Professional Documents
Culture Documents
The authors suggest that the most important step in the purchasing process is _______
A) communication B) transaction management
C) supplier selection D) relationship management
Outsourcing is
A.Exporting
B.Importing
C.A firm having someone else do part of what it previously did itself.
D.Building a factory in another country to produce for that countrys market.
E. Going out of business
Offshoring is
A.Substituting foreign for domestic labor.
B. Subcontracting a part of production to another firm. C. Exporting D. Importing
E.Building a factory in another country to produce for that countrys market.
The function of ________ is to transport and store goods, assuring that inbound
materials are available for operations and that outbound finished products are available
to the customer._______
A) production B) purchasing C) logistics D) material planning
All of the following are major steps in the supplier selection process except ________.
_______
A) development
B) monitoring C) identification
D) approval
A ________ specifies the overall terms of agreement for a given time period, often 1
or more years and the total quantity purchased.______
B) selection approval
C) blanket order
D) expedite order
________ design is a manufacturing activity that refers to the technology selection and
work design that is based on production volumes, financial resources, and labor cost.
______
A) Product
B) Material C) Process
D) Facility
The text refers to four practices that are elements of a strong supplier performance
monitoring process. They include all of the following except ________ ______
A) current status of the PO
B) part type or commodity information
C) technology improvements of the commodity
D) contract information
The Japanese term, Jidoka suggests that only manufacturing management can stop the
production line. T/F
One major purchasing objective achieved through the supplier selection process is to
_______ ______ A) identify high quality supplier candidates,
B) establish the make cost of the purchased material
C) maximize use of the ERP system D) determine candidates for future purchased
material
inventory. ______T/F
a)
b)
c)
d)
a)
b)
c)
d)
Which of these SCOR model flows moves in the opposite direction from the others?
A.Plan B.Return C.Source D.Make
Distribution management is concerned with the inbound movement and storage of raw
materials, purchased components and subassemblies.
______T/F
Dwell time ratio evaluates the number of days inventory sits idle compared to the
number of days the inventory is moving.
______T/F
All of the following are typical steps in the purchasing process except ________.
a) A) ERP information system B) relationship management
A quality perspective that focuses on whether or not a product was made or a service
was performed as intended is the:
A.performance perspective. B.value perspective. C.conformance perspective.
a) intention perspective.
The __________ dimension of quality asks how long a product can go between
failures or the need for maintenance.
A.Warranty B. lifetime C. serviceability D. reliability
The non-profit organization, Supply Chain Council proposes a supply chain reference
model as a business standard. All of the following processes are key elements of this
model except ______________
A) return
B) plan C) finance
D) deliver
_______ provides an estimate of what products need to be produced and when they
need to be produced.______
A) Inventory control
B) Scheduling C) Quality control D) Forecasting
________ determines how much and when to make specific products.______
A) Forecasting B) Scheduling C) Inventory control
D) Quality control
Costs incurred by defects that occur prior to delivery to the customer are called:
a) external failure costs. B. internal failure costs. C. appraisal costs. D. prevention
costs.
The order fulfillment cycle consists of order entry, order picking, packaging, and
shipment. ______T/F
________ is often used instead of a purchase order for small-dollar purchases that the
end-customer can use to purchase material and is similar to a credit card.______
A) P-card
B) Verbal authorization C) MRP directive D) Purchase index card
The term LTL related to truck transportation is defined as a full truckload. _____T/F
14. A technique used to translate customer requirements into technical requirements is:
A.quality assurance. B. statistical quality control.
B.quality function deployment. D.continuous improvement.
A "PO" is a document that specifies the terms and condition of the purchase agreement
and initiates supplier _____________
A) action to proceed B) selection C) notification of customer interest D) bidding
Usually a JIT manufacturing system improves productivity AND reduces waste. T/F
The three operation functions, ________, ________, and ________, are responsible
for the "order fulfillment" process.
A) purchasing, production and logistics
B) material control, production, quality assurance
C) purchasing, production and quality assurance D) material control, production, logistics
One international standard for managing quality across the supply chain is:
A.ISO 9000. B. ISO 14000. C. AQL. D.LTPD.
