Supply Chain Management Quiz

Increasing incomes in developing countries may mean companies need to:

• stop buying parts from China

• produce in every country in which they sell

• sell the same products they sell at home

• develop new ways to deliver products

Small lot sizes in a lean system:

• increase the quality of the product

• increase pipeline inventory that protects against demand uncertainty

• enable schedules to use machines more efficiently

• increase lead time due to increased setup time

One of the ways to reduce pipeline inventory is to:

• accept only large orders

• select more responsive suppliers

• offer seasonal pricing plans

• use more excess capacity

Which one of the following is a consequence of internal failures:

• decreased customer service

• increased productivity

• increased costs

• decreased lead time

The newsvendor model measures the:

• desired probability of not running out of stock in an inventory cycle

• fraction of products acceptable/year

• mean demand minus standard deviation of demand immediately from stock

• preferred proportion of days in the year when an item is in stock

Consider consecutive processes A-B-C where process A has a capacity of 20 units/hour, process B is 25 units/hour, and process C is 30 units/hour. Where would inventory be needed?

• inventory in front of process A

• inventory in front of process B

• inventory in front of process C

• inventory should not exist anywhere

From a constraint management perspective, ________ should be balanced.

• time

• capacity

• flow

• workload

Increasing the rate of new product introduction can lead to:

• shifts from innovative to functional products

• lower market mediation costs

• increased holding costs

• higher demand uncertainty

The goal of the plane simulation was to highlight the difference between:

• cost and efficiency supply chains

• agile and push flow

• lean and agile supply chains

• cycle and safety stock inventory

Which of the following are most closely associated:

• agility - rapid response

• adaptability - fair risk sharing

• alignment - monitoring global trends

• adaptability - collaborative problem solving