What are the two fundamental processes in all supply chains that are most affected by the Internet?
B. Order fulfillment and order placement.
If a factory has 100,000 units of materials in the system and if the average flow rate of the system is 5000 units per day, then according to Little’s Law, the average throughput time is:
B. 20 days
The five measures of supply chain performance are:
A. Cost, quality, flexibility, delivery, and time
The four major decision responsibilities of operations management are:
D. Process, capacity, quality, and inventory
Which of the following is a way to improve the infrastructure in the supply chain?
B. Setup time reduction
In the process view of business, which of the following should be identified when defining the system?
A. Inter-connected processes across functional areas
An example of a prototype is:
D. The original McDonald’s restaurant
Analysis of the flow of information:
C. Should always accompany an analysis of materials flow
A diamond symbol in a flowchart indicates:
The first step in process flow analysis is:
D. To select an appropriate transformation process for analysis
Which of the following is NOT a form of structural change of the supply chain?
B. Creating cross-functional teams
The four decision areas in operations management are:
B. Process, quality, capacity, and inventory
The master production schedule for Product A shows a need for 30 units, and Product B shows a need of 25 units. To manufacture a unit of Product A, three units of component C are required. To manufacture a unit of Product B, four units of component C are required. Determine the gross requirements for component C to complete production.
The parts explosion results in the following outputs:
C. Purchase orders and shop orders
Design for manufacturing involves:
D. Both a and c
Which of the following is NOT true about supply chain dynamics?
C. The best way to improve the supply chain is to increase the total replenishment time and to feed back actual demand information to all levels.
Which of the following is a form of infrastructure change?
C. Changes in information systems
Quality Function Deployment includes which of the following: (1) relative importance of customer attributes, (2) tolerance stack-up, (3) a comparison to the competitor’s product, (4) engineering characteristics, (5) customer perceptions, (6) customer attributes, (7) variation around a target, (8) value analysis.
B. 1, 3, 4, 5, 6
Materials handling, transportation, and warehousing are elements of:
Which of the following is NOT a prerequisite to process flowcharting?
B. Identifying the manager overseeing the process
Which of the following statements about Little’s Law is NOT include?
A. Little’s Law cannot be applied to service operations
The capacity of a process is determined by:
A. The bottleneck
A replenishment-based system derives orders from:
B. Forecast or customer request
Which of the following is NOT true of vertical integration?
A. Leads to greater flexibility to changing technology.
Successful MRP implementation requires:
C. Management support, accurate data, and adequate computer support
Which of the following statements is NOT true about process-flow analysis?
C. Process flows must always be forward, and cannot ‘loop back’ to previous operations.
The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer is called:
C. Supply chain management
A comprehensive decision-making framework for operations includes:
A. Consideration of other organizational functions
Which of the following would NOT be changed due to process flow analysis?
C. Job design
A. Include staffing and scheduling
Which of the following functions is responsible for the actual movement of goods and/or services across organizations?
The supply chain extends from:
D. Supplier to customer
The gross requirements of a part in an MRP system are determined from:
D. Planned order releases of the immediate parent item
Supply chain management includes all of the following except:
In MRP “scheduled receipts” are:
D. Open orders not delivered yet
One step in process flow analysis is to describe the existing process. If a new system is being developed, (there is no existing system):
A. This step is simply omitted
Why is operations management a more encompassing term than production management?
B. Operations management refers to service as well as manufacturing organizations
The market-pull view of new product innovation is to:
B. Develop products that the company can sell, based on customer needs
When marketing, engineering, and operations simultaneously develop a product, this approach is known as ________.
C. Concurrent engineering
The contemporary operations themes signify that:
B. Every operation should be externally directed to meet the customers’ requirements
Planned lead times:
A. Usually are longer than actual working times
The three major functions of business organizations:
C. Interface with each other
Which of the following statements regarding business process reengineering (BPR) is NOT true?
D. BPR is synonymous to the Total Quality Management approach of process improvement.
Which of the following is NOT one of the four principles of process redesign?
