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1、Question Number:1 The basic elements of the supply chain include:A）supply,manufacture,distribution.B)design,manufacture,inventory.C)engineer,design,manufacture.D)supply,engineer,manufacture.The correct answer is:A Even though different companies produce different products,the basic elements are the
2、same:supply,manufacture,and distribution.Question Number:2 In order to maximize profit,a company must have all of the following objectives except:A)Best customer service B)Most accurate production forecast C)Lowest inventory investment D)Lowest distribution cost The correct answer is:B A company,to
3、maximize profits,must have the lowest production cost,best customer service,lowest inventory investment,and lowest distribution costs.While an accurate production forecast will contribute to low production costs,it will not guarantee the lowest production costs.Question Number:3 BASICS OF SUPPLY CHA
4、IN MGMT(BSCM):Businesswide Concepts The inventory turns ratio measures:the amount of inventory needed to A)support sales growth.B)obsolete inventory as a percent of sales.C)how effectively inventory is being used.D)the amount of space needed to store inventory.The correct answer is:C The inventory t
5、urns ratio measures how effectively inventories are being used.It is calculated by dividing annual cost of goods sold by average inventory in dollars.Question Number:4 Process specifications can be best defined as a document which:A)shows how the product will appear.B)shows the steps needed to produ
6、ce the end item.C)details the capacity available at a work center.D)flow charts various processes.The correct answer is:B Process specifications describe the steps needed to make an end product.They are usually printed on a routing sheet or kept in the database for online access.Question Number:5 BA
7、SICS OF SUPPLY CHAIN MGMT(BSCM):Businesswide Concepts A companys strategic plan:A)provides the manufacturing plan for families of end items.B)outlines the sales plan for the next year.C)is a statement of goals and objectives for a long range period.D)outlines new products for the next year.The corre
8、ct answer is:C While strategic plans do provide for manufacturing,sales,and new product plans,they really provide the overall direction for the company.The result is a statement of goals and objectives for 2-5 years,and sometimes 10 years.Question Number:6 In which of the following manufacturing env
9、ironments would consumer products,such as film,food,etc.be classified?A)Assemble-to-order B)Engineer-to-order C)Make-to-order D)Make-to-stock The correct answer is:D Consumer products are generally considered make-to-stock.There are a few standard items assembled from many components.Question Number
10、:7 Many different end items are made from a small number of components.What manufacturing environment would this be?A)Make-to-stock B)Make-to-order C)Assemble-to-order D)Engineer-to-order The correct answer is:B Make-to-order companies typically make many end items from a small number of components.
11、The schedule is developed from actual customer orders.Question Number:8 The purpose of a strategic business plan is to:plan production A)by product family.B)plan for business changes which take a long time.C)establish customer requirements over the long term.D)establish order promising strategies.Th
12、e correct answer is:B Strategic plans are used for long term planning(2-10 years).They are used to allow time to plan for changes which take a long time to occur.These might include new plants or distribution centers.Question Number:9 BASICS OF SUPPLY CHAIN MGMT(BSCM):Businesswide Concepts Aggregate
13、 inventory management is concerned with:A)managing inventory items and how they are used.B)establishing the production plan.C)the cost and benefits of carrying the different classes of inventory.D)the distribution network and the movement of inventory.The correct answer is:C Aggregate inventory mana
14、gement is concerned with the cost and benefit of carrying raw materials,work-in-process,and finished goods inventory.It is financially oriented.Question Number:10 Which of the following are objectives of inventory?I.Maximize customer service II.Efficient transaction III.Low cost plan operations IV.M
15、inimum inventory investment A)I,II,and III B)I,III,and IV C)I,II,and IV D)II,III,and IV The correct answer is:B In order to maximize profits,a company must manage inventories,provide great customer service,and have efficient plant operations,while minimizing the amount of capital used for inventory.
