GSCM206 Managing Operations Across the Supply Chain
Week 1 Quiz
Question 1
(TCO 1) Which of the following is a current trend in operations management?
Quality circles
Domestic focus
Supply chain independence
Mass customization
All of the above
Question 2
(TCO 2) Which of the following does not represent a reason for globalizing operations?
Reduce costs
Improve supply chain
Understand new markets
Attract and retain global talent
None of the above
Question 3
(TCO 1) An operations task performed at Hard Rock Café is
borrowing funds to build a new restaurant.
advertising changes in the restaurant menu.
calculating restaurant profit and loss.
preparing employee schedules.
All of the above
Question 4
(TCO 4) Gibson Valves produces air valves on a five-person assembly line. If they produce 1,200 valves in an 8-hour shift, what is the labor productivity of the line?
2 valves/labor hour
4 valves/labor hour
30 valves/labor hour
40 valves/labor hour
80 valves/labor hour
Question 5
(TCO 4) The Dulac Box plant produces 400 cypress packing boxes in one two-person assembly line during a 10-hour shift. What is the labor productivity of this assembly line?
20 boxes/labor hour
25 boxes/labor hour
50 boxes/labor hour
250 boxes/labor hour
500 boxes/labor hour
Question 6
(TCO 4) John has a part-time business taking engagement photos. He currently works a total of 5 hours per day to produce 15 group photos. What is his productivity?
1 photo per hour
2 photos per hour
3 photos per hour
4 photos per hour
Question 7
(TCO 2) Which is not true regarding differences between goods and services?
Services are generally produced and consumed simultaneously; tangible goods are not.
Services tend to be more knowledge-based than goods.
Services tend to have a more inconsistent product definition than goods.
Goods tend to have higher customer interaction than services.
None of the above
Question 8
(TCO 2) Which of the following is an example of competing on quick response?
A firm produces its product with less raw material waste than its competitors.
A firm offers more reliable products than its competitors.
A firm’s products are introduced into the market faster than its competitors.
A firm’s research and development department generates many ideas for new products.
Question 9
(TCO 2) The impact of a firm’s strategies to achieve their mission is which of the following?
They exploit opportunities and strengths.
They operate on medium-range tactics.
They are not long range.
They neutralize threats and avoid weaknesses.
They both exploit opportunities and strengths, and they neutralize threats and avoid weaknesses.
Question 10
(TCO 4) According to the authors, what are the three key strategic concepts that allow firms to achieve competitive advantage?
Productivity, efficiency, and quality leadership
Differentiation, cost leadership, and efficient response
Differentiation, cost leadership, and quick response
Distinctive competency, cost leadership, and experience
GSCM206 Managing Operations Across the Supply Chain
Week 2 Quiz
Question 1
(TCO 5) What is the forecast for May, based on a weighted moving average applied to the following past-demand data and using the weights of 3, 2, and 1 (largest weight is for most recent data)?
Nov. Dec. Jan. Feb. March April
91 140 98 110 123 102
44.1
110.7
108.8
110.33
Question 2
(TCO 5) Jim’s department at a local department store has tracked the sales of a product over the last 10 weeks using exponential smoothing with an alpha of 0.3. In January, he forecasted $150,000 in sales and achieved $155,000 is sales. Using this same forecasting model, estimate Jim’s February sales.
$152,000
$155,000
$151,500
$105,000
Question 3
(TCO 5) What is the approximate forecast for May using a 4-month moving average?
Nov. Dec. Jan. Feb. March April
39 36 40 46 50 46
32
44
48
45.5
Question 4
(TCO 6) Which of the following is not true regarding computer-aided design (CAD)?
It is not expensive to use in most manufacturing and design settings.
It is a newer technology and is in significant use.
It results in longer development cycles for virtually all products.
It is the use of computers to interactively design products and prepare engineering documentation.
Question 5
(TCO 7) A product’s life cycle is divided into four stages, which are
introduction, growth, maturity and decline.
introduction, growth, stability, and decline.
introduction, maturity, saturation, and decline.
launch, expansion, contraction, and termination.
None of the above
Question 6
(TCO 5) A forecast with a time horizon of less than 3 months is typically called a
long-range forecast.
medium-range forecast.
short-range forecast.
weather forecast.
strategic forecast.
