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
Management
Q:
It is possible in the short term for a firm to operate above 100% utilization.
Q:
Under a level strategy, variations in demand are managed by:
A. Varying the number of workers
Q:
Capacity Utilization = Actual Output/Capacity x 100%.
Q:
Which of the following is NOT true about aggregate planning in service organizations?
A. A time horizon of 12 months, on average, is used
B. Both supply and demand variables can be changed
C. Requires inventory and capacity tradeoffs
D. Facilities are considered fixed
Q:
Aggregate Planning assumes that the facility decisions can be changed.
Q:
One option for altering the pattern of demand through aggregate planning is:
A. Using overtime
B. Carrying inventory
C. Subcontracting
D. Pricing
Q:
Why is it dangerous to justify capacity expansion using economies of scale?
A. It is far too specific to use as a basis for capacity decisions
B. Because volume, capacity, and process considerations are looked at individually
C. Because the common notion that unit costs decline for larger facilities due to size is not always accurate
D. It requires consideration of quality, dependability, and flexibility
Q:
Which of the following statement(s) correctly describes aggregate planning?
A. Aggregate planning is concerned with matching supply and demand of output.
B. Aggregate planning determines not only the output levels planned but also the appropriate resource mix to be used.
C. The aim of aggregate planning is to set overall output levels for the medium-range future.
D. All of the above
Q:
Which of the following functions is NOT affected directly by the facilities decision?
A. Operations
B. Marketing
C. Finance
D. None of the above
Q:
Which of the following statements is true about facilities decisions?
A. They are generally short-range in nature.
B. They are not critical as they only determine future availability of output.
C. They involve all organizational units and are often made at the highest corporate level.
D. They are simple and easy to analyze.
Q:
Facilities decisions:
A. Are medium-range capacity decisions
B. Should consider one of the five crucial questions of how much, how large, when, where, and what type
C. Constrain all other capacity decisions
D. Require planning for one year only
Q:
The most popular type of facility used by Fortune 500 companies is:
A. Product-focused
B. Process-focused
C. Market-focused
D. General-purpose
Q:
Describe each of the five demand components in a time-series (of past demand data).
Level is the relatively constant average demand during a time interval.
Q:
The type of strategy used with respect to the amount of capacity cushion when "the cost or consequence of running out is approximately in balance with the cost of excess capacity" is called:
A. Small cushion
B. Large cushion
C. Moderate cushion
D. None of the above
Q:
United Colors of Benetton is facing a serious problem. The global fashion garment manufacturer and retailer is well known for its speed of new product introduction. The firm is planning to introduce its 2013 summer collection and wants to estimate demand. Demand from past years are shown below. Year
Demand (in millions)
Forecast (in millions) 2004
150
140 2005
170
180 2006
190
190 2007
270
290 2008
220
270 2009
150
250 2010
290
260 2011
320
280 2012
300
310
Q:
Which of the following is NOT a factor affecting the elements of a facilities strategy?
A. Cost of facilities
B. Likely behavior of competitors
C. Business strategy
D. Whether the company uses make-to-stock or assemble-to-order
Q:
The aggregate planning problem:
A. Should only consider supply management options
B. Only affects marketing and production, but human resources is not involved in decisions
C. Should only consider demand management options
D. Needs to consider multiple tradeoffs such as customer service level, inventory levels, labor force stability, and costs
Q:
Forecasting of demand is always equivalent to forecasting of sales.
Q:
The Box-Jenkins method requires 12 periods of past data.
Q:
Aggregate planning differs from scheduling in that:
A. The former refers to the long-range and the latter refers to the short-range.
B. The former is concerned with allocating available resources and the latter with the acquisition of resources.
C. The former refers to the long-range and the latter refers to the medium-range.
D. The former is concerned with the acquisition of resources and the latter with allocating available resources.
Q:
Supply management variables include:
A. Inventory, subcontracting, and cooperative arrangements
B. Complementary offerings, inventory, and overtime
C. Subcontracting, hiring, and reservations
D. All of the above
Q:
Simple exponential smoothing forecasts are reliable for forecasting long-term demand patterns.
Q:
Demand management variables include:
A. Pricing, inventory, and advertising
B. Reservations, pricing, and advertising
C. Subcontracting, advertising, and pricing
D. Inventory, reservations, and pricing
Q:
Tracking signal is the ratio between cumulative forecast error and the most recent estimate of mean absolute deviation.
