BUS 515 Exam Multiple Choice Questions

Three prisoners, named Al, Bob and Chuck, are informed 11/19/2012• Instructions:1. Give answers up to two decimal points only.Question 1 Consider a packaged milk products supply chain. A lumber company provides wood to a paper mill, who supplies cardboard to a container manufacturer, who supplies containers to the milk products manufacturer. The lumber company is:Answer a tier one supplier. a tier two supplier. a tier three supplier. a tier four supplier. not in the supply chain. Question 2 Which term refers to inaccurate or distorted demand information created in the supply chain?Answer Battle axe effect Cobra effect Bullwhip effect Lasso effect Whirlpool effectQuestion 3 Which of the following is not one of the four major causes of the bullwhip effect?Answer Demand forecast updating Order batching Price fluctuations The business cycle Rationing and shortage gamingQuestion 4 When do rationing and shortage gaming occur?Answer Supply exceeds demand. Demand exceeds supply. Government contracts are awarded. Transportation workers go on strike. Marginal revenue exceeds marginal cost.Question 5 Online retailing, or B2C, has shifted:Answer the cost of doing business. the power from the suppliers to the consumers. the way the internet works. internal corporate power to the IT department. corporate funding levels to the IT department. Question 6 What refers to owning or controlling sources of raw materials and components?Answer Backward integration Horizontal integration Encapsulating integration Forward integration Subsuming integrationQuestion 7 According to several studies, what are the three most important criteria for selecting suppliers?Answer Price, quality, fast delivery Quality, fast delivery, on-time delivery Price, flexibility, on-time delivery Quality, flexibility, fast delivery Price, quality, on-time delivery Question 8 Early supplier involvement refers to the involvement of critical suppliers for what?Answer Strategic planning Assembly line design Speedy delivery planning Selection of new suppliers New product design Question 9 What is the process whereby shipments are transferred directly from inbound trailers to outbound trailers?Answer crossdocking directdocking nodocking simuldocking transferdockingQuestion 10 Benetton is well known for the practice of assembling all white sweaters and waiting to dye them much closer to the time of sale. This is an example of what?Answer Stupidity Postponement Fractionalization Partitioning GenericnessQuestion 11 Supply chain velocity refers toAnswer how fast the transportation vendor is how fast the company pays the supply chain vendors how fast the purchasing department responds to a request the speed at which a product moves through a pipeline from the manufacturer to the customer the speed at which the warehouse is able to crossdock a shipment Question 12 Which of the following is not a typical result of the bullwhip effect?Answer Absenteeism Lost revenues Ineffective transportation use Poor customer service levels Misused manufacturing capacity Question 13 Which of the following is not a remedy for the bullwhip effect?Answer Allocate units based on past demand Price stabilization Fill orders based on a set percentage Eliminate order batching Information sharing Question 14 Which of the following is NOT a positive attribute of Multiple Suppliers?Answer provides a greater flexibility of volume eliminates a supplier’s dependence on the purchaser probability of assured supply is better deliveries can be schedule more easily allows for testing of new suppliers without jeopardizing the flow of materials Question 15 Companies want a supply chain that makes it possible to:Answer manage all suppliers’ development costs. manage and adapt to all of the business dynamics. manage distribution display. manage distribution outlet retail prices. manage customer demands.Question 16 Will’s omelet factory produces 2,500 omelets a day. They’ve determined that their daily fixed costs are $4,000 with a variable cost of fifteen cents per omelet. What should Will charge for each omelet to make a 10% profit, rounded to the next whole dollar?Answer 5.00 4.00 3.00 2.00 1.00 Logo, Inc., can transport its own goods for a $140,000 annual cost and $25 per unit. A logistics supplier offers a contract for a $100,000 annual cost at $30 per unit. What is the indifference point?Answer 8000 7000 6000 5000 Question 18 Simuelson Industries can produce its own motors for a $60,000 fixed monthly cost and a $50 variable cost per unit. Alternatively, Simuelson Industries can purchase the motors from an outside supplier for $50,000 per month and $58 per unit. What option should be chosen if monthly demand is 1200 units?Answer in-house production outsourcingQuestion 19 Yannis Corporation is trying to decide whether to produce its own subassemblies or outsource them. In-house production costs would include an annual fixed cost of $250,000, materials costs per unit of $7, and labor costs per unit of $5. Teshtown, Inc. has agreed to provide the subassemblies for an annual cost of $400,000 and a unit cost of $8 per subassembly. Over what ranges of demand is outsourcing best option?Answer Less than 37500 Greater than or equal to 37500 Can not be determinedQuestion 20 Big Oil Refinery is losing money every month. They cannot shut down the refinery. What quantity (in gallons) of product should they