Every time an order is placed at a work center, the time taken to set up is lost as a
productive output time. This is ________ cost._______
A) setup and teardown
B) lost capacity C) purchase order D) production control
________ are devices that move material horizontally or vertically between two fixed
points in a fixed route. _______
A) Hoists
B) Cranes C) Conveyors D) Industrial trucks
_______
SHORT ANSWER.
A company has 9,000 units on hand and the annual usage is 48,000 units. There are
240 working days in the year. What is the days of supply? _____________
The variable costs associated with distribution centers are space and materials
handling._______T/F
SHORT ANSWER.
What should the objectives be of a firm wishing to maximize profit?
_____________
Inaccurate inventory records will result in: _______
A) increased sales
B) shortages or excess inventory
C) higher productivity D) improved delivery performance
a)
b)
c)
d)
SHORT ANSWER.
What costa are used for inventory management decisions? _____________
A company ships dog houses fully assembled to luxury dog hotels. The average linehaul cost per shipment is $12.50 per mile and the truck carries 100 assembled large
dog houses. The company decided to ship the houses unassembled and figures it can
ship 500 in a truck. Calculate the line-haul cost per assembled and unassembled dog
house. If the average trip is 300 miles, calculate the potential savings per dog house.
_____________
a)
b)
c)
d)
A video game publishing company needs to predict the total sales in the European
market for the next year. This is an example of a(n):
A.firm-level demand forecast. B.overall market demand forecast.
C.supply forecast. D.price forecast.
A company normally ships a product by trail. Transportation cost is $200 and the
transit time is 10 days. However the goods can be moved by air at a cost of $1,000
and will take only one day to delivery. The cost of inventory in transit for a shipment
is $100 per day. What are the costs involved in their decision._____________
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
Bar codes are read using a laser light. ______
To judge inventory accuracy, a tolerance level for each part must be specified.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or
answers the question.
About 50% of the items account for about 5% of the dollar usage is a good description
of ________ inventory items. ______
A) A B) B C) C D) D
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
Major retailers like Wal-Mart see the value in using RFID as a way of gathering
information and are demanding their use in many of their products. ______
A service firm that takes care of all of the logistics requirements for other companies is
a: A) common carrier.
B) third party logistics provider. C) freight forwarder.
D) contract carrier.
a)
b)
c)
d)
C) An eighty percent learning curve means that each unit takes twenty percent less time to
produce than its immediate predecessor.
D) Learning improvements always follow a constant pattern.
Which of the following statements about theoretical capacity is best?
______
A) Running a factory at this level for a short time is often better than permanently raising
resource levels.
B) Theoretical capacity levels are usually lower than rated capacity levels.
C) Theoretical capacity levels take into account that machines occasionally break and that
workers occasionally call in sick.
D) Theoretical capacity allows adjustments for preventive maintenance.
A sourcing strategy in which two suppliers are used for the same purchased product or
service is: A.cross sourcing. B.dual sourcing. C.contingency sourcing. D.
multisourcing.
The inventory that companies hold to protect themselves against uncertainties in either
demand or replenishment time is called:
14) ______
A) safety stock. B) hedge inventory. C) smoothing inventory.
D) anticipation
inventory.
Which of these conditions is NOT necessary for the economic order quantity model to
be valid?
A) The item has a constant safety stock.
B) The item has a constant
lead time.
C) The item has a constant price.
D) The item has a constant demand.
Which of these is NOT a logistics activity?
A. material handling B. inventory management C. warehousing
D. inspection
The mode of transportation that is highly cost effective for bulky items but has
relatively poor delivery reliability and speed is:
A. highway. B. water. C. rail. D. air.
This transportation mode is often the most expensive on a per pound basis. 11) ______
A) water
B) highway C) rail D) air
One form of warehousing that features light manufacturing and packaging duties and
allows firms to put off final assembly or packaging until the last possible moment is:
A. assortment warehousing. B. spot stock warehousing.
C. postponement warehousing. D. pac-man warehousing.
A university orders all office supplies, including red grading pens, out of a catalog
from the same supplier. Conservative estimates of the demand for these red pens are
12,000 pens per year. There is a $25 charge for placing an order and the university has
a $10 annual cost for holding these pens. Prices for the pens are based on the quantity
purchased, so if less than 100 are ordered, the unit price is $2.50, if 100 to 299 are
ordered, the unit price is $2.40, if 300 to 499 are ordered, the unit price is $2.30, and if
500 or more are ordered, the unit price is $2.20. What order quantity will result in the
lowest total annual cost to the university?
