Ade Sauer
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Quiz on Week 11: Medium Term Decisions, created by Ade Sauer on 13/11/2020.

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Ade Sauer
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Week 11: Medium Term Decisions

Question 1 of 20

1

What is the core philosophy behind lean?

Select one of the following:

  • Lean simply means just-in-time

  • Lean deals with the speedy production and delivery of good and services

  • Lean is concerned with the elimination of waste

  • Lean views inventory as useful

Explanation

Question 2 of 20

1

Which of these is not an inventory type?

Select one of the following:

  • Work in process (WIP)

  • Components

  • Raw materials

  • Economic order quantity

Explanation

Question 3 of 20

1

Using lean principles will typically not reduced a company's lead time.

Select one of the following:

  • True
  • False

Explanation

Question 4 of 20

1

According to the lecture videos, the company will usually define value.

Select one of the following:

  • True
  • False

Explanation

Question 5 of 20

1

Which of these is not a tool used to achieve a lean workplace?

Select one of the following:

  • VSM

  • 5S

  • Kanban

  • Kuflow

  • Kaizen

Explanation

Question 6 of 20

1

In a traditional push system, throughput time will usually increase as work-in-process increases.

Select one of the following:

  • True
  • False

Explanation

Question 7 of 20

1

Which of the following is one of the differences between a push and a pull system?

Select one of the following:

  • A push system keeps operators and materials busy, while a pull system keeps operators unbusy and materials busy

  • A push system keeps operators and materials unbusy, while a pull system keeps operators busy and materials unbusy

  • A push system keeps operators unbusy and materials busy, while a pull system keeps operators and materials busy

  • A push system keeps operators busy and materials unbusy, while a pull system keeps operators and materials unbusy

Explanation

Question 8 of 20

1

Which tool is used in lean systems to establish pull?

Select one of the following:

  • VSM

  • 5S

  • Kanban

  • Kuflow

  • Kaizen

Explanation

Question 9 of 20

1

When conducting production planning, which of the following is considered internal to the company?

Select one of the following:

  • Competitor's behaviour

  • Market demand

  • Inventory levels

  • Raw material availability

  • Economic conditions

Explanation

Question 10 of 20

1

Which of these is not an internal strategy used by companies to match supply with demand?

Select one of the following:

  • Hire and fire

  • Subcontracting

  • Changing production rates

  • Using excess inventory

  • Offering promotions

Explanation

Question 11 of 20

1

Which of the following is not a cost associated with inventory?

Select one of the following:

  • Ordering costs

  • Obsolescence costs

  • Shrinkage costs

  • Economic costs

  • Opportunity costs

Explanation

Question 12 of 20

1

Which of the following is not a reason companies keep inventories?

Select one of the following:

  • To hedge against uncertain demand

  • To hedge against uncertain supply

  • To economize on ordering costs

  • To economize on holding costs

  • For smoothening production

Explanation

Question 13 of 20

1

In inventory management it is important to know how much to order and when to order. These two concepts are referred to as?

Select one of the following:

  • Economic Reorder Quantity and Order Point

  • Economic Reorder Point and Order Quantity

  • Economic Order Quantity and Reorder Point

  • Economic Order Point and Reorder Quantity

Explanation

Question 14 of 20

1

In deriving the formula which calcuates Q*:
Q* = sqrt(2 * D * S / H)
which of the following is not an assumption we make?

Select one of the following:

  • Demand is known

  • Replenishment is immediate or at least known

  • The only relevant costs are ordering costs, demand costs and holding costs

  • Demand is constant

Explanation

Question 15 of 20

1

Rob, a car salesman, sold 8,000 cars last year and typically buys his cars from auto auctions. Getting new cars from an auto auction takes 12 days to arrive at a cost of $20,000 per shipment. If it costs Rob $700 per car per year to keep a car in his shop, calculate his EOQ and ROP respectively.
(Assume there are 366 days per year)

Select one of the following:

  • 677 cars and 263 cars

  • 8 cars and 263 cars

  • 8 cars and 4167 cars

  • 677 cars and 4167 cars

Explanation

Question 16 of 20

1

Alicia's used clothes store wants to know the best order size when replenishing. She has estimated that the annual demand for their used clothes is 5000 units. The total cost to hold all of the annual demand is $60,000 and she estimates that each order costs $30 to replace. Using EOQ, how many units of used clothes should Alicia order each time?

Select one of the following:

  • 3 units

  • 159 units

  • 50 units

  • 30 units

Explanation

Question 17 of 20

1

Bob is a truck retailer based in Spain. His annual demand is 500 trucks. As an enthusiastic supply chain manager, he found after a series of calculations that his reorder point is 145 units of trucks. What does this mean?

(Assume there are 365 days in a year)

Select one of the following:

  • Bob will order for more trucks when he has 355 trucks in his inventory

  • Bob will order for more trucks when he has 145 trucks in his inventory

  • Bob will order for more trucks on the 106th day of the year

  • Bob will order for more trucks before 106 days

Explanation

Question 18 of 20

1

Which lean tool is used to seek perfection?

Select one of the following:

  • VSM

  • 5S

  • Kanban

  • Kuflow

  • Kaizen

Explanation

Question 19 of 20

1

In a pull system the production line is controlled by the first operation.

Select one of the following:

  • True
  • False

Explanation

Question 20 of 20

1

Reorder point is typically defined in terms of quantity, and sometimes in terms of time.

Select one of the following:

  • True
  • False

Explanation

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