Long-range plans |
Capacity decisions are most critical to which of the following? |
Quadrant 2: Price tends to be variable; use tends to be predictable |
Industries traditionally associated with revenue management operate in which quadrant of the Revenue Management Matrix? |
Labor |
What is the primary aggregate planning vehicle in service industries? |
Yield Management |
What is an alternative name for revenue management? |
Job scheduling is made as part of intermediate plans |
Which of the following statements is NOT true regarding the planning process? |
Aggregate plans use information regarding individual products rather than product |
Which of the following statements is NOT true regarding aggregate plans? |
Aggregate planning |
Which of the following occurs first within a production planning system? |
S&OP is also called an aggregate plan |
Which of the following statements is NOT true about S&OP? |
Chase strategy |
Which of the following would likely result in the LEAST amount of inventory? |
Disaggregation |
What is the process of breaking an aggregate plan into greater detail? |
Using part-time workers |
Which of the following is NOT a demand option of aggregate planning? |
The large number of dependent sites |
What makes aggregate planning particularly complex in the airline industry? |
Cost factors be linear and positive |
The transportation method of linear programming requires that: |
MRP does not tell you that a job needs to be completed on a certain week or day |
Which of the following is NOT true about MRP limitations? |
MRP is an independent demand technique used in a production environment |
Which of the following statements is NOT true about MRP? |
DRP pushes inventory through the system |
Which of the following statements about DRP is NOT true? |
The EOQ is preferable when dependent demand exists |
Which of the following statements is NOT true about the EOQ? |
It creates commonality of databases |
Which of the following is an advantage of ERP? |
A maser production schedule and the time-phases schedule |
The gross material requirements plan combines: |
MRP does not tell you that a job needs to be completed on a certain week or dat |
Which of the following is NOT true about MRP limitations? |
Operations Splitting |
What sends a lot to two different machines for the same operation? |
Lead times |
Which of the following pieces of information is NOT contained in a Bill of Material? |
The DRP procedure starts with the forecast at the supplier level |
Which of the following statements is NOT true about DRP? |
Efficient Consumer Response |
Supply chain management systems in the grocery industry that tie sales to buying, to inventory, to logistics, and to production are called: |
For any product, some components of that product are independent demand items |
Which of the following statements is NOT true? |
Time fences and pegging |
The operations manager has two important tools available to deal with MRP system nervousness. Those tools are: |
Wagner-Whitin |
Which of the following lot-sizing techniques is likely to prove the most complex to use? |
Lot splitting |
What is the act of breaking up an order and running part of it ahead of schedule? |
Pull system |
What is a concept that results in material being produced only when requested and moved to where it is needed just as it is needed? |
Lean and sustainability both seek to maximize resource and economic efficiency |
Which of the following statements is true regarding lean sustainability? |
Use a push system to move inventory |
Which of the following is NOT a JIT inventory tactic? |
Understanding the customer |
If there is any distinction between JIT, TPS, and lean operations, it is that lean operations emphasize: |
A JIT basis |
Virtually every restaurant restaurant deals with its suppliers on: |
Cross-training |
Which of the following activities does NOT need to be virtually eliminated for a lean organization? |
Jidoka |
The Japanese call the practice of stopping production when a defect occurs: |
Minimizing cost |
The objective of aggregate planning is to meet forecast demand while ______ over the planning period. |
Subcontracting |
Dependence on an external source of supply is found in which of the following aggregate planning strategies? |
Inventory goes up or down to buffer the difference between demand and production |
Which choice best describes level scheduling? |
Varying production levels and/or work force to meet demand requirements |
Which of the following is NOT consistent with level scheduling? |
Projected on hand |
In MRP, the number of units projected to be available at the beginning of each time period refers to: |
Automates and integrates the majority of business processes |
Enterprise resource planning (ERP): |
Pull systems |
Which of the following is generally found in most lean environments? |
Close relationships with trust |
Concerning relationships with suppliers, which of the following combinations is critical to the success of JIT? |
Removal of incoming inspection |
Which of the following is a characteristic of a JIT partnership? |
The meat department stocking up on turkeys before Thanksgiving |
A grocery store is attempting to implement a kanban system. Which of the following would not be an application of kanbans? |
Inventory |
Excess bags of basic commodities such as flour and sugar that are stored in a restaurants kitchen represent which of the following wastes? |