Question 7
(TCO 7) In which stage of the product life cycle does product development take place?
Introduction
Growth
Maturity
Decline
Question 8
(TCO 7) Which of the following helps to keep production running when small variations in production or assembly occur?
Modular design
Value engineering
Value analysis
Robust design
PLM
Question 9
(TCO 5) Which of the following uses three types of participants: decision makers, staff personnel, and respondents?
Executive opinions
Sales force composite
Delphi method
Consumer surveys
Time series analysis
Question 10
(TCO 6) Which of these statements best describes computer-aided design (CAD)?
It is the interactive use of computers to design a product and prepare engineering documentation.
It is the use of special computer programs to direct and control manufacturing equipment.
It is the ability to depict objects in three-dimensional form.
It is a visual form of communication in which images substitute for the real thing.
GSCM206 Managing Operations Across the Supply Chain
Week 3 Quiz
Question 1
(TCO 3) Customer dissatisfaction, rework, and warranty costs are cost associated with the
quality loss function (QLF).
Pareto chart.
cost of quality.
process chart.
Question 2
(TCO 3) What is described as an ongoing process of unending improvement?
Kaizen
Six sigma
Taguchi
Benchmarking
Poka-yoke
Question 3
(TCO 3) Quality lies in the eyes of the beholder is
the definition proposed by the American Society for Quality Control.
a process-based definition of quality.
a manufacturing-based definition of quality.
a product-based definition of quality.
None of the above
Quality lies in the eyes of the beholder is user-based. See Chapter 6, page 217.
Question 4
(TCO 8) What does build to order mean?
Make to sell
Limit production
Produce to customer order
Produce to forecast
Question 5
(TCO 3) Customer dissatisfaction, rework, and warranty costs are cost associated with the
quality loss function (QLF).
Pareto chart.
cost of quality.
process chart.
Question 6
(TCO 3) Pareto charts are
a way of organizing errors, problems, or defects.
a graphical way to identify processes.
used to indicate which p may yield the least payoff.
All of the above
Question 7
(TCO 8) A drawing of the movement of material or people is a
flow process.
process chart.
service blueprint.
flowchart.
Question 8
(TCO 8) Strategies for improving productivity in services include
separation, self-service, automation, and scheduling.
lean production, strategy-driven investments, automation, and process focus.
reduce inventory, reduce waste, reduce inspection, and reduce rework.
separation, postponement, automation, and training.
Question 9
(TCO 8) Service blueprinting
provides the basis to negotiate prices with suppliers.
mimics the way people communicate.
determines the best time for each step in the process.
focuses on the provider’s interaction with the customer.
can only be successful with two-dimensional processes.
Question 10
(TCO 8) Four types of process strategies include
repetitive focus, process focus, mass customization, and product focus.
manual, automated, computer, and service.
process focus, repetitive focus, mass customization, and people focus.
modular, continuous, discrete, and technological.
GSCM206 Managing Operations Across the Supply Chain
Week 4 Quiz
Question 1
(TCO 8) The Clothes Factory wants to increase capacity by adding a new sewing machine. The fixed costs for machine A are $9,000, and its variable cost is $4 per unit. The revenue is $7 per unit. The break-even point for the sewing machine is
1,200 units.
1,600 units.
3,000 units.
1,500 units.
Question 2
(TCO 9) A truck stop is considering opening a new facility on the Interstate. The table below shows its ratings of four factors at each of two potential sites.
Factor Weight Gary Mall Belt Line
Affluence of Local Population .20 40 40
Traffic Flow .40 50 20
Parking Availability .20 30 40
Growth Potential .20 10 30
The score for Gary Mall is _____, and the score for Belt Line is _____.
Gary Mall = 34; Belt Line = 28
Gary Mall = 33; Belt Line = 22
Gary Mall = 36; Belt Line = 30
Gary Mall = 19; Belt Line = 24
Question 3
(TCO 8) A bakery has a design capacity to bake 250 loaves of bread a day. However, because of scheduled maintenance of their equipment, management feels that they can bake 100 loaves a day. Yesterday, the gas was turned off while the city was repairing a leak, and only eight loaves were baked. What is the utilization of the ovens yesterday?
