Description

Chapter: 13- GLOBAL SOURCING AND PROCUREMENT -Problem: 6 >> What is the term used for a company moving management of the complete cycle of material flow to an outside provider?
Answer Preview: Logi…

, Chapter: 3- FORECASTING -Problem: 35 >> Often times, firms will work with their partners across the supply chain to develop forecasts and execute production and distribution between the partners. What technique does this describe?
Answer Preview: Collaborativ…

, Chapter: 2- STRATEGY AND SUSTAINABILITY -Problem: 8 >> What is the diagram that shows how a company’s strategy is delivered by a set of supporting activities called?
Answer Preview: Act…

, Chapter: 9- MATERIAL REQUIREMENTS PLANNING -Problem: 6 >> What is another common name for the bill-of-materials?
Answer Preview: Product …

, Chapter: 1- OPERATIONS AND SUPPLY CHAIN MANAGEMENT -Problem: 4 >> A manufacturing company has entered into a new contract with a major supplier of raw materials used in the manufacturing process. Under the new arrangement, called vendor managed inventory, the supplier manages their raw material inventory inside the manufacturer’s plant, and only bills the manufacturer when the manufacturer consumes the raw material. How is this likely to affect the manufacturer’
Answer Preview: Implementing a vendor-managed inventory (VMI) system, where the supplier manages raw material inventory within the manufacturer's plant and bills the …

, Chapter: 5- PROJECT MANAGEMENT -Problem: 10 >> What do you think might be some barriers to the successful, effective use of the project management software packages discussed?
Answer Preview: The successful and effective use of project management software packages can face various barriers, which can hinder their adoption and utilization within organizations. Some of these barriers include…

, Chapter: 3- FORECASTING -Problem: 32 >> What forecasting technique makes use of written surveys or telephone interviews?
Answer Preview: Mar…

, Chapter: 7- SERVICE PROCESSES -Problem: 1 >> Draw a diagram of the process using the format in Exhibit 7.3
Answer Preview: Customer arrives and enters order queue Greet custome…

, Chapter: 12- LEAN SUPPLY CHAINS -Problem: 8 >> What is used to indicate suggested changes in a process that may lead to improvements in a value stream?
Answer Preview: Ka…

, Chapter: 2- STRATEGY AND SUSTAINABILITY -Problem: 11 >> What are risks caused by natural or manmade disasters, and therefore impossible to reliably predict called?
Answer Preview: Dis…

, Chapter: 10- QUALITY MANAGEMENT AND SIX SIGMA -Problem: 1 >> 1. Consumer Reports, the service that reports unbiased testing and ratings on cars (together with about everything else we buy), recommends avoiding new cars in their first year of production, especially those loaded with new technology. What can Tesla do to refute this recommendation?2. How should Tesla “manage” the delivery of the new Model 3 during the initial production rampup? Think about thi
Answer Preview: 1. This is a tough one for Tesla since they had some problem with the Model X that proceeded the Mod…

, Chapter: 9- MATERIAL REQUIREMENTS PLANNING -Problem: 5 >> What are the three primary data sources used by the MRP system?
Answer Preview: Master produc…

, Chapter: 6- MANUFACTURING PROCESSES -Problem: 5 >> Design a new assembly line that can produce 300 units per day without using overtime.
Answer Preview: The cycle time to meet this production rate without overtime …

, Chapter: 12- LEAN SUPPLY CHAINS -Problem: 13 >> Under a kanban approach to lean manufacturing, order quantities should be as small as possible. For a part that is manufactured in-house, what part of its manufacturing process needs to be reduced to reduce the optimal order quantity for an item?
Answer Preview: Se…

, Chapter: 14- LOGISTICS, DISTRIBUTION, AND TRANSPORTATION -Problem: 2 >> Grainger: Reengineering the China/US Supply Chain W. W. Grainger, Inc. is a leading supplier of maintenance, repair, and operating (MRO) products to businesses and institutions in the United States, Canada, and Mexico with an expanding presence in Japan, India, China, and Panama. The company works with more than 5,000 suppliers and runs an extensive Web site (www.grainger.com) where Grainger offer
Answer Preview: Port to L A. DC Costs Basic Data Seattle Port L A. Port Pct 40% 60% Pct Volume Transshipment …

