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Liberty University BUSI 411 exam 4 complete solutions correct answers A+ work
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Liberty University BUSI 411 exam 4 complete solutions correct answers A+ work

There are 8 different versions

 

Question 1 In a single-period inventory situation, the probabilities that demand will be 1, 2, 3, or 4 units are .3, .3, .2, and .2, respectively. If two units are stocked, what is the probability of selling both of them?

Question 2 The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to 5 percent of the cost of the beer. What is the economic order quantity for Stein beer?

Question 3 Which of the following is least likely to be included in order costs?

Question 4 A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost. The production rate would be about double the usage rate. Compared to the EOQ, the maximum inventory would be approximately:

Question 5 A fill rate is the percentage of _____ filled by stock on hand.

Question 6 Which of the following contributes to the competitive advantage enjoyed by firms using lean production?

Question 7 The term that refers to the automatic detection of defects is:

Question 8 Which of the following is not characteristic of preventive maintenance in lean systems?

Question 9 Previously, management calculated the number of kanban cards allowed by using a value of 1.3 for X. Assuming nothing else (e.g., usage rates, container capacities, etc.), which of the following values for X would indicate management's belief that the system has become more efficient?

Question 10 A potential obstacle to conversion to a lean system is:

Question 11 The website and order fulfillment are essential features of:

Question 12 Which of the following is not a benefit of effective supply chain management?

Question 13 Which of the following would not usually be a main factor in selecting a vendor?

Question 14 _________ has/have helped firms to concentrate on their core business.

Question 15 Our organization can obtain visibility to potential trading partners on the Internet by using:

Question 16 Which of the following is the last step in the capacity/scheduling chain?

Question 17 Based on the cost information given in the following table, which set of job-machine pairs reflects the minimum-cost solution using the Assignment method?

Question 18 The operations manager of a body and paint shop has five cars to schedule for repair. He would like to minimize the throughput time to complete all work on these cars. Each car requires body work prior to painting. The estimates of the times required to do the body paint work on each are as follows:

What is the optimum sequence (first car to last)?

Question 19 Which of the following is critical to effective yield management?

Question 20 The scheduling sequencing rule which always results in the lowest average completion (flow) time is the:

Question 21 The inventory value of the supply chain exceeds the inventory value of the organization's work-inprocess inventory.

Question 22 Price is the primary determining factor in choosing a vendor since most products are essentially the same.

Question 23 A 30 percent reduction in product and service variety will not affect the efficiency of a supply chain.

Question 24 A schedule chart depicts the loading and idle times for a group of machines or departments.

Question 25 In a single work center, makespan improvement can be accomplished by selecting the optimal sequencing rule.

 

·         Question 1

3 out of 3 points

In a supermarket, a vendor's restocking the shelves every Monday morning is an example of:

·         Question 2                                                                                                   3 out of 3 points

Average demand for a particular item is 1,200 units per year. It costs $100 to place an order for this item, and it costs $24 to hold one unit of this item in inventory for one year. If the fixed-order-interval model is chosen in this instance, how often (on average) will this item be ordered?

·         Question 3                                                                                                  3 out of 3 points

In the basic EOQ model, if D = 60 per month, S = $12, and H = $10 per unit per month, EOQ is:

·         Question 4                                                                                                  3 out of 3 points

Which one of the following is implied by a lead time service level of 95 percent?

·         Question 5                                                                                                  3 out of 3 points

In the single-period model, if excess cost is double the shortage cost, the approximate stockout risk, assuming an optimum service level, is ___ percent.

·         Question 6                                                                                                  3 out of 3 points

Which of the following is not something commonly found in lean systems?

(I) Waste reduction
(II) Output match to a detailed forecast
(III) Visual controls
(IV) Quick changeovers
(V) Long production runs

·         Question 7                                                                                                  3 out of 3 points

A system of lights used at each workstation to signal problems or slowdowns is:

·         Question 8                                                                                                  3 out of 3 points

Which of the following is characteristic of the lean philosophy?

·         Question 9                                                                                                  3 out of 3 points

The kaizen philosophy applies to:

·         Question 10                                                                                      3 out of 3 points

With regard to suppliers, lean systems typically require:

·         Question 11                                                                                      3 out of 3 points

Which of these aspects of supply chain management are especially concerning to small business?

(I) customer reliability
(II) inventory management
(III) purchasing costs
(IV) risk management
(V) international trade

·         Question 12

3 out of 3 points

Small changes in consumer demand can result in large variations in orders placed because of the:

·         Question 13

3 out of 3 points

Which of the following is not a benefit of effective supply chain management?

·         Question 14

3 out of 3 points

Which of the following is not true of vendor analysis?

