ISDS 3115 Final DSM

In mass service and professional service, the operations manager should focus on _____

Human Resources

A job shop is an example of ____

An intermittent process

High-volume, low-variety production is best suited for which of the following process strategies?

Product-focused

An assembly line is an example of a _____

Repetitive process

Which of the following industries is most likely to have low equipment utilization?

Restaurants

A system using an automated work cell controlled by electronic signals from a common centralized computer facility is called ______?

A flexible manufacturing system

In many applications, human quality inspectors can be replaced effectively by ____?

Vision systems

Which of the following is not a strategy for improving service productivity?

Mass customization

This type of process-analysis tool is a schematic of the movement of material, product, or people.

Process mapping

Smooth FM Radio uses a ______ approach when it mixes pre-recorded local segments with its national music blocks.

Mass customization

Which one of the following technologies is used only for material handling, not actual production or assembly?

AGV

Four types of processes are ______?

Process focus, repetitive focus, product focus, and mass customization

Which of the following transformations generally has the highest equipment utilization?

Product - focused process

“Automatic placement and withdrawal of parts and products into and from designated places in a a”warehouse” describes _____ technologies.

ASRS

One fundamental difference between a process chart and a process map is that ____.

The process chart uses symbols, time, and distance, while the process map is more like a schematic diagram

Which of the quadrants in the service process matrix has high labor intensity and low customization?

Mass Service

Low-volume, high variety production is best suited for which of the following strategies?

Process focused

Which of the following technologies would enable a cashier to scan the entire contents of a shopping cart in seconds?

RFID

Which of the following quadrants in the service mass matrix has high labor intensity and high customization?

Profesional service

Of the five tools used for process analysis and design, which one focuses on the customer interaction?

Service blueprinting

The crossover point is that production quantity where _______

total cost for one process equal total costs for another process

In the mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except?

customization

Service blueprinting _____

Focuses on the providers interaction with the customer

The use of information technology to monitor and control of physical process is known as ____

Process control

Strategies for improving productivity in services include _____

Separation, self-service, automation, and scheduling

What type of negotiation strategy requires the supplier to open its books to the purchasers?

Cost-based price model

The approach that holds the suppliers responsible for maintaining the necessary technology, expertise, and forecasting ability plus cost, quality, and delivery competencies is __________

Many suppliers

With the growth of the JIT, which of the following distribution systems has been the biggest loser?

Railroads

Which one of the following is not a supply-chain strategy?

Short-term relationship with few suppliers

Which of the following is ***not*** an advantage of the “few suppliers” concept?

Sharing trade secrets between firms

Which one of the following performance measures is not true of a world class firm?

Long lead time

Which of the following is ***not*** a concern of the supply chain?

Maintenance scheduling

Keeping a product generic as long as possible before customizing is known as __________.

Postponement

Consider a firm with a 2018 net income of $20 million, revenue of $60 million, and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant, and equipment, how many weeks of supply does the firm hold?

4\.16 weeks

The three classic types of negotiation strategies are __________.

Cost-based price model, market-based price model, and competitive bidding.

Which of the following best describes vertical integration?

To produce goods or services previously purchased

A furniture maker has delivered a dining set to the end consumer rather than to the furniture store. The furniture maker is practicing __________

Drop shipping

The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is __________

Outsourcing

Which of the following supply-chain strategies creates value by allowing suppliers to have economies of scale?

Long-term partnering with few suppliers

A disadvantage of the “few suppliers” strategy is __________.

the high cost of changing partners

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 distributer, the distributer assumes the large size is a trend, not a one-time event. The distributer, therefore, places an even larger order with the lobsterman. This is the result of __________

the bullwhip effect

Which one of the following distribution systems offers quickness and reliability when emergency supplies are needed overseas?

Airfreight

What term is used to describe the outsourcing of logistics?

Third-Party Logistics

Maximizing local profit or minimizing cost in a supply chain is best described as __________.

Local optimization

The three major variations of online catalogs are grouped by __________.

Vendors, intermediaries, and buyer exchange systems

The trucking industry is establishing technologies, which let shippers and truckers find each other in order to ________.

Improve logistics efficiency

Last year, a vendor cost of goods sold was $8,000 and average inventory investment was $500. This vendor's ________ was 16.

Inventory turnover

Which of the following is an aspect of environmental risk in supply-chain management?

Political issues

The four stages of supplier selection, in order, are __________.

Supplier evaluation, supplier development, negotiations, and contracting

__________________ is the technique where a manufacturer sends individual components (rather than assembled units) to a distributor.

Channel assembly

Which of these conditions is **not** necessary for the economic order quantity model to be valid?

The item has a constant purchase price

In the probabilistic model, increasing the service level will __________.

Increase the cost of the inventory policy

The production order quantity model _______.

Is appropriate when units are produced and sold simultaneously

Which of the following should be higher in P systems than Q systems?

Safety stock

A disadvantage of the fixed-period inventory system is that

A stockout is possible

If demand is not uniform and constant, the stockout risks can be controlled by __________.

