MGT 4330 Test 4 | Questions with Verified Answers

MGT 4330 Test 4 | Questions with Verified Answers Is the management of transportation activities and the flow of materials within a supply chain to ensure adequate customer service at reasonable cost. Logistics Is a framework for understanding the scope of supply chain management (SCM) that is based on five basic functions involved in managing a supply chain: plan, source, make, deliver, and return supply chain operations reference Is the process of coordinating the physical flow of materials to ensure that the right parts are available at various stages of the supply chain, such as manufacturing and assembly plants. supply chain integration As the process of managing information, physical goods, and services to ensure their availability at the right place, at the right time, at the right cost, at the right quantity, and with the highest attention to quality. value chain integration Inventory turnover = COGS / avg inventory In your company, the inventory holding period is 46 days, the average collection period is 35 days, and the average accounts payable payment period is 31 days. What is the cash to cash conversion cycle in days based on this information? 46 days 81 days 50 days 102 days What is one tactic to mitigate the risk involved with capacity risks? Change order quantities Schedule overtime. Extra local warehouse space Carry extra capacity A(n) _________ is any entity—real or virtual—that coordinates and shares information between buyers and sellers. intermediary manufacturer investor franchisor Managing supplier relationships involves: having short term relationships with suppliers that are solely based on price. an adversarial approach to the supplier. establishing trust, openness, and honesty with the supplier single sourcing suppliers. Bragg Johnson, materials manager at Johnson & Sons, has determined that a certain product experienced 3.4 turns last year, with an annual sales volume (at cost) of $972,000. What was the average inventory value for this product last year? Round your answer to the nearest dollar. $255,882 $ 285,882 $288,882 $285,282 Which statement is true of order amplification? Order amplification decreases as one moves back up the supply chain away from the retail customer. Order amplification in the supply chain leads to the bullwhip effect. Increasing price fluctuations can help manage order amplification. Large order sizes can help manage order amplification. If an online retail store has cost of goods sold equal to $2 million, has 200 operating days in a year, and has a total average on-hand inventory of $500,000, the cost of goods sold per day is: $7,500. $2,500. $10,000. $15,000. What is one tactic to mitigate the risk involved with inventory risks? Increase lead times Reduce lead times Have multiple suppliers Schedule overtime What is one tactic to mitigate the risk involved with product risks? Cooperative plans to share resources Better strategic planning and demand forecasting capability Hedging inventory Global legal team to defend infringement ________ inventory is inventory that has been ordered but is in transit. Buffer Pipeline Anticipation Decoupling In the context of measuring supply chain performance, the goal of sustainability measures is to: have a carbon-neutral supply chain. reduce the order cycle time for all customers. minimize the time taken to fill a customer's order. have a byproduct-free production process. What is a disadvantage of vendor-managed inventory (VMI)? VMI prohibits the use of customer information, which leads to poor control of inventory and capacity. VMI often results in higher customer inventories than necessary. VMI prevents vendors from making production decisions using downstream customer demand data. VMI does not allow vendors to view inventory needs from the customer's perspective. As an operations management consultant, you have been asked to evaluate a furniture manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $22.9 million, cost of goods sold of $19.7 million, 32 operating weeks a year, total average on hand inventory of $2,150,000, accounts receivable equal to $2,445,000, and accounts payable of $3,755,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediate calculations. Round your answer to one decimal place. 17.7 1.7 4.7 11.7 Logistics involves what primary responsibilities? Awarding contracts for supplies, managing the transportation of goods through the supply chain Procurement of raw materials, requesting bids, moving goods from the plant to the distributor. Buying transportation services, managing the transportation of goods through the supply chain, managing inventory Using third parties to transport goods, selecting vendors, selecting modes of transportation. What is one tactic to mitigate the risk involved with global economic risks? Cooperative plans to share resources Virtual versus direct sales channel mix Hedging inventory Global legal team to defend infringement Which statement is true of purchasing? The delivery of goods and services is the responsibility of the purchasing function of a supply chain. Purchasing can have a significant impact on total supply chain costs. The principal goal of purchasing is to source products from a single supplier to avoid capacity risks. Purchasing is critical to satisfy employees' needs and expectations. Which statement best defines inventory turnover? Inventory turnover is a measure of how quickly goods are moving through the supply chain. Inventory turnover is the cost associated with repairs of goods that have been returned. Inventory turnover is a measure of the number of perfect orders. Inventory turnover is the time taken to fill a customer's order. Managing orders, transportation, and distribution to provide goods and services is part of the ________ function of the Supply Chain Operations Reference (SCOR) model. make plan deliver source In the context of the metrics used to identify improvements to the operation of supply chains, financial measures: calculate order fulfillment lead time in supply chains. include perfect order fulfillment and perfect delivery fulfillment. show how quickly goods move through supply chains. show how supply chain performance affects the bottom line. ProShopper, a sportswear store, held an average sportswear inventory of $10 million last year and reported an inventory turnover of 5 times per year. What was its cost of goods sold? $10 million $20 million $40 million $50 million TekSupply, Inc., an automobile parts supplier, held an average automobile parts inventory of $4 million last year. Its cost of goods sold was $25 million. Therefore, the automobile parts experienced an inventory turnover of ________ turns last year. 2.5 4.25 6.25 9.5 __________ specialize in handling all aspects of customers