Question 1

Consider the system composed of four processes linked by a conveyor belt. There is no storage between these processes pictured below. Which statement is BEST

Accepted Answer

Overall system improvement efforts should focus on process 1.

Question 2

One advantage of outsourcing is that it:

Accepted Answer

increases the com pan\'s access to state-of-the-art products and processes.

Question 3

Which of these factors typically does NOT impact capacity?

Accepted Answer

fixed cost

Question 4

What is the three-period moving average for July\'s demand?

Accepted Answer

217

Question 5

A supplier that has previously demonstrated its performance capabilities through purchase contracts may well receive:

Accepted Answer

preferred supplier status.

Question 6

The purchasing team examined all of their purchasing patterns in order to identify any irregularities or possible areas of cost savings in a little scheme they liked to call:

Accepted Answer

spend analysis.

Question 7

The ration of earnings to sales for a given time period is the:

Accepted Answer

profit margin.

Question 8

When compared with single sourcing, multiple sourcing has the

Accepted Answer

spreading risk.

Question 9

A description method used when a product or service is proprietary or when there is a perceived advantage to using a particular supplier\'s product or service is:

Accepted Answer

description by brand.

Question 10

The two basic types of purchasing contracts are:

Accepted Answer

fixed-price and cost-based.

Question 11

A recent survey of executives at Global 1000 companies uncovered what fear?

Accepted Answer

the fear of a supply chain disruption

Question 12

Which of these is NOT a logistics activity?

Accepted Answer

inspection

Question 13

The transportation mode with the highest dollar value of freight in the United States is:

Accepted Answer

highway.

Question 14

Firms do not compete only against global competitors, but against:

Accepted Answer

their competitors\' supply chains.

Question 15

The mode of transportation that is highly cost effective for bulky items but has relatively poor delivery reliability and speed is:

Accepted Answer

water

Question 16

The analysts turned on his banker\'s lamp, adjusted his eye shade, and slowly pulled a legal pad from his desk. His weathered hands punched the buttons on his desk calculator deliberately as he divided earnings by total assets in order to calculate:

Accepted Answer

return on assets.

Question 17

Which of the following is required in order to execute a successful spend analysis?

Accepted Answer

ability to analyze large quantities of data

Question 18

The use of supply chain partners to provide products or services is called:

Accepted Answer

outsourcing.

Question 19

Hub and spoke systems are characterized by:

Accepted Answer

warehouses that are purely sorting facilities.

Question 20

One advantage of simulation modeling is:

Accepted Answer

it allows the user to conduct a \"what if\" analysis.

Question 21

Which of these is an indirect cost associated with in sourcing?

Accepted Answer

maintenance

Question 22

Single sourcing is a better choice than multiple sourcing from the perspective of:

Accepted Answer

access to the supplier\'s design and engineering capabilities.

Question 23

Which of the following statements about capacity strategies is NOT correct?

Accepted Answer

A lag capacity strategy would be well-suited for a period of high growth.

Question 24

Which of the following statements about learning curves is BEST?

Accepted Answer

Underestimated learning effects may cause overestimation of capacity needs.

Question 25

Which of the following statements about simulation is BEST?

Accepted Answer

Simulation permits managers to test the effects of new policies and procedures without disrupting customer service.

Question 26

Wally\'s Filling Station is manned by one capable attendant that can fill your tank and check your tires, oil, and water in 5 minutes. If four customers arrive each hour, and the service and arrival rates are governed by the Poisson distribution, what is the utilization of the attendant?

Accepted Answer

0.33

Question 27

A bottling machine has a theoretical capacity of 100 bottles per minute. During every ten hour shift it operates continuously but is shut down once for 30 minutes for cleaning, inspection, and lubrication. What is its rated capacity?

Accepted Answer

95 bottles/minute

Question 28

Which of these statements about inventory management is BEST?

Accepted Answer

A system using water and rail transportation tends to have the higher levels of inventory.

Question 29

A firm that is interested in consistent on-time delivery would probably design their transportation and warehousing system to include:

Accepted Answer

air transportation with a spot stock warehouse.

Question 30

A service firm that takes care of all of the logistics requirements for other companies is a:

Accepted Answer

third party logistics provider.

Question 31

Which of the following statements about theoretical capacity is BEST?

Accepted Answer

Running a factory at this level for a short time is often better than permanently raising resource levels.

Question 32

Each outcome of flipping a fair coin is completely independent of the previous flip. This outcome is known as:

Accepted Answer

memory less.

Question 33

A long-term movement up or down in a time series is called:

Accepted Answer

trend.

Question 34

Willow Trees Inc. makes seven different products, four of which are within their first year of existence. The demands for all products, especially the newest ones, are not well known. The newest products are intended to complement their existing products and take different materials, different processes, and an entirely different set of labor skills for production. Which of these statements regarding their likely sales and operations planning activities is BEST?