make in an effort to break even? Their primary product sale price is $1.50 per gallon. The production fixed cost is $36,000/day. The variable cost per gallon is $1.30.Answer 36,000 18,000 180,000 30,000Question 21 Twenty samples of n = 200 were taken by an operator at a workstation in a production process. The number of defective items in each sample was recorded as given in the following table. Management wants to develop a p-chart. The desired confidence level is 80.0 percent. What is the upper control limit?Sample Number of Defectives Sample Number of Defectives1 12 11 162 18 12 153 10 13 134 15 14 165 16 15 186 19 16 177 17 17 188 12 18 209 11 19 2110 14 20 22Answer close to 0.08 close to 0.019 close to 1.28 close 0.105 close to 0.8Question 22 Cans of soup are supposed to weigh exactly 16 oz. Inspectors want to develop process control charts. They take eight samples of five boxes and weigh them. They obtain the following data. What is the upper control limit for the x-bar chart?Sample Mean Range1 15.2 1.82 14.6 0.73 16.5 0.54 18.1 0.45 13.2 0.26 16.0 0.47 15.9 0.58 14.8 0.9Answer close to 15.79 close to 15.93 close to 15.54 close to 15.82Question 23 Cans of soup are supposed to weigh exactly 16 oz. Inspectors want to develop process control charts. They take eight samples of five boxes and weigh them. They obtain the following data. What is the upper control limit for the R chart?Sample Mean Range1 15.2 1.82 14.6 0.73 16.5 0.54 18.1 0.45 13.2 0.26 16.0 0.47 15.9 0.58 14.8 0.9Answer close to 1.42 close to 0.78 close to 1.12 close to 0.82Question 24 Cans of soup are supposed to weigh exactly 16 oz. Inspectors want to develop process control charts. They take eight samples of five boxes and weigh them. They obtain the following data. Is the process in a state of control?Sample Mean Range1 15.2 1.82 14.6 0.73 16.5 0.54 18.1 0.45 13.2 0.26 16.0 0.47 15.9 0.58 14.8 0.9Answer yes (in control) no (not in control)Question 25 Eight samples of n = 50 were taken by an operator at a workstation in a production process. The number of defective items in each sample was recorded as follows. Is the process in a state of control? Assume z =3.Sample Number of Defectives1 102 03 124 85 106 167 148 10Answer yes (in control) no (out of control)Question 26 Cholesterol Palace is a fast-food restaurant. Management was concerned with errors in filling orders at its drive-up window. It hired several undercover quality inspectors to randomly place 100 orders while the process seemed to be in control. The completed orders were then checked for accuracy. What is the average number of defects per order based on these data?Defect FrequencyIncomplete, shorter order 12Unordered items dispensed 2Wrong product dispensed 14Wrong toppings 14Wrong size drink 2Drink lid not sealed 17No drinking straw with soft drink order 0No napkins 18Far too many condiment packets 65No salt with sandwich or fries order 10Wrong change 3Other 12Answer close to 1.69 close to 169 close to 0.59 close to 2.00Question 27 Cholesterol Palace is a fast-food restaurant. Management was concerned with errors in filling orders at its drive-up window. It hired several undercover quality inspectors to randomly place 100 orders while the process seemed to be in control. The completed orders were then checked for accuracy. What is the lower control limit for a c-chart. Use z =3.Defect FrequencyIncomplete, shorter order 12Unordered items dispensed 2Wrong product dispensed 14Wrong toppings 14Wrong size drink 2Drink lid not sealed 17No drinking straw with soft drink order 0No napkins 18Far too many condiment packets 65No salt with sandwich or fries order 10Wrong change 3Other 12Answer close to -2.21 close to 1.3 close to 3.0 zero (0) close to 1.69Question 28 Cholesterol Palace is a fast-food restaurant. Management was concerned with errors in filling orders at its drive-up window. It hired several undercover quality inspectors to randomly place 100 orders while the process seemed to be in control. The completed orders were then checked for accuracy.Defect FrequencyIncomplete, shorter order 12Unordered items dispensed 2Wrong product dispensed 14Wrong toppings 14Wrong size drink 2Drink lid not sealed 17No drinking straw with soft drink order 0No napkins 18Far too many condiment packets 65No salt with sandwich or fries order 10Wrong change 3Other 12A quality inspector just used the drive-up window and now checks her order. Her cheeseburger has mustard on it although she ordered it without ketchup or mustard. Three handfuls of ketchup and mustard packets (far too many) are in the sack, but no napkins. And hot coffee has spilled because the lid wasn’t properly sealed. Is the drive-up process in control?Answer yes (in control) no (not in control)Question 29 In a single sampling plan the sample size n =5. The submitted lot has on an average 25% defective items. Three acceptance numbers ( c = 0, c =1, and c=2) are being negotiated between the manufacturer and the buyer. Which acceptance number is most desirable from the manufacturer’s viewpoint. You may use the following OC curve to find the answer.Answer c = 0 c = 1 c = 2Question 30 In a double sampling plan the two acceptance numbers are: c1 = 8 and c2 = 12. The number of defectives found in the first sample is 9. Therefore, a second sample is taken. What is the maximum number of defectives allowed in the second sample for the lot to be accepted?Answer 0 1 2 3 4