D. Automate the remaining steps in the process
Which of the following is not a contemporary theme in operations?
C. Quality Teams
Approximately, what percentage of the American workforce works in service industries?
Which one of the following would not generally be classified as an input in a university system?
_______ system uses requirements order philosophy, while _____ system uses replenishment order philosophy.
B. MRP, order point
In which phase of the new-product design process should considerations about tradeoffs among product cost, quality, and schedule be made?
B. Product design
A numerically controlled machining center has an average processing capacity of 5000 units per day. It receives an average of 3000 units of inventory from another machining center and it has to supply an average of 1000 units of finished goods to the packaging section. Assuming that the company incurs a significant cost for carrying finished goods supplied to the packaging section, the flow rate of the machining process is:
C. 1000 units per day
A Type II MRP system:
B. Has feedback to control capacity
A restaurant offers a “customer’s choice” sandwich for which the customer specifies the bread, meat, cheese and topping he or she wants. There are three types of bread, three types of meat, three types of cheese and four types of topping. How many different sandwiches can the restaurant make?
The three inputs for an MRP parts explosion are:
A. Inventory, master schedule, and bill of materials
Which of the following is NOT a specific measure of supply chain performance?
The concept that a product should not only fit the market needs but have a technical advantage as well is known as the:
C. Interfunctional view to new-product introduction
An MRP system is designed to deal with:
A. Lumpy demand
Which of the following is NOT a type of e-procurement?
D. B2B marketplaces
A requirements-based system derives orders from:
D. Master schedule
Order placement via the Internet does NOT include:
D. Use of an ERP system to schedule production
Which type of MRP system is used as an information system to plan and control inventories and capacities?
B. Type II
Which of the following is true about MRP Systems?
D. Objective is to meet manufacturing needs
A productive systems approach:
B. Must provide feedback information for control of process inputs and technology
The flow of materials from upstream nodes into a firm is called:
A. Physical supply
All of the following help to handle uncertainty when operating an MRP system EXCEPT:
D. Back-up suppliers
End item A requires three component parts: B, C, and D. The bill of materials indicates that for each completed A, one unit of B, 2 units of C, and 1 unit of D are required. Current inventory for the four items is as follows: There are 18 As, 40 Bs, 50 Cs and 35 Ds in stock. If the lead time for all items is one week and there are no scheduled receipts for any item, how many units of product A can be delivered to customers at the start of next week (week 2)?
The three primary functions that exist in most business organizations are:
D. Operations, finance, and marketing
Which of the following is not in the process category of the operations decision framework?
D. Product or service inspection
The average cash-to-cash cycle is defined as:
Days in inventory + Days in account receivable – Days in accounts payable
Which of the following most closely describes net material requirements in an MRP system?
B. Gross requirements – (on-hand + scheduled receipts)
Bills of materials are kept current with changes using:
B. Engineering change order systems
A. Is counting a fraction of inventory each day
Quality Function Deployment:
A. Links customer requirements to technical specifications
Safety stock in an MRP system:
B. Is used to provide flexibility to meet changing customer requirements
Modular design involves:
C. Dividing the products into their similar components
The bill of materials:
Is a list of all materials required to produce a part
Which of the following statements is NOT true regarding supply chain operations?
With perfect information at all levels of the supply chain, there will not be a bullwhip effect.
Which of the following is NOT part of the new-product development process?
C. Development of the marketing strategy
If I denotes the average inventory in the system, T denotes the average throughput time, and R denotes the average flow rate of the system, then by Little’s Law:
D. R = I/T
D. Should occur at the same time as product design
Three typical misalignments between product design and operations are:
A. Technology, reward systems, and infrastructure
The essence of operations management can be described by:
B. Decisions, function, and process
Which of the following is NOT a characteristic of changes in structure?
C. Lead to changes in information systems.
C. Both a and b
Which system specifies the output of the operations function?
C. Master scheduling
What does a square or rectangle symbol indicate in a flowchart?
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