Download OM 300 Chilcutt exam 3 with precise detailed solutions and more Exams Production and Operations Management in PDF only on Docsity!
OM |! 300 |! Chilcutt |! exam |! 3 |! with |! precise |!
detailed |! solutions
supply |! chain |! - |! Correct |! answer |! ✔the |! network |! of |! activities |! that |! deliver |! a |! product |! or |! service |! to |! the |! customer. activities |! within |! the |! supply |! chain |! - |! Correct |! answer |! ✔1. |! obtaining |! raw |! materials
- |! transforming |! raw |! materials |! into |! basic |! finished |! goods
- |! further |! processing |! of |! basic |! finished |! goods |! into |! customized |! products |! that |! are |! sold supply |! chain |! echelon/tiers |! - |! Correct |! answer |! ✔-the |! lower |! the |! tier |! level, |! the |! closer |! the |! level |! to |! the |! customer objective |! of |! supply |! chain |! management |! - |! Correct |! answer |! ✔build |! a |! chain |! of |! suppliers |! that |! focuses |! on |! maximizing |! value |! to |! the |! ultimate |! customer Supply |! Chain |! Management |! - |! Correct |! answer |! ✔The |! business |! function |! that |! coordinates |! all |! of |! the |! network |! links
-coordinates |! movement |! of |! goods |! through |! supply |! chain |! from |! suppliers |! to |! manufacturers |! to |! distributors -promotes |! information |! sharing |! in |! the |! supply |! chain, |! such |! as |! forecasts, |! sales |! data, |! & |! promotions The |! Supply |! Chain's |! Strategic |! Importance |! - |! Correct |! answer |! ✔supply |! chain |! management |! is |! the |! integration |! of |! the |! activities |! that: -procure |! materials |! and |! services -transform |! them |! into |! intermediate |! goods |! and |! final |! products, |! & -deliver |! them |! through |! a |! distribution |! system activities |! performed |! as |! part |! of |! supply |! chain |! management |! - |! Correct |! answer |! ✔1. |! suppliers
- |! distributors
- |! warehousing |! and |! inventory
- |! transportation |! vendors
- |! order |! fulfilment |!
- |! credit |! and |! cash |! transfers
- |! accounts |! payable |! and |! receivable |!
- |! sharing |! customer, |! forecasting, |! and |! production |! information Outsourcing |! - |! Correct |! answer |! ✔-transfers |! traditional |! internal |! activities |! and |! resources |! of |! a |! firm |! to |! outside |! vendors
-Create |! value |! through |! economies |! of |! scale |! and |! learning |! curve |! improvements -Suppliers |! more |! willing |! to |! participate |! in |! JIT |! programs |! and |! contribute |! design |! innovations |! and |! technological |! expertise -Cost |! of |! changing |! suppliers |! is |! huge Trade |! secrets |! and |! other |! alliances Vertical |! Integration |! - |! Correct |! answer |! ✔-developing |! the |! ability |! to |! produce |! goods |! or |! services |! previously |! purchased |! -integration |! may |! be |! forward, |! towards |! the |! customers, |! or |! backwards, |! towards |! suppliers -can |! improve |! cost, |! quality, |! and |! inventory |! but |! requires |! capital, |! managerial |! talent, |! and |! demand -risky |! in |! industries |! with |! undergoing |! technological |! changes joint |! venture |! - |! Correct |! answer |! ✔-formal |! collaborations: enhance |! skills, |! secure |! supply, |! & |! reduce |! costs -cooperate |! without |! diluting |! the |! brand |! or |! conceding |! competitive |! advantage Keiretsu |! Networks |! - |! Correct |! answer |! ✔-part |! collaboration, |! part |! purchasing |! from |! few |! suppliers, |! and |! part |! vertical |! integration -supplier |! becomes |! part |! of |! the |! company |! coalition
