Final Flashcards
1
Q
What is a plan for labor and production for the intermediate term with the objective to minimize the cost of resources needed to meet demand?
A
Aggregate operations plan
p. 246
2
Q
Which is not a benefit of sales and operations planning?
Better customer service
Lower inventory
Shorter customer lead times
Stabilized production rates
Gives top management a handle on the business
A
All are benefits
p. 246
3
Q
The process of sales and operations planning consists of
A
a series of meetings, finishing with a high-level meeting where key intermediate-term decisions are made
8.6
4
Q
T/F Sales and operations planning must occur at an aggregate level and also at the detailed individual product level
A
True
8.6
5
Q
Aggregation on the supply side is done by ___, and on the demand side it is done by ___
A
product families
groups of customers
8.9
6
Q
Sales and operations planning was coined by companies to refer to aggregate planning
The new terminology is meant to
A
capture the importance of cross-functional work
8.9
7
Q
Single version of the truth:
Formal process translating the one version of truth into actual supply plans:
Provide a forum for cross functional unit discussion:
A
Demand
Supply
Capabilities
8.18
8
Q
In general, the external environment is (inside/outside) the production planner’s direct control?
A
outside
8.19
9
Q
Complementary products work for firms facing ___demand fluctuations
A
cyclical
8.19
10
Q
With services, cycles are more often measured in ___ than ___
A
hours
months
8.19
11
Q
Production Planning Strategies: The following describes…
Match the production rate by hiring and laying off employees
Must have a pool of easily trained applicants to draw on
A
Chase strategy
8.20
12
Q
Production Planning Strategies: The following describes…
Vary the number of hours worked through flexible work schedules or overtime
A
Stable workforce—variable work hours
8.20
13
Q
Production Planning Strategies: The following describes…
Demand changes are absorbed by fluctuating inventory levels, order backlogs, and lost sales
A
Level strategy
8.20
14
Q
the process of allocating the right type of capacity to the right type of customer at the right price and time to maximize revenue or yield
A
yield management
8.25
15
Q
yield management has existed as long as there has been (limited/unlimited) capacity for serving customers
A
limited
8.25
16
Q
Which is false? Yield Management Most Effective When… Demand can be segmented by customer Fixed costs are high and variable costs are low Inventory is perishable Product can be sold in advance Demand is highly variable
A
All are true
8.28
17
Q
Elicit- Dark Trade:
What is a micro driver behind elicit trade?
A
Survival
18
Q
From an operational perspective, yield management is most effective under which of the following circumstances?
Demand cannot be segmented by customer
Inventory is perishable
Fixed costs are low and variable costs are high
The customer is a “captive” of the system
A
Inventory is perishable
q8
19
Q
Regarding production planning strategies, a “pure strategy” is more widely applied in industry than a “mixed strategy.”
True
False
A
F
q8
20
Q
In conducting aggregate operations planning there are a number of required inputs. Which of the following pairs are both considered inputs external to the firm?
Inventory levels and market demand
Raw material availability and competitor’s behavior
Current workforce and economic conditions
Current physical capacity and market demand
A
Raw material availability and competitor’s behavior
q8
21
Q
Matching the production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following pure production planning strategies? Stable workforce, variable work hours Chase Level Meeting demand
A
Chase
q8
22
Q
Which of the following is a production planning strategy presented in the textbook? Level Strategic Balanced Synchronous
A
level
q8
23
Q
The main purpose of aggregate operations planning is to specify the optimal combination of which of the following?
Workforce levels and inventory on hand
The strategic plan and the products available for sale
Operational costs and the cash flow to support operations
Inventory on hand and financing the costs for that inventory
A
Workforce levels and inventory on hand
q8
24
Q
From an operational perspective, yield management is least effective under which of the following circumstances?
Demand can be segmented by the customer
The product can be sold in advance
The product can be kept to be sold when demand is stronger
Fixed costs are high and variable costs are low
A
The product can be kept to be sold when demand is stronger
q8
25
```
Maintaining a stable workforce working at a constant output rate while shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs and allowing lost sales is which of the following production planning strategies?
