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WorksheetsLynda (Basic) Module Assessment- I
Total questions: 60
Worksheet time: 20mins
1. Which of the following is NOT one of the three major parts of the supply chain?
Logistics
Operations
Purchasing
Design
In order to establish a healthy relationship, what should buyers and supplies do?
Discuss their levels of happiness.
Observe each other.
Work together to innovate.
All of the above
Distribution centers typically hold inventory for less than _____.
2 hours
48 hours
1 week
10 days
______ supply chains clear the clutter that gets in the way of organisational opportunity.
Lean
Bullwhipped
TEU
Push
____ is the management of the systems that produce products and services.
Operations
Communication
Strategy
Finance
Inventory consumption rates remain fixed relative to the amount of remaining inventory.
TRUE
FALSE
In _____ strategy the final product is not assembled until the customer places the order?
Assemble-to-Order
Make-to-order
Make-to-assemble
Make-to-stock
Which of the following is NOT one of the five step improvement methodology of Six Sigma?
Concentrating on creating the next generation of products.
Measure where the company is today.
Analyse what numbers mean and where the problems are.
Define the system and find out what you are doing and why.
Why would a company want to implement a Vendor-Managed Inventory strategy?
Inventory management should be handled by experts.
It pushes inventory responsibilities onto the supplier.
Supplier optimisation leads to lower inventory and costs.
You are no longer concerned with inventory orders.
According to ABC analysis, how do inventories differ?
Inventories vary by location within the business' systems.
Inventories differ by the annual usage, or volume.
Inventories differ by their unit cost and their annual usage.
Inventories differ by their unit cost.
The heart of a "pull" production system is _____.
A low inventory level
The concept of just-in-time
Bottleneck analysis
Idle machines
The purpose of safety stock is _____.
To help you meet unanticipated demand.
To ensure your customer receives the order on time.
To prevent your factory from running out of materials.
All of the above
What does the best definition of quality focus on?
Price
Meeting specification requirements
Continuous improvement
Meeting customer expectations
Which of these is NOT a feature of the House of Quality model?
Quality characteristic values
Customer requirements
Relationships
Product/service technical features
The highest cost of quality involves external failures. What are external failures?
Failures that create factory reworked or scrapped material.
Failures caused by suppliers and contractors.
Failures post product or service delivery to customer.
Failures caused by quality at the source.
Where does logistics fall within supply chain of a business that manufactures farm equipment?
All steps in the supply chain other than warehousing.
Logistics applies to all steps in the company's supply chain.
Only inbound and outbound delivery.
All steps in the supply chain other than costs.
Which of these is an example of reverse logistics?
Orders to a vendor with instructions how to ship the orders.
Shipments using U.S. Mail rather than a trucking company.
Warranty work sent from a customer to a seller.
Deliveries from distribution center to a manufacturing plant.
What type of inventory is produced and held for sale at a specific time like a sales promotion?
Anticipatory inventory
Safety inventory
Finished goods inventory
Cycle inventory
What would NOT be one of the factors of regional supply chain strategy?
Centralised supply chains have short transportation channels
Tailoring products to the preferences in the local market
Developing the local economy to increase their customer base
Reduction in transportation costs and transportation time
What is the next step after a customer accepts your quote?
The customer issues your company a purchase order.
You send the customer a Pay on Receipt.
Your company issues a purchase order.
Your company issues a purchase order.
Which of the following items is NOT associated with shipping containers?
Controlled atmosphere containers
TEUs
Lean Six Sigma
Reefers
If a company knows what customers want, they should use this strategy with those customers.
Pull
Bullwhip
Postponement
Push
A successful global supply chain manager needs to have knowledge of _____.
International finance
Global trade agreements
Global marketing
All of the above
What is not considered part of inventory costs?
Cost to purchase the inventory
Cost to hold the inventory
Cost of consuming the inventory
Cost to order the inventory
Plan around _____ accordingly and use your resources to strengthen weak links.
Services
Costs
Bottlenecks
Customers
One of the keys to successful global supply chain management is _____.
Quality management
Engineering
Integration
Transportation
The process of comparing and measuring your company's processes and systems against others is?
Benchmarking
Analysing
Scheduling
Certification
___ is reducing the time of an activity that is on the critical path of a project?
Crashing
Reducing
Speeding
Optimizing
Which of these is NOT included in total inventory cost?
Factory equipment costs
Tariffs
Storage costs
Ordering costs
Which of these is a "hidden cost" of inventory?
Storage cost
Insurance expense
Item cost
Obsolescence cost
An effective quality management program includes the view of quality from which perspective?
The supplier
Each company department
The customer
All of the above
Which of these is NOT a part of Crosby's "Quality is Free" philosophy?
Most quality problems are caused by production.
The quality goal should be zero defects.
