SC Modules Exam 2

200The number of devices connected to the internet is how many times greater than one year ago? 1 times 2 times 100 times 200 timesBoth the digital universe and the amount of tagged data will increase over the next five years.Which of the following about the future of data is most likely true? Both the digital universe and the amount of tagged data will increase over the next five years. The amount of tagged data will decrease in the next five years. The digital universe will double in the next five years. None of the above90%n the past two years, what percentage of all recorded data has been recorded? 75% 90% 10% 40%all of the aboveBig data is " bigger" because of which factor? More volume More variety More velocity All of the above None of the aboveClear business case for using the dataWhich organizational factors are needed to leverage supply chain visibility and big data? Transportation infrastructure Clear business case for using the data Decentralized decision making structure Outsourced analytical skillsThey facilitate information exchange across functional areas. They integrate planning activities. They ensure functional awareness.Which are fundamental characteristics of firms with high internal integration? They facilitate information exchange across functional areas. They have big data capabilities. They integrate planning activities. They ensure functional awareness.Using big data and predictive analyticsWhich is a new way to accomplish business process re-engineering? Using big data and predictive analytics Continuous improvement Total Quality Management Lean/Six sigmavarietyThe emergence of omnichannel retailing makes the need for which type of flexibility particularly important? Customization Volume Variety New Productnew productAs products move through their lifecycles more quickly, which type of flexibility becomes more important? Customization Volume New Product VarietyincreaseThe maker movement will ____________ the speed to markets of new products. Keep equal Decrease IncreaseAvailable for useLead time is the time between when an order is placed and the inventory is ___________________. Available for use Shipped Delivered ReceivedOrder transmittal Order picking Loading onto the truckWhich are components of lead time? Order transmittal Order picking Forecasting sales Waiting in the store checkout line Type: Mc Loading onto the truckReceiving facilities at or near capacityWhich is a common bottleneck mentioned in the video that increases lead time? Slow checkout lines at retail stores Too many holidays Receiving facilities at or near capacity Traffic congestionOnly during the lead timeIf a customer uses a continuous review policy to manage inventory, when is it possible to stockout? Never Only during the review interval Any time Only during the lead timePeriodic reviewIf a company places a replenishment order on the same day each week, which policy is being used? Periodic review Continuous review Unit review Hybrid reviewOn-hand inventory plus on-order inventory minus backordersHow can a company's inventory position be determined? On-hand inventory plus on-order inventory On-order inventory plus backorders On-hand inventory minus on-order inventory minus backorders On-hand inventory plus on-order inventory minus backordersContinuous reviewWhich inventory policy requires less safety stock?future utilizationInventory is a supply of goods that are held for purpose of _______________. Lost sales Creating goodwill Capital investment Future utilizationquantityInventory is good in the right _______________. Quantity Temperature Company Policyfinished goodsWhich form of inventory is the most expensive to hold? Raw materials Work-in-process Finished goods Backorderssafety stockWhich type of inventory is used as a buffer against uncertainty in demand and lead time? Cycle stock Safety stock Anticipatory inventory In-transit inventoryslowestA bottleneck is the ______________ part of a process. Fastest Slowest Most variable Smoothestsafety stockWhich type of inventory is the amount of the expected amount of inventory on-hand when the next replenishment arrives? Cycle stock Safety stock Anticipatory inventory In-transit inventoryriskThe cost associated with inventory shrink is classified as a ________ cost. Capital Storage Risk Serviceall of the aboveWhich is a cost associated with inventory? Item cost Ordering or setup cost Shortage cost Carrying cost All of the abovecapitalWhich aspect of inventory carrying cost is usually the largest? Capital Storage Risk Service$225If the inventory carrying cost percentage is 25%, then how much would it cost to carry an inventory with a value of $900? $225 $3600 $1125 $675product with low carrying costFor which type of product is a shipper likely to be least concerned about transportation? Product with low carrying cost Product with medium carrying cost Product with high carrying costmultiplying it byTaking the value of the item, of the inventory, and ________________ the inventory carrying cost percentage tells me how much it costs to carry that inventory annually. multiplying it by dividing it by adding it