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Homework answers / question archive / University of Houston MBA 6205 Chapter 5 The Order Fulfillment Process: Managing the Physical Flow Infrastructure Multiple Choice 1)The three operation functions,                        ,                     , and                    , are responsible for the “order fulfillment” process

University of Houston MBA 6205 Chapter 5 The Order Fulfillment Process: Managing the Physical Flow Infrastructure Multiple Choice 1)The three operation functions,                        ,                     , and                    , are responsible for the “order fulfillment” process

Management

University of Houston

MBA 6205

Chapter 5 The Order Fulfillment Process: Managing the Physical Flow Infrastructure

Multiple Choice

1)The three operation functions,                        ,                     , and                    , are responsible for the “order fulfillment” process.

 

  1. purchasing, production and quality assurance
  2. material control, production, quality assurance
  3. material control, production, logistics
  4. purchasing, production and logistics

 

  1. The function of                     is to transport and store goods, assuring that inbound materials are available for operations and that outbound finished products are available to the customer.

 

  1. logistics
  2. material planning
  3. purchasing
  4. production

 

  1. The non-profit organization, Supply Chain Council proposes a supply chain reference model as a business standard. All of the following processes are key elements of this model except

                   . Q) plan

  1. finance
  2. deliver
  3. return

 

  1. All of the following are typical steps in the purchasing process except                       .
    1. ERP information system
  1. supplier selection
  2. transaction management
  1. relationship management

 

  1. “Transaction management” as a part of the purchasing process includes which of the following tasks?
  1. monitoring supplier improvement
  2. price determination
  3. evaluation S) approval

 

  1. “Relationship management” as a part of the purchasing process includes which of the following tasks?
    1. placement of the purchase order
    2. communication
    3. performance monitoring
    4. supplier payment

 

  1. A                      is used to clearly describe and communicate needs to sourcing and includes vital information such as item description, purchase quantity, and delivery date.
    1. MRP
  1. purchase order
  2. purchase requisition
  1. supplier selection form

 

  1. The authors suggest that the most important step in the purchasing process is             .
    1. transaction management
  1. supplier selection
  2. relationship management
  1. communication

 

  1. One major purchasing objective achieved through the supplier selection process is to

                        .

    1. maximize use of the ERP system
  1. establish the make cost of the purchased material
  2. determine candidates for future purchased material
  1. identify high quality supplier candidates

 

  1. All of the following are major steps in the supplier selection process except                 .

 

  1. identification
  2. development
  3. approval
  4. monitoring

 

  1.                      relies on market forces to get suppliers to offer a low price.
  1. Competitive bidding
  2. Supplier selection
  3. Reverse auctions
  4. Negotiation

 

  1. A “PO” is a document that specifies the terms and condition of the purchase agreement and initiates supplier                                     .

 

    1. selection
  1. notification of customer interest
  2. bidding
  1. action to proceed

 

  1. A                      specifies the overall terms of agreement for a given time period, often 1 or more years and the total quantity purchased.
  1. selection approval
  2. expedite order
  3. limited purchase order
  4. blanket order

 

  1. A                     is often used instead of a purchase order for small-dollar purchases that the endcustomer can use to purchase material and is similar to a credit card.
  1. purchase index card
  2. verbal authorization
  3. p-card
  4. MRP directive

 

  1. In a well-managed purchasing department, expediting a purchase order occurs typically on a

                    percentage of material shipments.

    1. large
    2. small
    3. routine
    4.  

 

  1. The purpose of penalty clauses in purchasing agreements is to                   .
  1. assure the financial stability of the supplier
  2. stock inventory at the supplier
  3. require the supplier to comply with mandatory cost reduction efforts
  4. avoid supplier delivery problems

 

  1. Supplier certification suggests that the supplier                .
    • meets the requirements of an international standard
    • meets government regulations for the commodity
    • has achieved on-time delivery requirements

D) is capable of consistently shipping high quality material

 

  1. Dock-to stock refers to                        . Q) a just-in-time material delivery process
    1. supplied material requires inspection than movement to the stockroom
    2. supplied material is directed to stock and not the manufacturing floor
    3. the normal process flow of procured material