Breaks the aggregate plan into greater detail |
Disaggregation: |
Varying work force size by hiring or layoffs |
Which of the following aggregate planning strategies is known to lower employee morale? |
A schedule that shoes total demand for an item, and when it must be ordered from a supplier when production must be started |
Which of the following best describes a gross material requirements plan? |
The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly. |
Which of the following statements is TRUE about the MRP plan when using lot-for-lot ordering? |
Close relationships with trusts |
Concerning relationships with suppliers, which of the following combinations is critical to the success of JIT? |
All of the above are goals of JIT partnerships |
Which of the following is NOT a goal of JIT partnerships? |
Increased inventory levels |
Which of the following is NOT one of the benefits in MRP? |
ERP |
What is an information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders? |
Bill-of-material |
What is a list of quantities of components, ingredients, and materials required to make a product? |
Gross material requirements plan |
What is a schedule that shows when an item must be ordered from suppliers or when the production of an item must be started to satisfy demand for the finished product by a particular date? |
Time fence |
Which of the following represents a segment of the master schedule to be designated as "not to be rescheduled?" |
Pegging |
Which of the following tools means tracing upward in the BOM from the component to the parent item? |
Lot-for-lot |
What is the lot-sizing technique that generates exactly what was required to meet the plan? |
POQ |
What is a lot-sizing technique that orders the quantity needed during a predetermined time between orders? |
Closed-loop MRP system |
What provides feedback to the capacity plan, master production schedule, and production plan so planning can be kept valid at all times? |
Load report |
What is a report showing the resource requirements in a work center for all work currently assigned there as well as planned and expected orders? |
DRP |
What is a time-phased stock-replenishment plan for all levels of the supply chain? |
Product specification |
A bill of materials for a menu item in a restaurant is also called a |
ERP promises slow, but accurate, information |
Which of the following statements is NOT true regarding ERP? |
Intermediate plans |
Which of the following plans are the job of the operations manager, working with other functional areas of the firm? |
Short-range plans |
Job assignments are a focused issue in which of the following? |
Intermediate term |
Aggregate planning is concerned with determining the quantity and timing of production in the |
A forecast of demand for a reasonable long-term planning period in aggregate terms |
Which of the following is NOT one of the features that an S&OP process needs to generate a useful aggregate plan? |
The master production schedule is a sales forecast |
Which of the following statements is NOT true regarding the master production schedule? |
Meet forecast demand while minimizing cost over the planning period |
The objective of aggregate planning is usually to |
Back ordering during high-demand periods |
Which of the following is NOT a capacity option of aggregate planning? |
Mixed plans seek a minimum cost via a combination of eight planning options |
Which statement is characteristic of a mixed strategy for aggregate planning? |
Determine the demand in each period |
What is the firs step in the graphical method for aggregate planning? |
Flexibility in rate of output or hours of work to meet changing supply |
Successful techniques to control the labor in service firms do NOT include: |
Depleting inventory during slack periods |
In a service business with a highly variable demand, the general approach to aggregate scheduling does NOT involve: |
Segmentable demand |
Yield management is of interest to organizations having the characteristic of: |
Service or product cannot be sold in advance of consumption |
For organizations that have perishable inventory, which of the following characteristics would NOT make yield management of interest? |
Energy |
Which of the following is NOT one of Taiichi Ohno’s seven wastes? |
Safety |
The 5S’s developed by the Japananese do NOT include: |
Cross-train workers to add flexibility |
Which of the following is NOT a JIT quality tactic? |
Kaizen |
Which of the following words means continuous improvement in Japanese? |
Customers |
JIT has an internal focus while lean production begins with an external focus on: |
Increase space requirements |
Which of the following attributes is NOT for lean operations? |
JIT, TPS, and Lean |
Services throughout the world use: |
They develop community networks as backup systems |
How do pharmacies implement lean operations to ensure that customers will always receive their medications upon demand? |
True |
Savings in the supply chain exert more leverage as the firm’s net profit margin decreases (True or False) |
True |
The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders move through the supply chain |
Postponement |
What is the practice of keeping a product generic as long as possible before customizing? |
Backward integration |