·         Question 15

3 out of 3 points

Vendor analysis has the greatest potential for savings for items which have:

·         Question 16

3 out of 3 points

There are four resources and four jobs to be done. The time required for each resource to do each job is as follows:
After the row reduction, what is the reduced time for assigning resource 4 to Job D?

·         Question 17

3 out of 3 points

The operations manager of a body and paint shop has five cars to schedule for repair. He would like to minimize the throughput time to complete all work on these cars. Each car requires body work prior to painting. The estimates of the times required to do the body paint work on each are as follows:
What is the idle time at the paint work center for the optimal schedule?

·         Question 18

3 out of 3 points

The operations manager of a body and paint shop has five cars to schedule for repair. He would like to minimize the throughput time to complete all work on these cars. Each car requires body work prior to painting. The estimates of the times required to do the body paint work on each are as follows:
Where in the optimum sequence should car A be scheduled?

·         Question 19

3 out of 3 points

The two different approaches to load work centers in job-shop scheduling are:

·         Question 20

3 out of 3 points

Which of the following is least likely to be a consideration when scheduling a high-volume system?

·         Question 21

3 out of 3 points

In the single-period model, the service level is the probability that demand will not exceed the stocking level in any period.

·         Question 22

3 out of 3 points

An advantage of decentralized purchasing is the attention given to local needs.

·         Question 23

3 out of 3 points

Using third-party logistics involves using your organization's logistics function to ship to customers that are not officially part of the supply chain.

·         Question 24

3 out of 3 points

A schedule chart depicts the loading and idle times for a group of machines or departments.

·         Question 25

3 out of 3 points

The output of the system cannot exceed the output of the bottleneck operation(s).

 

Question 1 The Operations Manager for Shadyside Savings & Loan orders cash from her home office for her very popular "BIG BUCKS" automated teller machine, which only dispenses $100 bills. She estimates that this machine dispenses an average of 12,500 bills per month, and that carrying a bill in inventory costs 10 percent of its value annually. She knows that each order for these bills costs $300 for clerical and armored car delivery costs, and that order lead time is six days. What is the economic order quantity?

Question 2 In the basic EOQ model, if D = 60 per month, S = $12, and H = $10 per unit per month, EOQ is:

Question 3 The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six­pack (each case of Stein beer contains four six­packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to 5 percent of the cost of the beer. If he were to order 16 cases of Stein beer at a time, what would be the daily total inventory costs, EXCLUDING the cost of the beer?

Question 4 In a two­bin inventory system, the amount contained in the second bin is equal to the:

Question 5 Which of the following is not true for the economic production quantity model?

Question 6 Which one of the following is not one of the building blocks that is the foundation of the lean philosophy?

Question 7 A system of lights used at each workstation to signal problems or slowdowns is:

Question 8 Having a vendor be responsible for managing the restocking of inventory is what is meant by the term:

Question 9 Breakdown programs often are prioritized such that some equipment gets a lot of attention and other equipment gets very little. This typically reflects the fact that breakdowns are consistent with:

Question 10 The goal of maintenance is to maintain the productive system in good working order while minimizing:

Question 11 It is especially the case for small businesses that closer interactions and increased agility make __________ relatively more attractive.

Question 12 Which of the following is not a goal of supply chain management?

Question 13 The website and order fulfillment are essential features of:

Question 14 The two types of decisions that are relevant to supply chain management are:

Question 15 Which of the following is a principle required for ethical behavior in purchasing? (I) loyalty to employer (II) justice to those you deal with (III) faith in your profession

Question 16 In theory of constraints scheduling, the synchronization of the sequence of operations is referred to as the:

Question 17 A work center can be a: (I) machine. (II) group of machines. (III) department. (IV) facility.

Question 18 The president of a consulting firm wants to minimize the total number of hours it will take to complete four projects for a new client. Accordingly, she has estimated the time it should take for each of her top consultants—Charlie, Betty, Johnny, and Rick—to complete any of the four projects, as follows: In how many different ways can she assign these consultants to these projects?

Question 19 Scheduled due dates are the result of:

Question 20 Which sequencing rule is designed specifically to minimize job tardiness?

Question 21 To provide satisfactory levels of customer service while keeping inventory costs within reasonable bounds, two fundamental decisions must be made about inventory: the timing and the size of orders.

Question 22 Returned goods are part of reverse logistics.

Question 23 Disintermediation refers to the phenomenon that the traditional retailer or service provider is reduced or eliminated in a supply chain.

Question 24 If optimal sequencing through three work centers is desired, Johnson's rule II is used rather than Johnson's rule.

Question 25 The assignment method is limited to a maximum of two jobs per resource

 

1. One important use of inventories in manufacturing is to decouple operations through the use of work-inprocess inventories.