 

  1. The text refers to four practices that are elements of a strong supplier performance monitoring process. They include all of the following except                                     .
      1. contract information
      2. technology improvements of the commodity
      3. part type or commodity information
      4. current status of the PO

 

  1. Knowledge management is a purchasing skill that modern sourcing professionals require and would include one of the following                                   . I) new commodity technology
  1. alternative designs
  2. supplier capacity and capabilities
  1. downstream processes

 

  1. Process management is a purchasing skill that modern sourcing professionals require. All of the following are elements of supplier process management except                                  .
  1. improvement of the sourcing process
  2. manage collaborative processes
  3. initiate supplier development efforts
  4. minimize purchasing costs

 

  1.                      creates value for customers by transforming capital, technology, labor, and materials into more highly valued products and services.
  1. Operations management
  2. Customer service management
  3. Logistics management
  4. Development management

 

  1.                     design is a manufacturing activity that refers to the technology selection and work design that is based on production volumes, financial resources, and labor cost.
  1. Process
  2. Product
  3. Facility
  4. Material

 

 

  1.                      determines how much and when to make specific products.
  1. Inventory control
  2. Forecasting
  3. Scheduling
  4. Quality control

 

  1.                      provides an estimate of what products need to be produced and when they need to be produced.

 

  1. Inventory control
  2. Forecasting
  3. Scheduling
  4. Quality control

 

 

true/false

 

  1. A major element of the Toyota production system is JIT.  

 

  1. Usually a JIT manufacturing system improves productivity AND reduces waste.  

 

  1. The principles of 5S prevented Toyota from achieving lean production.  

 

 

  1. A major goal of lean operations is to identify and eliminate waste.  

 

 

  1. Reduction of inventory often creates a risk to lean operations.  

 

 

  1. The Japanese term, Jidoka suggests that only manufacturing management can stop the production line.  

 

 

  1. The text suggests that lean practices and principles should be practiced upstream by its critical suppliers.  

 

 

  1. A “pull” or “kanban” system of manufacturing is driven by the amount of received inventory.  

 

 

  1. A “kanban” system is a visual system that triggers production only when parts are needed downstream.  

 

 

  1. One of the benefits of outsourcing is that it permits a business to invest in a few specific skills while relying on outsource partners to perform other vital activities.  

 

  1. Logistics is the art and science of moving things from one point to another and storing them along the way.  

 

 

  1. Distribution management is concerned with the inbound movement and storage of raw materials, purchased components and subassemblies.  

 

 

 

  1. Materials management focuses on the outbound transportation and storage of finished products from the point of manufacture to where customers wish to acquire them.  

 

 

  1. Dwell time ratio evaluates the number of days inventory sits idle compared to the number of days the inventory is moving..  

 

 

  1. Customer service in logistics focuses on understanding what customers want and measuring logistics performance against these customer requirements.  

 

 

  1. The order fulfillment cycle consists of order entry, order picking, packaging, and shipment.  

 

 

  1. Logistical managers can select from six general modes of transportation: rail, motor carrier, pipeline, airplane, ship, or cyberspace.  

 

 

  1. The term LTL related to truck transportation is defined as a full truckload.  

 

 

  1. Distribution centers are used when many different items from diverse production sites are to be stored in a single location.  

 

 

  1. It is typical for warehouses and distribution centers to perform light manufacturing or assembly.  

 

 

  1. Third-party logistics (3PL) is the insourcing of a business’s logistics operations.  

 

 

  1. Logistics’ main role is to manage storage and transportation to achieve outstanding levels of order fulfillment.  

 

 

  1. Purchasing converts sourced inputs into a product or service that customers value.  

 

  1. Making and delivering a valued product or service is the responsibility of purchasing, customer service, and logistics.  

 

  1. To maximize transport efficiencies, more companies are experimenting with shared logistics services.  

 

 

  1. At world class companies, education and training are the foundation for successful human resource policies.  

 

 

  1. Lean operations depend on incremental productivity gains and consistent innovation.  

 

 

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