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Learnsmart 12-15

Terms in this set (236)

A stock or store of goods is _______.
inventory
Because firms tend to have about 30 percent of current assets invested in inventory, a reduction in inventories can result in a significant ______.
increase in ROI
One of the reasons a firm carries inventory is to ______, that is, to achieve constant output and use inventory to meet overly high requirements during seasonal periods.
smooth production requirements
The overall objective of inventory management is to achieve satisfactory levels of ______ while keeping inventory ______ reasonable.
customer service; costs
________ inventory systems take physical inventory counts at fixed intervals and decide how much to reorder of each item.
Periodic
Inventory is a _____ or _____ of goods
stock, store
Which of the following statements about inventory costs is/are true?
Holding costs can include the cost of insurance.
Ordering and setup costs are treated the same.
Which of the following is not a way inventory affects performance measures?
Dividends
Which of the following is NOT a normal function of inventory?
To provide an investment vehicle.
Which of the following statements about inventory management is/are true?
One of the goals is to keep inventory costs within reasonable bounds.
One of the goals is to achieve good customer service.
Inventory managers must decide how much to order.
Which of the following statements about the A-B-C approach is/are true?
Approximately 10% to 20% of items account for about 60% to 70% of annual dollar value.
It is intended to help firms allocate control efforts based on the relative importance of items in inventory.
Its purpose is to identify inventory items that are the most important to the business.
______ inventory systems continuously keep track of changes to the inventory system and a fixed quantity is ordered when the amount on hand reaches a predetermined level.
Perpetual
In order to rank inventory items in an A-B-C analysis, we arrange annual dollar values for all items in ______.
descending order
Which is the definition of holding cost in the EOQ model?
The cost to carry a single unit in inventory for a length of time.
How much to order, and when to order, are the two basic issues in an _______.
inventory ordering policy
The ______ approach classifies inventory items according to a measure of importance, such as annual dollar value.
A-B-C
Place the following steps for the A-B-C approach in the correct order.
Multiply annual volume by unit price for each item.
Arrange items in descending order by annual dollar value.
Classify the items as A,B,C.
Which of the following is/are the basic issue/s of inventory management?
When to order
How much to order
Which of the following are assumptions of the EOQ model?
Annual demand is known.
Lead time is known.
Which is the correct formula for the annual holding cost in the EOQ model?
(Q/2)H
Which of the following statements about the economic production quantity is/are not true?
The maximum inventory level is the same as the EPQ.
The assumptions are the same as in the EOQ model.
In the economic production quantity (EPQ) model, ______ costs are analogous to ordering costs.
setup
Which of the following statements about the EOQ model is/are true?
Orders are placed when there is just enough inventory left to cover the lead time demand.
The EOQ minimizes the sum of annual ordering and holding costs.
Which is the correct formula for the economic order quantity?
2DS/H√
Which statement is true for the economic production quantity (EPQ) model?
It is used when production occurs in batches.
In the economic production quantity (EPQ) model, the larger the production run size, the ______ the number of runs needed per year, and the _______ the annual setup cost.
fewer; lower
Which is the correct formula for the maximum inventory in the EPQ model?
(Qp/p)(p-u)
Which is the correct formula for the total annual cost in the EOQ model?
(Q/2)H + (D/Q)S
Which is the correct formula for the total cost in the quantity discount model?
(Q/2)H + (D/Q)S + PD
When carrying costs are expressed as a percentage of price, what happens to carrying costs as the quantity discount increases?
Carrying costs per unit decline
Which is the correct formula for the economic production quantity?
2DS/H√p/p−u√
_____ stock is the amount of inventory required to meet expected demand.
cycle
Which of the following statements about quantity discount models is/are true?
The optimal quantity may not be the same as the EOQ.
Total cost must include product cost to evaluate options.
Place the following steps for finding the EOQ in a quantity discount model with variable H in the correct order.
1. Start with the lowest price. Compute the minimum point for each price range until you find a feasible point.
2. If the minimum point at the lowest cost is feasible, it is the optimal solution.
3. Otherwise, compare total costs at the price breaks for all lower prices with the total cost of feasible minimum point.
4. The optimal point is the quantity that yields the lowest total cost.
Which is the correct formula for the reorder point with no variability?
d x LT
Which is the correct formula for the total cost in the EPQ model?