Stable workforce, variable work hours
Chase
Level
Full employment
```
level
| q8
26
```
Which of the following costs are relevant to aggregate operations planning?
Sunk costs
Transaction costs
Backordering costs
Legal costs
```
backordering costs
| q8
27
In conducting aggregate operations planning there are a number of required inputs. Which of the following pairs are both considered inputs internal to the firm?
Inventory levels and economic conditions
Market demand and subcontractor capacity
Current physical capacity and current workforce
Competitor behavior and current workforce
Current physical capacity and current workforce
| q8
28
Ch. 9
Material Requirements Planning
29
ERP -
| MRP-
a computer system that integrates application programs in accounting, sales, manufacturing, and the other functions in a firm
a means for determining the number of parts, components, and materials needed to produce a product
9.15
30
Dependent demand is drives the (ERP/MRP) system?
MRP
| 9.19
31
ERP or MRP?
The logic that ties production functions together from a material planning and control view.
A logical, easily understood approach to the problem of managing the parts, components, and materials needed to produce end items
MRP
| 9.19
32
The ___ deals with end items and is a major input to the MRP process
master schedule
| 9.20
33
The ___ provides the general range of operation, the ___ must specify exactly what is to be produced
aggregate plan
master scheduler
9.20
34
To determine an acceptable feasible schedule to be released to the shop, trial master production schedules are tested using the (ERP/MRP) program
MRP
| 9.20
35
What is: contains the complete product description, listing the materials, parts, and components along with the sequence in which the product is created
One of the three main inputs to the MRP program
Often called the product structure file or product tree because it shows how a product is put together
BOM: Bill of Materials
| 9.25
36
What is: the part quantities issued in the planned order receipt and planned order release sections of an MRP schedule
lot sizes
| 9.29
37
What do these stand for?
(L4L)
(LTC)
(LUC)
Lot-for-lot
Least total cost
Least unit cost
9.29
38
This describes which kind of lot sizing in MRP systems?
Sets planned orders to exactly match the net requirements
Produces exactly what is needed each week with none carried over into future periods
Minimizes carrying cost
Does not take into account setup costs or capacity limitations.
Lot for lot L4L
| 9.30
39
This describes which kind of lot sizing in MRP systems?
a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup costs for various lot sizes and then selects the lot in which these are most nearly equal
Influenced by the length of the planning horizon
Least total cost method (LTC)
| 9.32
40
This describes which kind of lot sizing in MRP systems?
a dynamic lot-sizing technique that adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost
Least unit cost method (LUC)
| 9.32
41
What is the difference between ERP and MRP?
ERP is everything
| MRP is just the materials
42
What drives the MRP system?
dependent demand
| 9.19
43
A parent item is
| A child item is
the end product
| what makes up the end product
44
Why are time fences an important input in the calculation of when production should occur?
Because time fences tell when production is frozen, slushy, or liquid.
p. 277
45
Important: Which are not keys to Master Scheduling:
Include all demands from product sales, warehouse replenishment, spares, response to breakage, and inter-plant requirements
Never lose sight of the aggregate plan
Be involved with customer promising
Be visible at all levels of management
Objectively trade off manufacturing, marketing, and engineering conflicts
Identify and communicate problems
All are keys
| 9.23
46
Why are time fences an important input in the calculation of when production should occur?
They tell you when the system is frozen, slushy, or liquid
| p. 277
47
```
Which of the following industry types have high expected benefits form the application of MRP?
Fabricate-to-stock
Fabricate-to-order
Assemble-to-stock
Continuous process
```
Assemble-to-stock
| q9
48
```
Which of the following is an input to the master production schedule (MPS)?
Inventory records file
The aggregate plan
The exception report
The bill of materials
```
The aggregate plan
q9
p. 279
49
Which of the following is one of the main purposes of a MRP system?
