SCM Exam 2

Is cycle counting or physical inventory counting the most recent method introduce to maintain inventory accuracy?

Tools Inc. is considering moving manufacturing to a different global location to reduce manufacturing labor costs. This change will most likely have what impact to lead times.

What two costs are equal in the economic order quantity model?

When varability in lead time and demand are present, safety stock is _________.

A higher EOQ will result in _____ orders per year (annual demand does not change).

Inventory allows a company to ______

The point where there is inventory, but not super low

Let the holding cost for unit y be $1 per unit per year. If annual holding costs amount to $1500 in the optimum, what is the EOQ?

In a given scenario, the EOQ is 700 and the associated total cost is G(Q)=$200,500. What will be the total cost if an order quantity of 900 (rather than the EOQ) is used?

The total cost of ownership analysis is used to determine if we should make or buy an item.

According to the profit leverage effect, if purchasing costs decreased by $10 million dollars then profit will increase by _______.

Typically you would enter a transactional relationship with ________ items and a strategic alliance with _________ items.

Which of the following items should you spend the LEAST amount of time selecting a supplier?

A product with a fast product life cycle will typically have _____ complexity on the strategic sourcing matrix.

In the make or buy analysis, fixed costs are typically ______ for make items.

Earlier supplier involvement in new product development will most likely result in which of the folllowing?

When negotiating with a supplier for an item that is highly complex, typically you will focus on _________.

PROVIDER
Supplier 1 Supplier 2
Cost of Items $3,360,000.00 $3,318,000.00
Transportation $59,000.00 $75,000.00
Tooling Costs $2,700.00 $3,000.00
Ordering Costs $1,300.00 $1,300.00
Quality Costs (i.e. scrapework) 4 % of item cost 3% of item cost
What is the difference in TCO between Supplier 1 and Supplier 2?

Make-Buy Information Make Option Buy Option
Fixed Costs $120,000 $14,000
Variable Costs $105 $210
If annual demand is 5,000 would it be more cost effective to make or buy?

Make-Buy Information Make Option Buy Option
Fixed Costs $120,000 $14,000
Variable Costs $105 $210
What is the breakeven quantity (round up to whole number)?

Supplier scorecards should only be applied to suppliers who provide "routine" items.

Due to a change in governmental regulations around AI, several new suppliers have entered the manufacturing robotics market. As the buyer for this product category, Kendra has decided to send an request for information (RFI) to her current supplier and the new suppliers. The reason for searching for a new supplier is primarily driven by which of the following reasons?

One of the main suppliers for Gifts & More has not been able to keep up with volume. After trying to work with the supplier they have been unable to improve. Which of the following would be the main reason for searching for a new supplier?

A reason for _______ would be to reduce supply risk from a natural disaster.

In the ______ step of the supplier selection process a company finds all of the potential suppliers.

According to the customer of choice matrix, you are paying the lowest price if you are considered which type of customer?

Factor Weight Supplier A Supplier B Supplier C Supplier D
Quality 35% 82 90 77 80
Delivery 20% 81 86 96 88
Price 15% 66 83 88 84
Service 20% 72 92 94 89
Systems 10% 84 83 70 84
Which supplier has the highest overall score?

Factor Weight Supplier A Supplier B Supplier C Supplier D
Quality 35% 86 92 78 89
Delivery 20% 85 88 97 97
Price 15% 70 85 89 93
Service 20% 76 94 95 98
Systems 10% 88 85 71 93
Which supplier has the highest overall score?

Madison is a technical support specialist for Cy Inc. What type of processes is Madison supporting?

According to the theory of constraints, the bottleneck typically has the ______ capacity.

task a (10 min) --> task b (8 min) --> task c (15 min) --> task d (12 min)
Which task would be considered the bottleneck?

Evaluating customer satisfaction is an example of what type of process classification.

Greg owns Bakery City that specializes in oversized muffins. Everyday he sells 9 different muffin flavors. He is most likely running a ______ manufacturing process.

Companies aim to have 100% resource utilization.

The _____ product process type have the highest level of variety.

The maximum output under ideal conditions is 1500 units per hour. The productivity loss of the stamping process is 25%. What is the capacity of the process under normal conditions?

When cycle time is greater than takt time a company should work towards which of the following?

Producing more inventory than is needed describes which of the following wastes?

The Toyota Production System (TPS) primary focus is to produce items ______ they are needed.

Putting clothes away in specific places in a closet and dresser is an example of which 5S phase?

The main focus of lean is

Lean companies typically have _____ inventory than competitors that don't follow lean philosphies.

The current customer demand is 8,000 units per day. We currently work one 12 hour shift with 11 real work hours after breaks and produce 7,000 mattresses per day. What is the cycle time in seconds?

The current process produces 1500 items per day per worker. We work one 8 hour shift and demand is 2000 units per day. What is the cycle time in seconds?

Quality is focused on

Inspecting product received from a supplier is an example of which cost of quality?

Which of the following quality costs would be considered the most expensive?

Tony purchased a new pair of pants in his size 32 X 34. The pants were too short by several inches. This is an example of a failure in which quality dimension of products?

Preventing a mistake from happening describes which of the following terms?

The employees at my favorite restaurant know my name and order by heart is an example of which quality dimension of service?

Increasing turns from 7 to 8.5 would be considered a _______ change.

If EOQ decreased from 200 units to 100 units and the per unit holding cost is $1.00 per unit. The annual holding cost would ________.

You are the buyer for the local ice cream store and you are in charge of determining the EOQ for ice cream. Each year the store sells 8,000 tubs of ice cream. The purchase cost of each tub is $72.00. The ordering cost is $45 and the carrying rate is estimated at 30%. (Round UP to whole number.)

What is the economic order quantity if annual demand is 100 units, the order placement cost is $25, and the holding cost per unit per year is $50?