Supply chain study

1. The bullwhip effect says that: A. The farther downstream the supply chain, the greater the impact of a small disturbance upstream. B. the greater the effect of a disturbance upstream, the farther downstream the supply chain. C. the greater the effect of a disturbance downstream, the farther upstream the supply chain. D. the farther upstream the supply   chain, the greater the impact of a small disturbance downstream 2. "A system used when demand occurs in only a single point in   time" is the definition of: A. periodic inventory systems.                                    B. continuous inventory systems. C. mixed inventory systems. D. single-period inventory systems. 3. Companies hold hedge inventory due   to: A. uncertainty in supply or demand. B. Mi smatch between downstream demand levels and upstream production capacity. C. Mi smatch between timing of customer demand and supply chain lead times. D. Mi smatch between downstream partner's demand and most efficient production or shipment volumes for upstream partner. 4. "An extreme change in the supply position upstream in a supply chain generated by a small change in demand downstream in the supply chain" is the definition of: A. the hedging effect. B. the inventory pooling effect. C. the cycle stock effect. D. the bullwhip effect. 5. A company makes tools, such as hammer and tape measures. One of their primary raw materials is steel and if they run out of steel they cannot make tools. The inventory level for steel is constantly monitored and when the reorder point is reached, an order is released for the economic order quantity. The tool company uses which of the following independent demand inventory systems for steel? A. periodic review system B. continuous review system C. single period system D. work-in-process (WIP) system 6. Scholastic, the book publisher, has their suppliers, book printers, manufacture millions of Harry Potter books ahead of time so customers can have instant availability on the launch date. This type of inventory is: A. anticipation. B. safety. C. cycle stock. D. hedge. 7. The type of demand which comes from outside the   organization, is   unpredictable, and usually forecasted is: A. continuous. B. periodic. C. independent. D. dependent.

8. In the context of the master scheduling, the company's best estimate of the demand in any period is A. scheduled receipts. B. forecasted demand. C. master production schedule. D. booked orders. 9. Which of the following determines   "the timing and quantity of material orders to meet the Master   Schedule"? A. vendor order management B. Ma terial requirements planning C. sales and operations plan D. production activity control 10. Distribution requirements planning is a supply chain approach to material requirements planning. TRUE 11. MRP can be performed based on three   concepts; which one of the following is NOT   necessary? A. explosion of the bill of material B. the bill of material C. backward scheduling D. job sequencing rules 12. Lean Six Sigma simply combines the organizational elements and tools of Six Sigma with   Lean's focus on waste reduction. TRUE 13. A kanban system is also called A. a pull system. B. Japanese MRP. C. Lean logistics. D.. Toyota Ta-co-ma. 14. A company puts on their Lean thinking caps and decides to attack their own processes. Where should they begin their troubleshooting   efforts? A. with the first problem that surfaces as inventory is added to the system B. with the last step in the production process C. with the first problem that surfaces as inventory is removed from the system . D. with the first step in the production process 15. Which of the following statements about the Lean philosophy is   best? A. Lean applies only to manufacturing enterprises. B. Companies that use Lean must use kanban shop floor control. C. Companies that use Lean have improved levels of productivity. D. Lean is not a good fit with business process improvement and quality improvement. 16. Which of the following is NOT commonly used as a kanban signal? A. an empty box B. a card C. a buzzer D. an unoccupied space 17. Which of the following is one of the 8 forms of waste? A. just – in – time inventory B. waiting C. underproduction