ISDS FINAL KELLE LSU, ISDS 3115 FINAL, LSU ISDS
3115 KELLE DSM'S QUESTIONS WITH VERIFIED
ANSWERS
A disadvantage of the "few suppliers" sourcing strategy is:
A. the high cost of changing partners.
B. the suppliers are less likely to understand the broad objectives of the procuring firm
and the end customer.
C. the lack of cost savings for customers and suppliers.
D. possible violations of the Sherman Antitrust Act.
E. the risk of not being ready for technological change. - Answers - the high cost of
changing partners.
The supply chain management opportunity called postponement involves delaying
deliveries to avoid accumulation of inventory at the customer's site. - Answers - False
All EXCEPT which of the following statements about ABC analysis are true?
A. In ABC analysis, inventory may be categorized by measures other than dollar
volume.
B. ABC analysis is an application of the Pareto principle.
C. ABC analysis categorizes on-hand inventory into three groups based on annual
dollar volume.
D. ABC analysis suggests that there are the critical few and the trivial many inventory
items.
E. ABC analysis suggests that all items require the same high degree of control. -
Answers - C.ABC analysis categorizes on-hand inventory into three groups based on
annual dollar volume.
Which of the following is an element of inventory holding costs?
A. investment costs
B. housing costs
C. pilferage, scrap, and obsolescence
D. material handling costs
E. All of the above are elements of inventory holding costs. - Answers - E. All of the
above are elements of inventory holding costs.
,A disadvantage of the fixed-period inventory system is that:
A. orders usually are for larger quantities.
B. it involves higher ordering costs than the fixed quantity inventory system.
C. additional inventory records are required.
D since there is no count of inventory during the review period, a stockout is possible.
E. the average inventory level is decreased. - Answers - D. since there is no count of
inventory during the review period, a stockout is possible.
Which of the following statements is TRUE about the MRP plan when using lot-for-lot
ordering?
A. The quantity of gross requirements for a child item is always equal to the quantity of
gross requirements for its parent.
B. The quantity of gross requirements for a child item is equal to the quantity of planned
order release(s) multiplied by the number of child items used in the parent assembly.
C. The quantity and gross requirements for a child item is always equal to the quantity
of net requirements for its parent.
D. The quantity of gross requirements for a child item is always equal to the quantity of
planned order releases for its parent.
E. All of the above are true. - Answers - B. The quantity of gross requirements for a
child item is equal to the quantity of planned order release(s) multiplied by the number
of child items used in the parent assembly.
Characteristics of just-in-time partnerships do NOT include:
A. focus on core competencies.
B. removal of in-transit inventory.
C. long-term contracts.
D. large lot sizes to save on setup costs and to gain quantity discounts.
E. produce with zero defects. - Answers - D. large lot sizes to save on setup costs and
to gain quantity discounts.
Which one of the following statements is TRUE regarding JIT inventory?
A. It is the minimum inventory necessary to keep a perfect system running.
B. It exists just in case something goes wrong.
C. It hides variability.
D. It increases if setup costs decrease.
E. It is minimized with large lot production. - Answers - A. It is the minimum inventory
necessary to keep a perfect system running.
Which of the following is one of the 10 strategic operations management decisions?
A. process and capacity strategies
B. pricing
,C. debt/equity ratio
D. advertising
E. depreciation policy for tax returns - Answers - A. process and capacity strategies
Which of the following is not part of value-chain analysis?
A. product research
B. supply chain management
C. human resources
D. quality management
E. project management - Answers - E. project management
A combination of effective Gantt chart use and other tactics allowed Delta to cut the
average time for a plane layover by what % of the original 60 minute duration?
A. 20%, to 48 minutes
B. 25%, to 45 minutes
C. 50%, to 30 minutes
D. 33%, to 40 minutes
E. 40%, to 36 minutes - Answers - D.33%, to 40 minutes
The two general approaches to forecasting are:
A. mathematical and statistical.
B. judgmental and qualitative.
C. historical and associative.
D. qualitative and quantitative.
E. judgmental and associative. - Answers - D. qualitative and quantitative.
Trend refers to a data pattern that repeats itself after a period of days, weeks, months,
or quarters. - Answers - False
Assignable causes:
A. are also referred to as "chance" causes.
B. depend on the inspector assigned to the job.
C. are causes of variation that can be identified and investigated.
D. are within the limits of a control chart.
E. are not as important as natural causes. - Answers - C. are causes of variation that
can be identified and investigated.