A) 500 B) 300
C) 100 D) 245
The transportation mode other than highway with the highest annual tonnage in the United
States is:_______ A) rail.
B) air. C) pipeline. D) water.
a)
b)
c)
d)
A firm that is interested in consistent on-time delivery would probably design their
transportation and warehousing system to include:
air transportation with a spot stock warehouse.
rail transportation with a consolidation warehouse.
water transportation with a hub and spoke warehouse.
pipeline transportation with a postponement warehouse.
A service firm that takes care of all of the logistics requirements for other companies is
a: A. common carrier. B. contract carrier. C. third party logistics provider. D.
freight forwarder.
The inventory that companies hold to protect themselves against uncertainties in either
demand or replenishment time is called:
A. safety stock. B. anticipation inventory. C. hedge inventory. D.smoothing inventory.
The number of items an item is counted in a year is called its ______________
A) count frequency B) physical count C) cycle frequency
D) cycle count
The more ________ the item, the greater the weight that can be carried in a given
vehicle. A) valuable B) perishable C) packaged D) dense
Individual links in the supply chain can stabilize their production at the most efficient
level by using: A.safety stock. B.anticipation inventory. C.linkage inventory
D.smoothing inventory.
The mismatch between timing of customer demand and supply chain lead times is
what drives the need for:
a) safety stock. B. anticipation inventory. C. cycle stock. D. hedge inventory.
Causes of inventory record error are: ______
A) unsecured stockroom B) poorly trained personnel
C) unauthorized withdrawal of material D) all of the above
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
Distribution centers improve customer service by providing place utility. ______
Operating costs ________ as the number of distribution centers _____________
A) decrease, increase
B) stay the same, increase C) increase, increase
D) increase,
decrease
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
The responsibility for taking the physical inventory usually rests with the marketing
manager who should ensure that a good plan exists and is followed.______
Lower inventories can be achieved by ordering smaller quantities more often, but this
practice results in higher annual ordering costs. This defines: ______
Which of these conditions is NOT necessary for the economic order quantity model to
be valid?
A. The item has a constant demand. B. The item has a constant lead time.
C. The item has a constant price.
D. The item has a constant safety stock.
the question.
What are the advantages and disadvantages of air transport? _____________
________ is the amount of money the owners have invested in the company______
A) Retained Earnings B) Capital C) Revenue
D) Income
To survive, companies must ________ at the pace and scale of the marketplace.
A. compete B. grow C. innovate D. globalize
________ and ________ inertia prevent managers from adapting to the evolving rules
of a changing competitive game.
A. Supplier, customer B. Logistical, transformational C. Employee, shareholder
D. Cultural, strategic
An objective of material handling is:______
A) to decrease cube utilization B) increase cube utilization
C) increase the need for aisle space
D) not to consider the height of the building
For physical control and security what is needed is a system that:______
A) makes it difficult for people to make mistakes
B) makes it difficult for people to be dishonest
C) both A and B
D) neither A nor B
The best bet to avoid complacency and decline is to create a culture of _________.
A.cost cutting B .team building C. organizational learning D.innovation
In the ________, items are grouped by zone to make counting more efficient. The
system is used when a fixed-location system is used or when WIP or transit inventory
is being counted.
A) periodic inventory count system B) Location and audit
system C) zone method
D) cycle counting system
In the ________ , rather than handling individual orders, a number of orders are
gathered together and all the items are divided by zone.
______
A) area system B) reserve stock system C) zone system D) multi-order system
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
Laid-down cost is the delivered cost of a product to a particular geographic point.
Tolerances are set on individual items based on:
______
A) availability and lead time
B) ability to stop production and safety problems
C) value and critical nature of the item D) all of the above