Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Finance
Q:
List and define the three ways to change supply chain systems. Feedback: See below.
Q:
List and define the four ways to change supply chain structure. Feedback: See below.
Q:
Supply chain sustainability includes concern for human rights of workers in the supply chain.
Q:
Two common measures of supply chain flexibility are volume and mix flexibility.
Q:
Order placement involves two processes: getting the order from the customer and providing information regarding the order fulfillment process to customers.
Q:
Delivery has three performance measures: on-time delivery, fill rate, and unit cost.
Q:
Demand chain management tries to match supply and demand.
Q:
Final consumers can be found farthest downstream in the supply chain.
Q:
It is bad to have a negative cash-to-cash cycle in which the firm receives payment before it pays its suppliers.
Q:
In supply chain improvement, it is often necessary to reduce the setup time of equipment dramatically so that smaller lots of the product can be economically produced.
Q:
The objective of structural and system changes is the same: to remove sources of uncertainty, to reduce replenishment time, and to reduce the total cost of supplying the market.
Q:
Major product redesign is often needed to make system improvements in the supply chain.
Q:
Which of the following is NOT true concerning lean systems and supply chain performance?
A. Setup time reduction has minimal impact on the overall supply chain.
B. Once lot sizes are reduced, inventory levels in the supply chain are also reduced.
C. The presence of lean systems indicates stronger supply chain performance.
D. Lean thinking has added to supply chain risk in some cases.
Q:
Which of the following statements is true regarding the supply chain dynamics?
A. In a highly interactive system, decisions in each part of the supply chain affect the other parts.
B. The idea of safe harbor causes increased orders and inventory magnification.
C. Inventory panic is when managers reduce inventories that are perceived to be too high.
D. All of the above.
Q:
When an automobile manufacturer purchases a firm that produces wiring harnesses, this is an example of
A. major process redesign.
B. forward integration.
C. backward integration.
D. supply chain system change.
Q:
Supply chain sustainability is accomplished primarily through
A. innovation in products.
B. innovation in processes.
C. selection of suppliers who help pursue the triple bottom line.
D. all of the above.
Q:
The triple bottom line of supply chain performance refers to
A. environmental, social, and financial performance.
B. time to recover (TR), time to match supply (TS), and performance impact (PI).
C. the results of air, water, and energy conservation efforts.
D. none of the above.
Q:
Which of the following is true regarding supply chain sustainability?
A. It is as important to meet todays needs as the needs of future generations.
B. It includes providing safe working conditions for employees.
C. It includes financial responsibility to stakeholders.
D. All of the above.
Q:
To reduce supply chain risk, a company should
A. concentrate its supply chain in the same geographic area.
B. buy the same critical item from two or more suppliers.
C. reduce the amount of inventory held internally or by suppliers.
D. do all of the above.
Q:
Which of the following statements concerning supply chain risk is true?
A. Most companies have a clear understanding of how resilient their supply chains are to failure.
B. Both the chances of disruption occurrence and magnitude of loss must be considered.
C. Focusing attention on the 20% of suppliers that incur 80% of the cost is a recommended approach.
D. All of the above are true.
Q:
Which of the following is considered a strategic move to increase supply chain resilience?
A. Shift some emphasis from efficiency to business continuity.
B. Maintain higher inventory levels for critical components.
C. Identify alternate suppliers with different operating conditions.
D. Create backup of information systems.
Q:
Which of the following increases the resilience of supply chains in the face of a disruption?
A. Reducing inventory levels.
B. Reducing the number of suppliers.
C. Reducing disruption detection time.
D. All of the above.
Q:
Which of the following is included in the supply chain risk mitigation framework?
A. Postrecovery legal action.
B. Efficient government assistance.
C. Postdisruption recovery.
D. All of the above are included.
Q:
The level of supply chain resilience is determined by the ability to
A. prepare, detect, and mitigate disruptions.
B. plan, detect, and act on disruptions.
C. diagnose, act, and stop disruptions.
D. plan, see, and secure disruptions.
Q:
Commonly employed forms of supply chain system improvement include all of the following EXCEPT
A. partnerships with customers.
B. reliance on fewer suppliers.
C. setup time reduction in the manufacturing plant.
D. cross-functional teams.
Q:
Commonly employed forms of supply chain structural improvement include all of the following EXCEPT
A. longer-term contracts.
B. forward and backward integration.
C. major process simplification.
D. major product simplification.
Q:
Assume a company has $700,000 worth of inventory and averages $10,000 per day in sales. Also assume it takes 30 days for the average customer to pay off its invoice to this company and it takes 120 days for the company to pay for the materials supplied by its suppliers. What is the companys average cash-to-cash cycle time?
A. 20 days.
B. 40 days.
C. -10 days.
D. -20 days.
Q:
Which of the following supply chain improvements would be done first?