True False

2. The objective of inventory management is to minimize the cost of holding inventory.

True False

3. A retail store that carries twice as much inventory as its competitor will provide twice the customer service level.

True False

4. The overall objective of inventory management is to achieve satisfactory levels of customer service while keeping inventory costs reasonable.

True False

5. The two main concerns of inventory control relate to the costs and the level of customer service.

True False

6. To provide satisfactory levels of customer service while keeping inventory costs within reasonable bounds, two fundamental decisions must be made about inventory: the timing and the size of orders.

True False

7. In the EOQ formula, holding costs under 10 percent are expressed as percentages, above 10 percent are expressed as annual unit costs.

True False

8. DVD recorders would be an example of independent-demand items.

True False

9. Reorder point models are primarily used for dependent-demand items.

True False

10. An example of inventory holding cost is the cost of moving goods to temporary storage after receipt from a supplier.

True False

11. Decoupling operations applies to the railroad industry.

True False

12. Interest, insurance, and opportunity costs are all associated with holding costs.

True False

13. The A-B-C approach involves classifying inventory items by unit cost, with expensive items classified as A items and low-cost items classified as C items.

True False

14. An inventory buffer adds value and lowers cost in all supply chains.

True False

15. In the A-B-C approach, C items typically represent about 15 percent of the number of items, but 60 percent of the dollar usage.

True False

16. EOQ inventory models are basically concerned with the timing of orders.

True False

17. The average inventory level is inversely related to order size.

True False

18. The average inventory level and the number of orders per year are inversely related: As one increases, the other decreases.

True False

19. The EOQ should be regarded as an approximate quantity rather than an exact quantity. Thus, rounding the calculated value is acceptable.

True False

20. Carrying cost is a function of order size; the larger the order, the higher the inventory carrying cost.

True False

21. Understocking an inventory item is a sure sign of inadequate inventory control.

True False

22. Annual ordering cost is inversely related to order size.

True False

23. The total cost curve is relatively flat near the EOQ.

True False

24. Because price is not a factor in the EOQ formula, quantity discounts will not affect EOQ calculations.

True False

25. In the quantity discount model, if holding costs are given as a percentage of unit price, a graph of the total cost curves will have the same EOQ for each curve.

True False

26. In the quantity discount model, the optimum quantity will always be found on the lowest total cost curve.

True False

27. ROP models indicate to managers the time between orders.

True False

28. When to order can be calculated by the ROP and expressed as a quantity.

True False

29. The rate of demand is an important factor in determining the ROP.

True False

30. The inventory value of the supply chain exceeds the inventory value of the organization's work-in-process inventory.

True False

31. Safety stock is held because we anticipate future demand.

True False

32. Variability in demand and/or lead time can be compensated for by safety stock.

True False

33. Solving quality problems can lead to lower inventory levels.

True False

34. ROP models assume that demand during lead time is composed of a series of dependent daily demands.

True False

35. Profit margins tend to be inversely related to inventory turns.

True False

36. In the fixed-order-interval model, the order size is the same for each order.

True False

37. The fixed-order-interval model requires a continuous monitoring of inventory levels.

True False

38. Discrete stocking levels are used when an organization does not want visibility of inventory levels.

True False

39. The fixed-order-interval model requires a larger amount of safety stock than the ROP model for the same risk of a stockout.

True False

40. The single-period model can be very helpful in determining when to order.

True False

41. The single-period model can be very helpful in determining how much to order.

True False

42. Monitoring inventory turns over time can be used as a measure of performance.

True False

43. A single-period model would be used mainly by organizations going out of business.

True False

44. The basic EOQ model ignores the purchasing cost.

True False

45. When the item is offered for resale, shortage costs in the single-period model can include a charge for loss of customer goodwill.

True False

46. In the single-period model, the service level is the probability that demand will not exceed the stocking level in any period.

True False

47. A quantity discount will lower the reorder point.

True False

48. It is critical that the exact quantity calculated in the EOQ model be ordered.

True False

49. Safety stock eliminates all stockouts.

True False

50. The calculation of safety stock requires knowledge of demand and lead time variability.

True False

51. The two basic issues in inventory are how much to order and when to order.

True False

52. Cycle counting can be used in motorcycle inventory control.

True False

53. Using the EOQ model, the higher an item's carrying costs, the more frequently it will be ordered.

True False

54. A stock or store of goods is called a(n):

A. bundler.

B. servicer.

C. retailer.

D. supply chain.

E. inventory.

55. Which of the following is typically the largest of all inventory costs?

A. shortage cost

B. purchase cost

C. holding cost

D. ordering cost

E. pipeline cost

56. Even though it is often the case that no cash outflows result when demand exceeds capacity, __________ can nevertheless be experienced in those circumstances.

