BasicsofSupplyChainManagementV3.

0
PracticeTestAnswerKey

1. Whichofthefollowingisconsidereda
productivitysystem?
a. TQM
b. Lean
c. SixSigma
d. StatisticalProcessControl
2. WhichofthefollowingCustomer
expectationswouldbeinconflictwithan
organizationalgoaloflowinventory
investment?
a. Shortdeliveryleadtime
b. Highqualitylevels
c. Highflexibilitytochange
specifications
d. Lowcost
3. Whichofthefollowingisnotanelementof
productperformance?
a. Durability
b. Maintainability
c. Changeability
d. Reliability
4. VoiceoftheCustomerreferstowhichof
thefollowing?
a. Allcustomerfeedbackreceived
throughcustomerservice
b. Marketingssummaryofcustomer
concerns
c. Theexactcustomerswords
d. Customerresponsestoasatisfaction
survey
5. TheprimaryusefortheHouseofQualityis
a. Torelatecustomerdefined
attributestotechnicalfeatures
b. Todefinethestructureofthequality
organization
c. Todefineaframeworkfor
understandingLeanProduction
d. Tocollectcustomeropinionsabout
productsatisfaction

b.LeanLeanandJITareproductivitysystems.
TQMandSixSigmaarequalitymanagement
systemsandStatisticalProcesscontrolisa
statisticalmethodusedinmanydisciplines.

a.Shortdeliveryleadtimeismostcommonly
achievedbycarryingsafetystock.

c.Theotherthreearelistedaselements.

c.Voiceofthecustomerismostcommonly
associatedwithuneditedcustomerfeedback.

a.ThisistheprimaryfunctionoftheHofQ.
ChoicesbandcareunrelatedtoHofQ.Optiond,
althoughoneelementoftheHofQdiagram,isnot
theprimaryfunctionoftheexercise.

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BasicsofSupplyChainManagementV3.0
PracticeTestAnswerKey

6. WhichofthefollowingisNOTabenefitof
statisticalProcesscontrol?
a. Itaddsvalueforthecustomer
b. Iteliminatescost
c. Itallowsgoodproducttobesorted
frombad
d. Itfindsthecauseofvariationbefore
badproductismade
7. Whichofthefollowingdefineswaste?
a. Anythingthataddscosttothe
product
b. Anythingthatdoesnotaddvaluein
theeyesofthecustomer
c. Anythingthatrequiresspecial
handling
d. Anythingthatcannotbeautomated
8. Whichofthefollowingisnotanelementof
theHouseofToyota?
a. Heijunka
b. Jidoka
c. Kaizen
d. Taguchi
9. Whichofthefollowingisoneoftheeight
generallyacceptedcategoriesofwaste?
a. Inspection
b. Underproduction
c. Unusedpeopleskills
d. Materialshortages
10. Whichofthefollowingistrueabout
Heijunka?
a. Itbuildsaccordingtotheactualflow
ofcustomerorders
b. Itdoesnotbuildaccordingtothe
actualflowofcustomerorders
c. Itbuildsaccordingtothemaximum
flowofcustomerorders
d. Itbuildsaccordingtotheminimum
flowofcustomerorders

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c.SPCisusedtocontrolaprocesssothatbad
productisnotcreated.Optioncdescribes
inspection.

b.InJIT/Leanliterature,wasteisdefinedasany
activitythatdoesnotaddvalue,asperceivedby
thecustomer.Optiona.wouldincludeactivities
thatdoaddvalue.Optionscanddarenotrelated
towasteinJIT/Lean.

d.Taguchimethodsarestatisticalmethods
developedbyGenichiTaguchitoimprovethe
qualityofmanufacturedgoods,butarenot
specificallypartoftheHouseofToyota.

c.Althoughtheotherthreeoptionsmaybe
elementsofthecategories,onlycisoneofthe
categoriesofwaste.

b.Itdoesnotbuildaccordingtotheactualflowof
customerorders.Ittakesthetotalvolumeof
ordersinaperiodandlevelsthemoutsothesame
amountandmixarebeingmadeeachday.

