Questions:
Question 1.
1. The three basic production strategies for addressing the aggregate planning problem are the capacity production strategy, the level production strategy, and the chase production strategy.
True
False
Question 2.
2. When designing a manufacturing or service process, or even during the reengineering of such a process, a Pareto chart would be an essential tool for evaluating the process in terms of its action elements, waiting periods, and process flow.
True
False
Question 3.
3. Which of the following indices provided by the Institute for Supply Management (ISM) is considered the most important by economists because it is a composite of five weighted, seasonally adjusted indices?
Purchasing Managers Index
Export Orders Index
Production and Inventory Index
New Orders Index
Question 4.
4. While the philosophy of Six Sigma means different things to different people and is practiced differently in different companies, according to the textbook, two of the more important and agreed-upon elements of Six Sigma are:
Minimizing inventories and increasing material flow
Focusing on the customer and workforce involvement
Rewarding employees and keeping defect rates below 2%
Minimizing inventories and keeping defect rates below 1%
Question 5.
5. According to the textbook, which of the following is NOT a way to closely match supply and demand?
Holding high amounts of inventory
Maintaining a rigid pricing system
Utilizing overtime
Hiring temporary workers
Question 6.
6. Which of the following is considered an advantage/benefit of utilizing an ERP system?
Fairly inexpensive to purchase and implement
Enables the company to utilize a single centralized database system, thus eliminating duplicate data entry.
Flexible enough that it allows different companies with different business models to mold the new ERP system to fit the company's business model
All of these
Question 7.
7. Which of the following is NOT consistent with the lean philosophy?
Cross-training employees to increase processing flexibility
Developing a culture of continuous improvement within the organization
Increasing batch size to take advantage of economies of scale
Positioning WIP inventories near each processing center
Question 8.
8. If a tracking signal is positive, which one of the following is true?
Actual value is higher than forecast
Actual value is less than forecast
Actual value is equal to forecast
Unable to draw any conclusion
Question 9.
9. The total annual inventory cost is the sum of the annual purchase cost, the annual holding cost, the annual capacity cost, and the annual ordering cost.
True
False
Question 10.
10. Some of the benefits of CPFR include strengthening partner relationships, providing an analysis of sales and order forecasts both upstream and downstream, and allowing collaboration on future requirements and planning.
True
False