A. foreorder costs

B. service costs

C. shortage costs

D. holding costs

E. setup costs

57. If there are shipping cost economies that result from bundling orders for different items together, the __________ model becomes a relatively more attractive option.

A. multi-period

B. reorder-point

C. fixed-order-quantity

D. fixed-order-interval

E. multi-item

58. Average demand for a particular item is 1,200 units per year. It costs $100 to place an order for this item, and it costs $24 to hold one unit of this item in inventory for one year. If the fixed-order-interval model is chosen in this instance, how often (on average) will this item be ordered?

A. once a month

B. once every other month

C. twice a month

D. twice every three months

E. three times every two months

59. Weekly demand for a particular item averages 30 units, with a standard deviation of 4. This item is managed with a fixed-order-interval model. The order interval is three weeks, and this item has a certain lead time of one week. The desired service level is 97.5 percent. Assume that it is now time to place another order, and there are 43 units on hand. How many units should be ordered?

A. 120

B. 93

C. 136

D. 46

E. 84

60. Which of the following is not one of the assumptions of the basic EOQ model?

A. Annual demand requirements are known and constant.

B. Lead time does not vary.

C. Each order is received in a single delivery.

D. Quantity discounts are available.

E. Ordering and holding costs have been estimated reasonably accurately.

61. Which of the following interactions with vendors would potentially lead to inventory reductions?

A. reduced lead times

B. increased safety stock

C. less frequent purchases

D. larger batch quantities

E. longer order intervals

62. A nonlinear cost related to order size is the cost of:

A. interest.

B. insurance.

C. taxes.

D. receiving.

E. space.

63. In a two-bin inventory system, the amount contained in the second bin is equal to the:

A. ROP.

B. EOQ.

C. amount in the first bin.

D. optimum stocking level.

E. safety stock.

64. When carrying costs are stated as a percentage of unit price, the minimum points on the total cost curves:

A. line up.

B. equal zero.

C. do not line up.

D. cannot be calculated.

E. depend on the percentage assigned.

65. Dairy items, fresh fruit, and newspapers are items that:

A. do not require safety stocks.

B. cannot be ordered in large quantities.

C. are subject to deterioration and spoilage.

D. require that prices be lowered every two days.

E. have minimal holding costs.

66. Which of the following is least likely to be included in order costs?

A. processing vendor invoices for payment

B. processing purchase order

C. inspecting incoming goods for quantity

D. taking an inventory to determine how much is needed

E. temporary storage of delivered goods

67. In an A-B-C system, the typical percentage of the number of items in inventory for A items is about:

A. 10.

B. 30.

C. 50.

D. 70.

E. 90.

68. In the A-B-C classification system, items which account for 15 percent of the total dollar volume for a majority of the inventory items would be classified as:

A. A items.

B. B items.

C. C items.

D. A items plus B items.

E. B items plus C items.

69. In the A-B-C classification system, items which account for 60 percent of the total dollar volume for few inventory items would be classified as:

A. A items.

B. B items.

C. C items.

D. A items plus B items.

E. B items plus C items.

70. The purpose of cycle counting is to:

A. count all the items in inventory.

B. count bicycles and motorcycles in inventory.

C. reduce discrepancies between inventory records and actual quantities.

D. reduce theft.

E. count 10 percent of the items each month.

71. The EOQ model is most relevant for which one of the following?

A. ordering items with dependent demand

B. determination of safety stock

C. ordering perishable items

D. determining fixed-interval order quantities

E. determining fixed order quantities

72. Which is not a true assumption in the EOQ model?

A. Production rate is constant.

B. Lead time does not vary.

C. No more than three items are involved.

D. Usage rate is constant.

E. No quantity discounts.

73. In a supermarket, a vendor's restocking the shelves every Monday morning is an example of:

A. safety stock replenishment.

B. economic order quantities.

C. reorder points.

D. fixed order intervals.

E. blanket ordering.

74. A cycle count program will usually require that A items be counted:

A. daily.

B. once a week.

C. monthly.

D. quarterly.

E. more often than annually.

75. A risk avoider would want ______ safety stock.

A. less

B. more

C. the same

D. zero

E. 50 percent

76. In the basic EOQ model, if annual demand doubles, the effect on the EOQ is:

A. It doubles.

B. It is four times its previous amount.

C. It is half its previous amount.

D. It is about 70 percent of its previous amount.

E. It increases by about 40 percent.

77. In the basic EOQ model, if lead time increases from five to 10 days, the EOQ will:

A. double.

B. increase, but not double.

C. decrease by a factor of 2.

D. remain the same.

E. increase, but more information is needed to calculate exactly how much.

78. In the basic EOQ model, an annual demand of 40 units, an ordering cost of $5, and a holding cost of $1 per unit per year will result in an EOQ of:

A. 20.

B. square root of 200.

C. 200.

D. 400.

E. 600.

79. In the basic EOQ model, if D = 60 per month, S = $12, and H = $10 per unit per month, EOQ is:

A. 10.

B. 12.

C. 24.

D. 72.

E. 144.

80. In the basic EOQ model, if annual demand is 50, carrying cost is $2, and ordering cost is $15, EOQ is approximately:

A. 11.

B. 20.

C. 24.

D. 28.

E. 375.

81. Which of the following is not true for the economic production quantity model?

A. Usage rate is constant.

B. Production rate exceeds usage rate.

C. Run size exceeds maximum inventory.

D. There are no ordering or setup costs.

E. Average inventory is one-half maximum inventory.

82. Given the same demand, setup/ordering costs, and carrying costs, the EPQ calculated using incremental replenishment will be ____________ if instantaneous replenishment was assumed.

A. greater than the EOQ

B. equal to the EOQ

C. smaller than the EOQ

D. greater than or equal to the EOQ

E. smaller than or equal to the EOQ

83. The introduction of quantity discounts will cause the optimum order quantity to be:

A. smaller.

B. unchanged.

C. greater.

D. smaller or unchanged.

E. unchanged or greater.

84. A fill rate is the percentage of _____ filled by stock on hand.

A. shipments

B. demand

C. inventory

D. safety stock

E. lead time

85. In the quantity discount model, with carrying cost stated as a percentage of unit purchase price, in order for the EOQ of the lowest curve to be optimum, it must:

A. have the lowest total cost.

B. be in a feasible range.

C. be to the left of the price break quantity for that price.

D. have the largest quantity compared to other EOQs.

E. have smaller ordering costs than the others.

86. Which one of the following is not generally a determinant of the reorder point?

A. rate of demand

B. length of lead time

C. lead time variability

D. stockout risk

E. purchase cost

87. If no variations in demand or lead time exist, the ROP will equal:

A. the EOQ.

B. expected usage during lead time.

C. safety stock.

D. the service level.

E. the EOQ plus safety stock.

88. If average demand for an inventory item is 200 units per day, lead time is three days, and safety stock is 100 units, the reorder point is:

A. 100 units.

B. 200 units.

C. 300 units.

D. 600 units.

E. 700 units.

89. Which one of the following is implied by a lead time service level of 95 percent?

A. Approximately 95 percent of demand during lead time will be satisfied.

B. Approximately 95 percent of inventory will be used during lead time.

C. The probability is .95 that demand during lead time will exactly equal the amount on hand at the beginning of lead time.

D. The probability is .95 that demand during lead time will not exceed the amount on hand at the beginning of lead time.

E. The probability is .95 that the order will arrive after the on-hand inventory is exhausted.

90. Which one of the following is implied by an annual service level of 95 percent?

A. Approximately 95 percent of demand during lead time will be satisfied.

B. The probability is .95 that demand will exceed supply during lead time.

C. The probability is .95 that demand will equal supply during lead time.

D. The probability is .95 that demand will not exceed supply during lead time.

E. Approximately 95 percent of all demand will actually be satisfied directly from on-hand inventory.

91. Daily usage is exactly 60 gallons per day. Lead time is normally distributed with a mean of 10 days and a standard deviation of 2 days. What is the standard deviation of demand during lead time?

A. 60 times 2

B. 60 times the square root of 2

C. 60 times the square root of 10

D. 60 times 10

E. 10 times the square root of 2

92. Lead time is exactly 20 days long. Daily demand is normally distributed with a mean of 10 gallons per day and a standard deviation of 2 gallons. What is the standard deviation of demand during lead time?

A. 20 times 2

B. 20 times 10

C. 2 times the square root of 20

D. 2 times the square root of 10

E. 400 times the square root of 10

93. All of the following are possible reasons for using the fixed-order-interval model except:

A. supplier policy encourages use.

B. grouping orders can save in shipping costs.

C. the required safety stock is lower than with an EOQ/ROP model.

D. it is suited to periodic checks of inventory levels rather than continuous monitoring.

E. continuous monitoring is not practical.

94. Which of these products would be most apt to involve the use of a single-period model?

A. gold coins

B. hammers

C. fresh fish

D. calculators

E. frozen corn

95. In a single-period model, if shortage and excess costs are equal, then the optimum service level is:

A. 0.

B. .33.

C. .50.

D. .67.

E. .75.

96. In a single-period model, if shortage cost is four times excess cost, then the optimum service level is ___ percent.

A. 100

B. 80

C. 60

D. 40

E. 20

97. In the single-period model, if excess cost is double the shortage cost, the approximate stockout risk, assuming an optimum service level, is ___ percent.