, Chapter: 13- GLOBAL SOURCING AND PROCUREMENT -Problem: 2 >> Sometimes a company may need to purchase goods or services that are unique, very complex, and/or extremely expensive. These would not be routine purchases, but there may be a number of vendors that could supply what is needed. What process would be used to transmit the company’s needs to the available vendors, asking for a detailed response to the needs?
Answer Preview: Requ…

, Chapter: 8- SALES AND OPERATIONS PLANNING -Problem: 19 >> The essence of yield management is the ability to manage what?
Answer Preview: D…

, Chapter: 8- SALES AND OPERATIONS PLANNING -Problem: 16 >> The widespread scientific application of yield management began within what industry?
Answer Preview: A…

, Chapter: 10- QUALITY MANAGEMENT AND SIX SIGMA -Problem: 2 >> 1. If the specification is such that no washer should be greater than 2.4 millimeters, assuming that the thicknesses are distributed normally, what fraction of the output is expected to be greater than this thickness?2. What if there is an upper and lower specification, where the upper thickness limit is 2.4 and the lower thickness limit 1.4, what fraction of the output is expected to be out of to
Answer Preview: 1. The average thickness in the sample is 1 9625 and the standard deviation is .209624. The probabil…

, Chapter: 9- MATERIAL REQUIREMENTS PLANNING -Problem: 7 >> What is the process to ensure that all of the needs for a particular item are calculated at the same time in the MRP process?
Answer Preview: Low…

, Chapter: 12- LEAN SUPPLY CHAINS -Problem: 1 >> What phrase refers to the idea that every step in supply chain processes that deliver goods and services to the customer should create value?
Answer Preview: Va…

, Chapter: 7- SERVICE PROCESSES -Problem: 3 >> On average, how busy are the Service Champion and the two Food Champions?
Answer Preview: The Service Champion is …

, Chapter: 12- LEAN SUPPLY CHAINS -Problem: 10 >> The periodic inspection and repair of equipment designed to keep the equipment reliable, thus eliminating unplanned downtime due to malfunctions is called ________.
Answer Preview: Prev…

, Chapter: 8- SALES AND OPERATIONS PLANNING -Problem: 18 >> In a yield management system, pricing differences must appear logical and justified to the customer. The basis for this justification is commonly called what?
Answer Preview: Ra…

, Chapter: 13- GLOBAL SOURCING AND PROCUREMENT -Problem: 7 >> Many bottled water manufacturers have recently worked with their suppliers to switch over to bottles using much less plastic than before, reducing the amount of plastic that needs to be transported, recycled, and/or disposed of. What sourcing practice is this an example of?
Answer Preview: Gr…

, Chapter: 12- LEAN SUPPLY CHAINS -Problem: 9 >> What term refers to a schedule that pulls material into final assembly at a constant rate?
Answer Preview: Le…

, Chapter: 5- PROJECT MANAGEMENT -Problem: 8 >> Schedule the following activities using CPM:a. Draw the network path.b. What is the critical path?c. How many weeks will it take to complete the project?d. Which activities have slack, and how much? Transcribed Image Text: ACTIVITY ABCDEFGH IMMEDIATE PREDECESSOR A A B C, D D F E, G TIME (WEEKS) 1 4
Answer Preview: a. b. A-B-D-E-H, also shown in the network abo…

, Chapter: 13- GLOBAL SOURCING AND PROCUREMENT -Problem: 9 >> What three main categories of costs are considered in figuring total cost of ownership?
Answer Preview: Acquisition …

, Chapter: 8- SALES AND OPERATIONS PLANNING -Problem: 5 >> List at least three of the four costs relevant to the aggregate production plan.
Answer Preview: Basic production costs, …

, Chapter: 7- SERVICE PROCESSES -Problem: 4 >> On average, how many cars do you expect to have in the drive-thru line? (Include those waiting to place order and waiting for food.)
Answer Preview: L q due to the order taking = 2 /( - ) = 8100/3600 = 2 25 custom…

, Chapter: 8- SALES AND OPERATIONS PLANNING -Problem: 4 >> What is the term for a more complex production strategy that combines approaches from more than one basis strategy?
Answer Preview: Mi…

, Chapter: 3- FORECASTING -Problem: 2 >> What category of forecasting techniques uses managerial judgment in lieu of numerical data?
Answer Preview: Qual…