16、Question Number:11 Which of the following would be included in the cost of carrying inventory?Heating and I.lighting a warehouse II.Obsolete inventory III.Labor to move material IV.Damaged inventory A)I,II,and III B)II,III,and IV C)I,III,and IV D)I,II,III,and IV The correct answer is:D All of the ab
17、ove costs would be included in the cost of inventory.Any costs incurred as the result of having inventory should be included.Question Number:12 Which of the following best describes a normal distribution?A)Most values clustered near a central point B)Warehouses centrally located to markets C)Values
18、accumulated at six sigma D)A critical ratio of 1.0 The correct answer is:A Normal distribution refers to the statistical distribution of values where the majority of values will accumulate around the mean.The resulting graph is shaped like a bell.It is often known as a bell curve.Question Number:13
19、Based on the following information,what would the safety stock need to be to ensure product is in stock 99.9999%of the time?MAD=100,On hand=200.Weekly demand=400 A)100 B)300 C)500 D)600 The correct answer is:C To ensure coverage of product 99.9999%of the time,it would require 5 MAD for safety stock.
20、Therefore:5*100=500.Question Number:14 Each distribution center places orders from central supply as they are needed.This is called:A)pull system.B)push system.C)Just-in-Time delivery.D)supply chain management.The correct answer is:A When each distribution center orders from central supply or the fa
21、ctory independently of what other distribution centers are doing,it is called a pull system.The advantage is that coordination and communication is less expensive.The disadvantage is that the lack of coordination causes problems with customer service and inventories.Question Number:15 A company make
22、s all decisions regarding forecasting and orders centrally for its distribution network.This company is using which of the following systems?A)Pull system B)Push system C)Just-in-Time D)Time phased order point The correct answer is:B The push system pushes inventory to distribution centers by making
23、 stocking decisions centrally.The advantage is that inventory is sent where it is needed most.The disadvantage is that the coordination is more expensive than the pull system.Question Number:16 A company wants to store 15,000 cartons with 20 cartons on each pallet.The warehouse is set up to store pa
24、llets 5 high.How many pallet positions are needed?A)150 B)500 C)750 D)3000 The correct answer is:A The number of pallet positions can be calculated by dividing the number of cartons of storage needed by the number of cartons per pallet which equals the total number of pallets needed.Divide the total
25、 number of pallets needed by the number of pallets stacked height which equals the number of positions needed.For this problem:15,000/20=750 pallets needed;750/5=150 positions.Question Number:17 All of the following are basic grouping methods to store and locate stock in a warehouse except:Items A)r
26、elated functionally B)Items in sequential SKU number C)Items which are physically similar D)Items which are fast moving The correct answer is:B The purpose of grouping items in a warehouse is to be more productive in storage and in the picking process.Items which have sequential SKU numbers may have
27、 nothing to do with each other.As a result,this would not be a criteria for grouping.Question Number:18 What is the major disadvantage of a fixed location warehouse?A)Put away time is increased B)Cube utilization is poor C)Dock time is increased D)Material handling costs rise The correct answer is:B
28、 Fixed location warehouses offer poor cube utilization because pallet locations are left empty when the product assigned to the location is out of stock.Generally,fixed locations are used in small warehouses with low throughput.Question Number:19 Which of the following are advantages of point of use
29、 storage?I.Ease of control II.Material handling is reduced III.Storage costs are reduced IV.Material is accessible at all times A)I,II,and III B)II,III,and IV C)I,III,and IV D)I,II,III,and IV The correct answer is:B All are advantages of point-of-use storage except ease of control,which is an advant
30、age of central storage.Question Number:20 Which of the following are advantages of using central storage?I.Ease of control II.Costs are reduced III.Inventory record accuracy is easier to attain IV.Safety stock is reduced A)I,II,and III B)I,III,and IV C)II,III,and IV D)I,II,III,and IV The correct ans
31、wer is:B Costs are not reduced with central storage.There are labor costs,racking,paper system,and other costs associated with central storage.Question Number:21 Which of the following best describes cycle counting?A)A process to reduce cycle time B)Set up reduction to shorten the production cycle C
32、)Counting inventory on a pre-determined schedule D)Conducting a time study at a work center The correct answer is:C Cycle counting is used to count inventory on a pre-determined schedule for the purpose of identifying errors and taking corrective action so the error will not occur again.Question Num
