Consider a packaged milk products supply chain

Question 1
 
Consider a packaged milk products supply chain. A lumber company provides wood to a paper mill, who supplies cardboard to a container manufacturer, who supplies containers to the milk products manufacturer. The lumber company is:
Answer
 
 a tier one supplier.
 
 a tier two supplier.
 
 a tier three supplier.
 
 a tier four supplier.
 
 not in the supply chain.
2.5 points  
Question 2
 
Which term refers to inaccurate or distorted demand information created in the supply chain?
Answer
 
 Battle axe effect
 
 Cobra effect
 
 Bullwhip effect
 
 Lasso effect
 
 Whirlpool effect
2.5 points  
Question 3
 
Which of the following is not one of the four major causes of the bullwhip effect?
Answer
 
 Demand forecast updating
 
 Order batching
 
 Price fluctuations
 
 The business cycle
 
 Rationing and shortage gaming
2.5 points  
Question 4
 
When do rationing and shortage gaming occur?
Answer
 
 Supply exceeds demand.
 
 Demand exceeds supply.
 
 Government contracts are awarded.
 
 Transportation workers go on strike.
 
 Marginal revenue exceeds marginal cost.
2.5 points  
Question 5
 
Online retailing, or B2C, has shifted:
Answer
 
 the cost of doing business.
 
 the power from the suppliers to the consumers.
 
 the way the internet works.
 
 internal corporate power to the IT department.
 
 corporate funding levels to the IT department.
2.5 points  
Question 6
 
What refers to owning or controlling sources of raw materials and components?
Answer
 
 Backward integration
 
 Horizontal integration
 
 Encapsulating integration
 
 Forward integration
 
 Subsuming integration
2.5 points  
Question 7
 
According to several studies, what are the three most important criteria for selecting suppliers?
Answer
 
 Price, quality, fast delivery
 
 Quality, fast delivery, on-time delivery
 
 Price, flexibility, on-time delivery
 
 Quality, flexibility, fast delivery
 
 Price, quality, on-time delivery
2.5 points  
Question 8
 
Early supplier involvement refers to the involvement of critical suppliers for what?
Answer
 
 Strategic planning
 
 Assembly line design
 
 Speedy delivery planning
 
 Selection of new suppliers
 
 New product design
2.5 points  
Question 9
 
What is the process whereby shipments are transferred directly from inbound trailers to outbound trailers?
Answer
 
 crossdocking
 
 directdocking
 
 nodocking
 
 simuldocking
 
 transferdocking
2.5 points  
Question 10
 
Benetton is well known for the practice of assembling all white sweaters and waiting to dye them much closer to the time of sale. This is an example of what?
Answer
 
 Stupidity
 
 Postponement
 
 Fractionalization
 
 Partitioning
 
 Genericness
2.5 points  
Question 11
 
Supply chain velocity refers to
Answer
 
 how fast the transportation vendor is
 
 how fast the company pays the supply chain vendors
 
 how fast the purchasing department responds to a request
 
 the speed at which a product moves through a pipeline from the manufacturer to the customer
 
 the speed at which the warehouse is able to crossdock a shipment
2.5 points  
Question 12
 
Which of the following is not a typical result of the bullwhip effect?
Answer
 
 Absenteeism
 
 Lost revenues
 
 Ineffective transportation use
 
 Poor customer service levels
 
 Misused manufacturing capacity
2.5 points  
Question 13
 
Which of the following is not a remedy for the bullwhip effect?
Answer
 
 Allocate units based on past demand
 
 Price stabilization
 
 Fill orders based on a set percentage
 
 Eliminate order batching
 
 Information sharing
2.5 points  
Question 14
 
Which of the following is NOT a positive attribute of Multiple Suppliers?
Answer
 
 provides a greater flexibility of volume
 
 eliminates a supplier's dependence on the purchaser
 
 probability of assured supply is better
 
 deliveries can be schedule more easily
 
 allows for testing of new suppliers without jeopardizing the flow of materials
2.5 points  
Question 15
 