A. Implementing cross-functional teams.
B. Making changes to information systems.
C. Conducting a major product redesign.
D. Implementing a lean system.
Q:
Specific measures of supply chain performance include all of the following EXCEPT
A. unit cost.
B. volume flexibility.
C. on-time delivery.
D. supplier turnover.
Q:
The efficient consumer response (ECR) movement was formed to
A. reduce the separation of manufacturer and retailer.
B. make supply chains more responsive to changes in consumer demand.
C. combat the bullwhip effect.
D. do all of the above.
Q:
The efficient consumer response (ECR) movement was formed as a partnership among retailers, wholesalers, and producers in what industry?
A. Garment industry.
B. Grocery industry.
C. Automotive industry.
D. Stationery industry.
Q:
Which of the following is NOT one of the distinct processes described in the SCOR model?
A. Source.
B. Plan.
C. Make.
D. Recycle.
Q:
Which of the following does the supply chain operations reference (SCOR) model NOT include?
A.Make.
B.Deliver.
C.Return.
D.All of the above are included.
Q:
The flow of materials from upstream nodes into a firm is called
A.physical supply.
B.physical distribution.
C.demand management.
D.none of the above.
Q:
Order placement via the Internet does NOT include
A.increasing the accuracy of the order.
B.faster order entry.
C.manufacturing and shipment status.
D.use of an ERP system to schedule production.
Q:
What two fundamental processes in all supply chains are most affected by the Internet?
A.Electronic interchange and order placement.
B.Order fulfillment and order placement.
C.B2B exchanges and order fulfillment.
D.None of the above.
Q:
Which of the following is a way to improve the supply chain system?
A.Forward and backward integration.
B.Lean systems.
C.Major product redesign.
D.Outsourcing logistics to a third party.
Q:
Which of the following is NOT a form of structural change of the supply chain?
A.Forward and backward integration.
B.Creating cross-functional teams.
C.Major process simplification.
D.Outsourcing logistics to a third party.
Q:
Which of the following is NOT a specific measure of supply chain performance?
A.Quality.
B.Time.
C.Innovation.
D.Delivery.
Q:
__________ is a partnership of retailers, wholesalers, and manufacturers aimed at managing both demand and the supply chain.
A.Effective consumer response
B.Effective customer reaction
C.Effective consumer reply
D.Efficient consumer response
Q:
Which of the following is NOT true about supply chain dynamics?
A.The supply chain is a highly interactive system.
B.There is an accelerator effect in the supply chain due to replenishment lead times.
C.The best way to improve the supply chain is to increase the total replenishment time and to feed back actual demand information to all levels.
D.All of the above statements are true.
Q:
Which of the following is NOT true of vertical integration?
A.Leads to greater flexibility to changing technology.
B.Can result in a loss of economies of scale.
C.Helps achieve control of the supply chain.
D.Reap the profits of the supplier or distributor when there is an attractive return from the investment.
Q:
Which of the following is a form of supply chain system change?
A.Process simplification.
B.Product redesign.
C.Changes in information systems.
D.Forward integration.
Q:
Which of the following is NOT a characteristic of changes in supply chain structure?
A.Are long-range in nature and require considerable capital.
B.Include changes in capacity, facilities, process technology, and vertical integration.
C.Lead to changes in information systems.
D.Are related to bricks and mortar.
Q:
Backward or upstream supply chain flows include
A.information.
B.monetary payments.
C.materials.
D.all of the above.
Q:
The average cash-to-cash cycle is defined as
A.Days in inventory + days in account receivable + days in accounts payable.
B.Days in inventory - days in account receivable + days in accounts payable.
C.Days in inventory + days in account receivable - days in accounts payable.
D.Days in inventory - days in account receivable - days in accounts payable.
Q:
The five measures of supply chain performance are
A.cost, quality, flexibility, delivery, and time.
B.cost, quality, time, delivery, and reliability.
C.inventory, quality, time, delivery, and flexibility.
D.inventory, cost, quality, time, and delivery.
Q:
Which of the following statements is NOT true regarding supply chain operations?
A.All elements of the supply chain are interconnected and dependent on each other.
B.Demand changes by the end user can create a bullwhip effect in the supply chain.
C.With perfect information at all levels of the supply chain, there will not be a bullwhip effect.
D.Time lags in the supply chain create fluctuations in orders and inventories.
Q:
The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer is called
A.demand management.
B.distribution channel management.
C.supply chain management.
D.logistics management.
Q:
In MRP "scheduled receipts" are
A.identical to "planned order receipts."
B.identical to "planned order releases."
C.identical to "net requirements."
D.open orders not delivered yet.
