OPS 571 Week 3 Quiz 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 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 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 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 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 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 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 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 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 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 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 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 rec
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