-often |! provide |! financial |! support |! for |! suppliers |! through |! ownership |! or |! loans -members |! expect |! long-term |! relationships |! and |! provide |! technical |! expertise |! and |! stable |! quality |! production -may |! extend |! through |! several |! tiers |! of |! the |! supply |! chain Virtual |! Companies |! - |! Correct |! answer |! ✔-Rely |! on |! a |! variety |! of |! good, |! stable |! relationships |! to |! provide |! services |! on |! demand -Exceptionally |! lean |! performance, |! specialized |! management |! expertise, |! low |! capital |! investment, |! flexibility, |! and |! speed supply |! chain |! risk |! - |! Correct |! answer |! ✔-More |! reliance |! on |! supply |! chains |! means |! more |! risk -customer |! and |! its |! suppliers |! are |! more |! dependent |! on |! each |! other |! as |! the |! number |! of |! suppliers |! used |! decreases |! -risk |! is |! compounded |! by |! globalization |! and |! logistical |! complexity types |! of |! risk |! - |! Correct |! answer |! ✔Traditional |! Concerns: -vender |! reliability -vendor |! quality |! Concerns |! Due |! To |! Globalization: -increase |! shipping |! times |! =>less |! reliable |! logistics -tariffs |! and |! quotas |! impacting |! companies |! ability |! to |! do |! business
-insurance, |! patent |! protection, |! security |! measures |! (RFID |! & |! GPS) local |! optimization |! - |! Correct |! answer |! ✔focusing |! on |! local |! profit |! or |! cost |! minimization |! based |! on |! limited |! knowledge Incentives |! (sales |! incentives, |! quantity |! discounts, |! quotas, |! and |! promotions) |! - |! Correct |! answer |! ✔-push |! merchandise |! in |! to |! the |! system |! prior |! to |! occurrence |! of |! actual |! sales large |! lots |! - |! Correct |! answer |! ✔low |! unit |! cost |! with |! respect |! to |! production |! and |! shipping, |! but |! results |! in |! larger |! holding |! costs |! and |! does |! not |! reflect |! actual |! sales bullwhip |! effect |! - |! Correct |! answer |! ✔-stable |! demand |! becomes |! lumpy |! orders |! through |! the |! supply |! chain -describes |! variation |! in |! replenishment |! orders |! at |! different |! supply |! chain |! levels |! with |! no |! apparent |! link |! to |! final |! demand Bullwhip |! Effect |! Causes |! - |! Correct |! answer |! ✔-poor |! demand |! forecasting |! at |! each |! level, |! waiting |! to |! batch |! orders, |! price |! fluctuations |! & |! promotions, |! rationing Counteracting |! the |! Bullwhip |! Effect |! - |! Correct |! answer |! ✔-collaborate |! forecast |! at |! all |! levels, |! share |! real |! demand |! information |! (POS |! terminals) |!
-order |! based |! on |! demand |! rates, |! not |! batching -stabilize |! pricing Opportunities |! in |! Managing |! the |! Integrated |! Supply |! Chain |! - |! Correct |! answer |! ✔-accurate |! "pull" |! data -lot |! size |! reduction -single |! stage |! control |! of |! replenishment |! (RFID) Accurate |! "pull" |! data |! - |! Correct |! answer |! ✔-accurate |! sales |! data |! (from |! POS |! information) |! used |! for |! starting |! transactions |! to |! pull |! product |! through |! the |! SC -Allows |! members |! in |! the |! SC |! to |! schedule |! more |! effectively Lot |! size |! reduction |! - |! Correct |! answer |! ✔-can |! be |! enabled |! through |! reducing |! the |! cost |! of |! ordering: |! e.g., |! standing |! orders, |! electronic |! purchasing -economical |! shipments |! of |! LTL |! lots -provide |! discounts |! based |! on |! total |! annual |! volume Single-stage |! control |! of |! replenishment |! - |! Correct |! answer |! ✔fix |! responsibility |! for |! monitoring |! and |! managing |! the |! retailer's |! inventory, |! thus |! combating |! causes |! for |! bullwhip |! effect