(Imax/2)H + (D/Q)S
Which of the following statements about reorder point ordering is/are true?
Safety stock is required if lead time is variable.
Safety stock is required if demand is variable.
What does LT represent in the reorder point formula?
lead time
Which type of inventory is held to reduce the probability of a stockout?
Safety stock
At which point in an order cycle is the risk of a stockout occurring the greatest?
During the lead time for an order that has been placed
What does 'z' represent in the safety stock formula?
The stockout risk a manager is willing to accept
If annual demand is 10,000 units and 9,000 units of demand was filled directly from inventory, with shortages totaling 1,000 units, the annual fill rate is ______.
90%

Fill rate is percentage of demand filled directly from inventory.
Service level is the _____ that demand will not exceed supply. Service level =100% - _____
probability
stockout risk
Which of the following statements about the fixed-order-interval model is/are true?
The order point is fixed.
It can produce savings in shipping costs.
Which of these is NOT a factor that determines the appropriate amount of safety stock?
Average quantity discount
Which of the following is correct regarding inventory monitoring under the fixed-order-interval-model?
Only periodic checks of inventory required
What does the formula zσdLT represent?
Safety stock given variability in demand during lead time.
The ____ ____ is the percentage of demand filled by the inventory on hand.
fill
rate
What triggers orders in a fixed-order-interval model?
The time since the last order
Which of the following is not a reason for using the fixed-order-interval model?
The firm desires to minimize inventory requirements.
If both the demand rate and lead time are constant, how do the fixed-interval model and the fixed-quantity model compare?
They function identically
In a fixed-order-interval model, larger-than-expected demand causes which of the following situations to occur?
Larger order size than expected
What varies in a fixed-order-interval (FOI) model?
The amount of each order
In the single-period model, ______ cost is the unrealized profit per unit, while _____ cost is the difference between the purchase price and salvage value of an item.
shortage
excess
True or false: Differences between the fixed-order interval and fixed-quantity model only become apparent when variability exists in demand or lead time.
True
Which of the following is the correct formula for the service level in the single period model with continuous stocking levels?
Cs/ (Cs+ce)
Match the following terms from the equation to find the order size in a fixed-interval model with their meaning.
Q: Order quantity
Dbar: average demand
OI: Order Interval
LT: Lead time
(OI+LT): expected demand during protection interval
Od: Standard Deviation
A: Amount on hand at reorder time
Which of the following statements about discrete stocking levels in the single-period model is/are true?
If the SL is equal to one of the probabilities, both that level and the next higher one have the same minimum cost.
After finding the optimal service level, pick the next highest stocking level.
Which of the following statements about the single-period model is/are true?
It minimizes costs of shortage and excess.
It is used for ordering items that have a limited lifespan.
In the single-period model, what is the key to determining the optimal stocking level?
Service level
Which of the following is the correct formula for the service level in the single period model with discrete stocking levels?
Cs/Cs+Ce
Which of the following is the correct formula for the order quantity in the fixed-order-interval model?
d(OI + LT) + zσdOI+LT√- A
Demand for finished goods is considered ____ demand. The demand for components and raw materials derived from this is known as ___ demand.
dependent
independent
MRP is a methodology that translates ________ requirements for end items into time-phased requirements for subassemblies, parts, and raw materials.
master schedule
Which of the following statements about the master schedule are true?
It does not have a predetermined or fixed time horizon.
It must be at least as long as the cumulative lead time.
The bill of materials, an input for MRP, lists all assemblies, subassemblies, parts, and raw materials needed to produce __________.
one unit of a finished product
Low-level coding restructures the _____ of materials so that all occurrences of a component occur at the lowest level that component occurs.
bill
Which of the following statements about dependent demand are true?
The materials that go into the production of a car are considered dependent demand because they are a part of the car.
Once forecasts or production schedules are complete, dependent demand is known exactly.
Dependent demand tends to be more intermittent than independent demand.
Which of the following are the key questions MRP is designed to answer?
What is needed?
How much is needed?
When is it needed?
Which of the following statements about inventory records is not true?
They are automatically updated by the MRP system during planning.
A ____ _____ _____, known as the MPS, is the anticipated build schedule stating which end items are to be produced, when, and in what quantities for the next 12 weeks or so.