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BasicsofSupplyChainManagementV3.0
PracticeTestAnswerKey

11. Allofthefollowingarebenefitsofmixed
modelschedulingEXCEPT
a. Labourrequirementsarestabilized
b. Inventoryisminimized
c. Manufacturingefficiencyis
maximized
d. Demandonupstreamsuppliersis
smoother
12. Afacility,function,department,orresource
whosecapacityislessthanthedemand
placeduponitisa
a. Constraint
b. Bottleneck
c. CapacityConstrainedResource
d. Drum
13. Inthroughputaccounting,throughputis
definedas
a. Therateatwhichacompany
generatesmoneythroughsalesofa
product
b. Therateatwhichtheproduction
linegeneratesproducts
c. Thelengthoftimefromwhen
materialentersaproductionfacility
untilitexits
d. Thelengthoftimebetween
paymenttoasupplier,andreceiptof
paymentfromacustomer
14. WhichTOCplanttypewouldbebestsuited
toproductionofcustomofficefurniture?
a. V
b. A
c. T
d. I
15. Eachofthefollowingisoneofthefive
focusingstepsinTheoryofConstraints
EXCEPT
a. Identifytheconstraint
b. Exploittheconstraint
c. Minimizetheconstraint
d. Startover

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c.Mixedmodelschedulingdependsonfrequent
setups,whichonitsownwoulddecrease
manufacturingefficiency.

b.PertheTheoryofConstraints,thisisthe
definitionofabottleneck.Theotherthreeare
alternativenamesforaconstraint,whichdoesnot
necessarilyhavelesscapacitythandemand.

a.IntheTheoryofConstraints,throughputis
recognizedwhenmoneyisgeneratedfromsales,
notwhentheproductisproduced.

c.componentsandsubassembliesflowinto
severaldifferentendconfigurationsoffurniturein
amanytomanyrelationship.

c.theFivestepsare
Identifytheconstraint
Exploittheconstraint
Subordinateeverythingelsetothe
constraint
Elevatetheconstraint
Startover

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BasicsofSupplyChainManagementV3.0
PracticeTestAnswerKey

16. InTheoryofConstraints,theroperefersto
whichofthefollowing?
a. Thescheduleestablishedatthe
constraint
b. Theinventoryinplacetosupport
throughputperformance
c. Theinformationflowfromthe
constrainttomaterialrelease
d. Thesignaltoshipthecustomer
17. Aproductionlinesleastproductivework
centerproducesat800piecesperday,and
marketdemandis500piecesperday.
Whichofthefollowingistrue?
a. Theworkcenterisacapacity
constrainedresource
b. Theworkcenterisabottleneck
c. Themarketisaconstraint
d. Themarketisabottleneck
18. Allofthefollowingarewaystoexploitthe
constraintEXCEPT
a. Staggerworkbreakstorunthe
resourcecontinuously
b. Reducetheinventoryqueueinfront
oftheresource
c. Ensurematerialqualityisgood
beforeitgoesintotheresource
d. Scheduletimeforpreventive
maintenancetoensuremaximum
availability

19. Whichofthefollowingisnotatypeofbuffer
inTheoryofConstraints?
a. Stockbuffers
b. Qualitybuffers
c. Protectivecapacity
d. Timebuffers
20. Whichofthefollowingisnotamethodused
toelevatetheconstraint?
a. Addnewequipment
b. Makeproductivityimprovements
c. Reducetheinventoryqueueinfront
oftheresource
d. Reorganize

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c.FromtheTOCreferencematerial.

c.Becausemarketdemandissignificantlybelow
theproductionlinescapacity,themarketis
restrictingthelinesabilitytoproducemoregoal
units.

b.Aqueueofinventoryshouldbemaintained
aheadoftheconstrainttoensuretheresourceis
neveridlewaitingformaterial

b.Qualityisnotatypeofbufferdefinedin
TheoryofConstraints.

c.Elevatingtheconstraintreferstoincreasingthe
throughputoftheconstraint.Reducingthe
inventoryqueueisnotamethodtoincrease
throughput.

