Intro to Supply Chain – Practice Exam 1 Q’s – Flashcards
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Supply Chain management starts with understanding the flow
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True
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The bullwhip effect can occur when the demand for a product is based on a forecast, rather than on actual consumer requirements/consumption.
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True
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In the Make-to-Order or Pull Model, stock is produced on the basis of anticipated (i.e., forecasted) demand
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False; In the Make-to-Order or Pull Model, stock is produced on the basis of actual demand
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The goal of Supply Chain Management is to increase customer service by increasing inventory and reducing costs.
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False; The goal of Supply Chain Management is to increase customer service while simultaneously reducing both inventory investments and operating expenses.
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Successful modern supply chain management typically includes the practice of ?
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Sharing information between supply chain partners
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In the future companies will focus on?
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Relationships, Sustainability, & Social Responsibility
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Forecasts are most accurate for long time periods.
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False
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Cause-and-Effect Models can have multiple independent variables.
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True
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Which one of the following is NOT a type of qualitative forecasting?
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Naïve method
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What does the acronym CPFR represent?
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Collaborative Planning, Forecasting, & Replenishment
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The goal of resource and operations planning is to balance capacity and output.
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True
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Material Requirement Planning is the system intended to develop long-range plans (more than a year away) concerning product families manufactured by the organization
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False
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The three basic production strategies for addressing the aggregate planning problem are the chase production strategy, the level production strategy, and the mixed production strategy
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True
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The Chase Production Strategy relies on a constant output rate and capacity while varying inventory and backlog levels to handle the fluctuating demand pattern
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False
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Which of the following is an engineering document that shows an inclusive listing of all the component parts and assemblies making up the final product?
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Bill of Materials
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The medium-range capacity planning technique used to check the feasibility of the Master Production Schedule (MPS) is called:
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Rough-cut Capacity Planning (RCCP)
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Which of the following MRP terms represents a committed order awaiting delivery for a specific period?
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Scheduled receipt
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Organizations that choose to implement one single system with all of the desired applications from a single vendor is said to have chosen a:
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Single integrator solution
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The four broad categories of inventory are raw materials, work-in-process, MRO, and finished goods
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True
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The top 2 primary functions of inventory are (1) Buffer against uncertainty in the marketplace (2) Decouple dependencies in the supply chain.
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True
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Inventory costs which are independent of the output quantity are called?
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Fixed Costs
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Which of the following is NOT an example of an ordering cost for products purchased from a supplier?
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The opportunity cost of not ordering from a least cost supplier
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The primary purpose of the basic economic order quantity model is
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To minimize the sum of ordering cost and holding cost