Companies want a supply chain that makes it possible to:
Answer
 
 manage all suppliers' development costs.
 
 manage and adapt to all of the business dynamics.
 
 manage distribution display.
 
 manage distribution outlet retail prices.
 
 manage customer demands.
2.5 points  
Question 16
 
Will's omelet factory produces 2,500 omelets a day. They've determined that their daily fixed costs are $4,000 with a variable cost of fifteen cents per omelet. What should Will charge for each omelet to make a 10% profit, rounded to the next whole dollar?
Answer
 
 5.00
 
 4.00
 
 3.00
 
 2.00
 
 1.00
2.5 points  
Question 17
 
Logo, Inc., can transport its own goods for a $140,000 annual cost and $25 per unit. A logistics supplier offers a contract for a $100,000 annual cost at $30 per unit. What is the indifference point?
Answer
 
 8000
 
 7000
 
 6000
 
 5000
2.5 points  
Question 18
 
Simuelson Industries can produce its own motors for a $60,000 fixed monthly cost and a $50 variable cost per unit. Alternatively, Simuelson Industries can purchase the motors from an outside supplier for $50,000 per month and $58 per unit. What option should be chosen if monthly demand is 1200 units?
Answer
 
 in-house production
 
 outsourcing
2.5 points  
Question 19
 
Yannis Corporation is trying to decide whether to produce its own subassemblies or outsource them. In-house production costs would include an annual fixed cost of $250,000, materials costs per unit of $7, and labor costs per unit of $5. Teshtown, Inc. has agreed to provide the subassemblies for an annual cost of $400,000 and a unit cost of $8 per subassembly. Over what ranges of demand is outsourcing best option?
Answer
 
 Less than 37500
 
 Greater than or equal to 37500
 
 Can not be determined
2.5 points  
Question 20
 
Big Oil Refinery is losing money every month. They cannot shut down the refinery. What quantity (in gallons) of product should they make in an effort to break even? Their primary product sale price is $1.50 per gallon. The production fixed cost is $36,000/day. The variable cost per gallon is $1.30.
Answer
 
 36,000
 
 18,000
 
 180,000
 
 30,000
2.5 points  
Question 21
 
Twenty samples of n = 200 were taken by an operator at a workstation in a production process. The number of defective items in each sample was recorded as given in the following table. Management wants to develop a p-chart. The desired confidence level is 80.0 percent. What is the upper control limit?
Sample Number of Defectives Sample Number of Defectives
1 12 11 16
2 18 12 15
3 10 13 13
4 15 14 16
5 16 15 18
6 19 16 17
7 17 17 18
8 12 18 20
9 11 19 21
10 14 20 22

Answer
 
 close to 0.08
 
 close to 0.019
 
 close to 1.28
 
 close 0.105
 
 close to 0.8
5 points  
Question 22
 
Cans of soup are supposed to weigh exactly 16 oz. Inspectors want to develop process control charts. They take eight samples of five boxes and weigh them. They obtain the following data. What is the upper control limit for the x-bar chart?
Sample Mean Range
1 15.2 1.8
2 14.6 0.7
3 16.5 0.5
4 18.1 0.4
5 13.2 0.2
6 16.0 0.4
7 15.9 0.5
8 14.8 0.9
Answer
 
 close to 15.79
 
 close to 15.93
 
 close to 15.54
 
 close to 15.82
5 points  
Question 23
 
Cans of soup are supposed to weigh exactly 16 oz. Inspectors want to develop process control charts. They take eight samples of five boxes and weigh them. They obtain the following data. What is the upper control limit for the R chart?
Sample Mean Range
1 15.2 1.8
2 14.6 0.7
3 16.5 0.5
4 18.1 0.4
5 13.2 0.2
6 16.0 0.4
7 15.9 0.5
8 14.8 0.9
Answer
 
