Supply Chain Management Exam 2

Which of the following is true regarding the order of process and product development in services?

The process and product must be developed simultaneously.

An input to the material requirements planning (MRP) system is an inventory records file.

True

A make-to-order firm will work with the customer to design the product and then make it from purchased materials, parts, and components.

False

The product-process matrix shows the relationship between process structures and product volume and variety characteristics.

True

Which of the following basic types of process structures is one in which similar equipment or functions are grouped together?

Workcenter

The essential issue in satisfying customers in the __________ environment is to balance the level of finished inventory against the level of service to the customer.

make-to-stock

An exploded view of the product showing its component parts is a(n)

assembly drawing

In studying the product-process matrix describing layout strategies, which of the following is most appropriate?

1. As you move from project to manufacturing cell to continuous process, product volume increases while standardization increases.

2. As you move from project to manufacturing cell to continuous process, product volume decreases while standardization decreases.

3. As you move from project to manufacturing cell to continuous process, product volume increases while standardization decreases.

4. As you move from project to manufacturing cell to continuous process, product volume decreases while standardization increases.

1

A project layout is characterized by a relatively low number of production units in comparison with process and product layout formats

True

Which of the following basic types of process structures is one in which equipment or work processes are arranged according to the progressive steps by which the product is made?

Assembly Line

What are the 3 inputs of material requirements planning (MRP) system?

BOM file, the master schedule, and the inventory records file.

An input to the material requirements planning (MRP) system is an exception report.

False

An example of a(n) __________ firm is Dell Computer.

assemble-to-order

An order winner is a set of criteria that differentiates the products or services of one firm from another.

True

Which of the following is an input to the master production schedule?

Aggregate production plan

In studying positioning of inventory in supply chains, which, if any, of the following is most appropriate?

1. As order decoupling point moves towards source, inventory investment goes down.

2. As order decoupling point moves towards the source, customer lead time gets longer.

3. As order decoupling point moves towards the source, inventory investment increases.

4. As order decoupling point moves towards the source, customer lead time is unchanged.

1&2

Which of the following is a characteristic of a well-designed service system?

Each element of service system is consistent with the operating focus of the firm.

Which of the following is an input file necessary to run an MRP system?

Bill-of-materials (BOM) file

A continuous process indicates production of discrete parts moving from workstation to workstation at a controlled rate.

False

The master production schedule states the number of items to be produced during specific time periods

True

The focus in the __________ environment is on providing finished goods where and when the customers want them.

make-to-stock

Which of the following is not a characteristic of a well-designed service system?

It is structured to have consistency between organization and department.

A project layout is characterized by a high degree of task ordering.

True

__________ is a production environment where pre-assembled components, subassemblies, and modules are put together in response to a specific customer order.

Assemble-to-order

Which of the following is a major factor that distinguishes service design and development from manufacturing design and development?

The service package is the major output of the development process.

Which of the following is the planned-order release using an MRP program if the gross requirement is 670 and the inventory on-hand is 600?

70

One difference between an assembly line process flow and a continuous process flow is that on the assembly line the flow is discrete rather than continuous.

True

A __________ is a dedicated area where products that are for the same or very similar customers are produced.

manufacturing cell layout

Which of the following is an input file necessary to run an MRP system?

Inventory records file

Which of the following is not a characteristic of a well-designed service system?

It focuses only on the front office delivery.

Which of the following is a difference between project and continuous flow categories of process flow structures?

The size and bulk of the product

Computing the quantity of each component that goes into a finished product can be done by expanding (or exploding) each item in a product structure file and summing at all levels.

True

A(n) __________blank denotes what happens to the product as it progresses through the productive facility.

process flowchart

Which company is mentioned in the text as a pioneering of the production-line approach to delivering on-site service?

McDonald's Corporation

One of the three approaches to delivering on-site service is the __________.

self-service approach

Which of the following is one of the main purposes of an MRP system?

Determine the amount of materials needed to produce each end item.

__________ is a production environment where pre-assembled components, subassemblies, and modules are put together in response to a specific customer order.

Assemble-to-order

Which of the following is not a basic type of process structure?

Product-process matrix

Which of the following is a characteristic of a well-designed service system?

It manages the evidence of service quality in such a way that customers are aware of the value of the service provided

Which of the following is most closely related to the reason a firm might implement MRP?

So it can order the right parts

Engineer-to-order firms will work with the customer to design the product and then make it from purchased materials, parts, and components.

True

Having stamping and drill press departments would imply which of the following types of layouts?

Workcenter

A project layout is only used for products in a__________blank.

fixed location

A master production schedule is an input to a material requirements planning (MRP) system.

True

MRP stands for manufacturing requirements planning.

False

Which of the following tend to have higher levels of inventory investment?