blanket |! order |! - |! Correct |! answer |! ✔-a |! contract |! to |! purchase |! certain |! items |! from |! a |! vendor -actual |! shipments |! are |! made |! only |! on |! a |! receipt |! of |! an |! agreed-upon |! document postponement |! - |! Correct |! answer |! ✔-delaying, |! for |! as |! long |! as |! possible, |! any |! modification |! or |! customization |! to |! a |! product |! in |! the |! production |! process Electronic |! Ordering |! and |! Funds |! Transfer |! - |! Correct |! answer |! ✔traditional |! approaches |! to |! speeding |! transactions |! and |! reducing |! paperwork -EDI -ASN Drop |! shipping |! and |! special |! packaging |! - |! Correct |! answer |! ✔-shipping |! directly |! from |! the |! supplier |! to |! the |! end |! consumer, |! saves |! both |! time |! and |! reshipping |! costs -special |! labels, |! optimal |! label |! placement, |! and |! bar |! codes |! on |! containers |! can |! speed |! up |! delivery Electronic |! Data |! Interchange |! (EDI) |! - |! Correct |! answer |! ✔-a |! standard |! format |! for |! the |! electronic |! exchange |! of |! information |! between |! supply |! chain |! participants -(type |! of |! Electronic |! order |! and |! funds |! transfer)
advanced |! shipping |! notice |! (ASN) |! - |! Correct |! answer |! ✔-electronic |! document |! that |! the |! supplier |! sends |! the |! retailer |! in |! advance |! of |! a |! shipment |! to |! tell |! the |! retailer |! exactly |! what |! to |! expect |! in |! the |! shipment -typically |! sent |! in |! the |! form |! of |! an |! EDI -(type |! of |! Electronic |! order |! and |! funds |! transfer) 4 |! stages |! of |! supplier |! selection |! - |! Correct |! answer |! ✔1. |! supplier |! evaluation
- |! supplier |! development
- |! negotiations
- |! contracting Supplier |! Evaluation |! - |! Correct |! answer |! ✔-critical |! decision |! for |! success |! of |! SC -Find |! potential |! vendors |! (use |! factor |! weighting |! approach) -determine |! the |! likelihood |! of |! them |! becoming |! good |! suppliers supplier |! development |! - |! Correct |! answer |! ✔-training -engineering |! & |! production |! help -establish |! procedures |! for |! info |! transfer negotiations |! - |! Correct |! answer |! ✔-Cost-Based |! Price |! model:
-devote |! more |! resources |! to |! supplier |! selection |! and |! negotiation |! process logistics |! management |! - |! Correct |! answer |! ✔-Objective |! is |! to |! obtain |! efficient |! operations |! through |! the |! integration |! of |! all |! material |! acquisition, |! movement, |! and |! storage |! activities -Is |! a |! frequent |! candidate |! for |! outsourcing 3rd |! Party |! Logistics |! (3PL) |! - |! Correct |! answer |! ✔-using |! another |! company |! to |! do |! your |! logistics |! (outsourcing) -allows |! competitive |! advantage |! to |! be |! gained |! through |! reduced |! costs |! and |! improved |! customer |! service Shipping |! Systems |! - |! Correct |! answer |! ✔1. |! Trucking
- |! Railroads
- |! Airfreight
- |! Waterways
- |! Pipelines
- |! Multimodal Trucking |! - |! Correct |! answer |! ✔-Moves |! the |! vast |! majority |! of |! manufactured |! goods -Chief |! advantage |! is |! flexibility
Railroads |! - |! Correct |! answer |! ✔-Capable |! of |! carrying |! large |! loads -Little |! flexibility |! though |! containers |! and |! piggybacking |! have |! helped |! with |! this airfreight |! - |! Correct |! answer |! ✔-Fast |! and |! flexible |! for |! light |! loads -May |! be |! expensive waterways |! - |! Correct |! answer |! ✔-Typically |! used |! for |! bulky, |! low-value |! cargo -Used |! when |! shipping |! cost |! is |! more |! important |! than |! speed pipelines |! - |! Correct |! answer |! ✔-Used |! for |! transporting |! oil, |! gas, |! and |! other |! chemical |! products Multimodal |! - |! Correct |! answer |! ✔-combination |! of |! multiple |! modes |! of |! shipping: |! 1. |! truck-> |! air->truck |! 2. |! truck-> |! rail->truck |! 3. |! truck-> |! rail-
water-> |! rail-> |! truck -truck/rail |! and |! rail/water |! combinations |! typically |! use |! "containers" |! or |! trailers |! on |! flatbed |! rail |! cars Warehousing/ |! Third-party |! logistics |! - |! Correct |! answer |! ✔-outsourcing |! logistics |! can |! reduce |! costs |! and |! improve |! delivery |! reliability |! and |! speed
