Reading homework help

1. When considering outsourcing, what should firms tend to avert?

Allowing outsourcing to develop into a substitute for innovation

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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?



Doctors and Nurses


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 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

19. Which of the following is one of the categories of manufacturing inventory?

Work in process

Economic Order Inventory

JIT Inventory

Quality units

20. Which is the most challenging kind of supply chain to manage according to Hau Lee?

Risk hedging




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. To continue with the answer check on

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