Zero defects are achieved by preventing defects initially.
It's always cheaper to do the job right the first time.
Which of these is a quality management principle that supports ISO 9000 standards?
Processes should be continuously improved.
Processes should be integrated as a system.
Suppliers should be key partners in a supply chain.
All of the above
Which method makes demand forecasts more accurate?
Make the forecast horizon shorter.
Start with an aggregate forecast.
Use multiple sources of input.
All the above
What can you use Pareto charts to determine?
How to collect quality data.
The cause of a quality problem.
Where to begin a quality improvement project.
If your process is in control.
What area of logistics accounts for the largest percentage of logistics costs?
Warehousing
Order processing
Transportation
Inventory management
How can the bullwhip effect be avoided?
By optimising the entire supply chain system.
By keeping supply constant.
By increasing production to avoid an out-of-stock situation.
By expanding facilities to warehouse additional inventory.
When would a retailer be comfortable carrying less than a 100% inventory on an item?
When stock-out costs are high.
When demand for the item is high.
When a substitute item is in stock.
When no substitute items are in stock.
When communicating with customers, you and your colleagues must avoid _____.
Providing options and solutions.
Knowing customers' and suppliers' time zones.
Listening and building trust.
Making assumptions.
Which approach should be used when reducing the variability in supply chain processes?
Theory of Constraints
TQM
Lean
Six Sigma
Supply chain managers need to have three daily goals:
Reduce labour costs, energy costs, and material costs.
Cut costs, decrease productivity, stabilize value.
Be effective, efficient, and adaptable.
Eliminate defects, decrease productivity, increase profit.
What is the fastest mode of transportation?
Ships
Trains
Airplanes
Trucks
What do you call the magnification of inventory from one level of the supply chain to the next?
Postponement
The bullwhip effect
A push supply chain strategy
A supply chain pyramid
Supply chain managers can use all the following EXCEPT ____ to maintain ethical supply chains.
Demanding higher ROIs
Audits of suppliers
Cell phone surveys
Codes of ethics
Which of the following is NOT a risk of carrying a lot of inventory?
High inventory allows for quantity discounts.
Inventory needs to be stored somewhere.
Inventory takes money out of your pocket.
Inventory may spoil or go out of style before it's sold.
Which of the following is a part of the Economic Order Quantity calculation?
Annual demand
Single order cost
Cost to hold single unit a year
All of the above
_____ manufacturing is giving the customer what they want, but doing it without any waste.
Healthy
Focused
Lean
Controlled
Which of these is a true statement about EOQ?
It takes into account all costs of inventory.
The EOQ model allows partial delivery of orders.
It defines inventory order amounts that minimise total costs.
It is a stand alone model to make decisions for single items.
Which of these is NOT included in total inventory cost?
Factory equipment costs
Tariffs
Storage costs
Ordering costs
Why is RFID technology an advancement over barcodes?
RFID does not require line-of-sight transmission.
RFID tags cost less than barcodes.
RFID allows you to track the location of your inventory.
RFID does not allow you to track the location of your inventory.
Which of these is a good reason to hold inventory?
Because your preferred supplier usually delivers late.
To compensate for long supply channels.
To meet customer expectations.
Because all forecasts are wrong.
What is the most important aspect of the The Deming Cycle process?
Act
Do
Repeat
Plan
Which of these is an attribute of the SERVQUAL model for evaluating service quality?
Reliability
Speed
Zero defects
Information
Why should you use the "5 Whys" approach to root cause analysis?
For a permanent solution to the problem.
It's a foundation of effective constant improvement programs
Most solutions only address a symptom of the problem.
All the above
Why might changing the packaging design of a product be a problem in terms of logistics?
The new design might be likely to confuse customers.
The increased cost might increase the product price.
The new design may not fit the store shelves.
All of the above
How can "kitting" provide the most efficient inbound logistics benefit to a manufacturer?
By providing components for assembly to the manufacturer.
By delivering all the components in the same shipment.
By providing a units in a group, ready to install.
By shipping components separately.
How does cross-docking reduce storage and handling costs?
By shipping products across the country from a single dock.
By storing products on shipping docks instead of a warehouse.
By warehousing similar products close each other.
By unloading inbound trucks directly into outbound trucks.
Which employee incentive system should be considering for a company's transportation managers?
Linking compensation to reductions in shipping costs.
Bonuses for reducing overall costs along the supply chain.
Linking compensation to the average shipping costs per unit.
Paying bonuses for meeting quarterly performance goals.
The person who manages your relationship with a supplier is known as a _____.
Buyer
Supply chain manager
Supply chain analyst
Customer account manager
What is the result of a stockout?
Inventory increases quickly when a new shipment is received.
Loss of sales to competitors.
Excess inventory on hand has increased costs.
Future forecasts were correct.