Listen to the complete question
Master Production Schedule
A ____ ____ _____ is a visual depiction of the requirements on a bill of materials.
product structure tree
MRP processing takes end item requirements specified by the master schedule and explodes them into __________ for assemblies, parts, and raw materials using the bill of materials offset by lead times.
time-phased requirements
What is the term for combining all occurrences of a component to the lowest level at which it appears on a bill of materials?
Low-level coding
In MRP, ___ ____ are the actual amount needed in a time period.
net requirements
Inventory records are one of the three primary inputs in MRP. It includes information on the status of each item by time period, called _____ ______
time buckets
MRP processing takes end item requirements specified by the master schedule and ____________ them into time-phased requirements for assemblies, parts, and raw materials using the bill of materials offset by lead times.
explodes
In MRP, _________ are the planned amounts to order in each time period.
planned-order releases
In MRP, ____ _____ are open orders scheduled to arrive at a specific point in the future.
scheduled
receipts
Which of the following are advantages of the net-change method of updating MRP records?
Only the changes are exploded into the system. Everything else stays unchanged.
The system is always up-to-date.
Which of the following are secondary reports generated by the MRP system?
performance- control reports
planning reports
exception reports
True or false: Safety stock mitigates possible delivery problems for dependent demand items.
False
What is the term for the sum of the lead times that are required from start to finish of a product's production process?
Cumulative lead time
For dependent-demand items with variable demand, which statement is true about lot sizing?
Lot-for-lot ordering is most appropriate.
In MRP, ______ are the quantities expected to be received by the beginning of the period in which it is showed.
planned-order receipts
When will the economic order quantity result in an appropriate lot size for dependent-demand items?
When demand is uniform, use EOQ.
The regenerative system updates MRP records _____. . Net-change systems update MRP records _____
periodically
continuously
True or false: MRP is applicable to services as well as to manufacturing.
True
Which of the following are primary reports generated by the MRP system?
Planned orders
Order releases
Changes
Which of the following are advantages of MRP?
Ability to evaluate capacity requirements
Low levels of in-process inventory
A means to allocate production time
In managing inventory of lower-level components, what is used to offset the risk caused by variable lead times?
safety time
Which of the following is the goal in inventory management for both dependent and independent demand?
Minimize the sum of ordering/setup and holding cost.
Which of the following are potential risks associated with MRP?
Products being produced differently from the bill of materials
Inaccurate forecasts
Assumption of constant lead time
Which of the following statements about lot sizing are true?
Fixed-period ordering provides coverage for several periods at one time.
Lot-for-lot ordering does not tend to take advantage of economies of fixed order size.
Lot-for-lot ordering requires a new setup for each order.
MRP in services usually involves what?
Material in service package
In response to the need to incorporate marketing, finance and other functional areas' feedback into the material planning process, what system was developed?
MRP II
What advantage of MRP eliminates the need to collect detailed usage information on the production floor?
Backflushing
____ _____ MRP is another name for MRP II, into which _____ loops have been incorporated
Closed loop
feedback
Capacity requirements planning is the process of determining _____ range ____ requirements
short
capacity
Which of the following are requirements of MRP?
Accurate inventory records
Accurate master schedule
Integrity of file data
Which of the following statements about MRP II is/are true?
It is an iterative process.
Different functional areas contribute to the planning process.
What term describes how systems might react to changes?
System nervousness
Closed-loop MRP systems evaluate a proposed material plan relative to available capacity. If a proposed plan is not feasible, it must be revised. The evaluation is referred to as what?
Capacity requirements planning
Which of the following statements about capacity requirements planning is/are true?
Inputs include the current shop load.
Inputs include routing information.
Key outputs include load reports for each work center.
In capacity requirements planning, ____ _____ are reports that compare known and expected future capacity requirements with projected capacity availability.
load reports
What is a method used for planning orders in a supply chain?
Distribution resource planning
Which of the following statements about time fences for capacity requirements planning is/are true?
They are used to prevent system nervousness.
The closest time fence is the most restricted.
Match the ERP software modules with their descriptions.
Marketing: Supports lead generation
Purchasing:facilitates vendor selection
Inventory management:identifies inventory requirements
Distribution: contains information on third party shippers
Sales: Information on orders, invoices
Supply Chain Management: facilitates supplier and customer management
Customer Relationship Management: contact information, buyer behavior
Which of the following are advantages of ERP?
It increases efficiency of operations.
