared to the model results without holding cost.
-Cannot answer without other information.
The order quantity will decrease compared to the model results without holding cost.
Business model integration is a cutting-edge management construct that incorporates the full integration of the organization and its internal functional areas with all the external driving forces and entities. It includes which of the following:
-End-of-life considerations
-Customer relationships
-The extended enterprise
-All of the above
All of the above
In the traditional newsvendor model, the following assumption is made:
-Salvage cost will vary randomly with a specified mean and standard deviation.
-Production cost is known with certainty.
-Demand is known with certainty.
-The product will be available for sale in future time periods.
Production cost is known with certainty.
The traditional newsvendor model is used to:
-Determine the capacity buffer level.
-Set the order quantity for a product.
-Minimize resource costs.
-Maximize labor utilization.
Set the order quantity for a product.
The extended enterprise includes all the upstream entities from the origin the material suppliers, suppliers of suppliers and suppliers to producers and service providers and all the downstream entities from customers, stakeholders, strategic partners, related industries, competition, and infrastructure to end-of-life considerations.
-True
-False
True
The best risk responses for effectively managing risks within business enterprises include:
-Reducing the severity of the risk
-Sharing risks with suppliers
-Managing compliance
-All of the above
All of the above
Reverse logistics goes beyond simply providing the logistical aspects of the flow of end-of-life products and materials. It includes which of the following:
-Collection of scrap and use materials
-Final disposition of the materials
-Handling of the materials
-All of the above
All of the above
Modular product designs reduce the following supply chain risk:
-Obsolete inventory
-Equipment downtime
-Transportation delays
-Cyber attack
Obsolete inventory
Failure modes and effects analysis is not useful for precisely determining:
-When a product or process will fail.
-The probability that a failure may occur.
-What the expected failures might be.
-None of the above (FMEA is useful for all of them).
When a product or process will fail.
Which of the following is not a product or materials recovery option:
-Refurbishment
-Repair
-Disposal
Disposal
Sustainability encompass the broad roles and responsibilities that pertains to the rational search for business success and the preservation of the natural environment. Is the statement true or false?
-True
-False
Life cycle assessment (LCA) is a systematic technique used to analyze and evaluate the effectiveness of reverse logistics.
-True
- False
True
The risk management system (RMS) does not include which of the following:
-Identifying potential risks
-Eliminating all risks
-Dealing with disruptions
Eliminating all risks
Risk monitoring includes management controls, audits and reviews.
- True
-False
True
Reverse logistics involves dealing with end-of-life considerations through
-Open-loop mechanisms
-Closed-loop mechanisms
-Eliminating discards
Open-loop mechanisms
Procurement strategies provide the guiding light that steers the organization along its systems, processes and activities. They are articulated through which of the following:
-High-level plans and programs of procurement management.
-High-level aspirations and targeted outcomes.
-The qualitative and quantitative techniques.
High-level plans and programs of procurement management.
The intent of supplier development is to create successful situations and outcomes in which the supply chain is enhanced by which of the following?
-Minimizing the transfer of knowledge from suppliers to competitors.
-Assuring the suppliers have the means and mechanisms to succeed.
-Adapting the fundamentals of mainstream management approaches.
Assuring the suppliers have the means and mechanisms to succeed.
The main purpose of supplier performance determinations is to provide an early understanding of the positive trends and concerns about negative aspects.
-True
-False
True
Partnerships and alliances involve forming relationships based on which of the following:
-Mutual interdependencies.
-Trust.
-Linked actions.
-All of the above.
All of the above.
Supplier evaluation involves a comprehensive assessment of the suppliers, their capabilities and resources, performance. Supplier assessment includes which of the following:
-Suppliers’ the capabilities and resources
-Management-related and financial considerations
-Performance Considerations
-All of the above
All of the above
Supplier management involves determining the critical materials, parts and components, identifying the most important suppliers, and ascertaining the crucial supply chain requirements of the operating systems. The focus is on which of the following:
-New suppliers
-Existing suppliers
-Customers
-All of the above
Existing suppliers
Procedures are standard operating approaches that map out the accepted flow of activities and actions. Standard operating procedures (SOPs) define and articulate:
-Who is responsible for executing the selected activities?
