1. One of the reasons Wal-Mart is such an efficient firm is because they utilize cross-docking and thus decrease their inventory carrying cost. (Points: 2) True False 2. Because it cannot generate random numbers, Microsoft Excel cannot be used to perform a simulation analysis. (Points: 2) True False 3. Fill rate is one or the three key preface indicators in measuring supply chain performance. (Points: 2) True False 4. RFID is capable of keeping track of items on planes and ships as the items move throughout the global supply chain. (Points: 2) True False 5. When bar codes are scanned at checkout counters an instantaneous computer record of sale known as radio frequency identification (RFID) is generated. (Points: 2) True False 6. E-business replaces physical processes with electronic ones. (Points: 2) True False 7. Information is the essential link between all supply chain processes and members. (Points: 2) True False 8. Companies cope with uncertainty in their supply chain by holding extra inventory. (Points: 2) True False 9. A supply chain can be viewed as an integrated group of processes to source, make, and deliver products. (Points: 2) True False 10. Upstream supply chain members refer to the firms suppliers. (Points: 2) True False 11. In an ABC inventory system, Class A items require loose inventory control because of their high value. (Points: 2) True False 12. As levels of inventory increase to provide good customer service, inventory cost decrease. (Points: 2) True False 13. A stockout occurs when supply exceeds demand during the lead time. (Points: 2) True False 14. The function of the economic order quantity (EOQ) model is to determine the optimal order size that minimizes total inventory costs. (Points: 2) True False 15. In the ABC inventory system Class A items would require less monitoring and control than Class C items. (Points: 2) True False 16. The ABC classification system is a method for classifying inventory in which a small percentage of (A) items account for most of the inventory value. (Points: 2) True False 17. Periodic inventory systems typically require smaller inventory levels than in a continuous system. (Points: 2) True False 18. An inventory system controls the level of inventory by determining how much to order and when to order. (Points: 2) True False 19. Shortage costs occur when customer demand cannot be met because of insufficient inventory. (Points: 2) True False 20. The ability to meet internal or external customer demand in a timely, efficient manner is referred to as the level of customer service. (Points: 2) True False 21. Dependent demand items are typically final products demanded by an external customer. (Points: 2) True False 22. Inventory management is concerned with how much to order and when to order. (Points: 2) True False 23. A gradual, long-term up or down movement of demand is called a trend. (Points: 2) True False 24. A good forecast will have a coefficient of determination that is larger than 1.00 (Points: 2) True False 25. A correlation coefficient is a measure of the strength of the linear relationship between an independent and a dependent variable. (Points: 2) True False 26. Linear regression is a mathematical procedure that relates an independent variable to a dependent variable in a straight line equation. (Points: 2) True False 27. The per-period average of the sum of the forecast errors is a useful measure of forecast bias. (Points: 2) True False 28. A seasonal factor is a numerical value greater than 2.0 that is multiplied by the normal forecast to get a seasonally adjusted forecast. (Points: 2) True False 29. A linear regression model that relates demand to time is known as a linear trend line. (Points: 2) True False 30. Exponential smoothing is an averaging method for forecasting that reacts more strongly to recent changes in demand. (Points: 2) True False 31. One reason time series methods are popular for forecasting is that they are relatively easy to use and understand. (Points: 2) True False 32. The Delphi method is a procedure for acquiring informed judgments and opinions from knowledgeable individuals using a series of questionnaires to develop a consensus forecast. (Points: 2) True False 33. Seasonal patterns are associated with the seasons of the year and cannot occur on a daily or weekly basis. (Points: 2) True False 34. An oscillating movement in demand that occurs periodically over the short-run and is repetitive is known as a seasonal pattern. (Points: 2) True False 35. The type of forecasting method used depends entirely on how far into the future the company is forecasting demand. (Points: 2) True False 36. One way to deal with the bullwhip effect is to develop demand forecasts that will reduce uncertainty and then share the forecasts with other supply chain members. (Points: 2) True False 37. Effective scheduling using the theory of constraints (TOC) requires that process batch sizes and transfer batch sizes match. (Points: 2) True False 38. In the concept of the drum-buffer-rope (DBR) the bottleneck resource is the buffer. (Points: 2) True False 39. The shortest processing time (SPT) rule tends to maximize the average number of jobs in the system. (Points: 2) True False 40. The complexity and dynamic nature of most scheduling environments precludes the use of analytical solution techniques. (Points: 2) True False 41. Johnsons rule gives an optimal sequence for jobs processed serially through two processes. (Points: 2) True False 42. If the work remaining on a job is greater than the time remaining before the job is due, then the critical ratio will be greater than one (1). (Points: 2) True False 43. The time required for a job to move through