, Chapter: 14- LOGISTICS, DISTRIBUTION, AND TRANSPORTATION -Problem: 3 >> Reengineering the China/US Supply Chain W. W. Grainger, Inc. is a leading supplier of maintenance, repair, and operating (MRO) products to businesses and institutions in the United States, Canada, and Mexico with an expanding presence in Japan, India, China, and Panama. The company works with more than 5,000 suppliers and runs an extensive Web site (www.grainger.com) where Grainger offers nearly 1
Answer Preview: Based on the economic analysis this looks attractive as the yearly $466,863 savings would …

, Chapter: 7- SERVICE PROCESSES -Problem: 8 >> Could this type of analysis be used for other service type businesses? Give examples to support your answer.
Answer Preview: Yes, m…

, Chapter: 14- LOGISTICS, DISTRIBUTION, AND TRANSPORTATION -Problem: 4 >> Is this strategically something that Grainger should do? What have they not considered that may be important?
Answer Preview: Rationalizing the network seems to make sense. One thing not considered in this analysi…

, Chapter: 7- SERVICE PROCESSES -Problem: 6 >> Currently, relatively few customers (less than ½%) order the Crunchwrap Supreme. What would happen if the restaurant ran the sale, demand jumped on the Crunchwrap Supreme, and 30% of the orders were for this item? Take a quantitative approach to answering this question. Assume that the Customer Service Champion never helps the Food Champions and that these two processes remain independent.
Answer Preview: Just to make this interesting, lets assume that the customer arrival rate went to 108 custom…

, Chapter: 9- MATERIAL REQUIREMENTS PLANNING -Problem: 4 >> What term is used to identify the difference between the number of units of an item listed on the master schedule and firm customer orders?
Answer Preview: Avai…

, Chapter: 12- LEAN SUPPLY CHAINS -Problem: 11 >> What term refers to the concept of doing things right the first time, and when problems occur, stopping the process to fix the source of the problem?
Answer Preview: Qual…

, Chapter: 5- PROJECT MANAGEMENT -Problem: 16 >> The home office billing department of a chain department stores prepares monthly inventory reports for use by the stores’ purchasing agents. Given the following information, use the critical path method to determine: a. How long the total process will take.b. Which jobs can be delayed without delaying the early start of any subsequent activity.
Answer Preview: a. b. Activities b and d are not on the critical path. Their start can be dela…

, Chapter: 1- OPERATIONS AND SUPPLY CHAIN MANAGEMENT -Problem: 8 >> What high-level OSCM position manager is responsible for working with the CEO and company president to determine the company’s competitive strategy?
Answer Preview: Chie…

, Chapter: 12- LEAN SUPPLY CHAINS -Problem: 7 >> In a data box on a value stream map, what do the abbreviations CT and C/O mean?
Answer Preview: Cycle…

, Chapter: 12- LEAN SUPPLY CHAINS -Problem: 2 >> What term refers to the optimization of value-adding activities and elimination of non-value adding activities that are part of a value stream?
Answer Preview: Was…

, Chapter: 13- GLOBAL SOURCING AND PROCUREMENT -Problem: 5 >> What is the term used for the act of moving some of a company’s internal activities and decision-making processes to outside providers?
Answer Preview: Ou…

, Chapter: 8- SALES AND OPERATIONS PLANNING -Problem: 6 >> Which of the four costs relevant to aggregate production planning is the most difficult to accurately measure?
Answer Preview: Bac…

, Chapter: 7- SERVICE PROCESSES -Problem: 9 >> What are the “Three Ts” relevant to poke-yokes in service systems?
Answer Preview: Task to be done…

, Chapter: 6- MANUFACTURING PROCESSES -Problem: 2 >> When the assembly line designed by the engineers is running at maximum capacity, what is the efficiency of the line relative to its use of labor? Assume that the “supporter” is not included in efficiency calculations.
Answer Preview: For this efficiency calculation, only consider the ta…

, Chapter: 3- FORECASTING -Problem: 10 >> The number of cases of merlot wine sold by the Connor Owen winery in an eight-year period is as follows: Transcribed Image Text: Year 1 2 3 4 Cases of Wine 270 356 398 456 Year 567 8 Cases of Wine 358 500 410 376
Answer Preview: Using an exponential smoothing model with an alpha value of 0 20…

, Chapter: 13- GLOBAL SOURCING AND PROCUREMENT -Problem: 1 >> What term refers to the development and management of supplier relationships to acquire goods and services in a way that helps achieve the immediate needs of a business?
Answer Preview: Str…

