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Toyota’s Inventory Turnover is 11.90. General Motors’ Inventory Turnover is 10.80. Given this data, we know that Toyota has better Inventory Turnover than General Motors.
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In Operations and Supply Chain Management, material flow precedes (comes before) information flow.
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Ops Test Bank
| Question | Answer |
|---|---|
| Toyota’s Inventory Turnover is 11.90. General Motors’ Inventory Turnover is 10.80. Given this data, we know that Toyota has better Inventory Turnover than General Motors. | TRUE |
| In Operations and Supply Chain Management, material flow precedes (comes before) information flow. | FALSE |
| The Operations & Supply Chain Management (OSCM) strategy and the Marketing strategy may be developed independently and do not require coordination. | FALSE |
| A Weighted Moving Average Forecast for a product had a Mean Absolute DEviation (MAD) of 25. An Exponential Smoothing Forecast for the same product had a MAD of 30. Given this data, we know that the Exponential Smoothing Forecast was more accurate. | FALSE |
| Sales & Operations Planning (SOP) manages aggregate independent demand. | TRUE |
| Materials Requirements Planning (MRP) manages dependent demand that can be calculated. | TRUE |
| Forward buying in response to a marketing promotional campaign can cause the Bullwhip Effect. | TRUE |
| Processes associated with core competencies are good candidates for outsourcing. | FALSE |
| A firm produces high-variety low-volume parts. An appropriate manufacturing layout strategy for this firm would be an Assembly Line. | FALSE |
| For a location decision, labor productivity may be important, but low wage rates are more important. | FALSE |
| A service system with high customer contact is easier to control than a service system with low customer contact (invisible tasks). | FALSE |
| A service blueprint separates tasks with high customer contact (visible tasks) from activities with low customer contact (invisible tasks). | TRUE |
| Service systems with a buffered (remote asynchronous) approach to customer interaction normally requires workers with higher skill than a Service System with a reactive (face-to-face) approach to customer interaction. | FALSE |
| Activities on the critical path have no slack. | TRUE |
| The critical path of a project is the longest path through the network and the shortest time in which the project may be completed. | TRUE |
| A project milestone is defined as a group of related activities that produce a deliverable. | FALSE |
| An operational goal of Total Quality Management is the careful design of the product or service. | TRUE |
| Producing high-quality products or service conflicts with the strategic objectives of low cost and fast delivery. | FALSE |
| Variation in production systems that is caused by factors that can be clearly identified and possible even managed is called common variation. | FALSE |
| Lean production uses a Push system of inventory replenishment. | FALSE |
| Quality at the Source implied that factory workers will perform some of the inspections and maintenance activities required to control quality. | TRUE |
| Product (material) in storage is considered Waste in Lean Supply Chains. | TRUE |
| All the following are competitive dimensions of Operations and Supply Chain Management (OSCM) strategy and customer value EXCEPT ____. | Capacity |
| Which of the following is a quantitative forecasting method? | Weighted Moving Average |
| The ability to rapidly and inexpensively switch production from one product to another enable what are sometimes referred to as | Economies of Scope |
| A local restaurant has a Service Capacity Utilization of 76%. In which Zone of Service would this restaurant be classified? | Critical Zone |
| All of the following Planning process manage independent demand EXCEPT | Materials Requirements Planning |
| The ______, that lists the materials needed to produce one unit of finished product is a key input to Material Requirements Planning process. | Bill of Materials |
| A firm fills its customer’s orders from finished goods inventory. It is a | Make to stock firm |
| The Economic Order Quantity (EOQ) finds the Optimal Order Quantity where Setup cost and ____ costs are equal. | Holding Cost |
| A supplier visits Home Depot every Monday morning and puts new stock on shelves for sale to customers. What Inventory control system is Home Depot using to manage the supply of this material? | Fixed Time Period Model |
| In logistics-system design matrix, volume, cost, and speed of delivery are three variables (assume three levels low, moderate, or high) used to describe attributes of transportation modes. Barge transportation along our rivers is associated with | None of the above |
| Which of the following is NOT true regarding Service Systems? | Services are Tangible |
| Which of the following is not a queue discipline? | Line of visibility |
| The Japanese term for the fail-safing of a process is _____. | Poke-Yoke |
| Which statement regarding Time-Cost models tradeoffs is true? | Crashing shortens the project by assigning more resources to critical tasks To crash a project, costs are increased on critical activities to reduce their duration |
| You are a project manager reviewing a project report that includes the following: Budgeted Cost of Work Schedule (BCWS), Budgeted Cost of Work Performed (BCWP), and Actual Costs (AC). What type of report are you using to control the project? | Earned Value Management Chart |
| You have just been assigned to oversee a series of projects. In your firm, Functional Areas will loan you personnel for each project and separate project managers. Which project management structure is being used in your firm? | Matrix Project |
| Which of the following Costs of Quality is typically the most expensive? | External Failure |
| Which phase of the Six Sigma DMAIC methodology narrows the pool of possible factors down to the vital, or critical few? | Analyze |
| In the context of a production process such as a manufacturing plant, what is the technique used to identify all of the value-adding as well as non-value adding processes? | Value stream mapping |
| Which of the following is a typical approach used in Lean Supply Chains to signal that more material is needed? | Kanban |
| All of the following are considered Waste in Lean Supply Chains EXCEPT ____? | Defect prevention |
| With which of the following should we use an X-bar chart based on sample means to monitor process quality? | Tire Pressure in auto assembly plant |
| Productivity is the ratio of outputs to inputs. In a multifactor productivity measure, the numerator of the ratio would include more than one factor. | FALSE |
| The Fixed-Quantity Period model is an appropriate approach for planning expensive raw materials used in production. | TRUE |
| One of the disadvantages of a pure project organizational structure is that the project manager has full authority over the project. | FALSE |