giving back a manufactured good or delivered service and requesting their money back, repairing the manufactured good and giving it to the customer, and/or invoking the service guarantee. Demand forecasters Certified suppliers Return facilitators Process designers refers to systematic policies, methods, and procedures used to ensure that goods and services are produced with appropriate levels of quality to meet the needs of customers quality management Introduced statistical quality control techniques to the Japanese to aid them in their rebuilding efforts. Who? 2 people Juron and Deming is meeting or exceeding customers' expectations. Quality is the extent to which a process is able to deliver output that conforms to the design specifications. quality of conformance SERVQUAL ___________, reliability, responsiveness, _________, and empathy TEARR tangibles, assurance The principles of total quality are simple: A focus on __________ and stakeholders. A process focus supported by continuous improvement and learning. __________ and teamwork by everyone in the organization. customers, participation is composed of four stages: plan, do, study, and act (PDSA) the deming cycle is a business improvement approach that seeks to find and eliminate causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers, resulting in a clear financial return for the organization. six sigma (3.4 defects per million) defects per unit = # of defects / # of units produced defects per million opportunities (DPMO) = (# of defects / opportunities for error) x 1,000,000 DMAIC define, measure, analyze, improve, control focuses on small, gradual, and frequent improvements over the long term, with minimum financial investment and with participation by everyone in the organization. Kaizen is an intense and rapid improvement process in which a team or a department throws all its resources into an improvement project over a short time period, as opposed to traditional kaizen applications, which are performed on a part-time basis. kaizen event is an approach for mistake-proofing processes, using automatic devices or methods to avoid simple human error. poka yoke In General Electric's Six Sigma problem-solving approach (DMAIC), the ________ phase involves determining the most likely causes of defects. control analyze measure define ________ in the GAP model is the discrepancy between actual manufacturing and service-delivery system performance and external communications to the customers. Gap 1 Gap 2 Gap 3 Gap 4 (Gap 4 in the GAP model is the discrepancy between actual manufacturing and service-delivery system performance and external communications to the customers. The customer should not be promised a certain type and level of quality unless the delivery system can achieve or exceed that level.) Which statement is true of SERVQUAL? Empathy is the ability to provide what was promised, dependably and accurately. SERVQUAL uses 15 dimensions of service quality performance. SERVQUAL is designed to apply to all service industries. Quality is simply ensuring that goods and services consistently conform to specifications. ________ costs are costs incurred as a result of unsatisfactory quality that is found before the delivery of a good or service to the customer. External failure Internal failure Appraisal Prevention _________ are targets and tolerances determined by designers of goods and services. Costs of quality Units of work Specifications Defects Moving from a five-sigma to a six-sigma level will improve the quality by? 10-fold 70-fold 4-fold 2-fold The managers at Blyrie Corp. think that their company's products are of higher quality than the products of other companies in the market. However, contrary to their perception, the customers rate the company's products as below average. This is due to the inferior process design specifications in the company. This is an example of ________ in the GAP model. Gap 2 Gap 3 Gap 4 Gap 5 (This is an example of Gap 2 in the GAP model. Gap 2 in the GAP model is the discrepancy between management's perceptions of what features constitute a target level of quality and the task of translating these perceptions into executable specifications. This represents a mismatch between management perceptions of what constitutes good performance and the actual job and process design specifications.) What is a core philosophy of Six Sigma? Increasing variation in cash flow Avoiding errors per million opportunities as a standard metric Increasing non-value-added activities Achieving cycle time reduction Classify this cost element into the appropriate cost of quality category: Printing plate revisions prevention external appraisal internal Which of the following statements is true of Gap 3 in the GAP model? It recognizes that manufacturing and service delivery systems must execute quality specifications well. It can be minimized by advertising. It is where the customer judges quality and makes future purchase decisions. It can be minimized by making senior managers work in frontline jobs a few days every year so that they keep in contact with customers and frontline employees. (Gap 3 in the GAP model recognizes that manufacturing and service delivery systems must execute quality specifications well. One way to improve day-to-day execution, for example, is by doing a better job at service management training. See 15.3: The GAP Model: Philip B. Crosby.) A _________ is a line graph in which data are plotted over time. histogram check sheet flow chart run chart One industry expert stated that software today has three errors for every 1,000 lines of code. Assuming that there is only one opportunity to make an error for each line of code, at what sigma level is the coding process operating? Round your answer to two decimal places. 1.25 6.25 5.25 4.25 (Using the formula, Sigma Level = NORMSINV (1 − Number of Defects/Number of Opportunities) + 1.5, find at what sigma level the coding process is operating: NORMSINV (1 - 3/1,000) + 1.5 = 4.25, it is far less than a six-sigma level. See 15.5: Six Sigma.) The management of Elextric Corp., a computer manufacturing company, wants the employees in the organization to contribute to the quality of the firm by making gradual, continuous improvements in their departments. Given this information, Elextric Corp. embraces an approach known as: the 5-Why Technique. Six Sigma. kaizen. poka-yoke. Daniel is a front-desk manager at Refington Hotel, a mid-market hotel. During Daniel's shift last week, he received 29 customer complaints. A total of 428 guests had stayed in the hotel that week. Given this information, find out the errors per million opportunities. 14,758,620 errors per million opportunities 67,757 errors per million opportunities 23,456 errors per million opportunities 400 errors per million opportunities