to subtractingA. Given uncertain, variable demand, the seller is likely to stock too many or too few with only a short time frame to sell the product at full cost.What is the special problem posed by the newsvendor model? A. Given uncertain, variable demand, the seller is likely to stock too many or too few with only a short time frame to sell the product at full cost. B. Given stable, predictable demand, the seller is likely to stock too many or too few with only a short time frame to sell the product at full cost. C. Given stable, predictable demand, the seller is likely to stock too many or too few with only a short time frame to sell the product at full cost. D. Given stable, predictable demand, the seller is likely to stock too many or too few with an extended time frame to sell the product at full cost.decreaseIf the profit margin per unit decreases (all else equal), the optimal order quantity will ___________. decrease stay the same. increasedecreaseWhen the transportation costs increase, the profit margin per unit ___________. is equal to the salvage value. increases is not affected decreasesincrease the unit profit marginEverything else held equal, a decrease in the cost of overstocking is likely to _________. increase the unit profit margin decrease the cost of transportation. decrease the unit profit margin increase the cost of transportation62%If a retailer purchases a certain item under the newsvendor model and the cost of overstocking and the cost of understocking are $180 and $290, respectively, what would be the optimal in-stock probability? 62% 84% 28% 79%More than 1000 trees.Using the newsvendor model, average demand for items for a yearly sales event is equal to 1000 with a standard deviation of 100. If the optimal in-stock probability is 83%, you would order ___________? Exactly 1000 trees. Less than 1000 trees. More than 1000 trees.Everything else held equal, the merchant would prefer to understock rather than overstock.A store receives a low-margin consumable with a shelf life of only a few days after which the item discarded. Which of the following is TRUE? Everything else held equal, the merchant would prefer to overstock rather than understock. Everything else held equal, the merchant would prefer to understock rather than overstock. Because the merchant discards unsold items, the overstock costs are zero. None of the above statements are true.82%If a retailer purchases a certain item under the newsvendor model and the cost of overstocking and the cost of understocking are $10 and $45, respectively, what would be the optimal in-stock probability? 96% 47% 82% 56%an increase in the optimal order quantityEverything else held equal for an optimal in-stock probability of 83%, an increase in the variation of average demand will mean ___________. a decrease in the optimal order quantity. an increase in the optimal order quantity. no change in the optimal order quantity.both a and b__________ tends to increase the in-stock probability. An increase in the cost of stocking out A decrease in the cost of overstocking Both (a) and (b) Neither (a) nor (b)increaseA retailer estimated demand for next year's blue sweaters at 1,000 and a standard deviation of 100. The optimal in-stock probability is about 83% and the order quantity is 1,100. The retailer learns of an attractive offer from a re-seller should any overstocking occur. Consequently, the order quantity is expected to _________. increase. decrease. stay the same.1,058If a retailer purchases a certain item under the newsvendor model and the optimal in-stock probability is 96% - which is 1.75 standard deviations above the mean - what would be the optimal order quantity given that the average expected demand is 918 with a standard deviation of 79.5? (Round up) 1,058 1,114 1,110 1,107the retailer's optimal order quantity is more likely to decrease.Under the newsvendor model, when the manufacturer increases its prices, __________. the retailer's optimal order quantity is more likely to decrease. the retailer's cost of understocking decreases. the retailer's risk decreases. None of the above are true.less; down; goes upIn the newsvendor model, if the producer charges ______, the cost of overstocking goes _____ and the cost of understocking ______. more; down; is unaffected more; down; goes up less; down; is unaffected less; down; goes upIf the producer/manufacturer reduces its prices to a retailer, the retailer's profit margins increaseWhich of the following statements is TRUE? If the producer/manufacturer increases its prices to a retailer, the retailer's cost of understocking decreases. If the producer/manufacturer reduces its prices to a retailer, the retailer's in-stock probability decreases. If the producer/manufacturer reduces its prices to a retailer, the retailer's cost of overstocking increases. If the producer/manufacturer reduces its prices to a retailer, the retailer's profit margins increase.Both a and c are trueA merchang is planning how much of a high margin product to purchase for a special event. Any product not sold can be used by the store later in a different product assortment. Which