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BasicsofSupplyChainManagementV3.0
PracticeTestAnswerKey

21. Accordingtothroughputaccounting,whenis
valuerecognizedbyanorganization?
a. Whentheproductisputinto
finishedgoodsinventory
b. Whentheproductisshippedtothe
customer
c. Whentheproductisbackflushed
d. Whentheproductissold
22. TheoryofConstraintsreliesonthreeglobal
measuresforfinancialanalysisofbusiness
decisions.Thosethreemeasuresare
a. Throughput,Investment,Operating
Expense
b. Throughput,Inventory,Overhead
Expense
c. Throughput,Investment,Overhead
Expense
d. Throughput,Inventory,Operating
Efficiency
23. Theprocessofcombiningstatistical
forecastingtechniquesandjudgementto
constructdemandestimatesforproductsor
servicesacrossthesupplychainfromthe
suppliersrawmaterialstotheconsumers
needsiscalled
a. DelphiMethod
b. SeasonalForecasting
c. SalesandOperationsPlanning
d. DemandPlanning
24. Inlean,theresourcethatisscheduledbased
onthecustomerdemandrateforthat
specificvaluestreamisknownasthe
a. Kanban
b. pacemaker
c. bottleneck
d. constraint
25. Asalespersonpromisesimmediatedelivery
toacustomerinordertoprovideahigh
levelofcustomerservice.Thisinconflict
withobjective?
a. Maximizingproductionefficiency
b. Minimizingcost
c. Minimizinginventoryinvestment
d. Alloftheabove
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d.Throughputaccountingassumesthatvalueis
recognizedonlywhensomethingisSOLD.

a.TI&OE,asdefinedbytheTheoryof
Constraints.

d.Perthesupplementaldefinitionsinthe2009
ExamContentManualforBSCM.

a.Perthesupplementaldefinitionsinthe2009
ExamContentManualforBSCM.

d.Anyoftheobjectiveslistedmayhavetobe
compromisedtomeetthestatedobjective.
Optionawouldoccurifproductionlineshadtobe
interruptedtoexpediteorders,optioncwouldbe
compromisedbytheneedtocarryfinishedgoods
safetystock,andoptionbwouldbecompromised
bybothoftheseoptions.

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BasicsofSupplyChainManagementV3.0
PracticeTestAnswerKey

b.CriticalChainmethodInthetheoryof
constraints,anetworkplanningtechniqueforthe
analysisofaprojectscompletiontime,usedfor
planningandcontrollingprojectactivities.

26. Thecriticalchainmethodwouldbemost
applicabletowhichofthefollowing
processes?
a. Financialmanagement
b. ProjectManagement
c. Supplychainmanagement
d. DemandManagement
27. Allofthefollowingareaspectsofgreen
manufacturingEXCEPT
a. Designfordisassembly
b. Designformaintainability
c. Designforremanufacture
d. Designforreuse
28. Whichproductionenvironmentismost
appropriateforacompanywhoseproducts
areinthedeclinephase?
a. Maketostock
b. Maketoorder
c. Assembletoorder
d. Engineertoorder
29. Anengineertoorderenvironmentwould
bemostappropriateforacompanywith
productsinwhichproductlifecyclephase?
a. Introduction
b. Growth
c. Maturity
d. Phaseout
30. Inamakeorbuyanalysis,thecosttomake
theproductshouldbecomparedto
a. Thepurchasedcost
b. Theproductcost
c. Thelandedcost
d. Thestandardcost
31. Whichofthe4Pswouldmarketing
managementusetomakedecisionsabout
themostappropriatedeliverychannels?
a. Product
b. Price
c. Promotion
d. Place

b.DesignforMaintainabilityisnotoneofthe
listedaspectsofgreenmanufacturing.