Acceptance sampling:
A. may be either of a variable or attribute type, although attribute inspection is more
common in the business environment.
B.is more economical than 100% inspection.
, C. may involve inspectors taking random samples (or batches) of incoming raw
materials and measuring them against predetermined standards.
D. may involve inspectors taking random samples (or batches) of finished products and
measuring them against predetermined standards.
E. All of the above are true. - Answers - E. All of the above are true.
Which of the following phrases best describes process focus?
A. Operators are less broadly skilled.
B. low volume, high variety
C. low inventory
D. high fixed costs, low variable costs
E. Finished goods are usually made to a forecast and stored. - Answers - B. low
volume, high variety
An assembly line has 10 stations with times of 1, 2, 3, 4, ..., 10, respectively. What is
the bottleneck time?
A. 100% of the throughput time
B. 50% of the throughput time
C. 550% of the throughput time
D. 1.82% of the throughput time
E. 18.18% of the throughput time - Answers - E.18.18% of the throughput time
Which of the following is the best example of the proximity rule that, for service firms,
proximity to market is the most important location factor?
A. Few people will travel out-of state for a routine haircut.
B. Metal refiners (smelters) locate near mines to accomplish significant weight reduction
near the metal's source.
C. Patients will travel very long distances to have their hernia surgeries performed at
Shouldice Hospital.
D. Soft drinks are bottled in many local plants, where carbonated water is added to
proprietary syrups that may have been shipped long distances.
E. Furniture makers choose to locate near the source of good hardwoods, even though
it means locating near other furniture manufacturers. - Answers - A. Few people will
travel out-of state for a routine haircut.
What layout strategy deals with low-volume, high-variety production?
A. office layout
B. warehouse layout
C. fixed-position layout
D. process-oriented layout
E. retail layout - Answers - D. process-oriented layout
3115 KELLE DSM'S QUESTIONS WITH VERIFIED
ANSWERS
A disadvantage of the "few suppliers" sourcing strategy is:
A. the high cost of changing partners.
B. the suppliers are less likely to understand the broad objectives of the procuring firm
and the end customer.
C. the lack of cost savings for customers and suppliers.
D. possible violations of the Sherman Antitrust Act.
E. the risk of not being ready for technological change. - Answers - the high cost of
changing partners.
The supply chain management opportunity called postponement involves delaying
deliveries to avoid accumulation of inventory at the customer's site. - Answers - False
All EXCEPT which of the following statements about ABC analysis are true?
A. In ABC analysis, inventory may be categorized by measures other than dollar
volume.
B. ABC analysis is an application of the Pareto principle.
C. ABC analysis categorizes on-hand inventory into three groups based on annual
dollar volume.
D. ABC analysis suggests that there are the critical few and the trivial many inventory
items.
E. ABC analysis suggests that all items require the same high degree of control. -
Answers - C.ABC analysis categorizes on-hand inventory into three groups based on
annual dollar volume.
Which of the following is an element of inventory holding costs?
A. investment costs
B. housing costs
C. pilferage, scrap, and obsolescence
D. material handling costs
E. All of the above are elements of inventory holding costs. - Answers - E. All of the
above are elements of inventory holding costs.
,A disadvantage of the fixed-period inventory system is that:
A. orders usually are for larger quantities.
B. it involves higher ordering costs than the fixed quantity inventory system.
C. additional inventory records are required.
D since there is no count of inventory during the review period, a stockout is possible.
E. the average inventory level is decreased. - Answers - D. since there is no count of
inventory during the review period, a stockout is possible.
Which of the following statements is TRUE about the MRP plan when using lot-for-lot
ordering?
A. The quantity of gross requirements for a child item is always equal to the quantity of
gross requirements for its parent.
B. The quantity of gross requirements for a child item is equal to the quantity of planned
order release(s) multiplied by the number of child items used in the parent assembly.