A. 100

B. 67

C. 50

D. 33

E. 5

98. In a single-period inventory situation, the probabilities that demand will be 1, 2, 3, or 4 units are .3, .3, .2, and .2, respectively. If two units are stocked, what is the probability of selling both of them?

A. .5

B. .6

C. .7

D. .8

E. .9

99. The management of supply chain inventories focuses on:

A. internal inventories.

B. external inventories.

C. both internal and external inventories.

D. safety stock elimination.

E. optimizing reorder points.

100.An operations strategy for inventory management should work toward:

A. increasing lot sizes.

B. decreasing lot sizes.

C. increasing safety stocks.

D. decreasing service levels.

E. increasing order quantities.

101.Cycle stock inventory is intended to deal with:

A. excess costs.

B. shortage costs.

C. stockouts.

D. expected demand.

E. quantity discounts.

102.An operations strategy which recognizes high carrying costs and reduces ordering costs will result in:

A. unchanged order quantities.

B. slightly decreased order quantities.

C. greatly decreased order quantities.

D. slightly increased order quantities.

E. greatly increased order quantities.

103.The need for safety stocks can be reduced by an operations strategy which:

A. increases lead time.

B. increases lead time variability.

C. increases lot sizes.

D. decreases ordering costs.

E. decreases lead time variability.

104.If average demand for an item is 20 units per day, safety stock is 50 units, and lead time is four days, the ROP will be:

A. 20.

B. 50.

C. 70.

D. 80.

E. 130.

105.With an A-B-C system, an item that had a high demand but a low annual dollar volume would probably be classified as:

A. A.

B. B.

C. C.

106.The fixed-order-interval model would be most likely to be used for this situation:

A. A company has switched from mass production to lean production.

B. Production is done in batches.

C. Spare parts are ordered when a new machine is purchased.

D. Grouping orders can save shipping costs.

E. Demand is highly variable

107.Which item would be least likely to be ordered under a fixed-order-interval system?

A. textbooks at a college bookstore

B. auto parts at an assembly plant

C. cards at a gift shop

D. canned peas at a supermarket

108.Which one of these would not be a factor in determining the reorder point?

A. the EOQ

B. the lead time

C. the variability of demand

D. the demand or usage rate

E. all are factors

109.A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost. The production rate would be about double the usage rate. Compared to the EOQ, the economic production quantity would be approximately:

A. the same.

B. 20 percent larger.

C. 40 percent larger.

D. 20 percent smaller.

E. 40 percent smaller.

110.A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost. The production rate would be about double the usage rate. Compared to the EOQ, the maximum inventory would be approximately:

A. 70 percent higher.

B. 30 percent higher.

C. the same.

D. 30 percent lower.

E. 70 percent lower.

111.The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to 5 percent of the cost of the beer. At what point should he reorder Stein beer?

A. 0 cases remaining

B. 4 cases remaining

C. 12 cases remaining

D. 16 cases remaining

E. 20 cases remaining

112.The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to 5 percent of the cost of the beer. If he were to order 16 cases of Stein beer at a time, what would be the length of an order cycle?

A. .25 days

B. 3 days

C. 1 day

D. 4 days

E. 20 days

113.The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to 5 percent of the cost of the beer. If he were to order 16 cases of Stein beer at a time, what would be the average inventory level?

A. 4 cases

B. 12 cases

C. 8 cases

D. 20 cases

E. 16 cases

114.The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to 5 percent of the cost of the beer. If he were to order 16 cases of Stein beer at a time, what would be the daily total inventory costs, EXCLUDING the cost of the beer?

A. $2.00

B. $4.00

C. $1.28

D. $3.28

E. $2.56

115.The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to 5 percent of the cost of the beer. What is the economic order quantity for Stein beer?

A. 8 cases

B. 11 cases

C. 14 cases

D. 20 cases

E. 32 cases

116.Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is three days, and the pepperoni itself costs $3.00 per pound. At what point should she reorder pepperoni?

A. 20 pounds remaining

B. 40 pounds remaining

C. 60 pounds remaining

D. 80 pounds remaining

E. 100 pounds remaining

117.Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is three days, and the pepperoni itself costs $3.00 per pound. If she were to order 80 pounds of pepperoni at a time, what would be the length of an order cycle?

A. 0 days

B. 0.25 days

C. 3 days

D. 4 days

E. 5 days

118.Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is three days, and the pepperoni itself costs $3.00 per pound. If she were to order 80 pounds of pepperoni at a time, what would be the average inventory level?

A. 20 pounds

B. 40 pounds

C. 60 pounds

D. 80 pounds

E. 100 pounds

119.Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is three days, and the pepperoni itself costs $3.00 per pound. If she were to order 80 pounds of pepperoni at a time, what would be the total daily costs, including the cost of the pepperoni?