Q:
_______ systems use a requirements order philosophy, while _______ systems use a replenishment order philosophy.
A.Order-point, MRP
B.MRP, order-point
C.EOQ, quantity discount
D.P, Q
Q:
The gross requirements of a part in an MRP system are determined from
A.net requirements + on-hand.
B.net requirements of the end item.
C.gross requirements of the immediate part.
D.planned order releases of the immediate parent item.
Q:
Which of the following most closely describes net material requirements in an MRP system?
A.Gross requirements - planned receipts.
B.Gross requirements - (on-hand + scheduled receipts).
C.Gross requirements - on-hand + scheduled receipts.
D.Gross requirements - planned order releases.
Q:
Successful MRP system implementation includes
A.implementation planning.
B.accurate data.
C.user knowledge.
D.all of the above.
Q:
All of the following help to handle uncertainty when operating an MRP system EXCEPT
A.safety stock.
B.safety lead time.
C.safety capacity.
D.backup suppliers.
Q:
Which system specifies the output of the operations function?
A.Parts explosion.
B.Bill of materials.
C.Master scheduling.
D.Capacity planning.
Q:
Which of the following is true about MRP systems?
A.Forecast is based on past demand.
B.Lot sizing is EOQ.
C.Demand pattern is random.
D.Objective is to meet manufacturing needs.
Q:
Bills of materials are kept current with changes using
A.master scheduling systems.
B.engineering change order systems.
C.inventory tracking systems.
D.capacity planning systems.
Q:
Cycle counting
A.is counting a fraction of inventory each day.
B.does not eliminate the need for annual physical inventory.
C.is a way to plan inventory on a cyclic basis.
D.is a way to decide how much to order.
Q:
Successful MRP implementation requires
A.management support, parts explosion, and adequate computer support.
B.marketing support, master schedule, and bill of materials.
C.management support, accurate data, and adequate computer support.
D.none of the above.
Q:
The bill of materials
A.shows how much inventory is available.
B.is a bill sent to the customer for material ordered.
C.is a list of all materials required to produce a part.
D.none of the above.
Q:
Safety stock in an MRP system
A.is never needed.
B.is used to provide flexibility to meet changing customer requirements.
C.must provide a 100% service level.
D.is planned at the part level, independent of the safety stock of other parts.
Q:
The parts explosion results in the following outputs:
A.purchase orders and S&OP (aggregate planning).
B.purchase orders and bill of materials.
C.purchase orders and shop orders.
D.shop orders and inventory orders.
Q:
Planned lead times
A.usually are longer than actual working times.
B.ignore interference from other jobs.
C.usually are shorter than actual working times.
D.assume the work is expedited and completed as quickly as possible.
Q:
An MRP system is designed to deal with
A.lumpy demand.
B.constant demand.
C.uncertain demand.
D.random demand.
Q:
A replenishment-based system derives orders from
A.capacity available.
B.forecast or customer request.
C.bill of materials.
D.master schedule.
Q:
A requirements-based system derives orders from
A.customer requests.
B.forecast.
C.bill of materials.
D.master schedule.
Q:
The three inputs for an MRP parts explosion are
A.inventory, master schedule, and bill of materials.
B.forecast, inventory, and bill of materials.
C.capacity, master schedule, and inventory.
D.forecast, bill of materials, and master schedule.
Q:
Compare and contrast MRP systems and order-point systems of managing inventories. When do firms prefer MRP systems to order-point systems? Can MRP systems be used while managing capacity in a factory? Provide sufficient justification for your answer.
Q:
The master schedule should be frozen inside the production lead time.
Q:
The master schedule is prepared for product families.
Q:
MRP is a type of pull system.
Q:
MRP systems work better in a line flow system compared to a job shop.
Q:
When a company uses an ERP system, the different functional areas of the business will share a common database.
Q:
In MRP systems, inventories are managed according to their dollar usage values (i.e., high dollar usage inventories are more carefully managed compared to low dollar usage inventories).
Q:
The economic order quantity model is extremely useful while making decisions on order quantities in MRP systems.
Q:
A bill of materials can be coupled with a bill of labor if MRP systems are to be used in service industries.
Q:
Forecasting demand in MRP systems is based on the past demand patterns for components.
Q:
Which of the following statements concerning MRP system operation is correct?
A. Research has shown that many companies are transitioning from safety stock to safety capacity as a means of dealing with uncertain demand.
B. A properly used MRP system allows for minimal levels of safety stock.
C. Additional safety lead time is a common strategy for reducing inventory levels.
D. All of the above are correct.
Q:
Which of the following is true of ERP systems?
A. Decisions and actions made by sales will be visible to operations.
B. ERP systems can extend across the enterprise, but not to suppliers or customers.
C. ERP systems, though expensive, rarely fail to deliver expected results.
D. All of the above.