Q:
In aggregate planning:
A. The concern is over a long-range planning horizon.
B. Output levels are set in the face of certain demand.
C. "Aggregate" implies that planning is done for a single overall measure of output or at most a few products.
D. Firms should never consider overtime, hiring, firing, or subcontracting.
Q:
A time-series forecast model includes only a level (average) term, representing past average demand.
Q:
Quantitative forecasting methods should be used for predicting the demand patterns of new products introduced in the market.
Q:
All forecasts should include two estimates: An estimate of the demand and an estimate of the forecasting error.
Q:
Given the following weekly demand figures: Week
Demand 1
20 2
60 3
30 4
20 5
40 Which of the following statements is/are true about time-series forecasting?
A. The basic strategy is to identify the magnitude and form of each component based on available past data.
B. It is used to make detailed analyses of past demand patterns over time and to project these patterns forward into the future.
C. Demand can be divided into components such as average level, trend, seasonality, cycle and error.
D. All of the above
Q:
Given the following weekly demand figures: Week
Demand 1
20 2
60 3
30 4
20 5
40 Which phrase most closely describes the Delphi forecasting technique?
A. Consumer survey
B. Individual opinions
C. Rounds of anonymous data collection
D. Test markets
Q:
Given the following weekly demand figures: Week
Demand 1
20 2
60 3
30 4
20 5
40 Given the following weekly demand figures, what is the MAD at the end of week 5? A. 10.8
B. 11.8
C. 12.0
D. 13.0
Q:
Given the following weekly demand figures: Week
Demand 1
20 2
60 3
30 4
20 5
40 Which of the following is NOT a measure of forecast accuracy?
A. Mean square error
B. Cumulative sum of forecast error
C. Mean absolute deviation of forecast error
D. Cumulative absolute deviation of forecast error
Q:
Given the following weekly demand figures: Week
Demand 1
20 2
60 3
30 4
20 5
40 _____ models are usually more accurate than ______ models for medium-to-long-range forecasts.
A. Time-series, causal
B. Causal, time-series
C. Time-series, qualitative
D. Qualitative, time-series
Q:
Given the following weekly demand figures: Week
Demand 1
20 2
60 3
30 4
20 5
40 Using the data from question 11, calculate the forecast for period 7 using a four-period moving average:
A. 60
B. 43.25
C. 57.75
D. 55.25
Q:
Given the following weekly demand figures: Week
Demand 1
20 2
60 3
30 4
20 5
40 The Grand Bakery produces 60 special sourdough rolls every day. Any rolls that are not sold each day are given to the employees. They have collected sales data from the past week: Day
Rolls sold 1
50 2
50 3
48 4
60 5
53 6
60 What is the value of F6 if they use a 3-day weighted moving average with W1 = 0.6, W2 = 0.2, and W3 = 0.2?
A. 51.4
B. 53.4
C. 58.6
D. None of the above
Q:
Given the following weekly demand figures: Week
Demand 1
20 2
60 3
30 4
20 5
40 A method of forecasting that best describes the flows from one sector of the economy to another is called:
A. Regression
B. Econometric model
C. Input-output model
D. Simulation model
Q:
Given the following weekly demand figures: Week
Demand 1
20 2
60 3
30 4
20 5
40 Given the following information for period 15, what will be the smoothed mean absolute deviation for period 16?
Demand = 120
Forecast = 180
MAD15 = 50
Alpha = 0.3
A. 77
B. 53
C. 17
D. 43
Q:
Given the following weekly demand figures: Week
Demand 1
20 2
60 3
30 4
20 5
40 If one time-series model is used for forecasting a low demand item and another time-series model is used for forecasting a high demand item, which measure of forecast accuracy provides a valid comparison of the errors from these two time-series?
A. CFE
B. MSE
C. MAD
D. MAPE
Q:
Given the following weekly demand figures: Week
Demand 1
20 2
60 3
30 4
20 5
40 What is the exponentially smoothed forecast for week 6? (Use F5 = 33 and alpha = 0.0)
A. 33
B. 31.7
C. 30
D. 20
Q:
Forecast error is used for all of the following EXCEPT:A. To monitor erratic demand observations or outliersB. To determine when the forecasting method is no longer tracking actual demand and needs to be resetC. To determine the capacity cushionD. To determine parameter values that provide the most accurate forecasts
Q:
The forecast was 70 units for the current period while actual demand was 76. The forecast for the next period is 75.8. What is alpha if a simple exponential smoothing forecast method is being used?