| Typically forecasts of individual products are less accurate than aggregate forecasts of product families. | TRUE |
| Value stream mapping involves materials, not information. | FALSE |
| All luxury sedans are said to be of “higher quality” than lower-priced subcompact automobiles. | FALSE |
| The “triple bottom line” relates to the economic, employee, and customer impact of a firm’s strategy | FALSE |
| In a multifactor measure of productivity the numerator of the ratio would include all resources used for all inputs | FALSE |
| Simple exponential smoothing lags changes in demand | TRUE |
| Capacity can be defined as the amount of available resource inputs relative to requirements for output over time | TRUE |
| The critical path in a CPM analysis is found by locating the activities with large slack times | FALSE |
| Assembling-to-order means moving the customer order decoupling point from finished goods to components | TRUE |
| Costs incurred in hiring, training, and laying off personnel are considered relevant aggregate operations planning costs | TRUE |
| The Three main inputs to an MRP system are the bill of materials, the master schedule and the inventory records file | TRUE |
| The term “conformance quality” refers to the relative level of performance of a product as compared to competing product | FALSE |
| In inventory models, high holding costs tend to favor low inventory levels and frequent replenishment | TRUE |
| A financially-driven reason for outsourcing is that it can turn variable costs into manageable fixed costs | FALSE |
| A firm that controls most of the activities in its supply chain is said to be vertically integrated | TRUE |
| Compared to service capacity, manufacturing capacity is | Able to absorb demand by inventory policies |
| Which of the following is an input file necessary to run an MRP system | Inventory files record |
| The Pareto principle is best applied to which of the following inventory systems? | ABC classification |
| Which of the following is NOT a phase in the Six Sigma DMAIC methodology? | Design |
| Which of the following is a cost of quality classification? | Prevention costs |
| To implement a flow process in developing a lean system a firm might | Reduce setup/change over time |
| Which of the following is not a way that operations and supply processes are categorized? | Selecting |
| Which of the following lists contains only competitive dimensions of a firm discussed in the text? | Cost, quality, delivery speed, delivery reliability, flexibility |
| The exponential smoothing method requires which of the following data to forecast the future? | The most recent forecast |
| Which of the following can be used to guide the design of service systems? | Services cannot be inventoried |
| Which of the following costs are relevant to aggregate operations planning? | Backordering costs |
| Which of the following is not a lot sizing technique used in MRP systems? | Warehouse loading factor (WLF) |
| A fishbone diagram as part of a six-sigma quality improvement process might be found in which DMAIC category? | Analyze |
| Which of the following is not an analytical tool used in six-sigma quality improvement programs? | Pass charts |
| Which of the following is not included as an inventory holding cost? | Annualized cost of materials |
| Which of the following are elements that address elimination of waste under lean production? | Kanban production control system |
| The Toyota Production System identified which of the following types of waste to be eliminated? | Motion |
| The effect of the lack of synchronization among supply chain members is referred to as which of the following? | Bullwhip effect |
| Ownership costs incurred after the initial purchase and associated with the ongoing use of the product or material | Energy usage |
| Which of the following is a plant location methodology for locating a facility based on distances and volumes of goods? | Centroid method |
| The main reason fast food restaurants are often found in close proximity to each other is | Location clustering near high customer traffic flows |
| Which of the following is a partial measure of productivity | Outputs/Inputs |
| There are no differences in strategic and tactical forecasting. A forecast is a mathematical projection, and its ultimate purpose should make no difference to the analyst. | FALSE |
| When a firm's design capacity is less than the capacity required to meet its demand, it is said to have a negative capacity cushion. | TRUE |
| A rate fence is a person who books airline seats at low rates far in advance and sells the seats at a profit later. | FALSE |
| MRP provides the schedule specifying when each part and component of an end item should be ordered or produced. | TRUE |
| The fixed-order quantity inventory model favors less expensive items because average inventory is lower. | FALSE |
| Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions? | Historical Cost |
| An example of assignable variation in a production system may be that a machine is not adjusted properly | TRUE |
| In Monitoring Process Quality, We might use which of the following statistics | Difference between highest and lowest value in the sample (RANGE) |
| A firm that controls most of the activities in its supply chain is said to be vertically integrated. | TRUE |
| An operational goal of total quality management is ensuring that the organization's systems can consistently produce the product or service as it is designed. | TRUE |
| Which of the following are related to lean production | A philosophy of waste elimination |
| Which of the following problems are not among those hidden when inventory levels are excessively high. | Inadequate worker motivation |
| In designing a lean production facility layout, a designer should do which of the following? | Design for work flow balance |
| In a lean production system we expect to see which of the following | No extra inventory |
| A matrix project is often referred to as a "skunkworks" | FALSE |
| One of the advantages of a functional project organizational structure is that a team member can work on several projects. | TRUE |
| Safety stock can be defined as the amount of inventory carried in addition to the expected demand. | TRUE |
| The Poisson probability distribution is used in waiting line management when we are interested in the number of arrivals to a queue during some fixed time period | TRUE |
| In the service-system design matrix, a mail contact service encounter is expected to have | a low degree of customer/server contact |
| Arrival Characteristics in a queueing problem analysis include the length of the queue | FALSE |
| A fishbone diagram as part of a six-sigma quality improvement process might be found in which DMAIC category | Analyze |
| The three main inputs to MRP system are the Bill of Materials, the master schedule, and the inventory records file | TRUE |
Created by:
MichaelCocozza