, Chapter: 9- MATERIAL REQUIREMENTS PLANNING -Problem: 8 >> What is the MRP term for the time periods used in planning?
Answer Preview: Ti…

, Chapter: 13- GLOBAL SOURCING AND PROCUREMENT -Problem: 10 >> Which category of lifetime product costs is sometimes overemphasized, leading to a failure to fully recognize the total cost of ownership?
Answer Preview: Acq…

, Chapter: 2- STRATEGY AND SUSTAINABILITY -Problem: 13 >> What is the term used to describe the assessment of the probability of a negative event against the aggregate severity of the related loss?
Answer Preview: Ri…

, Chapter: 10- QUALITY MANAGEMENT AND SIX SIGMA -Problem: 1 >> Is the goal of Six Sigma quality realistic for services such as the Best Buy airport or Redbox DVD Kiosks?
Answer Preview: A goal of Six Sigma can also be used for services. …

, Chapter: 8- SALES AND OPERATIONS PLANNING -Problem: 2 >> Distinguish between pure and mixed strategies in production planning.
Answer Preview: Pure strategies use only on…

, Chapter: 2- STRATEGY AND SUSTAINABILITY -Problem: 3 >> What are the major priorities associated with operations and supply chain strategy? For each major priority, describe the unique characteristics of the market niche with which it is most compatible.
Answer Preview: Cost: In most every industry, there is a market segment that is very price sensitive. Firms that ca…

, Chapter: 12- LEAN SUPPLY CHAINS -Problem: 5 >> In value stream mapping, what does an arrow in the shape of a lightning bolt mean?
Answer Preview: Transmi…

, Chapter: 12- LEAN SUPPLY CHAINS -Problem: 6 >> What does an inverted triangle represent in a value stream map?
Answer Preview: Sto…

, Chapter: 13- GLOBAL SOURCING AND PROCUREMENT -Problem: 3 >> Sony Electronics produces a wide variety of electronic products for the consumer marketplace, like laptop computers, PlayStation game consoles and tablet computers. What type of products would these be considered in the Supply Chain Uncertainty Framework?
Answer Preview: Inn…

, Chapter: 3- FORECASTING -Problem: 1 >> What is the term for forecasts used for making day-to-day decisions about meeting demand?
Answer Preview: Tac…

, Chapter: 9- MATERIAL REQUIREMENTS PLANNING -Problem: 3 >> Which scheduling process drives requirements in the MRP process?
Answer Preview: Maste…

, Chapter: 1- OPERATIONS AND SUPPLY CHAIN MANAGEMENT -Problem: 11 >> _____________ leverage the vast amount of data in enterprise resource planning systems to make decisions related to managing resources.
Answer Preview: Bus…

, Chapter: 9- MATERIAL REQUIREMENTS PLANNING -Problem: 2 >> MRP is based on what type of demand?
Answer Preview: Dep…

, Chapter: 3- FORECASTING -Problem: 3 >> Given the following history, use a three-quarter moving average to forecast the demand for the third quarter of this year. Note that the 1st quarter is Jan, Feb, and Mar; 2nd quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec. Transcribed Image Text: Last year This year
Answer Preview: Three quarters ago (Oct, Nov, Dec last year) = 200 + 225 + 250 …

, Chapter: 2- STRATEGY AND SUSTAINABILITY -Problem: 15 >> Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one model, the Windy 2000.Calculate the productivity in sales revenue/labor expense. Transcribed Image Text: Units sold Sale price each Total labor hours Wage rate Total materia
Answer Preview: We have to do some interim calculations here. …

, Chapter: 13- GLOBAL SOURCING AND PROCUREMENT -Problem: 13 >> Which supply chain efficiency measure is more appropriate when the majority of inventory is held in distribution channels?
Answer Preview: Wee…

, Chapter: 12- LEAN SUPPLY CHAINS -Problem: 12 >> In some JIT systems, marked spaces on a table or the floor identify where material should be stored. Supplying operations are signaled to produce more when the space is empty. What are these spaces called?
Answer Preview: Ka…

, Chapter: 13- GLOBAL SOURCING AND PROCUREMENT -Problem: 14 >> What do you call the average total value of all items held in inventory for a firm, at cost?
Answer Preview: Averag…

, Chapter: 12- LEAN SUPPLY CHAINS -Problem: 3 >> Can a supply chain become too lean? Explain your answer – use examples if possible.
Answer Preview: They should deal with the risks inherent in ultra-…

