South Florida Business Daily

operation management 5?

1. In the make-or-buy decision, one of the reasons for buying is a. to assure adequate supply d. inadequate capacity b. to obtain desired quality e. to maintain organizational talents c. to remove supplier collusion ABCDE 2. Outsourcing a. transfers traditional internal activities to outside vendors d. may include facilities, people, and equipment b. utilizes the efficiency which comes with specialization e. All of the above are true of outsourcing. c. lets the outsourcing firm focus on its critical success factors ABCDE 3. In supply chain management, ethical issues a. are particularly important because of the enormous opportunities for abuse d. may be guided by the principles and standards of the Institute for Supply Management b. may be guided by company rules and codes of conduct e. All of the above are true. c. become more complex the more global is the supply chain ABCDE 4. Which one of the following is not a supply-chain strategy? a. negotiation with many suppliers d. short-term relationships with few suppliers b. vertical integration e. virtual companies c. keiretsu ABCDE 5. Which of the following supply-chain strategies creates value by allowing suppliers to have economies of scale? a. suppliers becoming part of a company coalition. d. negotiating with many suppliers. b. vertical integration. e. developing virtual companies. c. long-term partnering with a few suppliers. ABCDE 6. Japanese manufacturers often take a middle ground between purchasing from a few suppliers and vertical integration. This approach is a. kanban. d. poka-yoke. b. keiretsu. e. kaizen. c. samurai. ABCDE 7. The “bullwhip” effect a. occurs as orders are relayed from retailers to wholesalers d. occurs because of distortions in information in the supply-chain b. results in increasing fluctuations at each step of the sequence e. all of the above. c. increases the costs associated with inventory in the supply-chain ABCDE 8. The three classic types of negotiation strategies are a. vendor evaluation, vendor development, and vendor selection d. cost-based price model, market-based price model, and competitive bidding b. Theory X, Theory Y, and Theory Z e. None of the above is correct. c. many suppliers, few suppliers, and keiretsu ABCDE 9. Which of the following is a function of inventory? a. to decouple or separate parts of the production process d. to hedge against inflation b. to decouple the firm from fluctuations in demand and provide a stock of goods that will provide a selection for customers e. All of the above are functions of inventory. c. to take advantage of quantity discounts ABCDE 10. ABC analysis is based upon the principle that a. all items in inventory must be monitored very closely d. the safety stock (in terms of volume) should be higher for A items than for C items b. there are usually a few critical items, and many items which are less critical e. an item is critical if its unit price is high c. an item is critical if its usage is high ABCDE 11. The two most basic inventory questions answered by the typical inventory model are a. timing and cost of orders d. order quantity and service level b. quantity and cost of orders e. ordering cost and carrying cost c. timing and quantity of orders ABCDE 12. The primary purpose of the basic economic order quantity model shown below is a. to calculate the reorder point, so that replenishments take place at the proper time d. to minimize the sum of setup cost and holding cost b. to minimize the sum of carrying cost and holding cost e. to calculate the optimum safety stock c. to maximize the customer service level ABCDE 13. A certain type of computer costs $1,000, and the annual holding cost is 25%. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity? a. 16 d. 183 b. 70 e. 600 c. 110 ABCDE 14. For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model was 200 units and the total annual inventory cost was $600. The inventory carrying cost per unit per year for this item is a. $1.50 d. $150.00 b. $2.00 e. not enough data to determine c. $3.00 ABCDE 15. An inventory decision rule states "when the inventory level goes down to 14 gearboxes, 100 gearboxes will be ordered." Which of the following statements is true? a. One hundred is the reorder point, and 14 is the order quantity. d. Fourteen is the safety stock, and 100 is the reorder point. b. Fourteen is the reorder point, and 100 is the order quantity. e. None of the above is true. c. The number 100 is a function of demand during lead time. ABCDE 16. A learning myself

Public Comments

1. What difficulty are you experiencing in answering these questions? The concepts? How to set up the equations? How to do the analysis? Truthfully, all I see here is a 'cut and pasted' homework assignment/test. Y!A guidelines require you to ask a question instead of just posting your coursework. Good luck in your studies, ~ Mitch ~