the system is referred to as the flow time. (Points: 2) True False 44. If the work remaining on a job is greater than the time remaining before the job is due, then the critical ratio will be greater than one (1). (Points: 2) True False 45. Determining the optimal allocation of jobs to machines or workers to tasks can be solved using the assignment method of linear programming. (Points: 2) True False 46. The sequence in which jobs should be processed is contained on a load leveling list. (Points: 2) True False 47. Scheduling is the second stage of planning after forecasting. (Points: 2) True False 48. Scheduling specifies when labor, equipment and facilities are needed to produce a product or provide a service. (Points: 2) True False 49. Lean production is not the best choice for high-volume repetitive items where mass production is more common. (Points: 2) True False 50. A poka-yoke is any foolproof device that prevents defects from occurring. (Points: 2) True False 51. Smaller lot sizes discourage quality. (Points: 2) True False 52. Setup time is not a component of lead time. (Points: 2) True False 53. Kanbans are used to maintain the discipline required of a pull production system. (Points: 2) True False 54. A marked area designated for holding a certain number of output items is known as a kanban square. (Points: 2) True False 55. Push systems rely on predetermined production schedules. (Points: 2) True False 56. Taiichi Ohno got the idea for the pull system from American supermarkets. (Points: 2) True False 57. Manufacturing cells are comprised of similar machines in order to produce large volumes of product. (Points: 2) True False 58. The time required for a worker to complete one pass through the operations assigned is called the operator cycle time. (Points: 2) True False 59. Lean production would consider producing items that cannot immediately be sold or used is a form of waste. (Points: 2) True False 60. In lean production, waste is defined as anything that does not add value to the product. (Points: 2) True False 61. Which mode of transportation transports oil and products in liquid form? (Points: 2) Pipeline Ocean Both pipeline and ocean Airline 62. When United Colours of Benneton do not dye their sweaters in Italy, but instead wait to dye them in the port of New York/New Jersey once they can better assess demand for this Autumns fashion colors, we cal this strategy: (Points: 2) Speculation Postponement Delivery Build to order 63. Web sites where companies and suppliers conduct business-to-business activities are known as (Points: 2) E-procurement E-Marketplaces E-Marketspaces Reverse Auctions 64. The cost of goods sold value used in computing the inventory turnover is (Points: 2) the cost of goods sold for finished goods only, valued at the final sale price the cost of goods sold for finished goods only, valued at cost the cost of goods sold for all individual inventory items, including raw materials and work-in-process, valued at cost the cost of goods sold for all individual inventory items, including raw materials and work-in-process, valued at the final sale price 65. A key element in achieving supply chain integration is (Points: 2) procuring services, raw materials, and components from suppliers producing products and services information technology distributing goods and services to customers 66. A computer-to-computer exchange of business documents in a standard format is known as (Points: 2) e-business electronic data interchange (EDI) radio frequency indentification (RFID) point-of-sale data 67. The effect whereby slight demand variability is magnified as it moves back upstream in the supply chain is known as (Points: 2) the bullwhip effect postponement collaborative replenishment direct-response delivery 68. The integrated group of business processes and activities that form the supply chain include all of the following except (Points: 2) procurement of services, materials, and components from suppliers production of the products and services distribution of products to the customers information technology 69. A cross-industry supply chain diagnostic tool maintained by the supply Chain Council is called: (Points: 2) SCORE SCOR SCM SSCP 70. The probability that the inventory available during lead time will meet demand is referred to as the (Points: 2) expected lead time demand safety stock stockout risk service level 71. In the ABC inventory classification system (Points: 2) C items require the most control B items require more control than C items but less control than A items B items require the most control A items require less control than B items 72. In a continuous inventory system an order is placed (Points: 2) for a variable amount whenever the inventory on hand decreases to less than the lead time demand for a variable amount after the passage of a fixed amount of time for the same fixed amount whenever the inventory on hand decreases to a certain level for the same constant amount after the passage of a fixed amount of time 73. As the level of inventory increases to provide better customer service, inventory costs (Points: 2) decrease stay the same increase cannot be estimated 74. All of the following are assumptions of the EOQ model except: (Points: 2) demand is known and is constant shortages are allowed lead time is constant order quantity is received all at once 75. In an ABC systems, a small amount of _____ items account for most of the inventory value (Points: 2) A B C Demand 76. The three types of inventory costs identified by our authors include all of the following except, (Points: 2) carrying ordering shortage handling 77. A mathematical technique for forecasting demand that