Educate personnel in basic work rules
Determine the amount of materials needed to produce each end item
Stimulate the work force
Decrease labor requirements
Determine the amount of materials needed to produce each end item
q9
50
```
Which of the following can be used for lot sizing in an MRP system?
Low-level coding
Time bucket size
Least unit cost
Inventory record file
```
Least unit cost
| q9
51
```
Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we would expect which of the following?
A consistent lag of supply behind demand
Minimized carrying costs
Minimized set-up costs
Minimized quality problems
```
Minimized carrying costs
| q9
52
```
Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal?
Economic order quantity
Lot for lot
Least total cost
Least unit cost
```
Least total cost
| q9
53
```
Which of the following is not a lot sizing technique used in MRP systems?
Lot-for-lot (L4L)
Economic order quantity
Least total cost (LTC)
Warehouse loading factor (WLF)
```
Warehouse loading factor (WLF)
| q9
54
```
Which of the following industry types will not benefit greatly from the application of MRP?
Fabricate-to-order
Assemble-to-stock
Assemble-to-order
Manufacture-to-order
```
Fabricate-to-order
q9
p. 276
55
Ch. 10
Quality Management &
| Six-Sigma
56
What is: managing the entire organization so that it excels on all dimensions of products and services that are important to the customer
Total Quality Management (TQM)
| 10.6
57
What are theTwo fundamental operational goals of TQM?
Careful design of the product or service
Ensuring that the organization’s systems can consistently produce the design
10.6
58
What is: A philosophy and set of methods companies use to eliminate defects in their products and processes
Six Sigma Quality
| 10.10
59
Six Sigma Seeks to reduce ___ in the processes that lead to product defects
variation
| 10.10
60
Which are part of DMAIC Methodology?
Define: identify customers and their priorities
Measure: determine how to measure the process and how it is performing
Analysis: determine the most likely causes of defects
Improve: identify means to remove the causes of defects
Control: determine how to maintain the improvements
All are part.
| 10.13
61
What are your 2 favorite of Deming's 14 points, why?
Institute learning on the job
Drive out fear, work effectively
10.29
62
What is: inherent value of the product in the marketplace
Design quality
| 10.31
63
What are the elements of design quality? (5)
```
SAPRF
Performance
Features
Reliability/durability
Serviceability
Aesthetics
10.31
```
64
What are the costs of quality?
Appraisal costs: costs of the inspection and testing to ensure that the product or process is acceptable
Prevention costs: Sum of all the costs to prevent defects (employee training, re-design product)
Internal failure costs: costs for defects incurred within the system (scrap, re-work, repair)
External failure costs: costs for defects that pass through the system (customer warranty replacements, loss of goodwill, handling complaints)
10.34
65
High quality means
low defects
66
```
Which of the following is a dimension of design quality?
Aesthetics
Price
Quality at the source
Distribution
```
Aesthetics
| q10
67
Which of the following are basic assumptions that justify an analysis of the costs of quality?
Prevention is more expensive
Failures are caused
Performance can be learned
Appraisal costs are less than prevention costs
Failures are caused
| q10
68
```
A cost of quality classification is which of the following?
Material costs
Prevention costs
Variable overhead
Direct labor
```
Prevention costs
| q10
69
```
Which of the following is the cost of quality classification for costs such as scrap, rework, or repair?
Appraisal costs
Prevention costs
External failure costs
Internal failure costs
```
Internal failure costs
| q10
70
```
Which of the following is the cost of quality classification for costs such as inspection, testing, and other tasks to ensure that the product or process is acceptable?
Appraisal costs
External failure costs
Internal failure costs
Checking costs
```
Appraisal costs
| q10
71
Quality control charts usually have a central line and upper and lower control limit lines. Which of the following is not a reason that the process being monitored with the chart should be investigated?