of the following are true?Everything else held equal, the merchant would prefer to understock rather than overstock.A store receives a low margin consumable with a shelf life of only a few days after which the item discarded. Which of the following is true?all of the abovewhich of the following is not one of the roles of distribution in supply chain managment?ShippingScheduling carriers, loading vehicles, securing freight, and calling for dispatch are all part of which distribution center process?Market density is high. Customer service requirements are high. Throughput volume is high.Which of the following statements is likely correct for a company to make the decision to own and operate their own distribution center instead of outsourcing.Labor availabilityDistribution manager face some of the same challenges as operation managers. Which of the following is a challenge faced by both distribution and operations?building footprint and land requirements are reducedby taking advantage of vertical capacity in the design and layout of a dc.....recievingScheduling carriers, unloading vehicles, inspecting freight, and verifying orders are all part of which dc process?An increase in the optimal order quantityeverything else held equal for an optimal in stock probability of 83%, an increase in the variation of average demand will mean...DecreaseA retailer estimated demand for next years blue sweaters at $1000 and a standard deviation of 100. The optimal in stock probability is about 83% and the order quantity is 1,100. The retailer learns of an expected increase in transportation costs that will affect profit margin. Consequently, the order quantity is expected to... Stay the same increase decreaseall of the aboveWhich of the following contributes to profit margin per unit?lost net profit (per unit)Which of the following represents the cost of understocking?all of the aboveA retailers risk decreases...an optimal order quantity exists such that cost of overproduction and the cost of underproduction are approximately equal to each otherIn a newsvendor model, which of the following is true?Given uncertain, variable demand, the seller is likely to stock too many or too few with only a short time frame to sell the product at full costWhat is the special problem posed by the newsvendor model?ordering/setup costWhich of the following is not part of the cost of overproduction?worker productivity is increased and safety is improvedby using efficient materials handling equipment....each outbound shipping dock door is assigned to a specific storeWalmart uses a "door per store" philosophy in some of their facilities. What does that mean?future utilitizationInventory is a supply of goods that are held for purpose of...quantityinventory is good in the rightriskthe cost associated with inventory shrink is classified as a ____ cost?captialWhich aspect of inventory carrying cost is usually the largest?all of the aboveWhich is a cost associated with inventory?raw materials work in process finished goodsWhich of the following is/are a form of inventory?work in processwhich form of inventory is being transformed into a final product?cycle stockwhich type of inventory is the amount of inventory that is expected to sell during a replenishment period?finished goodsWhich form of inventory is the most expensive to hold?cycle stockWhich type of inventory allows a company to take advantage of transportation utilization?multiplying itTaking the value of the item, of the inventory, and _____ the inventory carrying cost % tells me how much it costs to carry that inventory annually.product with low carrying costFor which type of product is a shipper likely to be least concerned about transportation?reduced wasteWhich is a key outcome of a lean strategy?agileThe increasing volatility shown by the supply chain volatility index indicates which strategy will become increasingly important?walmartWhich company is most likely to be historically considered to be a lean company?point of saleData that is captured at retail checkout is referred to as ______ data.Supply chain visibilityWhich is a key part of sensing?production process layout_____ involves the arrangement of machines, storage areas, and other resources within the four walls of a manufacturing or an assembly facility.assembly lineSnacks like hostess twinkies are likely manufactured using which type of process layout?engineer to order (ETO)The type of assembly process with the highest level of customization and results in high costs of unique products is_______too much time is given to see if it is going to be successfullean manufacturing is a popular operations strategy, but there are challenges associated with its successful execution. Which of the following is not one of those challenges?focuses on balancing future supply and demand by determining raw material and component needsmaterials planning....transform inputs into outputsWhat is the role of operations/production in the supply chain?it protects the goods produced and makes it easier to handle/transportin terms of logistics and operations, packaging is important because...projectA custom dream