A fried chicken fast-food chain that acquired feed mills and poultry farms has performed which of the following? |
All of the above are true |
The bullwhip effect: |
Local optimization |
Which of the following is NOT an opportunity for effective management in the supply chain? |
To minimize holding costs |
Which of the following would NOT generally be a motive for a firm to hold inventories? |
All of the above are elements of inventory holding costs |
Which of the following is an element of inventory holding costs? |
Minimizes the sum of holding, ordering, and product costs |
When quantity discounts are allowed, the cost-minimizing order quantity: |
The larger the annual demand, the less attractive a discount schedule will be |
Which of the following statements about quantity discounts is FALSE? |
Inventory has limited value after a certain period of time |
The main trait of a single-period model is that: |
Varying work force size by hiring or layoffs |
Which of the following aggregate planning strategies is known to lower employee morale? |
A pure chase strategy allows lower inventories when compared to pure level scheduling |
Which of the following statements about aggregate planning is TRUE? |
Matching production exactly with sales |
Which of the following is NOT an advantage of level scheduling? |
A satisfied customer |
A supply chain ends with: |
Use buffer stocks to ensure speedy supply |
Which of the following statements is NOT one of the differentiation strategy decisions? |
Outsourcing |
What is transferring a firm’s activities that have been internal to external suppliers? |
Form a long-term relationship |
The advantage of having few suppliers is to: |
Vertical intergration |
What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor? |
Careful selection, monitoring and effective contracts with penalties |
Which of the following could reduce distribution risk? |
Cross-sourcing uses one supplier for a component and a second supplier for another component, where each supplier acts as a backup for the other |
Which of the following is true regarding cross-sourcing? |
Blanket order |
What is a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship? |
Vendor-managed inventory |
A lawnmower assembly plant uses a variety of nuts, bolts, screws, and other fasteners in its operation. Ths supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule. This is an example of: |
Market-based price model |
Which negotiation strategy bases price on a published, auction, or index price? |
Is increasingly using computers to manage its operations |
Trucking |
Drive down inventory investment, lower delivery costs, and improve delivery reliability and speed |
Supply chain managers outsource logistics to meet three goals: |
Rapid response, product choice, and service |
Three criteria for designing distribution networks to meet customer expectations are: |
Closed-loop supply chain |
What is a supply chain designated to optimize both forward and reverse flows? |
Percentage invested in inventory, inventory turnover, and weeks of supply |
Three common measures of supply chain performance are: |
True |
Outsourcing is a form of specialization that allows the outsourcing firm to focus on its key success factors |
False |
The supply chain management opportunity called postponement involves delaying deliveries to avoid accumulation of inventory at the customer’s site |
Supply chain savings exert more leverage as the firm’s net profit margin decreases |
Which of the following statements is true regarding the leverage of supply chain savings? |
Forward integration |
A rice mill in South Louisiana purchases the trucking firm that transports packaged rice to distributors. This is an example of which of the following? |
The bullwhip effect |
A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. When this large order is sent to the distributor, the distributor assumes the large size is a trend, not a one-time event. The distributor therefore places an even larger order with the lobster man. This behavior is the result of which of the following? |
Third-party logistics (3PL) |
What term is used to describe the outsourcing of logistics? |
ABC analysis suggest that all items require the same high degree of control |
All EXCEPT which of the following statements about ABC analysis are true? |
To minimize the sum of setup cost and holding cost |
What is the primary purpose of the basic economic order quantity model shown below? Q* = sqrt(2DS/H) |
Increase about 41% |
In the basic EOQ model, if the cost of placing an order doubles, and all other values remain constant, the EOQ will: |
Since there is no count of inventory during the review period, a stockout is possible |
A disadvantage of the fixed-period inventory system is that: |
Subcontracting |
Which of the following aggregate planning options is NOT associated with manipulation of product or service demand? |
Developing a mix of products that smoothes out their demands |
Which choice below best describes the counterseasonal product demand option? |
Inventory goes up or down to bugger the difference between demand and production |
Which choice best describes level scheduling? |
Use inventory to meet demand requirements |
Which of the following actions is consistent with the use of level scheduling? |
ISDS 3115 Final
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