Supply Chain Management Test 1

Supply Chain Management starts with understanding the flow. T/F
true
The bullwhip effect can occur when the demand for a product is based on a forecast, rather than on actual consumer requirements/consumption. T/F
true
In the Make-to-Order or Pull Model, stock is produced on the basis of anticipated (i.e., forecasted) demand. T/F
false
The goal of Supply Chain Management is to increase customer service by increasing inventory and reducing costs. T/F
false
Successful modern supply chain management typically includes the practice of ?
A. Keeping high inventories throughout the supply chain
B. Always purchasing materials with the lowest per unit cost
C. Sharing information between supply chain partners
D. Issuing ultimatums to your supply chain partners
C. Sharing information between supply chain partners
In the future companies will focus on?
A. Relationships
B. Sustainability
C. Social Responsibility
D. All of the above
E. B & C only
D. All of the above
The Qualitative forecasting method is based on opinion & intuition. T/F
true
Forecasts are most accurate for long time periods. T/F
false
Cause-and-Effect Models can have multiple independent variables. T/F
true
Which one of the following is not a type of qualitative forecasting?
A. Sales force composite
B. Consumer survey
C. Jury of executive opinion
D. Naïve method
D. Naïve method
What does the acronym CPFR represent?
A. Coordinated Planning & Forecasting Relationships
B. Collaborative Planning, Forecasting, & Replenishment
C. Centralized Purchasing & Forecasting Relationships
D. Collaborative Purchasing, Forecasting, & Receivables
B. Collaborative Planning, Forecasting, & Replenishment
The goal of resource planning is to minimize the discrepancy between an organization’s capacity and demand results. T/F
true
Material Requirement Planning is the system intended to develop long-range plans (more than a year away) concerning product families manufactured by the organization. T/F
false
The three basic production strategies for addressing the aggregate planning problem are the chase production strategy, the level production strategy, and the mixed production strategy. T/F
true
The Chase Production Strategy relies on a constant output rate and capacity while varying inventory and backlog levels to handle the fluctuating demand pattern. T/F
false
Which of the following is an engineering document that shows an inclusive listing of all the component parts and assemblies making up the final product?
A. Master Production Schedule
B. Bill of Materials
C. Distribution Requirement Plan
D. Resource Requirement Plan
B. Bill of Materials
The medium-range capacity planning technique used to check the feasibility of the Master Production Schedule (MPS) is called:
A. Resource Requirement Planning (RRP)
B. Rough-cut Capacity Planning (RCCP)
C. Capacity Requirement Planning (CRP)
D. None of the above
B. Rough-cut Capacity Planning (RCCP)
Which of the following MRP terms represents a committed order awaiting delivery for a specific period?
A. Projected on-hand inventory
B. Time bucket
C. Net requirement
D. Scheduled receipt
D. Scheduled receipt
Organizations that choose to implement one single system with all of the desired applications from a single vendor is said to have chosen a:
A. Best-of-breed solution
B. Elite integrator solution
C. Single integrator solution
D. Premier application solution
C. Single integrator solution
The four broad categories of inventory are raw materials, work-in-process, MRO, and finished goods. T/F
true
The Economic Order Quantity (EOQ) is the optimal order size because it minimizes the annual total inventory cost. T/F
true
The top 2 primary functions of inventory are
(1) Buffer against uncertainty in the marketplace
(2) Decouple dependencies in the supply chain. T/F
true
Inventory costs which are independent of the output quantity are called?
A. Indirect Costs
B. Variable Costs
C. Fixed Costs
D. Carrying Costs
C. Fixed Costs
Which of the following is NOT an example of an ordering cost for products purchased from a supplier?
A. The cost of transmitting the order
B. The cost of receiving the product
C. The cost associated with processing the invoice
D. The opportunity cost of not ordering from a least cost supplier
E. The cost of handling the product
D. The opportunity cost of not ordering from a least cost supplier
The primary purpose of the basic economic order quantity model is
A. To calculate the reorder point, so that replenishments take place at the proper time
B. To minimize the sum of carrying cost and holding cost
C. To maximize the customer service level
D. To minimize the sum of ordering cost and holding cost
D. To minimize the sum of ordering cost and holding cost