home is likely manufactured using which type of process layout?focuses on determining the appropriate production levels that a factory is able to completeCapacity planning....structuredcustomer sentiment is what type of data?unstructuredFacebook likes and tweets are what type of data?volumeThe ability to vary production dramatically is _____ flexibilityincreaseThe maker movement will ____ the speed to markets of new products.using big data and predictive analyticsWhich is a new way to accomplish business process re-engineering?clear business case for using the dataWhich organizational factors are needed to leverage supply chain visibility and big data?variety flexibilityWhich type of flexibility refers to the ability to mange transitions in production and delivery across heterogeneous products?market level demand informationSyndicated data purchased from AC Nielsen is an example of_______assemble to orderWhich of the following assembly processes has a low level of customization and a relatively fast order fulfillment speed?90%In the past two years, what % of all recorded data has been recorded?it should decreaseAs the order quantity decreases, what happens to inventory holding cost? It should stay the same. It should decrease. It should increase.minimize the setup cost and holding costThe Economic Order Quantity (EOQ) seeks to... Minimize the setup cost and holding cost. Maximize the products in stock. Always avoid having a product out of stock. Order the correct amount to avoid stock outs.it should increaseIf lead time increases, what should happen to the reorder point? It should stay the same. It should decrease. It should increase.holding cost setup costWhich costs determine the Economic Order Quantity? Holding cost Setup cost Backroom storage cost Marginsafety stock expected demand during the lead timeWhen demand and lead time are uncertain, the reorder point is made up of which of the following? Safety stock Expected demand during the lead time Economic Order Quantity Holding cost Type: MCthere was enough safety stock to cover the longer lead timeIf a truck is late and no stockout actually occurred, which statement is accurate? There was enough safety stock to cover the longer lead time. There was enough cycle stock to cover the longer lead time. The reorder point was adjusted because the truck was late. These two things are not simultaneously possible.it should increaseIf the forecast of demand increases, what will happen to the reorder point? It should stay the same. It should decrease. It should increase.it should increaseAs lead time variability increases, what should happen to safety stock? It should stay the same. It should decrease. It should increase.the customer will increase safety stockAs a customer increases service level to 99% from 97%, what will likely happen? The customer will hold more cycle stock. The customer will increase safety stock. Demand during lead time must increase. The customer will decrease safety stock.empiricalWhich is an alternate (instead of analytical) approach to determine demand and lead time parameters? Empirical Estimated Mathematical Derivedinventory carrying cost % and item costInventory holding cost is derived from which two factors? Service level and inventory carrying cost% Inventory carrying cost % and item cost Item cost and setup cost Inventory carrying cost % and setup costhow much should be ordered? when should an order be placed?Which two basic questions does an inventory policy answer? How much should be ordered? Who should place the order? When should an order be placed? How much will the order cost?forecast of demand or salesWhich is a key factor when developing an inventory policy? Margin % Warehouse utilization Labor cost Forecast of demand or sales1For a customer with a 99% service level, in how many replenishment periods out of 100 is the customer willing to have a stockout? 0 1 10 100forecast of demand salesWhat is a key factor when developing an inventory policy?How much? When?Which two basic questions does an inventory policy answer?Reorder pointWhen using the continuous review model, what dictates when an order is placed?it should increaseIf lead time increases, what should happen to the reorder point?decreaseAs the order quantity decreases, what happens to inventory holding cost? increase decrease stay the sameempircalWhich is an alternate (instead of analytical) approach to determine demand and lead time parameters?inventory carrying cost and item costInventory holding cost is derived from which two factors?the customer will increase safety stockAs a customer increases service level to 99% from 97%, what will likely happen?it should increaseAs lead time variability increases, what should happen to safety stock?there was enough safety stock to cover the longer lead timeIf a truck is late and no stock out actually occurred, which statement is accurate?warehouse/ distribution basedDHL would be an example of which type of 3PL provider?DHL SC & global forwardingWhich company is the top 3PL globally based on gross logistics revenue?

SC Modules Exam 2

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