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Flashcards in Chapter 11 Deck (45):
1

The proper sequence for capacity planning is:

1. Forecast sales for each product line
2. Forecast sales for individual products
3. Calculate labor and equipment requirements to meet product line forecasts.
4. Project labor and equipment availabilities over the planning horizon.

2

As developed in our book, which of the following costs is not a "class of costs" that is considered in locating a facility?

Raw material or supply cost.

3

Which of the following methods for selecting a new location utilizes statistical analysis?

Regression.

4

Flexible workers:

have a broad range of skills.

5

Which of the following is NOT a strategy for adding capacity:

positive

6

The best operating level is:

the level of capacity for which average unit cost is minimized

7

In recent years many large, inefficient American steel mills have closed down largely due to competition from smaller, more efficient Japanese mills. The American mills are experiencing:

Diseconomies of scale

8

Selecting a manufacturing facility close to raw material supplies would be appropriate for products that:

decrease in weight and volume during the manufacturing process.

9

Agile manufacturing has to do with:

The ability to react to changes in the marketplace.

10

The capacity to deliver what the customer wants within a lead time shorter than the competitors is referred to as:

Capacity flexibility

11

Which of the following regarding facility decisions is TRUE?

Front-of-the-house service facilities typically require larger capital investment compared to back-of-the-house service facilities.

12

Barnum and Bailey Circus is cited as suggesting which of the following capacity-related concepts?

Flexible plants.

13

Japanese bank in California are cited as an example of:

Subcontracting.

14

The most appropriate or important goal for selecting a facility location for a service with direst customer contact is typically to seek

Maximum revenue generation

15

Which of the following methods for selecting a new location focuses on minimizing distribution costs?

Center of gravity method.

16

According to the authors, excessive capacity may result in:

Price reductions, work force underutilization, and additional product offerings.

17

Long range capacity planning should be the responsibility of:

top management.

18

Which of the following methods for selecting a new location is capable of incorporating qualitative factors?

factor-rating system.

19

Capacity balance can be obtained by:

Buffer inventories, decoupling through backup equipment, and adding capacity to bottleneck stages.

20

A firm with flexibility capacity is quicker to:

have a shorter lead time than the competition.

21

In a perfectly balanced plant, stage 3 provides the exact requirements for:

Stage 4

22

A GIS is all of the following:

a graphical display of some geographic area, a bird's eye view, a regional map, and provides a variety of demographic data.

23

Supply chain management:

The coordination of all supply chain activities involved in enhancing customer value.

24

Make-or-buy decision:

A choice between producing a component or service in-house or purchasing it from an outside source.

25

Outsourcing:

Transferring a firm's activities that have traditionally been internal to external suppliers.

26

Virtual companies:

companies that rely on a variety of supplier relationships to provide services on demand. also known as hollow corporations or network companies.

27

vertical integration:

developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor

28

Keiretsu:

A Japanese term that describes suppliers who become part of a company coalition.

29

Cross-sourcing:

Using one supplier for a component and a second supplier for another component, where each supplier acts as a backup for the other.

30

Bullwhip effect:

the increasing fluctuation in orders that often occurs as orders move through the supply chain.

31

Pull data:

accurate sales data that initiate transactions to "pull" product through the supply chain.

32

Single-stage control of replenishment:

Fixing responsibility for monitoring and managing inventory for the retailer.

33

Vendor-managed inventory (VMI):

A system in which a supplier maintains material for the buyer, often delivering directly to the buyer's using department.

34

Collaborative planning, forecasting, and replenishment (CPFR):

A system in which members of a supply chain share information in a joint effort to reduce supply chain costs.

35

Blanket order:

a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship

36

Postponement:

Delaying any modifications or customization to a product as long as possible in the production process.

37

Drop shipping:

Shipping directly from the supplier to the end consumer rather than from the seller, saving both time and reshipping costs.

38

E-procurement:

Purchasing facilitated through the Internet.

39

Logistics management:

An approach that seeks efficiency of operations through the integration of all material acquisition, movement, and storage activities.

40

Channel assembly:

Postpones final assembly of a product so the distribution channel can assemble it.

41

Reverse logistics:

The process of sending returned products back up the supply chain for value recovery or disposal.

42

Closed-loop supply chain:

A supply chain designed to optimize both forward and reverse flows.

43

Inventory turnover:

Cost of goods sold divided by average inventory.

44

Supply Chain operations reference (SCOR) model:

a set of processes, metrics, and best practices developed by the supply chain council.

45

All of the following are part of capacity flexibility:

Zero changeover time plant
Flexible manufacturing system
Multi-skill workforce
Subcontracting