A large number of plots are close to the upper or lower control lines
Erratic behavior of the plots
A single plot falls above or below the control limits
A change in raw materials or operators
A change in raw materials or operators
| q10
72
Quality control charts usually have a central line and upper and lower control limit lines. Which of the following are reasons that the process being monitored with the chart should be investigated?
A single plot falls above or below the control limits
Normal behavior
A large number of plots are on or near the central line
No real trend in any direction
A single plot falls above or below the control limits
| q10
73
```
If there are 120 total defects from 10 samples, each sample consisting of 10 individual items in a production process, which of the following is the fraction defective that can be used in a "p" chart for quality control purposes?
120
10
8
1.2
```
1.2
| q10
74
```
If there are 400 total defects from 8 samples, each sample consisting of 20 individual items in a production process, which of the following is the fraction defective that can be used in a "p" chart for quality control purposes?
400
160
2.5
1.0
```
2.5
| q10
75
You have just used the capability index (Cpk) formulas to compute the two values "min [1, 1]." Which of the following is the proper interpretation of these numbers?
The true capability index value is exactly 1
The mean of the production process has shifted to the left of the design limits
The mean of the production process has shifted to the right of the design limits
The mean has not shifted at all
The mean has not shifted at all
| q10
76
What is: the stock of any item or resource used in an organization and can include: raw materials, finished products, component parts, supplies, and work-in-process
The definition of inventory
| 11.15
77
What is: the set of policies and controls that monitor levels of inventory and determines what levels should be maintained, when stock should be replenished, and how large orders should be
The definition of an inventory system
| 11.15
78
The 5 purposes of inventory are:
To maintain independence of operations
To meet variation in product demand
To allow flexibility in production scheduling
To provide a safeguard for variation in raw material delivery time
To take advantage of economic purchase-order size
11.16
79
What are the costs of inventory?
Holding (or carrying) costs- Costs for storage, handling, insurance, and so on
Setup (or production change) costs- Costs for arranging specific equipment setups, and so on
Ordering costs- Costs of placing an order
Shortage costs- Costs of running out
11.27
p.358
80
What is an example of a single period inventory model?
Newspapers in a hotel lobby
81
a fixed time period inventory model would be good for ___
| while a fixed order quantity inventory model would be good for ___
toilet paper
| rolex watches
82
```
When calculating EOQ & reorder,
D=
d=
S=
H=
L=
C=
```
```
annual demand
average daily demand (D/365)
ordering cost
holding cost
lead time
cost per unit
p. 368
```
83
```
Which of the following is not one of the categories of manufacturing inventory?
Raw Materials
Finished products
Component parts
Just-in-time
```
Just-in-time
| q11
84
```
Which of the following is a perpetual system for inventory management?
Fixed-time period
Fixed-order quantity
P Model
FIFO (First-in First-out)
```
Fixed-order quantity
| q11
85
```
Which of the following is a fixed-time period inventory model?
The EOQ model
The least cost method
The Q Model
Period system model
```
Period system model
| q11
86
Using the ABC classification system for inventory, which of the following is a true statement?
The "C" items are of moderate dollar volume
You should allocate about 50% of the dollar volume to "B" items
The "A" items are of low dollar volume
The "A" items are of high dollar volume
The "A" items are of high dollar volume
| q11
87
```
In making any decision that affects inventory size, which of the following costs do not need to be considered?
Holding costs
Setup costs
Ordering costs
Fixed costs
```
Fixed costs
| q11
88
```
When developing inventory cost models, which of the following are not included as costs to place an order?
Phone calls
Taxes
Clerical
Postage
```
Taxes
| q11
89
```
Which of the following are fixed-order quantity inventory models?
Economic order quantity model
The ABC Model
Periodic replenishment model
Cycle counting model
```
Economic order quantity model
| q11
90
```
Which of the following is not included as an inventory holding cost?
Annualized costs of materials
Handling
Insurance
Pilferage
```
Annualized costs of materials
| q11
91
```
The Pareto principle is best applied to which of the following inventory systems?