It standardizes financial information across the company.
It standardizes manufacturing processes.
Standardizing HR information.
The integration of financial data.
Which of the following are options for dealing with insufficient capacity?
Schedule overtime.
Prioritize orders, delaying some.
Shifting orders to adjacent periods.
What is the goal of DRP?
Achieve a balance of supply and demand
Which of the following are disadvantages of ERP?
There are a number of associated hidden costs.
It may take time after the conversion to return to previous levels of productivity.
It can be expensive to convert data from legacy systems.
It can be very expensive to implement.
It may require extended use of consultants.
A computerized system designed to connect all parts of a business organization as well as a part of its supply chain to a single database for the purpose of information sharing is known as _____.
enterprise resource planning (ERP)
ERP has expanded beyond manufacturing into what role?
Enterprise applications integration
Select the best definition of Lean Operations.
A flexible system of operations using fewer resources than a traditional system
At Toyota Lean Manufacturing is focused on Waste Reduction in every aspect of process. What is meant by "waste" in this context?
Waste is anything that does not add value to or interferes with production.
What characteristic of lean systems enables equipment flexibility and output variety without disruption in a lean system?
Quick changeovers
Supply chain ____ can inhibit operations due to minimal inventory levels in lean systems.
disruptions
Lean, which originated at Toyota, uses many Japanese terms for its concepts. Match the term with the definition.
Muda: Waste and inefficiency
Kanban: manual system
Heijunka: variations
Kaizen: continous improvement
Jidoka: quality at the source
What are some of the benefits of Lean Operations?
greater productivity
lower costs
shorter cycle times
higher quality than nonlean systems
In order to make a JIT/Lean system flexible to handle a variety of products, what two things must be reduced?
Long setup/changeover times and long lead times from vendors
Which of the following statements is true about Lean Manufacturing?
Lean Manufacturing started in Japan at Toyota.
Select the four building blocks which support the goals of Lean/Just-in-Time systems from the following list:
Product design
process design
personnel/organizational elements
manufacturing planning and control
Which of the following attributes are characteristics of lean systems? (Select all that apply.)
Continuous improvement
Quick changeovers
Waste reduction
Which of the following is not a benefit of lean systems?
Economies of scale
Which of the following is an example of standardized parts supporting Lean.
Same hard drive casing is used in all Dell Computers so assembler learns how to install one part number across all models of computers.
Identify the true statements about Kanban. (Select all that apply.)
It requires workers to signal when they have run out of parts at their assembly operation.
It replaces material or parts only when needed, so as to avoid overproduction.
How do small lot sizes support Lean process design? (Select all correct answers.)
More flexibility to meet customer demand
Work-in-process inventory is reduced
Inspection and rework costs are less
In order to achieve a balanced, rapid flow through a Lean system, disruptions must be minimized. What are some causes of disruptions in production? (Select all that apply.)
Late deliveries from suppliers
Quality problems
Equipment breakdowns
Single minute exchange of die (SMED) is a system developed at Toyota for reducing what?
Setup time
What are the two common threads across all the building blocks of Lean/JIT systems.
Speed and Simplicity
What are the two parts of Autonomation, a Lean quality improvement technique?
Defect detection and work stoppage
Select the best definition of takt time, which is used in Lean process design to balance workload.
The cycle time needed to meet the demand rate
Match the four aspects of Product Design which support the goals of Lean/JIT systems with their definition.
Standard Parts: having fewer parts
Modular design: standardized
Capable production quality:production systems
Concurrent engineering: team approach
In a Lean organization workers are treated as assets. What does this mean in a lean organization? (Select all the examples that apply.)
Workers are well-trained in Lean philosophy and methods.
Workers are given authority to make decisions that effect their work.
In Lean process design what is the ideal lot size in numbers of units?
1
Select the best definition of level loading.
Producing at the same rate or quantity each day (e.g., 100 units of A, B, C each day with constant ratios)
How does setup time reduction contribute to Lean process design?
Smaller lot sizes mean more setups (changeovers of equipment). Smooth, rapid flow is the goal.
Autonomation, a quality improvement technique, is known by what Japanese word?
Jidoka
Which of the below statements best describes the difference between a push and pull system of production?
Push: work is sent to the next operation upon completion. Pull: the subsequent operation takes from the preceding.
