In-Class Online Test - Assignment 4

Question 1 (1 point)
Capacity decisions should be made on the basis of:

Question 1 options:

a) A coordinated plan.

b) Building sustained competitive advantage.

c) Integration into the company’s strategy.

d) All of the listed options

 e)Good financial returns.

Question 2 (1 point)
In Just-in-time (JIT) system, work-in-progress inventory is:

Question 2 options:

a)Ignored since it has little effect on the availability of finished goods

b)Eliminated completely

c)Reduced to reveal production problems, which can then be solved

d) Increased to prevent stoppage due to production system

Question 3 (1 point)
Aggregate planning deals with a number of constraints. These typically are:

Question 3 options:

a)Capital investment, expansion or contracting capacity, and R&D.

b)Part-time help, weekly scheduling, and SKU production scheduling.

c)Job assignments, job ordering, dispatching, and overtime help.

d)Subcontracting, employment levels, inventory levels, and capacity.

Question 4 (1 point)
The Taguchi method includes all except which of the following major concepts?

Question 4 options:

a)Target specifications

b)Employee involvement

c)Remove the effects of adverse conditions

d)Quality loss function

Question 5 (1 point)
Market research is a _____forecasting method:

Question 5 options:

a)Quantitative

b)Qualitative

c)Jury of executive opinion

d)Naïve approach

Question 6 (1 point)
Lean applies to services:

Question 6 options:

a)Except in terms of employee issues

b)Except in terms of both supply chain issues and employee issues

c)Except in terms of the supply chain

d)Only in rare instances

e)Just as it applies to manufacturing

Question 7 (1 point)
The difference(s) between the basic EOQ model and the production order quantity model is (are) that:

Question 7 options:

a)The EOQ model does not require the assumption of negligible lead time.

b)The production order quantity model does not require the assumption of known, constant demand.

c)The production order quantity model does not require the assumption of instantaneous delivery.

d)All of the listed options

Question 8 (1 point)
The two most important inventory-based questions answered by the typical inventory model are:

Question 8 options:

a)How much of an item to order and with whom the order should be placed.

b)How much an item to order and the cost of the order

c)When to place an order and how much of an item to order

d)When to place an order and the cost of the order

Question 9 (1 point)
The purpose of safety stock is to;

Question 9 options:

a)Control the likelihood of a stockout due to the variability of demand during lead-time

b)Protect the firm from a sudden decrease in demand

c)Eliminate the likelihood of a stockout due incorrect inventory recording

d)Replace failed units with good ones

Question 10 (1 point)
What is NOT included in the seven waste(s) as below:

Question 10 options:

a)Overprocessing

b)Queues

c)Employee

d)Overproduction

Question 11 (1 point)
Any resource that limits throughput is called a:

Question 11 options:

a)No bottleneck resource

b)Kaisen

c)Capacity-constrained resource

d)Bottleneck resource

Question 12 (1 point)
Dependant inventory models require that operations manager know five conditions, which of the following is NOT included:

Question 12 options:

a)Bill of material (BOM)

b)Distribution resource planning (DRP)

c)Master production schedule (MPS)

d)Purchase orders outstanding

e)Lead times

Question 13 (1 point)
Low-volume, high-variety processes are also known as:

Question 13 options:

a)Continuous processes

b)Repetitive processes

c)Process focused

d)Product focused

Question 14 (1 point)
Which is an example of an inventory item with dependent demand?

Question 14 options:

a)Tables for a furniture retails

b)Automobile tyres for a retail

c)Automobile tyres for a four wheel car manufacturer

d)Microwave ovens for an appliances dealers

Question 15 (1 point)
Tools for process analysis include all of the following except

Question 15 options:

a)Service blueprinting

b)Value-stream mapping

c)Vision system

d)Flowchart

e)Time-function mapping

Question 16 (1 point)
The process improvement technique that sort the “vital few” from the “trivial many” is;

Question 16 options:

a)Pareto analysis

b)Taguchi analysis

c)Deming analysis

d)Benchmarking

Question 17 (1 point)
Which of the following is specifically characterized by a focus on continuous improvement, respect for people, and standard work practices?

Question 17 options:

a)Lean operations

b)Material requirements planning (MRP)

c)Toyota Production System (TPS)

d)Just-in-time (JIT)

Question 18 (1 point)
If a fast-food restaurant is attempting to practice JIT and Lean which of the following would not be present

Question 18 options:

a)A kitchen set up to minimise wasteful movement

b)Food preparation in large batches

c)Close relationship with suppliers

d)Lean inventories of food

Question 19 (1 point)
Kanban is the Japanese word for:

Question 19 options:

a)Continuous improvement

b)Card

c)Pull

d)Level schedule

Question 20 (1 point)
Zara sees several quality problems with the production in Asia. The dominant problem is lack of performance, conformance, and durability. Which TQM tool would you suggest?

Question 20 options:

a)Scatter diagrams

b)Cause-and-effect diagram

c)Statistical process control

d)Histograms

Assessment 4 Final test Section A
Answer 2 of the 4 questions below (2*10 = 20 Marks)

Question 21 (10 points)
Question 1

Explain how an organisation’s mission and strategy have different purposes? (3 marks)
Define supply chain management. (3 marks)
Draw a supply chain network diagram for a product company in Australia and label product flow, information flow, cash flow, upstream side of the chain, and downstream side of the chain. (4 marks)

Question 22 (10 points)
Question 2

Distinguish between a push and a pull system [3 marks]
Actual sales data for Bunny Rabbit Batteries Australia were as follows,
Month (year 2020)

Actual Sales

January    360

Feb            389

March       410

April          381

May           368

June          374

Based on the actual sales date, forecast sales for July 2020 period using the following methods:
Naive method ( 1mark)
A 3-month moving average. ( 1 mark)
A 3-month weighted moving average using weights for January to March consecutively 2, 2 and 3. ( 2 marks)
Exponential smoothing using alpha (α) =0.2 and a January forecast of 375. ( 3 marks)

Question 23 (10 points)
Question 3

Discuss how JIT (Just-In-Time) works in the services sector. (3 marks)

Bunny Rabbit Batteries buys 4,800 battery casings per year. The cost of placing an order has been estimated to be $45.00. The store uses an inventory carrying charge of $2.50 per casing per year.
Determine the economic order quantity, order frequency, and the annual cost of inventory.
( 3 marks)

If, through automation of the purchasing process, the ordering cost can be cut to $25.00, considering the existing holding cost what will be the new economic order quantity, order frequency, and annual inventory management cost? ( 3 marks)
Explain these (I &II) results. (1 marks)

Question 24 (10 points)
Question 4

Is a ‘make-to-stock’ better than a ‘make-to-order’ approach? Give examples where each ordering type is found suitable. (3.5 marks)

Identify five tactics for matching capacity to demand. (2.5 marks)
Draw a Cause-and-Effect diagram for a poor cafe experience. (4 marks)