Adding safety stock

Inventory management policies based on ABC analysis might include investing _______.

More in supplier development for A items

Extra units that are held in inventory to reduce stockouts are called __________.

Safety stock

Generally, inventory types are divided into four main categories.  Which of the following **is not** one of the four main categories of inventory?

Safety stock inventory

A production facility is trying to determine the best batch size for an item that is produced intermittently. This item has an annual demand of 1,000 units, an annual carrying cost of $10 per unit, and a setup cost of $400. They operate 50 weeks per year, and can produce 40 units per week. What is the best batch size for this item?

400

The two most important inventory-based questions answered by the typical inventory model are ______.

when to place an order and how many of an item to order

One use of inventory is __________.

To provide a hedge against inflation

Inventory record accuracy would be decreased by __________.

Increasing stockroom accessibility

Cycle counting __________.

Is a process by which inventory records are verified for accuracy

A specific product has expected demand during lead time of 100 units, with a standard deviation during lead time of 25 units. What safety stock (approximately) provides a 95% service level?

41

A store wants to ensure a shelf full of marshmallow peeps as the holiday season approaches.  Daily demand for peeps is normally distributed with a mean of 25 and a standard deviation of 5.  Lead time is 3 days and the store intends a 98% service level.  What is the appropriate reorder point?

93

A company wishes to determine the EOQ for an item that has an annual demand of 2,000 units, a cost per order of $75, and annual carrying cost of 7.50 per unit. What is the EOQ?

200

The appropriate level of safety stock is typically determined by _________.

Choosing the level of safety stock that assures a given service level

The difference between the basic Economic Order Quantity (EOQ) model and the production order quantity model is that _______.

the production order quantity model does not require the assumption of instantaneous delivery

An inventory decision rule states “when the inventory level goes down to 14 gearboxes, 100 gearboxes will be ordered.” Which of the following statements is true?

14 is the reorder point, and 100 is the order quantity.

A system that keeps track of each withdrawal or addition to inventory continuously is __________.

A perpetual inventory system

A system that triggers ordering on a uniform time basis is called a _______.

A fixed-period system

The primary purpose of the basic economic order quantity model is ________.

To minimize the sum of setup coast and holding cost

Most inventory models attempt to minimize __________.

Total inventory based costs

ABC analysis generally divides on-hand inventory into three classes based upon ______.

Annual dollar volume

Enterprise Resource Planning __________.

Automates and integrates the majority of business processes

MRP II is accurately described as:

MRP augmented by other resource variables

Each X requires 2 of component Y; each Y requires 4 of part Z. The lead time for assembly of X is 1 week. The lead time for the manufacturer of Y is 1 week. The lead time for procurement of Z is 6 weeks. The cumulative lead time for X is __________ weeks.

8

Which of the following is ***false*** concerning enterprise resource planning?

It is inexpensive to implement.

Which of the following lot-sizing techniques results in the lowest holding costs?

Lot-for-lot

A paint company mixes ten different base colors into 3,000 different color options.  If the MPS is organized around the ten different base colors, their bills of material are classified as:

modular

Which of the following statements regarding the gross material requirements plan is ***false***?

It includes inventory on hand

Capacity planning in closed-loop MRP does ***not*** do which of the following?

Adds in additional capacity

If a load report (resource requirements profile) shows a work center scheduled beyond capacity, then __________

the work center’s load may be smoothed

All of the following are advantages of enterprise resource planning ***except*** it __________.

requires additional training

Material requirements planning (MRP) does not consider __________.

Capacity

Which of the following is ***not*** a key benefit of MRP?

Quality increases

Firms making many different final products use __________ to facilitate production scheduling.

modular bills

Distortion in MRP systems can be minimized when safety stock is held at the __________.

raw material level

Effective use of MRP and other dependent demand models does ***not*** require which of the following?

Cost of individual components

Which of the following best describes a gross material requirements plan?

A schedule that shows total demand for an item, when it must be ordered from a supplier, or when production must start.

Which of the following statements regarding MRP in services is ***true***?

Services such as restaurant meals illustrate dependent demand, and require product structure trees, bills-of-material, and scheduling.

In MRP, system nervousness is caused by __________.

management’s attempt to continually respond to minor changes in production requirements.

The EOQ lot size quantity would be ___________.

200

The phrase “demand related to the demand for other products” describes __________.

Dependent demand

What lot-sizing technique is generally preferred when inventory holding costs are extremely high?

Lot-for-lot

The __________ is the MRP input detailing which end items are to be produced, when they are needed, and in what quantities

master production schedule

Which of the following is a step towards integrating MRP and finite capacity?

Using smaller buckets

A document calls for the production of 50 small garden tractors in week 1; 50 small garden tractors and 100 riding mowers in week 2; 100 riding mowers and 200 garden utility carts in week 3; and 100 riding mowers in week 4. This document is most likely a __________

master production schedule

Linking a part requirement with a parent component that caused the requirement is referred to as:

Pegging