In a one-shift operation, if the operating time is 480 minutes and there is one 30-minute lunch break and two 15-minute rest breaks, what is the takt time if the demand rate is 70 units per day.
6 minutes per cycle
Minus breaks there are 420 minutes to make 70 units,
The acronym WIP stands for what?
Work-In-Process
What are some of the benefits of cross-training workers, a personnel management method often used in a Lean organization? (Select all the reasons that apply.)
Helps with system bottlenecks for line balancing purposes
Adds flexibility when a co-worker is absent
There are two general approaches to controlling WIP; one is kanban and the other is constant work-in-process (CONWIP). Kanban's control of WIP focuses on _____, while CONWIP'S focus is on _____.
individual workstation, the system as a whole
All of the following are advantages of level loading except which?
Ensures uniform customer demand
True or false: In Lean/JIT vendor-buyer relationships, price becomes secondary to other factors such as flexibility, high quality, frequent small deliveries and quick response to problems.
True
True or false: Any production system can convert to a Pull system, regardless of volume, mix or product design.
False
All of the following are benefits of the 5S Lean "housekeeping" system except which?
Increased risk of accidents
All of the following are benefits of a limited work-in-process system EXCEPT _______.
greater cycle time variability; WIP = cycle time x arrival rate
Which of the following accurately explains the difference between kanban and CONWIP (constant work-in-process) as methods for controlling WIP?
Kanban signals work to move when the next work station is ready. In CONWIP a unit enters the system only when a unit exits.
In Lean/JIT systems the burden of ensuring quality of production inputs from vendors shifts from the _____________ to the _______________.
buyer/seller
Select the best definition of Value Stream Mapping.
A visual tool to systematically analyze the flow of materials and information involved in bringing a product or service to a customer
The 5W2H approach to process improvement is a simple and effective method. What does 5W2H stand for?
What, Why, Where, When, Who, How, How Much?
Match each of the 5S's of the Lean visual work place management system to its definition.
Sort: decide which items are needed
Straighten: organize workplace
Sweep: keep workplace clean
Standardize: use standard instructions
Self Discipline: make sure employees understand
how is lean different from six sigma?
lean focuses on eliminating waste, improving flow while six sigma reduces variability
Direct suppliers must be able to support _____ just-in-time deliveries of _____ of parts.
frequent, small batches
Value Stream Mapping is a technique that originated at Toyota, where it was referred to as _____.
Material and Information Flow Mapping
Which of the following statements is correct about planning a successful conversion to Lean/Just-in-time operations.
Management and employees must be convinced of benefit and receive training prior to conversion to avoid obstacles.
Match these categories with their 5W2H term.
Subject: What
Purpose: Why
Location: Where
Sequence: When
People: Who
Method: How
Cost: How much
What are some of the major obstacles encountered when converting to Lean/Just-in-time operations from traditional methods? (Select all that apply.)
The organization's culture may not be compatible with the Lean philosophy.
Management may resist because Lean shifts some of their responsibilities to workers.
Suppliers may resist for various reasons--frequent deliveries, burden of quality, etc.
A Six Sigma process is under what kind of control?
Statistical process control
The benefits of Lean are most easily realized in which Process type?
Repetitive assembly
When services adopt Lean operations what is usually the main focus of improvement?
Time to perform a service
In what ways does JIT (Just-In-Time) impact the supply chain? (Select all correct answers.)
Suppliers are under pressure to deliver on-time
Vendors may charge more per unit for smaller shipments
Loading docks busier from more frequent orders
When converting to Lean/Just-in-time operations what are workers usually most concerned about?
Loss of their job as production efficiency increases
What is the most serious obstacle to Lean conversion?
Management commitment of resources required for conversion
JIT II is also known by what other acronym?
VMI (Vendor Managed Inventory)
What is the most important organizational/cultural aspect without which Lean implementation is doomed?
A spirit of cooperation and mutual respect among management, employees, vendors
Which of the following is an example of "elimination of disruptions" for Lean services. (Select the best answer.)
Try to avoid having workers who are servicing employees also answer telephones
The success of a lean system relies heavily on which of the three items that follow?
Leadership commitment
Effective teamwork
Achieving a lean thinking culture
Select the best definition of JIT II.
Vendors manage inventory on Buyer's premises
True or false: When converting to Lean, management must decide, "All or Nothing"--there is no incremental approach.
False
Select the best definition of supply chain.