EOQ
Fixed-time period
ABC classification
Fixed-order quantity
```
ABC classification
| Q11
92
```
Firms keep supplies of inventory for which of the following reasons?
To maintain dependence of operations
To meet variation in product demand
To hedge against wage increased
In case the supplier changes the design
```
To meet variation in product demand
| q11
93
ABC inventory is captured in a(n) ___ system
ERP
94
Ch. 12
Lean Production
95
Toyota Production System
The 7 Elimination of Waste
and
The 5 Respect for People
```
TIMPOWD
Transportation waste
Inventory waste
Waste of motion
Processing waste
Waste from overproduction
Waste of waiting time
Waste from product defects
```
and
BVLLC
Bonuses
View workers as assets
Lifetime employment for permanent positions
Maintain level payrolls even when business conditions deteriorate
Company unions
96
What is: The value-adding and non-value-adding activities required to design, order, and provide a product or service
Value stream
| 12.11
97
What is: The optimization of the value-adding activities and the elimination of non-value-adding activities
Waste reduction
| 12.11
98
What are the 6 Lean Focused Supply Chain Components?
```
Lean:
SLMPWC
Suppliers
Logistics
Manufacturing
Procurement
Warehousing
Customers
p. 405-406
```
99
What is a Kanban?
A signaling divice used to control production p. 414
Kanban means “sign” or “instruction card” in Japanese
Cards or containers are used
Make up the Kanban pull system
12.23
100
What is: do it right the first time and if something goes wrong, stop the process immediately
Workers become their own inspectors
Workers are empowered to do their own maintenance
Quality at the source
| 12.24
101
What is: integrated activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods)
Lean production
| 12.9
102
```
Which of the following address elimination of waste under lean production?
Info-matic warehouse networks
Outsourced housekeeping
Quality at the source
Backflush
```
Quality at the source
| q12
103
```
In designing a lean production facility layout a designer should do which of the following?
Design for work flow balance
Locate flexible workstations off line
Link operations through a push system
Balance capacity using job shop analysis
```
Design for work flow balance
| q12
104
To develop a lean manufacturing system a firm might do which of the following?
Eliminate anything that does not add value for the customer
Standardize product configurations
Process design with product design
Implement top-down management controls
Eliminate anything that does not add value for the customer
| q12
105
To implement a flow process in developing a lean system a firm might do which of the following?
Improve a capacity utilization
Build a product in anticipation of demand
Reduce setup/changeover time
Eliminate some fixed costs
Reduce setup/changeover time
| q12
106
```
In the textbook Toyota's Fujio Cho identified which of the following types of waste to be eliminated?
Excess quality
Overproduction
Underproduction
Environmental
```
Overproduction
| q12
107
```
Which of the following are related to lean production?
A philosophy of waste elimination
Full use of capacity
Never running out of inventory
The Wahei-Subaru method
```
A philosophy of waste elimination
| q12
108
```
When implementing a lean production system a stabilized schedule is achieved using which of the following?
Level scheduling
Demand pull
Bottom-round management
Freeze window
```
Level scheduling
| q12
109
Group technology (GT) is credited with which of the following benefits?
Reducting waiting time between process operations
Improving inventory discipline
Reducing required workforce skilss
Improved labor relations
Reducting waiting time between process operations
| q12
110
```
In implementing a lean production system you should work with suppliers to do which of the following?
Open facilities near your factory
Focus workstation capacities
Provide quality at the source
Reduce lead times
```
Reduce lead times
| q12
111
In a lean production system we expect to see which of the following?
No extra inventory
Extra inventory of critical parts held "just-in-case"
More parts and fewer standardized product configurations
Closer management-labor relationships
No extra inventory
| q12
112
Chapter 13
Global Sourcing and Procurement
113
What is: the development and management of supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of the business.
Strategic sourcing
| 13.6
114
What are the 3 Ps of innovation?
Price
Product
Process
115
What are your two objectives in Strategic Sourcing?
