1. Current issues in OSCM do not include

coordinating relationships between organizations.
making senior management aware that OSCM can be a competitive weapon.
the triple bottom line.
managing customer touch points.
increasing global supply chain employment.

Question 2. One of the package of features that make up a service is

appearance.
facilitating goods.
packaging.
cost.
implied use.

Question 3. Which of the following are used to describe the degree of error?

Weighted moving average
Regression
Moving average
Forecast as a percent of actual
Mean absolute deviation

Question 4. Compared with a service operation, a manufacturing operation's capacity is which of the following?

More dependent on time and location
Subject to more volatile demand fluctuations
Utilization more directly impacts quality
Demand can be smoothed by inventory policies
More capable of reacting to demand fluctuations

Question 5. The Malcolm Baldrige National Quality Award is given to organizations that have done which of the following?

Instituted a six-sigma approach to total quality control
Demonstrated a high level of product quality
Demonstrated outstanding quality in their products and processes
Have a world-class quality control function
Most significantly improved their product quality levels

Question 6. Which of the following is considered a high-contact service operation?

Online brokerage house
Internet sales for a department store
Physician practice
Telephone life insurance sales and service
Automobile repair

Question 7. 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
Minimizing inventory

Question 8. Which of the following is an assumption of the basic fixed-order quantity inventory model?

Lead times are averaged
Ordering costs are variable
Price per unit of product is constant
Back orders are allowed
Stock-out costs are high

Question 9. Which of the following is not an improvement-driven reason to outsource?

Improve risk management
Increase commitment in a noncore area
Shorten cycle time
Improve quality and productivity
Obtain expertise, skills, and technologies that are otherwise not available

Question 10. Very few products are moved without at least part of their journey being by which mode of transportation?

Highway
Rail
Water
Pipeline
Air

11. a company has recorded the last 5 days of daily demand on their only product. Those values are 120, 125, 124, 128, and 133. The time from when an order is placed to when it arrives at the company from its vendor is 5 days. Assuming the basic fixed-order quantity inventory model fits this situation and no safety stock is needed, which of the following is the reorder point (R)?

120
126
630
950
1,200

Question 12. You would like to use the fixed-time period inventory model to compute the desired order quantity for a company. You know that vendor lead time is 5 days and the number of days between reviews is 7. Which of the following is the standard deviation of demand over the review and lead time if the standard deviation of daily demand is 8?

About 27.7
About 32.8
About 35.8
About 39.9
About 45.0

Question 13. You would like to use the fixed-time period inventory model to compute the desired order quantity for a company. You know that vendor lead time is 10 days and the number of days between reviews is 15. Which of the following is the standard deviation of demand over the review and lead time period if the standard deviation of daily demand is 10?

25
40
50
73
100

Question 14. If a firm produced a product that was experiencing growth in demand, the smoothing constant alpha (reaction rate to differences) used in an exponential smoothing forecasting model would tend to be which of the following?

Close to 0
A very low percentage, less than 10%
The more rapid the growth, the higher the percentage
The more rapid the growth, the lower the percentage
50 % or more

Question 15. Various financial data for SunPath Manufacturing for 2012 and 2013 follow.
What is the percentage change in the multifactor labor and raw materials productivity measure for SunPath between 2012 and 2013?

2012

2013

Output:

Sales:

$300,000

$330,000

Inputs:

Labor:

$40,000

$43,000

Raw Materials:

$45,000

$51,000

Energy:

$10,000

$9,000

Capital Employed:

$250,000

$262,000

Other

$2,000

$6,000

-9.22
2.33
-0.53
-2.88
10.39

Question 16. A company wants to forecast demand using the simple moving average. If the company uses four prior yearly sales values (i.e., year 2010 = 100, year 2011 = 120, year 2012 = 140, and year 2013 = 210), which of the following is the simple moving average forecast for year 2014?

100.5
140.0
142.5
145.5
155.0

Question 17. If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has one machine capable of producing 4,500 units per week, how many similar machines might you plan to acquire?

10
Four
Eight
12
50

Question 18. In setting up a Kanban control system, you need to determine the number of Kanban card sets needed. If the expected demand during lead time is 50 per hour, the safety stock is 20% of the demand during lead time and the container size is four. If the lead time to replenish an order is 8 hours, what number of Kanban card sets is needed?

60
80
90
120
150

Question 19. For an infinite queuing situation, if the arrival rate for loading trucks is five trucks per hour, what is the mean time between arrivals?

5 hours
2.5 hours
0.2 hours
0.1 hours
None of the above

Question 20. If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per order is $50, which of the following is the EOQ lot size?

350
247
23
185

78