The sequence of organizations—their facilities, functions, and activities—that are involved in producing and delivering a product or service.
What is meant by the supply chain management practice of measuring ROI along the supply chain?
ROI stands for Return on Investment and is a financial basis for decision making,
Which of the following actions is an example of a risk reduction strategy?
Replacing unreliable suppliers
Technological advances in communications linking operations world-wide is a positive factor of ______.
globalization
Which function of ERP (Enterprise Resource Planning) software coordinates purchasing information, receiving information, and information about vendor ratings and performance?
Supplier Relationship Management
Supply chains make use of various forms of facilities. Select all the examples of facilities from the list below.
Retail outlets
Distribution centers
Factories
Warehouses
What elements should a company consider when developing a supply chain code of ethics? (Select all that apply.)
Customer, supplier, and company behaviors
Human relations and recruitment policies
Environmental issues
All of the following are current trends in supply chain management EXCEPT ____.
adopting automated assembly lines
An alternative to extra ____ is to have backup suppliers for critical items.
inventory
True or false: Businesses can eliminate the need for resiliency by managing risk.
False
A top management responsibility with respect to supply chains is the distribution strategy. What does this area of responsibility entail?
Deciding whether or not to centralize or decentralize distribution and if a third party logistics company should be hired
What are some of the many ways that global supply chains are more complex than purely domestic supply chains? (Select all that apply.)
Increased transportation costs and lead times
Currency fluctuations
Cultural and language differences
Choose the correct example of tactical versus operational inventory management--one of the responsibilities of supply chain managers.
Tactical: Deciding where in the supply chain to hold inventory; Operational: replenishing inventory when depleted
In what ways can ERP (Enterprise Resource Planning) software effectively assist supply chain managers? (Select all that apply.)
Production tracking
Inventory Replenishing
Demand planning
Transportation managing
True or false: A company holding the major brand in the supply chain does not have to be concerned about negative media perceptions of unethical supplier practices because these suppliers are independently-owned businesses.
False
For manufacturing companies approximately what percentage of the cost of finished goods comes from purchased parts and materials?
60%
Which aspects of supply chain management are especially important for small businesses? (Select all that apply.)
Inventory management
International trade
Risk reduction
Which functional group is responsible for handling payments to suppliers and must be notified promptly when goods are received.
Accounting
A top management strategic responsibility with respect to supply chains is network configuration. What does this area of responsibility entail?
Determining the number and location of suppliers, warehouses, production/operations facilities, and distribution centers
Put the main steps of the purchasing cycle in order from 1 to 5 with 1 being the first step and 5 being the last.
Receive the requisition
select a supplier
place the order
monitor order
receive order
Which of the following activities in the supply chain is an operational responsibility?
Order fulfillment
What are the advantages of centralized purchasing?
specialized agents
Lower prices
Better service
For wholesalers and retailers what approximate percentage of the cost of finished goods comes from purchased inventories?
90%
Which of the following constitutes a conflict of interest in Procurement?
One of the suppliers on the bid list is owned by a close relative of the purchasing agent
Which functional group generates most of the purchase orders which Procurement then processes?
Operations
What are the different ways that companies use electronic technology in their commercial transactions for e-Business? (Select all that apply.)
Email communication internal and external
Electronic tracking of shipments
Internet buying and selling
Which functional groups will often assist Procurement in negotiating with suppliers when a supplier bid is received for a large order.
Operations
Select the best definition of vendor analysis.
Evaluating the sources of supply in terms of price, quality, reputation and service giving a weighting factor for each criterion.
What are the advantages of decentralized purchasing?
Lower transportation costs
Quicker responses
Goodwill in community
All of the following aspects of the business are typically covered in a supplier audit except which?
Cleanliness of site cafeteria, break rooms
True or false: Sometimes if a buyer does not want to develop its own supplier certification program, it will accept standard industry certifications such as ISO 9000.
True
True or false: Purchasing agents should be concerned about the perception of wrongdoing when conducting business on behalf of their employer even when they have done nothing unethical.
True
What is the supplier relationship like when the vendor is viewed as an adversary? (Select all the items that apply.)
There are many suppliers who are pitted against one another
Cost is the primary driver and quality inspection is performed by buyer
What is a broad definition of e-Business?
The use of electronic technology to facilitate business transactions
What are the advantages of supplier partnerships?