C. The quantity and gross requirements for a child item is always equal to the quantity
of net requirements for its parent.
D. The quantity of gross requirements for a child item is always equal to the quantity of
planned order releases for its parent.
E. All of the above are true. - Answers - B. The quantity of gross requirements for a
child item is equal to the quantity of planned order release(s) multiplied by the number
of child items used in the parent assembly.
Characteristics of just-in-time partnerships do NOT include:
A. focus on core competencies.
B. removal of in-transit inventory.
C. long-term contracts.
D. large lot sizes to save on setup costs and to gain quantity discounts.
E. produce with zero defects. - Answers - D. large lot sizes to save on setup costs and
to gain quantity discounts.
Which one of the following statements is TRUE regarding JIT inventory?
A. It is the minimum inventory necessary to keep a perfect system running.
B. It exists just in case something goes wrong.
C. It hides variability.
D. It increases if setup costs decrease.
E. It is minimized with large lot production. - Answers - A. It is the minimum inventory
necessary to keep a perfect system running.
Which of the following is one of the 10 strategic operations management decisions?
A. process and capacity strategies
B. pricing
,C. debt/equity ratio
D. advertising
E. depreciation policy for tax returns - Answers - A. process and capacity strategies
Which of the following is not part of value-chain analysis?
A. product research
B. supply chain management
C. human resources
D. quality management
E. project management - Answers - E. project management
A combination of effective Gantt chart use and other tactics allowed Delta to cut the
average time for a plane layover by what % of the original 60 minute duration?
A. 20%, to 48 minutes
B. 25%, to 45 minutes
C. 50%, to 30 minutes
D. 33%, to 40 minutes
E. 40%, to 36 minutes - Answers - D.33%, to 40 minutes
The two general approaches to forecasting are:
A. mathematical and statistical.
B. judgmental and qualitative.
C. historical and associative.
D. qualitative and quantitative.
E. judgmental and associative. - Answers - D. qualitative and quantitative.
Trend refers to a data pattern that repeats itself after a period of days, weeks, months,
or quarters. - Answers - False
Assignable causes:
A. are also referred to as "chance" causes.
B. depend on the inspector assigned to the job.
C. are causes of variation that can be identified and investigated.
D. are within the limits of a control chart.
E. are not as important as natural causes. - Answers - C. are causes of variation that
can be identified and investigated.
Acceptance sampling:
A. may be either of a variable or attribute type, although attribute inspection is more
common in the business environment.
B.is more economical than 100% inspection.
, C. may involve inspectors taking random samples (or batches) of incoming raw
materials and measuring them against predetermined standards.
D. may involve inspectors taking random samples (or batches) of finished products and
measuring them against predetermined standards.
E. All of the above are true. - Answers - E. All of the above are true.
Which of the following phrases best describes process focus?
A. Operators are less broadly skilled.
B. low volume, high variety
C. low inventory
D. high fixed costs, low variable costs
E. Finished goods are usually made to a forecast and stored. - Answers - B. low
volume, high variety
An assembly line has 10 stations with times of 1, 2, 3, 4, ..., 10, respectively. What is
the bottleneck time?
A. 100% of the throughput time
B. 50% of the throughput time
C. 550% of the throughput time
D. 1.82% of the throughput time
E. 18.18% of the throughput time - Answers - E.18.18% of the throughput time
Which of the following is the best example of the proximity rule that, for service firms,
proximity to market is the most important location factor?
A. Few people will travel out-of state for a routine haircut.
B. Metal refiners (smelters) locate near mines to accomplish significant weight reduction
near the metal's source.
C. Patients will travel very long distances to have their hernia surgeries performed at
Shouldice Hospital.
D. Soft drinks are bottled in many local plants, where carbonated water is added to
proprietary syrups that may have been shipped long distances.
E. Furniture makers choose to locate near the source of good hardwoods, even though
it means locating near other furniture manufacturers. - Answers - A. Few people will
travel out-of state for a routine haircut.
What layout strategy deals with low-volume, high-variety production?
A. office layout
B. warehouse layout
C. fixed-position layout
D. process-oriented layout
E. retail layout - Answers - D. process-oriented layout
