GSCM520 - Devry - Final Exam MCQs - 2016

1. (TCOs 1 and 2) Current issues in OSCM do not include

(Points : 4)

       coordinating relationships between organizations.

       making senior management aware that OSCM can be a competitive weapon.

       the triple bottom line.

       managing customer touch points.

       increasing global supply chain employment.    

Question 2.2. (TCO 1) One of the package of features that make up a service is

(Points : 4)

       appearance.

       facilitating goods.

       packaging.

       cost.

       implied use.

Question 3.3. (TCO 5) Which of the following are used to describe the degree of error? (Points : 4)

       Weighted moving average

       Regression

       Moving average

       Forecast as a percent of actual

       Mean absolute deviation   

Question 4.4. (TCO 5) Compared with a service operation, a manufacturing operation's capacity is which of the following? (Points : 4)

       More dependent on time and location

       Subject to more volatile demand fluctuations

       Utilization more directly impacts quality

       Demand can be smoothed by inventory policies

       More capable of reacting to demand fluctuations

Question 5.5. (TCO 6) The Malcolm Baldrige National Quality Award is given to organizations that have done which of the following? (Points : 4)

       Instituted a six-sigma approach to total quality control

       Demonstrated a high level of product quality

       Demonstrated outstanding quality in their products and processes

       Have a world-class quality control function

       Most significantly improved their product quality levels

Question 6.6. (TCOs 3 and 7) Which of the following is considered a high-contact service operation?

(Points : 4)

       Online brokerage house

       Internet sales for a department store

       Physician practice

       Telephone life insurance sales and service

       Automobile repair

Question 7.7. (TCOs 7 and 8) Matching the production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following pure production planning strategies? (Points : 4)

       Stable workforce, variable work hours

       Chase

       Level

       Meeting demand

       Minimizing inventory

Question 8.8. (TCOs 4 and 8) Which of the following is an assumption of the basic fixed-order quantity inventory model? (Points : 4)

       Lead times are averaged

       Ordering costs are variable

       Price per unit of product is constant

       Back orders are allowed

       Stock-out costs are high

Question 9.9. (TCO 3) Which of the following is not an improvement-driven reason to outsource? (Points : 4)

       Improve risk management

       Increase commitment in a noncore area

       Shorten cycle time

       Improve quality and productivity

       Obtain expertise, skills, and technologies that are otherwise not available

Question 10.10. (TCO 9) Very few products are moved without at least part of their journey being by which mode of transportation? (Points : 4)

       Highway

       Rail

       Water

       Pipeline

       Air

1. (TCO 4) a company has recorded the last 5 days of daily demand on their only product. Those values are 120, 125, 124, 128, and 133. The time from when an order is placed to when it arrives at the company from its vendor is 5 days. Assuming the basic fixed-order quantity inventory model fits this situation and no safety stock is needed, which of the following is the reorder point (R)?

(Points : 10)

       120

       126

       630

       950

       1,200

Question 2.2. (TCO 4) You would like to use the fixed-time period inventory model to compute the desired order quantity for a company. You know that vendor lead time is 5 days and the number of days between reviews is 7. Which of the following is the standard deviation of demand over the review and lead time if the standard deviation of daily demand is 8?

(Points : 10)

       About 27.7

       About 32.8

       About 35.8

       About 39.9

       About 45.0

Question 3.3. (TCOs 3, 4, and 5) You would like to use the fixed-time period inventory model to compute the desired order quantity for a company. You know that vendor lead time is 10 days and the number of days between reviews is 15. Which of the following is the standard deviation of demand over the review and lead time period if the standard deviation of daily demand is 10?

(Points : 10)

       25

       40

       50

       73

       100

Question 4.4. (TCO 5) If a firm produced a product that was experiencing growth in demand, the smoothing constant alpha (reaction rate to differences) used in an exponential smoothing forecasting model would tend to be which of the following?

(Points : 10)

       Close to 0

       A very low percentage, less than 10%

       The more rapid the growth, the higher the percentage

       The more rapid the growth, the lower the percentage

       50 % or more

Question 5.5. (TCO 2) Various financial data for SunPath Manufacturing for 2012 and 2013 follow.

What is the percentage change in the multifactor labor and raw materials productivity measure for SunPath between 2012 and 2013?

2012

2013

Output:

Sales:

$300,000

$330,000

Inputs:

Labor:

$40,000

$43,000

Raw Materials:

$45,000

$51,000

Energy:

$10,000

$9,000

Capital Employed:

$250,000

$262,000

Other

$2,000

$6,000

(Points : 10)

       -9.22

       2.33

       -0.53

       -2.88

       10.39

Question 6.6. (TCO 5) A company wants to forecast demand using the simple moving average. If the company uses four prior yearly sales values (i.e., year 2010 = 100, year 2011 = 120, year 2012 = 140, and year 2013 = 210), which of the following is the simple moving average forecast for year 2014?

(Points : 10)

       100.5

       140.0

       142.5

       145.5

       155.0

Question 7.7. (TCO 5) If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has one machine capable of producing 4,500 units per week, how many similar machines might you plan to acquire? (Points : 10)

       10

       Four

       Eight

       12

       50

Question 8.8. (TCO 3) In setting up a Kanban control system, you need to determine the number of Kanban card sets needed. If the expected demand during lead time is 50 per hour, the safety stock is 20% of the demand during lead time and the container size is four. If the lead time to replenish an order is 8 hours, what number of Kanban card sets is needed? (Points : 10)

       60

       80

       90

       120

       150

Question 9.9. (TCO 7) For an infinite queuing situation, if the arrival rate for loading trucks is five trucks per hour, what is the mean time between arrivals?

(Points : 10)

       5 hours

       2.5 hours

       0.2 hours

       0.1 hours

       None of the above

Question 10.10. (TCO 8) If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per order is $50, which of the following is the EOQ lot size?

(Points : 10)

       350

       247

       23

       185

       78