-What activities do not have to be considered.
-Activities that require special considerations.
-None of the above.
Who is responsible for executing the selected activities?
Supply chain management should assure that suppliers are always managed using which of the following:
-Arms-length relationships.
-Connecting with multiple contributors.
-Controlling the supplier’s inputs and outputs.
Connecting with multiple contributors.
An initial step in identifying potential suppliers involves which of the following:
-Developing appropriate guidelines and metrics.
-Assessing potential supplier candidates.
-Developing a list of potential suppliers.
-None of the above.
Developing a list of potential suppliers.
The extended enterprise includes all the upstream entities from the origin the material suppliers, suppliers of suppliers and suppliers to producers and service providers and all the downstream entities from customers, stakeholders, strategic partners, related industries, competition, and infrastructure to end-of-life considerations.
-True
-False
True
When running a Monte Carlo simulation model 1000 times, the following is true:
-Results will always follow a normal distribution.
-Only the output mean value will be displayed .
-Results will vary randomly.
-The optimal order quantity will be determined.
Results will vary randomly.
The traditional newsvendor model is used to:
-Determine the capacity buffer level.
-Set the order quantity for a product.
-Minimize resource costs.
-Maximize labor utilization.
Set the order quantity for a product.
In the traditional newsvendor model, the following assumption is made:
-Salvage cost will vary randomly with a specified mean and standard deviation.
-Production cost is known with certainty.
-Demand is known with certainty.
-The product will be available for sale in future time periods.
Production cost is known with certainty.
Business model integration is a cutting-edge management construct that incorporates the full integration of the organization and its internal functional areas with all the external driving forces and entities. It includes which of the following:
-End-of-life considerations
-Customer relationships
-The extended enterprise
-All of the above
All of the above
If the traditional newsvendor model is modified by including inventory holding (i.e., carrying) cost, the following will occur:
-The order quantity will decrease compared to the model results without holding cost.
-The order quantity will be unaffected compared to the model results without holding cost.
-The order quantity will increase compared to the model results without holding cost.
-Cannot answer without other information.
The order quantity will decrease compared to the model results without holding cost
One of the main features of a fully integrated supply chain is the alignment of incentives. The alignment of incentives across the operating system and supply chain may include which of the following:
-Maximizing profits by cutting suppliers’ pricing in a responsive supply chain.
-Minimizing resource idle time in a cost efficient supply chain.
-Minimizing production costs in a responsive supply chain.
-None of the above.
None of the above.
The following variables are NOT included in the traditional newsvendor model:
-Production cost
-Salvage cost
-Demand forecast CV
-Target fill rate
Target fill rate
Cross-company integration involves developing and enhancing the competencies and capabilities and the transfer of know-how and management wherewithal across company boundaries to improve all facets of the business enterprises. Leadership and talent development are crucial for assuring the going commitment across the global supply chains.
-True
-False
True
Business function integration depends on the involvement of all the entities across the business enterprise. It includes which of the following?
-Product Design Department
-Environmental Health and Safety Department
-Finance Department
-All of the above
All of the above
The best risk responses for effectively managing risks within business enterprises include:
-Reducing the severity of the risk
-Sharing risks with suppliers
-Managing compliance
-All of the above
All of the above
Modular product designs reduce the following supply chain risk:
-Obsolete inventory
-Equipment downtime
-Transportation delays
-Cyber attack
Obsolete inventory
Sustainability encompass the broad roles and responsibilities that pertains to the rational search for business success and the preservation of the natural environment. Is the statement true or false?
-True
-False
True
Life cycle assessment (LCA) is a systematic technique used to analyze and evaluate the effectiveness of reverse logistics.
-True
-False
False
Reverse logistics involves dealing with end-of-life considerations through
-Open-loop mechanisms
-Closed-loop mechanisms
-Eliminating discards
Open-loop mechanisms
