Reference no: EM131792791
1. Which of the following is considered a strategic move to increase supply chain resilience? a) Shift some emphasis from efficiency to business continuity b) Maintain higher inventory levels for critical components c) Identify alternate suppliers with different operating conditions d) Create backup of information systems
2. Assume a company 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 invoice to this company and it takes 120 days for the company to pay for the materials supplied by its suppliers. What is the company’s average cash-to-cash cycle time? a) 20 days b) 40 days c) -10 days d) -20 days
3. Which of the following statements regarding lean systems is FALSE? a) Lean systems are a “push” type of production planning system b) Lean systems emphasize reduction in setup (changeover) time c) Lean systems emphasize reduction in inventory levels d) Lean systems utilize “kanbans” to signal the need for production
4. All of the following about the Theory of Constraints is true except: a) Assumes that most companies have a goal to make more money now and in the future b) A key necessary condition is to satisfy customer needs now and in the future c) Is primarily focused on optimizing all activities in the organization d) Assumes there are very few factors that truly block the organization from achieving its goal
5. A bill of materials a) is a structured list of all the materials or parts needed to produce one unit of a finished product b) is rarely revised once established c) will lead to sufficient MRP system performance as long as the “threshold degree” of accuracy of approximately 75% is met d) is used as an input for dispatching decisions on the shop floor
6. The type of strategy used with respect to the amount of capacity cushion when "the cost or consequence of running out is approximately in balance with the cost of excess capacity" is called: a) small cushion b) large cushion c) moderate cushion d) none of the above
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