relates the dependent variable demand to an independent that causes demand to behave in a linear manner is (Points: 2) correlation analysis exponential smoothing linear regression weighted moving average 78. A tracking signal is computed by (Points: 2) multiplying the cumulative error by MAD multiplying the absolute error by MAD dividing MAD by the cumulative absolute error dividing the cumulative error by MAD 79. Which of the following statements concerning average error is true? (Points: 2) a positive value indicates high bias, and a negative value indicates low bias a positive value indicates zero bias a negative value indicates zero bias a positive value indicates low bias, and a negative value indicates high bias 80. The mean absolute percentage deviation (MAPD) (Points: 2) measures the absolute error as a percentage of all errors measures the absolute error as a percentage of per period demand measures the absolute error as a percentage of total demand measures the absolute error as a percentage of the average error 81. The closer the smoothing constant, , is to 1.0 (Points: 2) the greater the reaction to the most recent demand the greater the dampening, or smoothing, effect the more accurate the forecast will be the less accurate the forecast will be 82. The smoothing constant, , in the exponential smoothing forecast (Points: 2) must always be a value greater than 1.0 must always be a value less than 0.10 must be a value between 0.0 and 1.0 should be equal to the time frame for the forecast 83. An up-and-down movement in demand that repeats itself over a lengthy time period of more than a year is known as a (Points: 2) trend seasonal pattern random variation cycle 84. The _______ method using average demand for a fixed sequence of periods. (Points: 2) Nave Univariate regression Multivariate regressions Qualitative Moving average 85. A ________ chart is used to show both planned and completed activities against a time scale. (Points: 2) Gantt dispatch sequencing Johnson 86. If the work remaining is greater than the time remaining, the critical ratio (CR) will be (Points: 2) equal to 1.0 equal to 0.0 greater than 1.0 less than 1.0 87. If a job is ahead of schedule, then its critical ratio (CR) will be (Points: 2) less than 1.0 greater than 1.0 equal to 1.0 equal to 0.0 88. The 5 Ss, sort, set, shine, standardize, and sustain, are most closely associated with which aspect of lean production? (Points: 2) push system flexible employees total productive maintenance uniform production levels 89. A foolproof device or mechanism that prevents defects from occurring is known as a (Points: 2) kaizen jidoka muda poka-yoke 90. Reductions in move time can be achieved by all of the following except (Points: 2) moving workstations and machines closer together standardizing product routings improving machine speeds simplifying the method of movement 91. Which of the following statements concerning small-lot production is not true? (Points: 2) small-lot production requires less space than systems that incur large inventories small-lot production requires more capital investment than systems that incur large inventories small-lot production simplifies transportation between workstations small-lot production allows processes to be moved closer together 92. To encourage improvement in the process the container size should be (Points: 2) equal to the demand during lead time larger than the demand during lead time smaller than the demand during lead time equal to lead time demand plus safety stock 93. A reduction in the number of kanbans (given a constant container size) requires (Points: 2) a reduction in safety stock and/or lead time an increase in safety stock and/or lead time an increase in safety stock while keeping lead time constant an increase in lead time while keeping safety stock constant 94. Lower inventory levels (Points: 2) make process less dependent on each other while keeping bottlenecks hidden make processes less dependent on each other while revealing bottlenecks more quickly make processes more dependent on each other while revealing bottlenecks more quickly make processes more dependent on each other while keeping bottlenecks hidden 95. To encourage improvement in the process the container size should be (Points: 2) equal to the demand during lead time larger than the demand during lead time smaller than the demand during lead time equal to lead time demand plus safety stock 96. A workstation must produce 200 units an hour. It takes 45 minutes to receive the necessary material for production from the previous workstation. Output is moved between workstations in containers holding 30 units. If the process uses a safety factor of 20%, then the number of kanbans that should be circulating between this workstation and the previous workstation is (Points: 2) 4 5 6 360 97. A marked area that is designated to hold a certain number of output items in a pull system is referred to as a (Points: 2) withdrawal kanban supplier kanban kanban square signal kanban 98. In a pull production system a card that corresponds to a standard quantity of production is known as a(n) (Points: 2) jidoka andon kanban kaizen 99. Which statement concerning push and pull production systems is true? (Points: 2) push systems rely on a predetermined schedule while pull systems rely on customer requests push systems rely on customer requests while pull systems rely on a predetermined schedule both push and pull systems rely on a predetermined schedule both push and pull systems rely on customer requests 100. The individual generally credited with the development of lean production is (Points: 2) Frederick Taylor W. Edwards Deming Taiichi Ohno Eiji Muda