A facility layout that must allow for trade-offs between space and material handling would be
a. a fixed position layout
b. cellular manufacturing layout
c. product-oriented layout
d. process-oriented layout
e. warehouse layout
warehouse layout
What is the purpose of a process-oriented/job shop layout?
a. to increase the volume of production
b. to decrease flexibility
c. to minimize material handling costs
d. to keep the variety of products made to as few as possible
e. a and d
to minimize material handling costs
Breaking up process clusters into cells that make up a family of products with similar process flows describes:
a. a process layout
b. a product layout
c. a retail store
d. a group technology layout
e. a warehouse layout
a group technology layout
In order to evaluate a job-shop or process layout, what information do you need
a. the number of people employed
b. the degree of interaction between each pair of departments
c. the distance between each pair of departments
d. all of the above
e. b and c
the degree of interaction between each pair of departments & the distance between each pair of departments
An operation that has a low variety of products and a high volume of production for the few products made, such as a steel mill, would benefit from which type of layout?
a. a process layout
b. a product layout
c. a warehouse layout
d. a retail store layou
product layout
In an assembly line where each task is performed at one station, the production rate will be determined by:
a. sum of the task times
b. average task time
c. shortest task time
d. longest task time
e. none of the above
longest task time
In an assembly line context and in relation to the efficiency measure, as the maximum workstation time decreases (other variables remaining constant), the efficiency will:
a. not be affected at all
b. increase
c. decrease
d. can not tell
increase
What is the characteristic of an optimal solution in a line balancing problem?
a. it meets the precedence requirements
b. it minimizes the number of workstations
c. it respects the cycle time constraints
d. it maximizes the efficiency of the assembly line
all of the above
One use of inventory is:
a. to separate the production and distribution processes
b. to provide a buffer against fluctuations in demand
c. to supply demand that is anticipated to be higher in the next season
d. all of the above
e. none of the above
all of the above
A key distinction of dependent demand from independent demand is that:
a. it must be forecasted
b. it is only used for finished goods
c. it can be computed
d. it cannot be used for raw materials
e. b & d
it can be computed
Which of the following indicates some symptoms of mismanaged inventories?
a. obsolescence rates are too high
b. stockout of items occurs frequently, causing a disruption in the smooth flow of production
c. frequent stockout is causing delays in customer d
all of the above
In an ABC classification of inventory items which of the following is NOT true
a. tight control is devoted to class A items
b. class B items have a higher monetary value than class C items
c. class A items account for the largest amount of monetary value
ABC classification should be used only for independent demand items
Which of the following is true of cycle counting?
a. cycle counting usually relies on inventory classification developed through ABC analysis
b. it eliminates the hassle and inconvenience of annual shutdown for physical inventory
c. it requires checking a
all of the above are true
When using ABC analysis,
a. A items account for a large percentage of capital investment, but a small percentage of all inventory items
b. B items account for 50% of all items and 50% of all capital investments
c. C items account for a large dollar value
A items account for a large percentage of capital investment, but a small percentage of all inventory items
Which of the following is true for supply chain management?
a. Supply chain management applies only to manufacturing because it deals with the flow of materials
b. Supply chain management concepts can be applied to both manufacturing and service organizat
Supply chain management concepts can be applied to both manufacturing and service organizations
Which of the following statements is true regarding purchasing?
a. Purchasing's primary role should be placing and tracking orders.
b. Purchasing's primary role is to negotiate lower prices.
c. Purchasing's primary role is to negotiate prices and delivery
Purchasing must satisfy the firm's short-term and long-term supply needs
Which of the following statements regarding supplier selection is true?
a. The supplier should be selected on the basis of price only because the cost of materials is a significant portion of the total product cost.
b. The supplier should be selected prim
The supplier should be selected on the basis of quality, price and delivery
Which one of the following statements correctly represents a benefit of centralized buying?
a. Increased buying power can result in significant savings in purchasing costs.
b. Local managers have more control over their businesses.
c. Purchasing lead time
Increased buying power can result in significant savings in purchasing costs
Which of the following statements about the relationship between financial and supply chain performance measures is true?
a. Shorter new product development time decreases revenue.
b. Higher inventory turns call for higher working capital requirements.
c.