A. $60.00

B. $63.20

C. $64.00

D. $64.10

E. $65.00

120.Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is three days, and the pepperoni itself costs $3.00 per pound. What is the economic order quantity for pepperoni?

A. 20 pounds

B. 40 pounds

C. 60 pounds

D. 80 pounds

E. 100 pounds

121.The Operations Manager for Shadyside Savings & Loan orders cash from her home office for her very popular "BIG BUCKS" automated teller machine, which only dispenses $100 bills. She estimates that this machine dispen

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Liberty University BUSI 411 exam 4 complete solutions correct answers A+ work
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Liberty University BUSI 411 exam 4 complete solutions correct answers A+ work There are 8 different versions Question 1 In a single-period inventory situation, the probabilities that demand will be 1, 2, 3, or 4 units are .3, .3, .2, and .2, respectively. If two units are stocked, what is the probability of selling both of them? Question 2 The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to 5 percent of the cost of the beer. What is the economic order quantity for Stein beer? Question 3 Which of the following is least likely to be included in order costs? Question 4 A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost. The production rate would be about double the usage rate. Compared to the EOQ, the maximum inventory would be approximately: Question 5 A fill rate is the percentage of _____ filled by stock on hand. Question 6 Which of the following contributes to the competitive advantage enjoyed by firms using lean production? Question 7 The term that refers to the automatic detection of defects is: Question 8 Which of the following is not characteristic of preventive maintenance in lean systems? Question 9 Previously, management calculated the number of kanban cards allowed by using a value of 1.3 for X. Assuming nothing else (e.g., usage rates, container capacities, etc.), which of the following values for X would indicate management's belief that the system has become more efficient? Question 10 A potential obstacle to conversion to a lean system is: Question 11 The website and order fulfillment are essential features of: Question 12 Which of the following is not a benefit of effective supply chain management? Question 13 Which of the following would not usually be a main factor in selecting a vendor? Question 14 _________ has/have helped firms to concentrate on their core business. Question 15 Our organization can obtain visibility to potential trading partners on the Internet by using: Question 16 Which of the following is the last step in the capacity/scheduling chain? Question 17 Based on the cost information given in the following table, which set of job-machine pairs reflects the minimum-cost solution using the Assignment method? Question 18 The operations manager of a body and paint shop has five cars to schedule for repair. He would like to minimize the throughput time to complete all work on these cars. Each car requires body work prior to painting. The estimates of the times required to do the body paint work on each are as follows: What is the optimum sequence (first car to last)? Question 19 Which of the following is critical to effective yield management? Question 20 The scheduling sequencing rule which always results in the lowest average completion (flow) time is the: Question 21 The inventory value of the supply chain exceeds the inventory value of the organization's work-inprocess inventory. Question 22 Price is the primary determining factor in choosing a vendor since most products are essentially the same. Question 23 A 30 percent reduction in product and service variety will not affect the efficiency of a supply chain. Question 24 A schedule chart depicts the loading and idle times for a group of machines or departments. Question 25 In a single work center, makespan improvement can be accomplished by selecting the optimal sequencing rule. • Question 1 3 out of 3 points In a supermarket, a vendor's restocking the shelves every Monday morning is an example of: • Question 2 3 out of 3 points Average demand for a particular item is 1,200 units per year. It costs $100 to place an order for this item, and it costs $24 to hold one unit of this item in inventory for one year. If the fixed-order-interval model is chosen in this instance, how often (on average) will this item be ordered? • Question 3 3 out of 3 points In the basic EOQ model, if D = 60 per month, S = $12, and H = $10 per unit per month, EOQ is: • Question 4 3 out of 3 points Which one of the following is implied by a lead time service level of 95 percent? • Question 5 3 out of 3 points In the single-period model, if excess cost is double the shortage cost, the approximate stockout risk, assuming an optimum service level, is ___ percent. • Question 6 3 out of 3 points Which of the following is not something commonly found in lean systems? (I) Waste reduction (II) Output match to a detailed forecast (III) Visual controls (IV) Quick changeovers (V) Long production runs • Question 7 3 out of 3 points A system of lights used at each workstation to signal problems or slowdowns is: • Question 8 3 out of 3 points Which of the following is characteristic of the lean philosophy? • Question 9 3 out of 3 points The kaizen philosophy applies to: • Question 10 3 out of 3 points With regard to suppliers, lean systems typically require: • Question 11 3 out of 3 points Which of these aspects of supply chain management are especially concerning to small business? (I) customer reliability (II) inventory management (III) purchasing costs (IV) risk management (V) international trade • Question 12 3 out of 3 points Small changes in consumer demand can result in large variations in orders placed because of the: • Question 13 3 out of 3 points Which of the following is not a benefit of effective supply chain management? • Question 14 3 out of 3 points Which of