Make-to-stock

The master production schedule states the number of items to be produced during specific time periods.

True

The essential issue in satisfying customers in the __________ environment is to balance the level of finished inventory against the level of service to the customer.

make-to-stock

MRP systems seek to achieve which of the following?

Determine the number of dependent demand items needed.

The focus in the __________ environment is on providing finished goods where and when the customers want them.

make-to-stock

One trade-off illustrated by the product-process matrix is between flexibility and cost.

True

The main difference between service products and physical goods is that services __________, whereas physical products __________.

cannot be inventoried; can be stored in inventory

MRP stands for Material Requirements Planning.

True

The term "assembly line" refers to progressive assembly linked by some material handling device.

True

Which tool defines how parts go together, their order of assembly, and often the overall material flow pattern?

Assembly chart

Which of the following is not considered a major workflow structure?

Fabrication

The closer the customer is to the customer order decoupling point, the more quickly the customer receives the product.

True

Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.

True

Which of the following refers to the physical presence of the customer in a service system?

Customer contact

Workcenter layouts allocate dissimilar machines into cells to work on products that have dissimilar processing requirements.

False

Because little or no inventory is carried in a service operation, it is easy to separate the operations management functions from marketing in services.

False

The volume requirements for the product are one determinant of the choice of which process structure to select.

True

Which of the following basic types of process structures is one in which similar equipment or functions are grouped together?

Workcenter

The closer the customer is to the customer order decoupling point, the longer it takes the customer to receive the product.

False

MRP is a logical, easily understandable approach to the problem of determining the number of parts, components, and materials needed to produce each end item.

True

Process selection refers to the strategic decision of choosing the volume of output to produce in a manufacturing facility depending upon the way that facility produces.

False

The essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished inventory against the level of __________.

service to the customer

Which of the following is one characteristic of a well-designed service system?

It is robust.

MRP provides the schedule specifying when each part and component of an end item should be ordered or produced.

True

__________ means moving the customer order decoupling point from finished goods to components.

Assemble-to-order

Which one of the following is not a major factor distinguishing service design and development from manufacturing design and development?

Service operations can be protected by patents; manufacturing operations cannot.

__________ aims to achieve higher service levels for a given inventory investment.

Lean manufacturing

__________ refers to the physical presence of the customer in the system.

Customer contact

An) __________ determines where inventory is positioned to allow processes or entities in the supply chain to operate independently.

customer order decoupling point

Very few products are moved without at least part of their journey being by which mode of transportation?

Highway

Facility location analysis considers proximity to customers important to timeliness of deliveries.

True

Quality of life in a host community is not a major factor in making the facility location decision.

False

In the logistics-systems 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. Air is associated with __________.

low volume, high speed, and high cost

Facility location analysis considers the competitive imperative of lowest total cost.

True

Small, light, expensive items are most appropriate for which mode of transportation?

Air

One area where air transportation offers a significant advantage is cost.

False

_________ is an approach used in consolidation warehouses, where large shipments are broken down into small shipments for local delivery in an area.

Cross-docking

No packaging is needed and the costs per mile are low with which mode?

Pipelines

Water transport has the highest fixed cost.

False

Transportation costs for a product depend upon which of the following characteristics?

The shipment weight

When a third party firm coordinates deliveries from multiple suppliers to a single customer, the process is known as:

pooled delivery consolidation.

A favorable business climate in facility location decision making might include local government providing basic skill training for prospective members of the workforce.

True

An example of a trading bloc is which of the following?

European Free Trade Association

In the logistics-systems 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. Rail is associated with __________.

high volume, moderate speed, and low cost

In facility location decision making, the educational and skill levels of the labor pool must match the company's needs.

True

In a hub-and-spoke system, each warehouse in the system __________.

is referred to as a “hub,” and its sole purpose is to sort goods

What transportation mode has very high initial investment costs but gives a very low cost per mile for products that are highly specialized and require no packaging?

Pipeline

Facility location analysis considers the competitive imperative of a favorable business climate as indicated by the presence of other companies in the same industry.

True

Which is a fairly low-cost alternative mode of transportation, but transit times can be long and may be subject to variability.

Rail (trains)

One example of intermodal transportation would be transferring a shipping container from a container ship to a rail car.

True

Why does the tapering principle occur?

Freight costs increase more and more slowly as distance increases.

The local government's willingness to invest in upgrading infrastructure to the levels required by a company is an important issue in a company's decision of where to locate a new facility.

True

A __________ company is a firm that manages all or part of another company's product delivery operations.

third-party logistics

A free trade zone is typically a closed facility into which foreign goods can be brought without being subject to the usual customs requirements.

True

__________ is the process of coordinating and moving material and other resources from one location to another.

Logistics