Create value
| Claim value
116
What is: phenomenon of variability magnification as we move from the customer to the producer in the supply chain
The bullwhip effect
| 13.21
117
What is: an estimate of the cost of an item that includes all the costs related to the procurement , use, and disposal of an item.
Total cost of ownership (TCO)
| 13.22
118
```
If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is inventory turnover?
60
10.4
2
.5
```
.5
| q13
119
When considering outsourcing, what should firms be sure to avoid?
Losing control of non-core activities which don't distiguish the firm
Giving the outsourcing partner opportunities to become a strong competitor
Allowing employees transferred to the outsourcing partner to rejoin the firm
Adverse corporate tax implications of asset transfers to the outsourcing partner
Giving the outsourcing partner opportunities to become a strong competitor
q13
120
```
In outsourcing which of the following internal activities and decision responsibilities cannot be transferred to outside contractors?
Activities involving people
Activities involving facilities
Activities involving technology
Activities involving shareholders
```
Activities involving shareholders
| q13
121
Which of the following is an improvement-driven reason for outsourcing?
Shorten cycle time
Improve effectiveness by focusing on what the firm does best
Increase product and service value by improving response to customer needs
Reduce costs through a lower cost structure
Shorten cycle time
| q13
122
```
Which of the following of Fisher's product categories includes fashionable clothing, personal computers and other products that typically have a very brief life cycle?
Functional products
Dysfunctional products
Innovative products
Bullwhip products
```
Innovative products
| q13
123
The inventory turnover ratio used in measuring supply-chain efficiency is found by the ratio of which of the following?
Fixed costs/Variable costs
COGS/Average aggregate inventory value
Sales costs/Marketing Costs
COGS/(Ending Invetory - Beginning Inventory)
COGS/Average aggregate inventory value
| q13
124
```
In Hau Lee's uncertainty framework to classify supply chains, a supply chain for functional products with an evolving supply process is called which of the following?
Efficient
Forward looking
Agile
Risk hedging
```
Risk hedging
| q13
125
Which of the following is an organizationally-driven reason for outsourcing?
Improve effectiveness by focusing on what the firm does best
Improve risk management
Improve credibility and image by associating with superior providers
Reduce costs through lowered cost structure and increased flexibility
Improve effectiveness by focusing on what the firm does best
| q13
126
```
The effect of the lack of synchronization among supply-chain members is referred to as which of the following?
Forward buying
Continuous replenishment
Bullwhip effect
Metcalf's Law
```
Bullwhip effect
| q13
127
```
If the average aggregate inventory value is $45,000 and the cost of goods sold is $10,000, which of the following is weeks of supply?
45,000
234
120
23.4
```
234
| q13
128
Ch. 14
Location, Logistics, and Distribution
129
What is: the art and science of obtaining, producing, and distributing material and product in the proper place and in proper quantities
Logistics
| 14.6
130
What are the 8 rights of logistics?
```
PCPCTQCD
Right product
Right customer
Right place
Right condition
Right time
Right quantity
Right cost
Right documentation
14.6
```
131
```
What are the pros/cons of each?
Truck:
Ship:
Plane:
Train:
Pipeline:
Hand delivery:
```
truck- great flexibility
ship- high capacity and low cost but slow
plane- fast but expensive
train- low cost but slow and variable
pipeline- highly specialized and limited to liquids, gases, and solids in slurry form
hand delivery- last step in many supply chains
14.7
132
What is: large shipments are broken down into small shipments for local delivery in an area
Cross-docking
| 14.9
133
What is: the sole purpose of the warehouse (the hub) is sorting goods to consolidation areas, where each area is designed for shipment to a specific location
Hub and Spokes System
| 14.9
134
What are the 3 plant location methods?
Factor-rating system
Transportation method of linear programming
Centroid method
14.18
135
```
What transportation mode has very high initial investment costs but gives a very low cost per mile for products that are highly specialized and require no packaging?
