OSCM Test #3

When you need to identify a supplier for a new purchase, the FIRST place that you should look is:

The list of your company's current suppliers.

Determining the right number of suppliers that a company should use is:

Supply Base Optimization

Organizations goals for sourcing include all the following EXCEPT:

What manner do they transfer products?

Williams Inc. has acquired software to help manage interactions with its supply base. This suggests that Williams Inc. is involved in:

Supplier Relationship Management

A scorecard that measures if a supplier is better than, equal to, or worse than a current benchmark is called:

Pugh Matrix

The main reason we qualify suppliers is to:

Mitigate risk to our company and supply chain

The Request for Information or RFI is a screening to looking for the following basic answers EXCEPT?

Detailed pricing and terms

What are the three process steps for accessing and selecting a supplier?

Identify, evaluate, agree

A Request for Proposal (RFP) should include all the following EXCEPT:

Supplier banking information

Contracts are characterized as:

An agreement between two parties who are legally authorized

For Platinum Nugget Hotel in Las Vegas, Saturday is the best day of the week for business. The gambling take for the hotel on Saturdays over the past four weeks was:

Week $ Take
1. $180,000
2. $215,000
3. $282,000
4. $195,700

Using a moving average, what would be the forecast for week 5?

$218,175

Alpha Company sold 2,000 widgets yesterday. It had forecasted sales of 1,900 units. Using exponential smoothing with a smoothing constant of 0.95, what is the forecast for today's sales of widgets?

1,995

A company has the information shown in the chart below regarding its forecast performance in the past three periods. What is the mean absolute deviation (MAD)?

70

Demand planning includes which of the following:

Supplier analysis and forecasting

Demand management uses all the following EXCEPT:

Offer a different sellers name and website.

Which of the following statements best describes demand forecasting?

Better forecasts usually come from combinations of inputs

What component of demand best represents the following dataset?

Trend

A panel of experts that provides judgement-based forecasting is known as:

Delphi Method

Fluctuating customer demand can result in the following:

All Of The Above

Mean Absolute Deviation Formula

(D_t - F_t) / N

Mean Absolute Percentage Error

(D_t - F_t) / N * 100

Methods for judgement-based forecasting

• Grassroots

• Executive Judgement

• Historical Analogy

• Marketing Research

• Delphi Method

Grassroots

input from those close to products or customers

Executive Judgement

Input from those with experience

Historical Analogy

Assume past demand is a good predictor of future demand

Marketing Research

Examine patterns of current customers

Exponential Smoothing Formula

F_t+1 = F_t + a(d_t - F_t)

Which of the following is true concerning sales and operations planning?

A benefit of the process is that supply will match demand over an intermediate timeframe in the most efficient way possible.

Which of the following is NOT one of the costs considered in aggregate production planning?

Capital equipment cost

Page Corp. and Plant Corp. are identical in every way (products produced, costs, demand, etc.) except for one. Page uses a level production plan while Plant prefers a chase production plan. Which of the following is most likely to be true?

Page will have higher inventory carrying costs.

Maytag Corporation is preparing an aggregate production plan for washing machines for the next four quarters. The company's expected quarterly demand is 20,000 washers. The company will have 1,000 washers in inventory at the beginning of the year and wishes to end the year with 2,500 washers’
inventory. What is the regular production build quantity per quarter?

20,375

John Jones, senior VP of Zanda Corp., is looking at three alternative aggregate production plans for the next six-month period. At Zanda, demand varies by month with substantial month-to-month differences. The three alternatives are a "level plan," which keeps a constant workforce, a "chase plan" relying on hiring and layoffs, and a “hybrid plan.” What will he most likely find using the level plan

The level plan has higher inventory carrying cost than the chase plan.

Which of the following is an advantage of a chase production strategy (as compared to a level plan)?

Lower inventory carrying costs

Sales and Operational Planning:

Provides an opportunity for customers to interact with the cross-functional team that develops operational and marketing strategies.

Which of the aggregate planning uses a combination of inventory, overtime, and outsourcing?

Hybrid

Operations plant managers’ typical want:

Level loaded schedule

One of the quantitative benefits of aggregate planning is:

More stable supply