bus515 homework mcq

Question 1Consider
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 2Which 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 3Which 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 4When 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 5Online 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 6What refers to owning or controlling sources of raw materials and components?Answer Backward integration Horizontal integration Encapsulating integration Forward integration Subsuming integrationQuestion 7According 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 deliveryQuestion 8Early 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 designQuestion 9What is the process whereby shipments are transferred directly from inbound trailers to outbound trailers?Answer crossdocking directdocking nodocking simuldocking transferdockingQuestion 10Benetton
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 11Supply 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 shipmentQuestion 12Which 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 capacityQuestion 13Which 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 sharingQuestion 14Which 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 materialsQuestion 15Companies 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 16Will’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 1.00Logo,
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 18Simuelson
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 19Yannis
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 20Big
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 21Twenty
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 22Cans
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 23Cans
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 24Cans
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 25Eight
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 26Cholesterol
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 27Cholesterol
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 28Cholesterol
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 29In
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 30In
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