 close to 1.42
 
 close to 0.78
 
 close to 1.12
 
 close to 0.82
5 points  
Question 24
 
Cans of soup are supposed to weigh exactly 16 oz. Inspectors want to develop process control charts. They take eight samples of five boxes and weigh them. They obtain the following data. Is the process in a state of control?
Sample Mean Range
1 15.2 1.8
2 14.6 0.7
3 16.5 0.5
4 18.1 0.4
5 13.2 0.2
6 16.0 0.4
7 15.9 0.5
8 14.8 0.9
Answer
 
 yes (in control)
 
 no (not in control)
5 points  
Question 25
 
Eight samples of n = 50 were taken by an operator at a workstation in a production process. The number of defective items in each sample was recorded as follows. Is the process in a state of control? Assume z =3.
Sample Number of Defectives
1 10
2 0
3 12
4 8
5 10
6 16
7 14
8 10
Answer
 
 yes (in control)
 
 no (out of control)
5 points  
Question 26
 
Cholesterol Palace is a fast-food restaurant. Management was concerned with errors in filling orders at its drive-up window. It hired several undercover quality inspectors to randomly place 100 orders while the process seemed to be in control. The completed orders were then checked for accuracy. What is the average number of defects per order based on these data?
Defect Frequency
Incomplete, shorter order 12
Unordered items dispensed 2
Wrong product dispensed 14
Wrong toppings 14
Wrong size drink 2
Drink lid not sealed 17
No drinking straw with soft drink order 0
No napkins 18
Far too many condiment packets 65
No salt with sandwich or fries order 10
Wrong change 3
Other 12

Answer
 
 close to 1.69
 
 close to 169
 
 close to 0.59
 
 close to 2.00
5 points  
Question 27
 
Cholesterol Palace is a fast-food restaurant. Management was concerned with errors in filling orders at its drive-up window. It hired several undercover quality inspectors to randomly place 100 orders while the process seemed to be in control. The completed orders were then checked for accuracy. What is the lower control limit for a c-chart. Use z =3.
Defect Frequency
Incomplete, shorter order 12
Unordered items dispensed 2
Wrong product dispensed 14
Wrong toppings 14
Wrong size drink 2
Drink lid not sealed 17
No drinking straw with soft drink order 0
No napkins 18
Far too many condiment packets 65
No salt with sandwich or fries order 10
Wrong change 3
Other 12
Answer
 
 close to -2.21
 
 close to 1.3
 
 close to 3.0
 
 zero (0)
 
 close to 1.69
5 points  
Question 28
 
Cholesterol Palace is a fast-food restaurant. Management was concerned with errors in filling orders at its drive-up window. It hired several undercover quality inspectors to randomly place 100 orders while the process seemed to be in control. The completed orders were then checked for accuracy.
Defect Frequency
Incomplete, shorter order 12
Unordered items dispensed 2
Wrong product dispensed 14
Wrong toppings 14
Wrong size drink 2
Drink lid not sealed 17
No drinking straw with soft drink order 0
No napkins 18
Far too many condiment packets 65
No salt with sandwich or fries order 10
Wrong change 3
Other 12

A quality inspector just used the drive-up window and now checks her order. Her cheeseburger has mustard on it although she ordered it without ketchup or mustard. Three handfuls of ketchup and mustard packets (far too many) are in the sack, but no napkins. And hot coffee has spilled because the lid wasn't properly sealed. Is the drive-up process in control?
Answer
 
 yes (in control)
 
 no (not in control)
5 points  
Question 29
 
In a single sampling plan the sample size n =5. The submitted lot has on an average 25% defective items. Three acceptance numbers ( c = 0, c =1, and c=2) are being negotiated between the manufacturer and the buyer. Which acceptance number is most desirable from the manufacturer's viewpoint. You may use the following OC curve to find the answer.
 
 
Answer
 
 c = 0
 
 c = 1
 
 c = 2
5 points  
Question 30
 
In a double sampling plan the two acceptance numbers are: c1 = 8 and c2 = 12. The number of defectives found in the first sample is 9. Therefore, a second sample is taken. What is the maximum number of defectives allowed in the second sample for the lot to be accepted?
Answer
 
 0
 
 1
 
 2
 
 3
 
 4