33、ber:22 The movement of finished goods from production to the customer is:A)physical supply.B)supply chain.C)physical distribution.D)conversion cycle.The correct answer is:C Physical distribution is the actual movement of goods from production to the customer.Physical supply is the movement of raw ma
34、terial from the supplier to manufacturing.Question Number:23 All of the following activities are part of the physical distribution system except:A)Transportation B)Warehousing C)Material handling D)Forecasting of customer orders The correct answer is:D Physical distribution includes the activities o
35、f transportation,distribution,inventory,warehousing,material handling,packaging,and order processing.Forecasting is not a physical distribution activity.Question Number:24 Trucks,as a mode of transportation,are best suited for:moving small quantities to widely A)dispersed markets.B)moving large quan
36、tities to widely dispersed markets.C)moving small quantities to narrowly dispersed markets.D)moving large quantities to narrowly dispersed markets.The correct answer is:A Trucks are best when there is a need to move small quantities to widely dispersed markets.Trains are better for moving large quan
37、tities.Question Number:25 For a given product,the line haul cost is$1.50 per mile.The product will move 400 miles.If 40,000 pounds are being shipped,what is the cost per hundred weight?A)1.00 B)1.50 C)2.00 D)2.50 The correct answer is:B The truck will cost$600 to move 400 miles($1.50*400 miles).To c
38、alculate the cost per hundred weight:Divide the total cost for the truck by 400.(40,000 pounds divided by 100).Therfore:$600 divided by 400=$1.50/cwt.Question Number:26 Which of the following best describes the purpose of a distribution warehouse?A warehouse to store goods for A)long periods of time
39、 B)A storage warehouse for floor stock C)A warehouse to move and mix goods D)A supply chain warehouse for regional storage The correct answer is:C A distribution warehouse is used primarily to break down large lots into smaller lots for shipment.A general warehouse is used for long term storage.Ques
40、tion Number:27 Which of the following are the roles which warehouses serve?I.Transportation consolidation II.Inventory efficiency III.Product mixing IV.Customer service A)I,II,and III B)I,III,and IV C)II,III,and IV D)I,II,III,and IV The correct answer is:B Warehouses serve three important roles:1)Tr
41、ansportation consolidation-consolidate small shipments(LTL)into large shipments(TL)2)Product mixing-group a variety of products into one order 3)Customer service-allows products to be placed closer to the customer Inventory will typically rise with an increase in the number of warehouses.Question Nu
42、mber:28 A market boundary can be defined as the:geographic boundary A)of a region.B)line where the laid down cost is the same from two supply sources.C)line where shipments in one distribution center equals another.D)mileage boundary where shipment costs exceed the margin to be gained.The correct an
43、swer is:B A market boundary is the line where the laid down cost from two supply sources is equal.The laid-down cost is the delivered cost of a product to a geographic point.Question Number:29 As a company increases the number of warehouses from one to two,there is an impact on safety stock.Safety s
44、tock will:A)increase by a factor of 2.B)decrease by half.C)increase,and the percent can be calculated.D)decrease by a calculated percentage.The correct answer is:C The safety stock will increase by an amount which can be calculated,but it will not double automatically.The amount of the increase will
45、 depend on service levels by part,the demand variation,and other factors.As the number of warehouses increases,demand at each will decrease,causing greater variations in product demand.Therefore,safety stock will increase appropriately.Question Number:30 The Just-in-Time philosophy can be best defin
46、ed as:A)Delivering goods just before they are needed B)Fulfilling customer orders just as they are needed C)Manufacturing without inventory D)Elimination of waste The correct answer is:D The Just-in-Time philosophy is concerned with the elimination of waste or non-value activities.Maintaining large
47、inventories is just one of many non-value added activities.Question Number:31 The Toyota Motor Company identified seven sources of waste in manufacturing.Which of the following represent those sources of waste?I.Process II.Overproduction III.Wait-time IV.Movement A)I,II,and III B)I,II,and IV C)II,II
48、I,and IV D)I,II,III,and IV The correct answer is:D The seven sources of waste identified by Toyota are Process,Methods,Movement,Product Defects,Waiting times,Overproduction,and Inventory.Question Number:32 To achieve necessary quality levels in a JIT environment,quality must be:A)built into the prod
49、uct by operators.B)inspected at multiple points.C)ensured by the quality control lab.D)an inspectors function.The correct answer is:A Quality must be the operators responsibility.They are the only ones who can make sure defects are not built into the product.They must be allowed to stop the process
50、when defects are found.Question Number:33 In order to reduce the number of transactions which occur in a JIT environment,companies use a system called:A)transaction prevention.B)pre-deduct.C)backflushing.D)bar coding.The correct answer is:C Backflushing is a system for doing inventory and labor tran