Cooperation in planning
Fewer suppliers
Longer-term relationships
What are the main factors involved in choosing a supplier? (Select all that apply.)
Price
Quality and quality assurance
Flexibility and lead times
Reputation and financial stability
Select the best definition of strategic partnering.
Two or more business organizations with complementary products or services join so that each may realize a strategic benefit.
Why are supplier audits conducted periodically by the buyer?
To keep current on vendor capabilities, quality, performance, problems and their resolutions.
What is meant by the term bullwhip effect in inventory management?
Inventory oscillations become progressively larger looking backward through the supply chain.
What does it mean when a buyer certifies a supplier?
The buyer has certified the supplier has met or exceeded its requirements and can forgo inspecting their incoming goods.
What is the difference between Engineer-to-Order and Make-to-Order?
Engineer-to-Order requires more customization and Make-to-Order is based upon a standard design with some changes.
What is the supplier relationship like when the vendor is viewed as an partner? (Select all the items that apply.)
Price is moderately important but flexibility is very important
One or few number of suppliers
Openness and sharing of strategic and tactical information readily occurs
Which of the following challenges are obstacles to establishing partnerships with suppliers? (Select all that apply.)
Suppliers may need to increase their investment in equipment.
The cultures of the buyer and supplier might conflict.
Many benefits from the partnership accrue to the buyer.
Which of the below is an example of strategic partnering?
When a supplier agrees to hold inventory for the buyer in exchange for a long-term contract
Which of the following factors contribute to the inventory bullwhip effect? (Select all that apply.)
Overreaction to stockouts
Forecast inaccuracies
Order batching to save on costs
How are Assemble-to-Order and Make-to-Order different order fulfillment types?
Make-to-Order requires a long time to manufacture. Assemble-to-Order is relatively short using in-stock components
All of the following are support items usually required to perform Logistics operations EXCEPT ____.
marketing brochures
Part of logistics is movement of goods within a manufacturing facility, and that movement is part of _______.
production control
What are the various functions of traffic management? (Select all that apply.)
Make decisions on shipping methods and times
Monitor external factors which might cause potential delays
Ensure compliance with government regulations
Which of the following best defines the term Logistics?
Managing and coordinating the movement of materials, services, cash and information in a supply chain
What does the acronym RFID stand for?
Radio Frequency Identification
Put the production control logistical steps in sequential order with 1 being the start of the process and 6 being the last.
1. From incoming vehicles to receiving
2. from storage to point of use
3. From one work center to the next storage
4. from the last operation to final storage
5. from storage to packing/shipping
6. From shipping to outgoing vehicles
Which of the following is the correct formula for calculating incremental holding costs?
H(d)/365
What is traffic management in the context of supply chain management?
Overseeing the shipment of incoming and outgoing goods
All of the following are true about strategic sourcing EXCEPT _____.
focuses on purchase price instead of total cost
Products are sometimes returned to companies or to third-party handlers for which reasons? (Select all that apply.)
Defective items or parts replaced in the field
Obsolete or recalled items.
Unsold or obsolete products
What is the purpose of an RFID tag?
Enables identification of goods in a supply chain using radio waves
Firms are encouraged to adopt a ____ _____ to their supply chains where they make decisions that are optimal for the supply chain as a whole.
systems approach
In evaluating shipping alternatives, organizations using a low-cost strategy often opt for _____ methods, while organizations using a responsive strategy more often opt for _____, higher-cost carriers.
slower; quicker
What are the main factors contributing to supply chain success? (Select all that apply.)
Integration of all aspects of the supply chain viewing it as a system
Collaboration and joint planning across the supply chain members
Development and maintenance of effective supplier relationships
What is strategic sourcing in supply chain management?
Analyzing the procurement process to lower costs by reducing waste, increase profits, reduce risks & improve performance
At $100 billion a year in value, US companies want to recover value from returned products instead of discarding them. What are some of the ways this can be accomplished? (Select all that apply.)
Repairing defective products to resell as reconditioned
Recycling the materials of returned products
Disassembling obsolete products and harvesting for re-use
Often members of a supply chain have conflicting objectives which can be a barrier to effective supply chain integration. Which of the following is an example of this?
A company asks for frequent low volume deliveries, and transfers inventory holding costs to suppliers.
Development of supply chains should be accorded what level of importance?
Strategic
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