, Chapter: 6- MANUFACTURING PROCESSES -Problem: 4 >> What about running the line at 300 units per day? If overtime were used with the engineer’s initial design, how much time would need to be run each day?
Answer Preview: With the original design, …

, Chapter: 7- SERVICE PROCESSES -Problem: 5 >> If the restaurant runs a sale and the customer arrival rate increases by 20%, how would this change the total time expected to serve a customer? How would this change the average number of cars in the drive-thru line?
Answer Preview: The current customer arrival rate is 90 per hour, t…

, Chapter: 8- SALES AND OPERATIONS PLANNING -Problem: 17 >> Under what type of demand is yield management most effective?
Answer Preview: Hig…

, Chapter: 12- LEAN SUPPLY CHAINS -Problem: 11 >> Explain the relationship between quality and productivity under the lean philosophy.
Answer Preview: Under JIT, quality and productivity are key and …

, Chapter: 10- QUALITY MANAGEMENT AND SIX SIGMA -Problem: 11 >> In the situation described in Question 10, what would be the effect on the cost of quality to the supplier?Data from Question 10In an agreement between a supplier and a customer, the supplier must ensure that all parts are within tolerance before shipment to the customer. What would be the effect on the cost of quality to the customer?
Answer Preview: In the situation described, where the supplier must ensure that all parts are within tolerance before shipment to the customer, there would likely be …

, Chapter: 4- STRATEGIC CAPACITY MANAGEMENT -Problem: 1 >> Firm A typically sees a learning percentage of 85% in their processes. Firm B has a learning percentage of 80%. Which firm has the faster learning rate?
Answer Preview: F…

, Chapter: 10- QUALITY MANAGEMENT AND SIX SIGMA -Problem: 14 >> What is the term for a flowchart that is used to separate value-added from non-value-added steps in a process?
Answer Preview: Oppo…

, Chapter: 3- FORECASTING -Problem: 34 >> When forecasting demand for new products, sometimes firms will use demand data from similar existing products to help forecast demand for the new product. What technique is this an example of?
Answer Preview: His…

, Chapter: 13- GLOBAL SOURCING AND PROCUREMENT -Problem: 8 >> What term is used to refer to those activities that are the key source of competitive advantage??
Answer Preview: Stra…

, Chapter: 1- OPERATIONS AND SUPPLY CHAIN MANAGEMENT -Problem: 3 >> Consider the following financial data from the past year for Midwest Outdoor Equipment Corporation.a. Compute the receivable turnover ratio.b. Compute the inventory turnover ratio.c. Compute the asset turnover ratio. Transcribed Image Text: Gross Income Total Sales Total Credit Sales Net Income Cost
Answer Preview: a. b. c…

, Chapter: 7- SERVICE PROCESSES -Problem: 7 >> For the type of analysis done in this case, what are the key assumptions? What would be the impact on our analysis if these assumptions were not true?
Answer Preview: A big assumption is that there is no interference between the two processes. This would oc…

, Chapter: 12- LEAN SUPPLY CHAINS -Problem: 19 >> Compared to manufacturing systems, what is it about the environment of service operations that make them much harder to control?
Answer Preview: Uncer…

, Chapter: 13- GLOBAL SOURCING AND PROCUREMENT -Problem: 4 >> One product that Staples sells a lot of is copy paper. According to the Supply Chain Uncertainty Framework, what supply chain strategy is appropriate for this product?
Answer Preview: Effi…

, Chapter: 3- FORECASTING -Problem: 33 >> Which qualitative forecasting technique was developed to ensure the input from every participant in the process is weighted equally?
Answer Preview: De…

, Chapter: 2- STRATEGY AND SUSTAINABILITY -Problem: 7 >> What are the two characteristics of a product or service that define quality?
Answer Preview: Design …

, Chapter: 3- FORECASTING -Problem: 36 >> How many steps are there in collaborative planning, forecasting, and replenishment (CPFR)?
Answer Preview: …

, Chapter: 3- FORECASTING -Problem: 5 >> The following table contains the number of complaints received in a department store for the first 6 months of operation:If a three-month moving average is used to smooth this series, what would have been the forecast for May? Transcribed Image Text: MONTH January February March COMPLAINTS 36 45 81
Answer Preview: Use the actual dema…

Additional Information

9 Reviews for Operations And Supply Chain Management The Core Textbook Questions And Answers