-inventory |! investment |! is |! the |! average |! inventory |! value |! for |! the |! same |! period -Higher |! values |! of |! inventory |! turnover |! are |! BETTER |! than |! smaller |! values weeks |! of |! supply (Assets |! committed |! to |! inventory) |! - |! Correct |! answer |! ✔= |! inventory |! investment |! / |! [Annual |! COGS/52 |! wks] -Smaller |! values |! of |! weeks |! of |! supply |! is |! BETTER |! than |! larger |! values The |! Transportation |! Problem |! - |! Correct |! answer |! ✔-Also |! known |! as |! the |! Demand |! Allocation |! Problem -Minimize |! cost |! of |! satisfying |! fixed |! and |! known |! demand |! at |! multiple |! destinations -limited |! supply |! of |! product |! at |! multiple |! sources Transportation |! problem |! Objective |! - |! Correct |! answer |! ✔-minimize |! total |! cost |! of |! shipping |! from |! each |! of |! the |! "sources" |! to |! each |! of |! the |! "destinations" -Subject |! to |! the |! following |! requirements:
- |! total |! amount |! shipped |! out |! of |! a |! source |! (outbound) |! cannot |! exceed |! its |! supply
- |! total |! amount |! shipped |! to |! a |! destination |! (inbound) |! must |! equal |! its |! demand |! requirement solving |! the |! transportation |! problem |! - |! Correct |! answer |! ✔1. |! Manual |! methods: -Greedy |! Heuristic
- |! Computerized: -optimization -excel- |! Solver -specialized |! optimization |! packages The |! Greedy |! Heuristic |! for |! the |! TP |! - |! Correct |! answer |! ✔1. |! find |! the |! cheapest |! remaining |! origin-destination |! (O-D) |! pair
- |! set |! the |! amount |! shipped |! equal |! to |! the |! amount |! of |! supply |! left |! at |! the |! origin, |! or |! the |! amount |! of |! unfulfilled |! demand |! at |! the |! destination, |! whichever |! is |! smaller
- |! if |! all |! demand |! is |! filled, |! stop. |! otherwise |! go |! back |! to |! step |! 1
-Important |! because |! inventory |! is |! one |! of |! a |! company's |! most |! expensive |! assets, |! representing |! as |! much |! as |! 50% |! of |! total |! invested |! capital Functions |! of |! Inventory |! - |! Correct |! answer |! ✔1. |! To |! decouple |! or |! separate |! various |! parts |! of |! the |! production |! process
- |! To |! isolate |! the |! firm |! from |! fluctuations |! in |! demand |! and |! provide |! a |! stock |! of |! goods |! that |! will |! provide |! a |! selection |! for |! customers
- |! To |! take |! advantage |! of |! quantity |! discounts
- |! To |! hedge |! against |! inflation Managing |! Inventory |! - |! Correct |! answer |! ✔1. |! How |! inventory |! items |! can |! be |! classified |! (ABC |! analysis)
- |! How |! accurate |! inventory |! records |! can |! be |! maintained ABC |! analysis |! - |! Correct |! answer |! ✔-Divides |! inventory |! into |! three |! classes |! based |! on |! annual |! dollar |! volume: Class |! A |! - |! high |! annual |! dollar |! volume
Class |! B |! - |! medium |! annual |! dollar |! volume Class |! C |! - |! low |! annual |! dollar |! volume -Used |! to |! establish |! policies |! that |! focus |! on |! the |! few |! critical |! parts |! and |! not |! the |! many |! trivial |! ones -note: |! other |! criteria |! than |! annual |! dollar |! volume |! may |! be |! used: |! anticipated |! engineering |! changes, |! delivery |! problems, |! quality |! problems, |! high |! unit |! cost purpose |! for |! ABC |! analysis |! classification |! - |! Correct |! answer |! ✔-"A" |! items |! may |! be |! monitored |! much |! more |! closely |! than |! the |! other |! items -Policies |! employed |! may |! include:
- |! more |! emphasis |! on |! supplier |! development |! for |! "A" |! items |!
- |! tighter |! physical |! inventory |! control |! for |! "A" |! items
- |! More |! care |! in |! forecasting |! "A" |! items Record |! Accuracy |! - |! Correct |! answer |! ✔-Accurate |! records |! are |! a |! critical |! ingredient |! in |! production |! and |! inventory |! systems: -Allows |! organization |! to |! focus |! on |! what |! is |! needed