Q:
Given the following weekly demand figures: Week
Demand 1
20 2
60 3
30 4
20 5
40 Using a three-week moving average, what is your forecast for week 6?
A. 30
B. 35
C. 32.5
D. 25
Q:
Given the following weekly demand figures: Week
Demand 1
20 2
60 3
30 4
20 5
40 Using exponential smoothing, if we want forecasts to be very responsive to recent demand, the value of alpha should be:
A. Large
B. Moderate
C. Small
D. The value of alpha does not matter.
Q:
If a sales representative tells his or her manager, "I hope to sell 20% more than last year," this should be considered:
A. A forecast
B. A performance measure
C. A goal
D. A production plan
Q:
Demand chain management tries to match supply and demand.
Q:
The difference between actual demand and the forecast is:A. Forecast errorB. Mean absolute percentage errorC. Absolute deviation of forecast errorD. Mean absolute deviation of forecast error
Q:
A small company that manufactures rubber boots is selecting a method to forecast demand for the next 10 years. The company recently expanded its facilities, doubling its capacity. Which of the following forecasting methods would be preferred?
A. Qualitative
B. Simple exponential smoothing
C. Econometric
D. Box-Jenkins
Q:
Final consumers can be found farthest downstream in the supply chain.
Q:
When should qualitative methods NOT be used?
A. When historic data are unreliable
B. When it is impossible to obtain historic data
C. For short-range, repetitive decisions
D. When making major, costly decisions, such as facilities location
Q:
It is bad to have a negative cash-to-cash cycle in which the firm receives payment before it pays its suppliers.
Q:
A regression model is an example of which type of forecasting method?
A. Causal
B. Historical analogy
C. Qualitative
D. Life-cycle analogy
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:
A qualitative forecast would most likely be used for:
A. Aggregate planning
B. Scheduling
C. Process design
D. Inventory management
Q:
The objective of structural and infrastructure changes is the same: To remove sources of uncertainty, to reduce replenishment time, and to reduce total cost of supplying the market.
Q:
How can a firm design and develop a more resilient supply chain?
Q:
Major product redesign is often needed to make infrastructure improvements in the supply chain.
Q:
Describe causes of the bullwhip effect.
Q:
*The following question addresses the Operations Leader box on page 241. Materials handling, transportation, and warehousing are elements of:
A. Logistics
B. Purchasing
C. Demand chain management
D. Fill rate
Q:
What are the tasks in the purchasing cycle?
Purchasing receives user requirements for an item.
Clarify specifications for the item.
Determine whether the firm can satisfy the need internally or whether purchasing is appropriate (make or buy decision).
Q:
*The following question addresses the Operations Leader box on page 241. 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 following question addresses the Operations Leader box on page 241. List and define the five ways to change supply chain infrastructure.
A. Cross-functional teams
B. Partnerships
C. Setup time reduction
D. Information systems
E. Cross-docking.
Q:
*The following question addresses the Operations Leader box on page 241. 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:
*The following question addresses the Operations Leader box on page 241. 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:
Delivery has three performance measures: on-time delivery, fill rate, and unit cost.
Q:
*The following question addresses the Operations Leader box on page 241. What are the two fundamental processes in all supply chains that 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:
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 serve to 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:
Sampling inspection by attributes:
A. Means each item sampled is classified as defective or not defective based on quality standards
B. Could be used together with process control and variable measurement as part of a quality control system
C. Utilizes a discrete scale of measurement
D. a, b, and c
Q:
*The following question addresses the Operations Leader box on page 241. __________ 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:
A complete system of quality control:
A. Is defined by critical control points, inspectors, measurements, costs, and other considerations
B. Involves a zero defects philosophy
C. Requires a continuous scale for measurement of defects
D. Must include both variable and attribute measurements
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:
List and explain the five steps of the DMAIC process.
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 infrastructure change?
A. Process simplification
B. Product redesign
C. Changes in information systems
D. Forward integration
Q:
Name the seven tools of quality that are typically used in a manufacturing process. Could all of these tools be applied to service operations? Suggest some possible service operations scenarios wherein we could apply all/some of these tools.
Q:
Which of the following is NOT a characteristic of changes in 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:
Surveys indicate that p charts are used more frequently than average (mean) and range charts are used.
Q:
Backward or upstream supply chain flows include:
A. Information