Consider a packaged milk products supply chain

Consider a packaged milk products supply chain

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

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