b.Sincedemandisdeclining,makingproductsonly
whenthereisacustomerorderavoidstheriskof
obsoleteinventory.

a.intheintroductionphase,futuredemandis
uncertainandengineeringchangesarelikely,so
theriskofobsoleteinventoryishigh.

c.landedcostincludesproductcost,logisticscost
&dutiesorfeesincurred.

d.Placereferstoplacingtheproductinthe
correctdeliverychannels.Forexample,will
theproductsbesoldonline,througha
catalogue,orfromaretailer?Whatdelivery
speeddoesthemarketdemand?What
deliverymodesareavailableandappropriate?
e.g.,someproductsmayneedtobeoffered
throughmorethanonechannelbooksonline
andbookstoresdifferentmarketsegments.

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BasicsofSupplyChainManagementV3.0
PracticeTestAnswerKey

32. Meanabsolutedeviationcanbeusedto
analyzeforecasterrorandplansafetystock
by
a. Evaluatingtheminimumand
maximumforecasterror
b. Determininghowcloselythe
distributionoferrorisconcentrated
aroundtheaverage
c. Comparingthenumberofstockouts
tototalsales
d. Trackingthebiasoftheforecast
error

33. WhichofthefollowingisNOTtrueabout
exponentialsmoothingforecasts
a. Itisatypeofweightedmoving
averageforecast
b. Itusesasmoothingconstantto
provideweightingtothemost
recentperiodsresults
c. Itrequiresarelativelysmallamount
ofhistoricaldata
d. Asmallersmoothingconstantwould
maketheforecastmoreresponsive
torecentchanges
34. Whichcapacitymanagementtechniqueis
usedtovalidatetheMasterSchedule?
a. ResourcePlanning
b. RoughCutCapacityPlanning
c. CapacityRequirementsPlanning
d. Input/OutputControl
35. Whichprioritymanagementtechniqueis
concernedwithproductgroupsorfamilies?
a. Sales&OperationsPlanning
b. MasterScheduling
c. MaterialRequirementsPlanning
d. ProductionActivityControl
36. WhichofthefollowingisNOTanoutputof
MRP?
a. PlannedPurchaseReleases
b. PlannedShopReleases
c. PlanningParameters
d. ActionNotices

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b.MADisnotusedtoaddresstheotherthree
issues.

d.Alargersmoothingconstantappliesmore
weighttothemostrecentdemand.
Newforecast=
(latestdemand)+(1)(previousforecast)

b.RCCPisusedtovalidatetheMasterSchedule.

a.Theotherthreetechniquesareusedfor
increasingdetailoftheproductstructure.

c.PlanningparametersareaninputtotheMRP.

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BasicsofSupplyChainManagementV3.0
PracticeTestAnswerKey

37. Thecategoryofinventorymanagementthat
isconcernedwithbusinesslevelimpactsis
a. Iteminventory
b. Distributioninventory
c. Workinprocessinventory
d. Aggregateinventory
38. Acompanyhas1,000unitsonhand,and
annualusageis24,000.Thereare240work
daysintheyear.Theinventorydaysof
supplyonhandis
a. 10
b. 24
c. 42
d. 100
39. Thesequenceofcustomerswhointurn
consumetheoutputofeachotheriscalled
the
a. SupplyChain
b. SupplyNetwork
c. CustomerChain
d. CustomerNetwork
40. Allofthefollowingarereasonsforusing
publicwarehousesEXCEPT
a. Accommodatingseasonaldemand
b. Servicingregionalrequirements
c. Adjustingwarehousecapacity
quicklytohandlenewproduct
introductions
d. Servicinghighvolume,mature
markets

d.Theotheroptionsareoperationallevelissues.

a.Averagedailyusage=24,000/240=100
DoS=1000/100=10daysofsupply

c.PertheAPICSDictionarydefinition.

d.Thisoptionwouldmostcommonlyuseprivate
warehouses.

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