Operations Management quiz #10

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Question 1 (1 point)

Question 1 Unsaved

The weeks of supply measure will improve if the weekly sales decrease.

Question 1 options:

	True
	False

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Question 2 (1 point)

Henderson Corporation is a supplier of alloy ball bearings to auto manufacturers in Detroit. Because of the specialized manufacturing process employed, considerable work-in-process and raw material inventories are created. The average inventory levels are $1,152,000 and $2,725,000, respectively. In addition, finished goods inventory is $3,225,000, and sales (at cost) for the current year are expected to be about $24 million. The inventory turnover that Henderson Corporation is currently expecting is:

Question 2 options:

	less than 2.0.
	greater than 2.0 but less than 2.5.
	greater than 2.5 but less than 3.0.
	greater than 3.0.

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Question 3 (1 point)

Maple Leaf, Inc., a television manufacturer, would like to reduce its inventory. To this end, you are asked by the operations manager to assess its inventory level. You have the following information on average inventories from last year's financial statement:

In addition, the cost of goods sold last year (50 weeks) was $15 million. What was the inventory turnover?

Question 3 options:

	less than or equal to two
	greater than two but less than three
	greater than three but less than four
	greater than four

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Question 4 (1 point)

Some discount stores are able to sell items before they have to pay their suppliers, resulting in a negative:

Question 4 options:

	net profit.
	return on assets.
	number of inventory turns.
	cash-to-cash measure.

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Question 5 (1 point)

One disadvantage of centralized placement is increased shipping costs from the distribution center to the customer.

Question 5 options:

	True
	False

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Question 6 (1 point)

The purpose of supply chain design is to shape a firm's supply chain to meet the competitive priorities of its operations strategies.

Question 6 options:

	True
	False

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Question 7 (1 point)

Supply chain management tries to match the flow of materials, services and information with demand.

Question 7 options:

	True
	False

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Question 8 (1 point)

The best inventory level, when expressed as a turnover, is 52 per year.

Question 8 options:

	True
	False

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Question 9 (1 point)

Responsive supply chains work best when firms offer a low variety of services or products and demand predictability is high.

Question 9 options:

	True
	False

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Question 10 (1 point)

Padco averages $15 million worth of inventory in all of its worldwide locations. They operate 51 weeks a year and each week average $3 million in sales (at cost). Their inventory turnover is:

Question 10 options:

	1.13 turns.
	5 turns.
	10.2 turns.
	17 turns.

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Question 11 (1 point)

Which one of the following is TRUE for supply chain management?

Question 11 options:

	Supply chain applies to both manufacturing and service organizations.
	Supply chain applies only to manufacturing because it deals with flow of materials.
	Supply chain is about suppliers and does not include distributors or customers.
	Supply chain includes any operation that deals with materials.

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Question 12 (1 point)

Supply chain design for a service provider is driven primarily by the need to control the materials it consumes as it delivers its various services.

Question 12 options:

	True
	False

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Question 13 (1 point)

The finished goods of one firm may actually be the raw materials for another firm.

Question 13 options:

	True
	False

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Question 14 (1 point)

Efficient supply chains use low capacity cushions.

Question 14 options:

	True
	False

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Question 15 (1 point)

Forward placement is a reduction in inventory and safety stock because of the merging of variable demands from customers.

Question 15 options:

	True
	False

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Question 16 (1 point)

The bullwhip effect says that in any supply chain, the ordering patterns experience increasing variance as you move closer to the end customer.

Question 16 options:

	True
	False

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Question 17 (1 point)

One source of disruption caused by the internal supply chain is:

Question 17 options:

	forecast error.
	underfilled shipments.
	volume changes.
	late deliveries.

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Question 18 (1 point)

Possible causes of disruption due to internal supply chain problems are:

Question 18 options:

	late deliveries.
	machine breakdowns or inexperienced workers.
	product and service mix changes.
	underfilled shipments.

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Question 19 (1 point)

One source of disruption caused by the external supply chain is:

Question 19 options:

	product or sales promotions.
	new product or service introduction.
	late deliveries.
	engineering changes.

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Question 20 (1 point)

The bullwhip effect is characterized by:

Question 20 options:

	ordering patterns that experience increasing variance as you proceed downstream in the chain.
	ordering patterns that experience increasing variance as you proceed upstream in the chain.
	purchasing patterns that experience increasing variance downstream in the chain.
	purchasing patterns that experience decreasing variance as you proceed upstream in the chain.

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Question 21 (10 points)

Why is it often more difficult to achieve merger related synergistic benefits within supply chain functions as opposed to other functions (accounting/finance/HR etc.)?

Question 21 options:

Spell check

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