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Supply Chain Management Quiz 3

Terms in this set (20)

Which of the following sets of conditions does NOT support reactive logic?
NOT
Destination capacity limitations.
Which manufacturing process can produce many different product varieties but has a long customer experience time?
Batch operation.
Which of the following elements has the most significant impact on safety stock?
NOT
Standard deviation of daily demand.
Which of the following is NOT an advantage of Vendor Managed Inventory (VMI)?
Vendor takes responsibility for inventory ownership at the customer's location.
At the prototype testing stage of new product development ______.
NOT
both cost and flexibility are moderate
While having fewer sources is a major trend in procurement, why is it preferable not to have only one source of supply?
Increased risk.
In procurement, total cost of ownership (TCO) includes all the following except ______.
in fact, TCO includes all of the choices.
A company recently lowered its service performance from 99% product availability to 97% product availability. The change saved the company exactly $1 million per year in inventory carrying cost. Senior management now wants to lower the service level to 95% from 97%. Such a further change is likely to save ______.
less than $1 million
What is a characteristic of supply base reduction (volume consolidation)?
Has potential benefits for suppliers as well as for buyers.
Consumer demand would typically be characterized as ______.
NOT
cannot be determined
Which of the following cost elements is included in inventory-carrying cost?
All of the choices are correct.
Which of the following approaches offers the most flexibility?
ATO (Assemble to Order).
Which of the following is NOT a function of inventory?
Manufacturing specialization.
All other factors being held constant, increasing the replenishment order quantity will ______.
increase service level
Procurement plays a role in reducing costs in the supply chain. Which of the following is not included in this?
Provides uninterrupted flow of inputs while maximizing inventory.
Which of the following manufacturing approaches would describe most consumer products, such as food, razor blades, over the counter drug, etc?
MTS (Make to Stock).
Which of the following approaches would typically have the longest customer experienced lead time?
MTO.
The greatest element of the inventory carrying cost percentage?
NOT
Storage.
The work of manufacturing operations involves ______.
production planning, shop scheduling, and production
The capital component of the inventory carrying cost percent is typically dependent on:
NOT
The firm's hurdle rate for making new investments.
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