BUSI 2003 Exam Week 6
- In small cushion strategy, the firm is more conservative with respect to capacity.
- Assume a business has $700,000 worth of inventory and averages $10,000 per day in sales. Also assume it takes 30 days for the average customer to pay off its accounts receivable to this company and it takes 120 days for the company to pay for the materials supplied by the suppliers. What is the company’s average cash-to-cash cycle time?
- The meaning of quality has evolved greatly over the past century. Which of the following statements best exemplifies the current meaning of quality?
- Which of the following is not a reason for quality improvement failure?
- Aggregate planning must be a coordinated, cross-disciplinary activity, as it should consider the management of both supply (capacity) and demand. From a demand perspective, important factors to consider when managing demand include all of the following except:
- The forecasting techniques of exponential smoothing and moving average that have rapid response rates to changes in the mean level of demand have:
- Throughput time, process flow rate, capacity, and average amount of inventory in the system are some of the key metrics of a manufacturing process.
- Performance Quality means producing a product or delivering a service that meets the required specifications.
- Transportation of materials into or out of a facility is the responsibility of the logistics function.
- Which of the following is NOT a type of facility choice?
- Assume you have been assigned the task of identifying a level strategy aggregate production plan for the upcoming year. You have been informed that beginning inventory is 2,000 units, your plan should provide an ending inventory for the year equal to 500 units, and you have been provided the following forecasts of aggregate demand. What should be the planned rate of quarterly production?
- Hiring and layoff of workers are more common in a chase strategy than in a level strategy.
- Using a three-period, weighted moving average forecast model with weights of 0.50, 0.40, and 0.10 (weights decline with the age of the demand observation), what would the forecast of demand be for the upcoming week 6 given the historical demands shown below?
- Even with perfect information available at all levels. The bullwhip effect can be observed in a supply chain because of short replenishment lead times.
- Which of the following is not a step in the purchasing cycle?
- The four different dimensions of quality include all of the following except:
- The process of constructing a flowchart for service operations is also referred to as service blueprinting.
- Assume you have been assigned the task of identifying a chase strategy aggregate production plan for the upcoming year. You have been informed that beginning inventory is 500 units, your plan should provide an ending inventory for the year equal to 200 units, and you have been provided the following forecasts of aggregate demand. Knowing that the typical objective of chase plans is to avoid carrying inventory, what should be the planned rate of production for the first quarter?
- Which of the following statements concerning ISO 9000 is false?
- The improvement goals of the transformation process typically are to increase efficiency, reduce throughput time, increase quality, or even improver worker morale.
- According to Little’s Law, average throughput time equals average inventory * average flow rate.
- In a process thinking philosophy, it is important to:
- A negative value of capacity cushion indicates that the average demand is less than the capacity available.
- There are four basic types of facility choices. Which of the following statements concerning facility choices is not true?
- Which of the following is incorrect about the qualitative approach to forecasting?