Highway
Rail
Air
Pipeline
```
Pipeline
| q14
136
```
Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?
Proximity to customers
Infrastructure of a country
Historical cost
Quality of labor
```
Historical cost
| q14
137
One of the objectives in facility location analysis is to select a site with the lowest total cost. Which of the following costs are hidden costs that should be included in the analysis?
Construction costs
Infrastructure costs
Taxes
Movement of preproduction material between locations
Movement of preproduction material between locations
| q14
138
```
One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should be excluded from the analysis?
Historical costs
Inbound distribution costs
Land
Construction
```
Historical costs
| q14
139
```
Very few products are moved without at least part of their journey being by which mode of transportation?
Highway
Rail
Air
Pipeline
```
Highway
| q14
140
```
Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?
Government barriers
Trading blocs
Environmental regulation
Immigration rules
```
Immigration rules
| q14
141
An example of a trading bloc is which of the following?
Free trade zones
ISO-9000 certified companies
Central American Free Trade Agreement countries
Walmart and its suppliers
Central American Free Trade Agreement countries
| q14
142
```
One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should not be included in the analysis?
Outbound distribution costs
Incidental costs
Energy Costs
Taxes
```
Incidental costs
| q14
143
An important issue in facility location analysis is business climate. An unfavorable business climate could be indicated by which of the following?
Similar-sized businesses nearby
The willingness of local politicians to provide favorable treatment for a consideration
The presence of other foreign companies in the case of international locations
The local presence of companies in the same industry
The willingness of local politicians to provide favorable treatment for a consideration
q14
144
```
One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following are hidden costs that should be included in the analysis?
Becoming less responsive to the customer
Supplier costs
Taxes
Construction costs
```
Becoming less responsive to the customer
| q14
145
```
Exhibit 8.2
Which of the following are the required External inputs to the production planning system?
Competitors behavior
Raw material availability
Market demand
Economic conditions
External capacity
```
```
All.
Competitors behavior
Raw material availability
Market demand
Economic conditions
External capacity
p. 250
```
146
What are the 3 main inputs to the MRP system?
BOM
Master schedule
Inventory records file
P. 280
147
Why outsource? (3)
```
Financially driven reasons
Improvement driven reasons
Organizationally driven reasons
OR
Focus on your expertise
Optimize an area of weakness
Focus on key strategies
```
148
The Sourcing/ Purchasing Design Matrix:
| Is request for proposal and strategic alliance high or low transaction costs?
High
| p. 435
149
The Sourcing/ Purchasing Design Matrix:
| Is spot perchance and vendor managed inventory high or low transaction costs?
Low
| p. 435
150
What are the 3 lean concepts?
Group technology- similar parts are grouped into families
Quality at the source
JIT Production
p. 411
151
What are the 14 issues in facility location?
```
Proximity to customers
Business Climate
Total Costs
Infrastructure
Quality of Labor
Suppliers
Other Facilities
Free Trade Zones
Political Risk
Government Barriers
Trading Blocs
Environmental Regulation
Host Community
Competitive Advantage
p. 464
```
152
Which is more common?
| New service facilities or new factories & warehouses
New service facilities
| p. 471
153
How long is short range planning?
a day to 6 months
| p. 248
154
How long is intermediate range planning?
3 - 18 months
| p. 248
155
How long is long range planning?
1 year or more
| p. 248
156
What are the 4 relevant costs to Production Planning Strategies?
```
Basic production costs
Costs associated with changes in the production rate
Inventory holding costs
Backordering costs
p. 251
```
157
What are the 4 main issues with yield management?
```
Justification in different prices
Handling variability
Managing the service process
Training workers and managers (most critical issue)
p. 262
```
158
```
Exhibit 8.2
Which of the following are the required Internal inputs to the production planning system?
Current physical capacity
Current workforce
Inventory levels
Activities required for production
```
```
All.
Current physical capacity
Current workforce
Inventory levels
Activities required for production
p. 250
```
