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1. OPS 571 WEEK 3 QUIZ
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1. When considering outsourcing, what should firms tend to avert?
 Allowing outsourcing to develop into a substitute for innovation
 Losing control of noncore activities
 Giving the outsourcing partner opportunities to become a strong competitor
 Allowing employees transferred to the outsourcing partner to rejoin the firm
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2. What is the important starting point in developing a capacity plan?
 Predicting the ability of suppliers to meet needs
 Determining the effective capacity of a resource over some period of time.
 Predicting the needs of customers
 Understanding key components of the supply chain

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3. Which of the following is an input to the master production schedule (MPS)?
 Bill of materials
 The aggregate plan
 Exception report
 Inventory records file
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4. Which of the following is an input file necessary to run an MRP program?
 Planned order schedules
 Bill of materials (BOM) file
 Exception reports
 Quality management report

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5. Which of the following forecasting methods is very dependent on selection of the right
individuals who will judgmentally be used to actually generate the forecast?
 Simple moving average
 Time series analysis
 Delphi method
 Weighted moving average
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6. The main purpose of aggregate operations planning is to specify the optimal
combination of which of the following?
 Inventory on hand and financing costs for that inventory
 Workforce levels and inventory on hand
 The workforce level and the degree of automation
 The strategic plan and the products available for sale

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7. Which of the following is an essential resource that flows through a hospital supply
chain?
 Patients
 Medicine
 Doctors and Nurses
 Information
8. In business forecasting, what is usually considered a short term time period?
 Four weeks or less
 Six months or more
 Less than three months
 More than three months
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9. Which of the following is an input file necessary to run an MRP system?
 Planned order schedule
 Exception report
 Inventory records file
 Computer aided design files
10. Which of the following is most closely related to the reason a firm might implement
MRP?
 So they can order the right parts
 So they can order parts sufficient for immediate use
 To assure appropriate quality levels
 So they can insure that parts to arrive D. To assure appropriate quality levels
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11. Which of the following is one of the main purposes of a MRP system?
 Decrease labor requirements.
 Educate personnel in basic work rules.
 Determine the materials needed.
 Stimulate the work force.
12. The text mentions several common approaches to use when developing a strategy to
close a capacity gap (where utilization of a resource exceeds capacity available). Which
of the following is among the common approaches mentioned?
 New construction
 Hire more employees
 Closing a related department
 Transferring capacity from other units
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13. Which of the following is a perpetual system for inventory management?
 Fixed time period
 P model
 Fixed order quantity
 First in first out
14. Which of the following is considered a pure production planning strategy?
 Stable workforce, variable work hours
 Variable workforce, stable work hours
 Lag demand
 Level playing field
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15. In conducting aggregate operations planning there are a number of required inputs.
Which of the following are inputs considered most external to the firm?
 Current physical capacity of the organization
 Raw material availability and competitor's behavior
 Internal inventory levels and market demand
 Subcontractor capacity and inventory levels
16. In most cases, demand for products or services can be broken into several
components. Which of the following is considered a component of demand?
 Future demand
 Cyclical elements
 Inconsistent demand
 Past demand
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17. Which of the following is an input to the master production schedule?
 Prototype products from product development
 Aggregate component schedule
 Peg reports from factory records
 Forecasts of customer demand
18. What is the effect of the lack of synchronization among supply chain members?
 Bullwhip effect
 Continuous replenishment
 Metcalf's Law
 Forward buying

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19. Which of the following is one of the categories of manufacturing inventory?
 Work in process
 Economic Order Inventory
 JIT Inventory
 Quality units
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20. Which is the most challenging kind of supply chain to manage according to Hau Lee?
• Risk hedging
• Agile
• Efficient
• Erratic
21. What is another name for the fixed order quantity inventory model?
• Cycle counting model
• The ABC model
• Economic order quantity model
• Periodic replenishment model

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