Which of the following represents landed costs?

Purchasing and delivering a purchased product to its final destination

Combining smaller shipments to take advantage of bulk efficiencies

Purchasing and delivering a purchased product to its final destination

Supplier absorbing freight charges

Duties levied on imports and exports

Which of the following activities represents waste in a system?

A purchase order is issued to the supplier for each delivery requirement.

More kanbans with smaller quantities are added to the supply chain.

A kanban is eliminated from the system.

A production forecast is issued to the supplier.

A purchase order is issued to the supplier for each delivery requirement.

Which of the following circumstances would cause a move from acceptance sampling to 100% inspection?

Downstream operators encounter recurring defects.

History shows that the quality level has been stable from lot to lot.

The company uses one of its qualified suppliers.

Downstream operators encounter recurring defects.

The percent of defects is expected to be greater than 5%.

An important benefit of an effective work cell layout is:

improved space utilization. C increased machine utilization.

increased changeover efficiency.

Once an organization's monthly sales and operations planning (S&0OP) process has been completed, the functional responsibility of operations is to:

meet the revised production plan.

change the master schedule to meet the sales orders.

signal critical capacity constraints to top management.

meet the revised production plan.

produce to the current master production schedule (MPS).

Which of the following activities will enhance a successful supplier customer lean relationship?

Communication between the counterparts at the two companies is studied and improved.

The supplier offers quantity discounts on material purchased.

Returnable containers are used for material transport.

Communication between the counterparts at the two companies is studied and improved.

Consignment inventories are maintained in anticipation of customer need.

Which of the following criteria is used to determine safety stock in a distribution center (DC)?

Economic order quantity (EOQ) N

If all other factors remain the same, when finished goods inventory investment is increased, service levels typically will:

increase in direct (linear) proportion.

increase at an increasing rate.

The production plan relates to a firm's financial planning because it is used to:

calculate standard product costs.

An increase in the scrap allowance in an assembled item will result in which of the following consequences?

Replanning of the component items in material requirements planning (MRP)

An increase in the component items' cost

A change in the bill of materials' (BOM) quantity per assembled item

Replanning of the component items in material requirements planning (MRP)

An increase in the assembled item's planned lead time

Which of the following actions will result in lower inventory levels?

Reduce replenishment lead times.

Level load the master production schedule (MPS).

Reduce replenishment lead times.

Increase customer service level.

Decentralize inventory locations.

When deciding what to report externally regarding sustainability performance, a company should disclose:

past results and future strategies.

results of acceptable performance.

past results and future strategies.

why current regulations are too costly.

In which of the following environments is capable-to-promise (CTP) more appropriate than available-to-promise (ATP)?

Specialty chemicals packaged and shipped to order

Consumer electronics sold through local retailers

Industrial supplies shipped from regional distribution centers (DCs)

Packaged foods sold in grocery stores

Specialty chemicals packaged and shipped to order

The cumulative available-to-promise (ATP) method is based on an assumption that available inventory in a period can be committed to demand in that period and:

any future period in the planning horizon.

any period before the demand time fence (DTF).

future periods with a planned receipt.

One way to mitigate liability risk in the supply chain is to:

require traceability for components.

negotiate lower component cost.

require traceability for components.

push inventory to supplier locations.

use less-than-truckload (LTL) shipments more frequently.

Shop backlogs remain constant when:

forecasts are updated on the basis of the longest lead time item.

capacity is assumed to be infinite.

shop orders are released at a steady rate.

Locating service facilities differs from locating manufacturing or distribution facilities primarily because service location decisions are:

driven by revenue concerns, while manufacturing and distribution location decisions are driven by costs.

driven by competition, while manufacturing and distribution location decisions are not.

driven by real estate costs, while manufacturing and distribution location decisions are driven by product costs.

determined after surveying customers, while manufacturing and distribution location decisions are determined after surveying suppliers.

An effective process to create meaningful change begins with:

identifying and discussing a past crisis, a potential crisis, or major opportunities.

reviewing financial outcomes and metrics over the last 4 quarters year-over-year.

identifying and discussing a past crisis, a potential crisis, or major opportunities.

refreshing corporate strategy to align with current marketplace realities for your industry.

using consultants to provide in-depth analysis of current management opportunities.

Reducing distribution network inventory days of supply will have which of the following impacts?

Increase turnovers and reduce cash-to-cash cycle time.

Increase turnovers and increase cash-to-cash cycle time.

Increase turnovers and reduce cash-to-cash cycle time.

Decrease turnovers and reduce cash-to-cash cycle time.

Decrease turnovers and increase cash-to-cash cycle time.

A manufacturer wishes to decrease the time-to-market for a new product family. Which of the following strategies should be used?

Increase collaboration between the buyer and the supplier of new components.

Decrease the number of suppliers for components of the new product.

Decrease the purchasing lot size for the new product's components.

Increase collaboration between the buyer and the supplier of new components.

Increase the safety stocks for the new product's components.

A product family consists of 46 items, each having 5 features available and 6 options available. At which level of the bill of material (BOM) would it be most appropriate to forecast?

Both subassembly level and final assembly level items

Which of the following activities would be effective to mitigate the bullwhip effect?

Implement track and trace technology.

In a lean environment, one uses material requirements planning (MRP) processing primarily to:

create plans to share with suppliers.

calculate average daily demand.

determine the kanban circuit locations.

determine where to use supermarkets.

In a rapidly changing business environment, a primary advantage of an effective customer relationship management (CRM) program is:

earlier identification of shifts in customer preferences.

Adopting a lean approach to manage supply chain throughput rather than a more traditional approach means that:

more inventory may be required.

An advantage of activity-based costing (ABC) is:

it uses cost drivers to allocate costs to products.

it allows raw material costs to be allocated on a per unit basis.

it uses cost drivers to allocate costs to products.

it is easier to establish standard costs.

it enables overhead costs to be allocated evenly across all products.

What priority control technique is most appropriate for a firm using a cellular production system?

Pull production activity control (PAC)

Shortest processing time (SPT) rule

Distribution requirements planning (DRP)

Pull production activity control (PAC)

Push production activity control (PAC)

What is a result of effective production activity control (PAC)?

Actual input/output matches planned input/output

Less scrap and rework on the shop floor

Fewer machine hours are required for production

Available capacity is increased

An order that moves into a work center on schedule following completion of a previous operation will move:

into the queue in priority sequence.

into the queue when there is capacity available.

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