Accepted Answer

Willow Trees Inc. should use bottom-up planning.

Question 35

Planning numbers are somewhat aggregated (month by month) in:

Accepted Answer

tactical planning.

Question 36

Sales and operations planning must consider:

Accepted Answer

All of these must be considered when performing S&OP.

Question 37

Forty percent of a house painter\'s business is exterior work and the other sixty percent is interior. The average exterior paint job takes 30 hours of labor and $500 of paint and primer, but the average interior job takes only 6 hours of labor and $80 of paint and primer. If he gets 25 service calls for the coming month and 30 calls for the month after that, which of the following resource requirements is correct?

Accepted Answer

The painter has a labor demand of greater than 850 hours but less than 900 hours for the next two months.

Question 38

A major retailer has recently deployed self-checkout stands at the front of the store. As long as you don\'t have items like paint, cold medicine, beer, fruits, or vegetables in your shopping car, you can check out quickly in one of these lines. This retailer is providing a prime example of:

Accepted Answer

the strategy of offloading.

Question 39

Which of these is NOT an advantage of linking sales and operations planning throughout the supply chain as mentioned in the book?

Accepted Answer

increased sales revenue

Question 40

A qualitative forecasting technique well-suited for demand forecasts of a new product or service is the:

Accepted Answer

life cycle analogy method.

Question 41

A qualified forecasting technique in which individuals familiar with specific market segments estimate the demands within these sectors that are then summed to get an overall forecast is called a:

Accepted Answer

build-up method.

Question 42

A logistics manager uses this type of system to select a carrier for an outgoing shipment or to develop a weekly schedule of deliveries.

Accepted Answer

planning

Question 43

The most detailed level of logistics information systems is the:

Accepted Answer

execution system.

Question 44

A customer enters a business and joins the on line that snakes back and forth through the lobby in the order to receive service. The initial part of the service is performed by one customer service representative, after which the customer enters a second, shorter line to complete the service before leaving the establishment. Which description of this waiting line system is appropriate?

Accepted Answer

single channel, multiple phase

Question 45

Which of these quantitative techniques is a causal model?

Accepted Answer

linear regression

Question 46

Your new Garden Weasel fails to \"completely satisfy\" you so you decide to return it for a full refund. What is the name for the system that will carry your weasel back to the manufacturer?

Accepted Answer

reverse logistics

Question 47

Which of these factors is most likely to increase the risk of a missed shipment, communication problem, or human error?

Accepted Answer

global outsourcing

Question 48

The ratio of earnings to sales for a given time period is a firm\'s profit margin.

Accepted Answer

True

Question 49

When there is a significant upward or downward trend in the data, the two best forecasting models are exponential smoothing and linear regression.

Accepted Answer

False

Question 50

The independent variable is the quantity the forecaster is interested in estimating with linear regression model.

Accepted Answer

False

Question 51

Maverick spending is often promoted by top management as a way to improve the bottom line and break out of a purchasing cycle.

Accepted Answer

False

Question 52

Total cost analysis divides costs into direct (costs that are tied to the level of operations or supply chain activities) and indirect (costs that are not tied to the level of operations or supply chain activity).

Accepted Answer

True

Question 53

Portfolio analysis begins with assignment to a quadrant before a sourcing strategy is formulated.

Accepted Answer

True

Question 54

A manufacturer seeking to reduce the variability of quality should use multiple sourcing.

Accepted Answer

False

Question 55

A manufacturer that wants to make sure that suppliers do not become complacent should use multiple sourcing.

Accepted Answer

True

Question 56

The weighted-point evaluation system allows for a completely objective decision to be made.

Accepted Answer

False

Question 57

In the description activity of the purchasing process, the product should be described only by brand or specification.

Accepted Answer

False

Question 58

In the description activity of the purchasing process, the product should be described only by brand or specification.

Accepted Answer

False

Question 59

In a cost-based contract, the state price does not change, regardless of fluctuations in the general overall economic conditions.

Accepted Answer

False

Question 60

In a decision tree, outcome points are under direct control of the decision maker and show the results of choices.

Accepted Answer

False

Question 61

The greater the randomness in the model, the less the number of periods should be used in a moving average forecast.

Accepted Answer

False

Question 62

Capacity is the capacity of a worker, machine, work center, plant, or organization to produce output per time period.

Accepted Answer

True

Question 63

A firm\'s capacity can be can be limited by members of its supply chain.

Accepted Answer

True

Question 64

Virtual supply chains have the advantage of efficiency, but this advantage is gained in a trade-off with decreased flexibility.

Accepted Answer

False

Operations and Supply Chain Management Final: Test 2 – Flashcards

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