5%
3%
2.5%
3.2%
Question 4
(TCO 8) A bakery has a design capacity to bake 200 loaves of bread a day. However, because of scheduled maintenance of their equipment, management feels that they can bake 100 loaves a day. Yesterday the gas was turned off while the city was repairing a leak, and only 22 loaves where baked. What was the efficiency of the ovens yesterday?
5%
7%
10%
22%
Question 5
(TCO 8) Design capacity is the
maximum output of a system in a given period.
actual production over a specified time period in ideal conditions.
average output that can be achieved under ideal conditions.
maximum usable capacity of a particular facility.
capacity a firm expects to achieve given the current operating constraints.
Question 6
(TCO 8) Actual output as a percent of design capacity is
effective capacity.
utilization.
effectiveness.
efficiency.
Question 7
(TCO 9) A location decision for an appliance manufacturer would tend to have a(n)
education focus.
labor focus.
revenue focus.
environmental focus.
cost focus
Question 8
(TCO 9) When making a location decision at the site level, which of these would be considered?
Corporate desires
Land and construction costs
Air, rail, highway, and waterway systems
Attractiveness of region
Location of markets
Question 9
(TCO 9) Evaluating location alternatives by comparing their composite (weighted-average) scores involves
a cost-volume analysis.
a transportation model analysis.
a linear regression analysis.
a crossover analysis.
None of the above
Question 10
(TCO 8) Which of the following is NOT a consideration for a good capacity decision?
Forecast demand accurately
Match technology increments and sales volume
Find the worst operating size (volume)
Build for change
GSCM206 Managing Operations Across the Supply Chain
Week 5 Quiz
Question 1
(TCO 3) Which of the following is not a concern of the supply chain?
Number of internal managers
Credit and cash transfers
Vendor reliability
Distributors and banks
Having fewer suppliers
Question 2
(TCO 2) The purchasing approach that places the burden of meeting the buyer’s demands on the supplier is
many suppliers.
few suppliers.
keiretsu.
vertical integration.
virtual companies.
Question 3
(TCO 3) Japanese manufacturers often take a middle ground between purchasing from a few suppliers and vertical integration. This approach is
kanban.
keiretsu.
samurai.
poka-yoke.
kaizen.
Question 4
(TCO 2) The three classic types of negotiation strategies are
vendor evaluation, vendor development, and vendor selection.
competitive bidding, market-based price model, and cost-based price model.
many suppliers, few suppliers, and keiretsu.
cost-based price model, market-based price model, and inventory-based.
Question 5
(TCO 2) All of the following are opportunities in an integrated supply chain, except
modification or customization of products.
drop shipment.
standardization.
lot size reduction.
accurate pull data.
Question 6
(TCO 3) Which of the following is NOT true regarding core competencies?
They may include specialized knowledge.
They may represent a small portion of an organization’s business activities.
They may include proprietary technology or information.
They may be good candidates for outsourcing.
They may include unique production methods.
Question 7
(TCO 3) What theory states that you should allow another firm to perform work activities for your company if that company can do it more productively than you can?
Theory of competitive advantage
Theory of core competencies
Theory of comparative advantage
Theory of outsourcing
Theory of offshoring
Question 8
(TCO 3) A manufacturing plant is considering outsourcing its production of tires. There are five risk areas on which the decision will be based. The current plant had scores of 1, 2, 4, 8, and 2; and the outsourced plant had scores of 3, 2, 4, 2, and 5. What is the current plant’s score if high scores indicate low risk, and an unweighted factor method is applied?
14
15
16
17
None of the above
Question 9
(TCO 2) Which of the following is NOT a concern of the supply chain?
Warehousing and inventory levels
Credit and cash transfers
Suppliers
Distributors and banks
Maintenance scheduling
Question 10
(TCO 2) Which type of negotiating strategy requires the supplier to open its books to the purchasers?
Cost-based price model
Market-based price model
Competitive bidding
Price-based model
None of the above
GSCM206 Managing Operations Across the Supply Chain
Week 6 Quiz
Question 1
(TCO 11) Which of the following statements about ABC analysis is false?
ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings.
In ABC analysis, A items are tightly controlled, have accurate records, and receive regular review by major decision makers.
In ABC analysis, C items have minimal records, periodic review, and simple controls.
ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.
All of the above
Question 2
(TCO 11) ABC analysis divides on-hand inventory into three classes, generally based upon
item quality.
unit price.
the number of units on hand.
annual demand.
annual dollar volume.