the following is not true of vendor analysis? • Question 15 3 out of 3 points Vendor analysis has the greatest potential for savings for items which have: • Question 16 3 out of 3 points There are four resources and four jobs to be done. The time required for each resource to do each job is as follows: After the row reduction, what is the reduced time for assigning resource 4 to Job D? • Question 17 3 out of 3 points The operations manager of a body and paint shop has five cars to schedule for repair. He would like to minimize the throughput time to complete all work on these cars. Each car requires body work prior to painting. The estimates of the times required to do the body paint work on each are as follows: What is the idle time at the paint work center for the optimal schedule? • Question 18 3 out of 3 points The operations manager of a body and paint shop has five cars to schedule for repair. He would like to minimize the throughput time to complete all work on these cars. Each car requires body work prior to painting. The estimates of the times required to do the body paint work on each are as follows: Where in the optimum sequence should car A be scheduled? • Question 19 3 out of 3 points The two different approaches to load work centers in job-shop scheduling are: • Question 20 3 out of 3 points Which of the following is least likely to be a consideration when scheduling a high-volume system? • Question 21 3 out of 3 points In the single-period model, the service level is the probability that demand will not exceed the stocking level in any period. • Question 22 3 out of 3 points An advantage of decentralized purchasing is the attention given to local needs. • Question 23 3 out of 3 points Using third-party logistics involves using your organization's logistics function to ship to customers that are not officially part of the supply chain. • Question 24 3 out of 3 points A schedule chart depicts the loading and idle times for a group of machines or departments. • Question 25 3 out of 3 points The output of the system cannot exceed the output of the bottleneck operation(s). Question 1 The Operations Manager for Shadyside Savings & Loan orders cash from her home office for her very popular "BIG BUCKS" automated teller machine, which only dispenses $100 bills. She estimates that this machine dispenses an average of 12,500 bills per month, and that carrying a bill in inventory costs 10 percent of its value annually. She knows that each order for these bills costs $300 for clerical and armored car delivery costs, and that order lead time is six days. What is the economic order quantity? Question 2 In the basic EOQ model, if D = 60 per month, S = $12, and H = $10 per unit per month, EOQ is: Question 3 The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six¬pack (each case of Stein beer contains four six¬packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to 5 percent of the cost of the beer. If he were to order 16 cases of Stein beer at a time, what would be the daily total inventory costs, EXCLUDING the cost of the beer? Question 4 In a two¬bin inventory system, the amount contained in the second bin is equal to the: Question 5 Which of the following is not true for the economic production quantity model? Question 6 Which one of the following is not one of the building blocks that is the foundation of the lean philosophy? Question 7 A system of lights used at each workstation to signal problems or slowdowns is: Question 8 Having a vendor be responsible for managing the restocking of inventory is what is meant by the term: Question 9 Breakdown programs often are prioritized such that some equipment gets a lot of attention and other equipment gets very little. This typically reflects the fact that breakdowns are consistent with: Question 10 The goal of maintenance is to maintain the productive system in good working order while minimizing: Question 11 It is especially the case for small businesses that closer interactions and increased agility make __________ relatively more attractive. Question 12 Which of the following is not a goal of supply chain management? Question 13 The website and order fulfillment are essential features of: Question 14 The two types of decisions that are relevant to supply chain management are: Question 15 Which of the following is a principle required for ethical behavior in purchasing? (I) loyalty to employer (II) justice to those you deal with (III) faith in your profession Question 16 In theory of constraints scheduling, the synchronization of the sequence of operations is referred to as the: Question 17 A work center can be a: (I) machine. (II) group of machines. (III) department. (IV) facility. Question 18 The president of a consulting firm wants to minimize the total number of hours it will take to complete four projects for a new client. Accordingly, she has estimated the time it should take for each of her top consultants—Charlie, Betty, Johnny, and Rick—to complete any of the four projects, as follows: In how many different ways can she assign these consultants to these projects? Question 19 Scheduled due dates are the result of: Question 20 Which sequencing rule is designed specifically to minimize job tardiness? Question 21 To provide satisfactory levels of customer service while keeping inventory costs within reasonable bounds, two fundamental decisions must be made about inventory: the timing and the size of orders. Question 22 Returned goods are part of reverse logistics. Question 23 Disintermediation refers to the phenomenon that the traditional retailer or service provider is reduced or eliminated in a supply chain. Question 24 If optimal sequencing through three work centers is desired, Johnson's rule II is used rather than Johnson's rule. Question 25 The assignment method is limited to a maximum of two jobs per resource 1. One important use of inventories in manufacturing is to decouple operations through th...
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