Longer delivery lead times require higher levels of working capital
An efficient supply chain is preferred when:
a. product variety is high
b. the competitive priority is customization
c. demand is highly predictable
d. new product introduction is frequent
e. demand is unpredictable
demand is highly predictable
The type of goods for which an efficient supply chain is appropriate is:
a. High cost products
b. Standardized products
c. Products that require frequent design changes
d. Highly engineered products
e. Fad or trendy products
Standardized products
A responsive supply chain is preferred when:
a. delivery times are long
b. inventory investments are high
c. there are low capacity cushions
d. new product introductions are infrequent
e. flexible purchasing, production and distribution systems are in pla
flexible purchasing, production and distribution systems are in place
A responsive supply chain is preferred when:
a. Product variety is low
b. Demand is predictable
c. Contribution margins are low
d. Product variety is high
e. The operations strategy is make-to-stock or standardized services
Product variety is high
The type of goods for which a responsive supply chain is appropriate is
a. Products with a long shelf life
b. Fashion goods such as clothing
c. Expensive products
d. Those products that have infrequent design changes
e. Standardized products
Fashion goods such as clothing
A firm in a responsive supply chain should have:
a. Low capacity cushions
b. High volume delivery by railroad
c. High capacity utilization
d. Low inventory investments consistent with fast delivery times
e. A flexible quality policy because high quality i
Low inventory investments consistent with fast delivery times
The financial and market share objectives of a firm in a responsive supply chain are likely to be realized if the firm has a:
a. standardized product
b. low capacity cushion
c. short lead time for new product development and delivery
d. make-to-order or s
short lead time for new product development and delivery
One source of disruption caused by the external supply chain is:
a. product or sales promotions
b. late deliveries by vendors
c. new product or service introductions
d. engineering changes
e. quality problems in the production process
late deliveries by vendors
One source of disruption caused by the internal supply chain is:
a. forecast error
b. under-filled shipments of raw materials or components
c. volume changes in customer delivery requirements
d. late deliveries from suppliers
e. requests for customization
forecast error
Causes of the Bullwhip Effect include all of the following except:
a. demand forecast updating
b. stable pricing
c. rationing within the supply chain
d. long lead times
e. order batching by downstream customers
stable pricing
Ways to minimize the Bullwhip Effect include all of the following except:
a. reducing the amount of sales data shared with members of the supply chain in order to protect the firm's sensitive financial information
b. reducing variability in demand through
reducing the amount of sales data shared with members of the supply chain in order to protect the firm's sensitive financial information
If two potential suppliers can deliver a part with the same quality and prices, the selection should be based on:
a. the age of the firms
b. the size of the firms
c. an outside evaluation
d. the capabilities and flexibilities of the firms
e. the sales and
the capabilities and flexibilities of the firms
The amount of inventory kept in a warehouse is usually based on:
a. minimizing transportation costs
b. constant demand
c. tradeoffs between warehousing, inventory, and transportation costs
d. product pricing strategy
e. the size of the warehouse
tradeoffs between warehousing, inventory, and transportation costs
The goals of supply-chain management include attempting to reduce uncertainty and risk impacting:
a. inventory levels
b. customer service levels
c. processes
d. cycle times
e. all of the above
all of the above
Which of the following statements is true?
a. time series methods use the past data in making a forecast for the future.
b. judgmental methods rely on expert's opinion in making a prediction for the future. These methods are more useful when past data are
all of the above are true
The performance of a forecasting model can be measured by
a. mean absolute value of errors
b. running sum of the forecast errors
c. tracking signal
d. mean squared error
e. all of the above
all of the above
A simple smoothing model with ? = 0 is equivalent to:
a. 3-period moving average
b. simple smoothing with one period trend
c. Naive 1
d. Naive 2
e. none of the above
Naive 2
Which of the following is not true of an n-period simple moving average?
a. it always uses the n most recent data values
b. including a larger number of periods results in more stable forecasts
c. it assigns weights to the past n observations in a decreas
it assigns weights to the past n observations in a decreasing manner & it is most appropriate for data that exhibit seasonality or trend
If the RSFE for sales turns up a large positive number, then:
a. it implies the forecasting model is consistently overestimating the forecasted data
b. it will also result in a positive tracking signal
c. it implies the forecasting model is providing fore
it will also result in a positive tracking signal & it implies the forecasting model is providing forecasts that are consistently below the actual demand
Which of the following is true about MAD?
a. the smaller its value the more accurate the forecast
b. it is used in the computation of the tracking signal
c. it can be positive or negative
d. a & b
e. a, b & c
the smaller its value the more accurate the forecast & it is used in the computation of the tracking signal
Which of the following statements about the patterns of a demand series is false?
a. The five basic patterns of most business demand series are the level, trend, seasonal, composite and random.
b. Estimating composite movement is difficult because forecas
The trend, over an extended period of time, always increases the average level of the series
Which of the following factors affecting the demand for goods and services is an external factor?
a. Product mix changes
b. Price and advertising promotions
c. Salesperson quotas or incentives
d. Packaging design
e. Competitors pricing actions
Competitors pricing actions
Which of the following factors affecting the demand for goods and services is an internal factor?
a. Public image of the product or service
b. General state of the economy
c. Consumers tastes
d. Expansion or contraction of geographical market target areas
Expansion or contraction of geographical market target areas
Which of the following statement about forecasting is true?
a. The five basic patterns of most business demand series are the level, trend, seasonal, composite and the subjective judgment of forecasters.
b. Casual methods are used when historical data are
Judgment methods are designed for situations where historical data are lacking
Which of the following statements about forecasting is false?
a. In the short-term, (0-3 months into the future) managers are typically interested in forecasts of total sales and groups (or families) of products.
b. The need for medium-term forecasts aris
In the short-term, (0-3 months into the future) managers are typically interested in forecasts of total sales and groups (or families) of products
The judgment method of forecasting is useful when
a. Quantitative forecasts have low errors
b. The business environment is stable
c. There is no new contextual information concerning the external business environment
d. The forecaster has historical data
Adjustments need to be made to quantitative forecasts to compensate for specific, known future events
Which of the following statements about forecasting is false?
a. The weighted moving average method allows forecasters to emphasize recent demand over earlier demand. Hence, the forecast will be more responsive to changes in demand.
b. The most frequently
You should use the simple moving average method to estimate the mean demand of a time series that has a trend and seasonal influences
Which of the following is used to measure the bias in a forecast?
a. Running sum of the forecast errors
b. Mean absolute deviation of forecast errors
c. The percentage forecast error in period t
d. The standard deviation of the forecast errors
e. The mean
Running sum of the forecast errors
Which of the following statements concerning general guidelines for forecasting is false?
a. Forecasts are more accurate for shorter periods of time.
b. Forecast accuracy should be verified with either a measure of accuracy or a measure of bias, but not b
Forecast accuracy should be verified with either a measure of accuracy or a measure of bias, but not both since they measure different aspects of a forecast