Question 3
(TCO 11) Which of the following is not an assumption of the economic order quantity model shown below?
Q* =
Demand is known, constant, and independent.
Lead time is known and constant.
Quantity discounts are not possible.
Production and use can occur simultaneously.
The only variable costs are setup cost and holding (or carrying) cost.
Question 4
(TCO 11) A certain type of computer costs $1,000, and the annual holding cost is 25%. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity?
16
70
110
183
600
Question 5
(TCO 11) Demand for a given item is said to be dependent if
it originates from the external customer.
there is a deep bill of material.
the finished products are mostly services (rather than goods).
there is a clearly identifiable parent.
the item has several children.
Question 6
(TCO 10) Dependent demand and independent demand items differ in that
for any product, all components are dependent-demand items.
the need for independent-demand items is forecast.
the need for dependent-demand items is calculated.
All of the above
None of the above
Question 7
(TCO 10) A master production schedule specifies
the raw materials required to complete the product.
what component is to be made and when.
what product is to be made and when.
the labor hours required for production.
the financial resources required for production.
Question 8
(TCO 10) The following table is an example of a(n)
Week 1 Week 2 Week 3 Week 4 Week 5
Clothes Washer 200 100
Clothes Dryer 300 100 100 100
Upright Freezer 200 500
aggregate plan.
load report.
master production schedule.
capacity plant.
inventory record.
Question 9
(TCO 10) A bill of material lists the
times needed to perform all phases of production.
production schedules for all products.
components, ingredients, and materials required to produce an item.
operations required to produce an item.
components, ingredients, materials, and assembly operations required to produce an item.
Question 10
(TCO 10) The bill of material contains information necessary to
place an order to replenish the item.
calculate quantities on hand and on order.
convert net requirements into higher level gross requirements.
convert gross requirements into net requirements.
convert (explode) net requirements at one level into gross requirements at the next level.
GSCM206 Managing Operations Across the Supply Chain
Week 7 Quiz
Question 1
(TCO 3) Which one of the following is not a JIT quality tactic?
Use of statistical process control
Empowered employees
Fail safe methods
Provide immediate feedback
Use large lot sizes
Question 2
(TCO 3) Manufacturing cycle time is best defined as the
time between the arrival of raw materials and the shipping of finished products.
time it takes a unit to move from one workstation to the next.
time between the start of one unit and the start of the next unit.
time from raw materials shipment to finished product exit.
Question 3
(TCO 3) Which of the following is a goal of JIT partnerships?
Reduce inventory and variability
Increase variability
Increase in-transit inventory
Elimination of engineering changes
Question 4
(TCO 3) Just-in-time systems make demands on layouts, except
distance reduction.
decreased flexibility.
reduced space and inventory.
All of the above
Question 5
(TCO 3) Level schedules
require that schedules be met with variation.
process many small batches rather than one large one.
are known as kidney bean scheduling.
All of the above
Question 6
(TCO 3) Which of the following is specifically characterized by continuous and forced problem solving through a focus on throughput and reduced inventory?
Just-in-time (JIT)
Toyota Production System (TPS)
Lean operations
Material requirements planning (MRP)
Kanban
Question 7
(TCO 3) What does TPS stand for?
Total production streamlining
Toyota Production System
Taguchi’s Production Ss
Total process simplification
None of the above
Question 8
(TCO 3) Manufacturing cycle time is best defined as the
length of the work shift expressed in minutes per day.
time it takes a unit to move from one workstation to the next.
time between the start of one unit and the start of the next unit.
sum of all the task times to make one unit of a product.
time from raw materials receipt to finished product exit.
Question 9
(TCO 3) Throughput measures the time
that it takes to process one unit at a station.
between the arrival of raw materials and the shipping of finished products.
to produce one whole product through an empty system (i.e., with no waiting).
required to move orders through the production process, from receipt to delivery.
None of the above
Question 10
(TCO 3) The list of 5 Ss, although it looks like a housekeeping directive, supports lean production by
identifying nonvalue items and removing them in the sort/segregate item.
reducing inventory in the standardize item.
increasing variability through standardized procedures in the standardize item.
eliminating wasted motion through ergonomic studies in the support item.
building good safety practices in the shine/sweep item.
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