Final

A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors. This is an example of which of the​ following?

forward integration

horizontal integration

current transformation

backward integration

keiretsu

backward integration

Which of the following is an advantage of the postponement​ technique?

reduction in training costs

reduction in automation

early customization of the product

better quality of the product

reduction in inventory investment

reduction in inventory investment

Which of the following costs would be incurred even if no units were​ produced?

purchasing costs

building rental costs

direct labor costs

transportation costs

raw material costs

building rental costs

The main trait of a​ single-period model is​ that:

the cost of a shortage cannot be determined accurately.

supply is limited.

it has the largest EOQ sizes.

inventory has limited value after a certain period of time.

the order quantity should usually equal the expected value of demand.

inventory has limited value after a certain period of time.

Which of the following statements is true regarding the leverage of supply chain​ savings?

Supply chain savings exert more leverage as the​ firm's net profit margin decreases.

Supply chain savings exert more leverage as the​ firm's purchases are a smaller percent of sales.

Supply chain leverage depends only upon the percent of sales spent in the supply chain.

Supply chain leverage is about the same for all industries.

None of the above is true.

Supply chain savings exert more leverage as the​ firm's net profit margin decreases.

Which of the following would NOT generally be a motive for a firm to hold​ inventories?

to hedge against inflation

to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand

to take advantage of quantity discounts

to minimize holding costs

to decouple various parts of the production process

to minimize holding costs

Which of the following is an element of inventory holding​ costs?

material handling costs

housing costs

investment costs

​pilferage, scrap, and obsolescence

All of the above are elements of inventory holding costs.

All of the above are elements of inventory holding costs.

Which of these statements about the production order quantity model is​ FALSE?

All else​ equal, the smaller the ratio of demand rate to production​ rate, the smaller is the production order quantity.

Average inventory is more than​ one-half of the production order quantity.

Because receipt is​ noninstantaneous, some units are used immediately and not stored in inventory.

The production order quantity model is appropriate when the assumptions of the basic EOQ model are​ met, except that receipt is noninstantaneous.

None of the above is false.

Average inventory is more than​ one-half of the production order quantity.

The purpose of safety stock is​ to:

control the likelihood of a stockout due to variable demand​ and/or lead time.

eliminate the likelihood of a stockout due to erroneous inventory tally.

protect the firm from a sudden decrease in demand.

eliminate the possibility of a stockout.

replace failed units with good ones.

control the likelihood of a stockout due to variable demand​ and/or lead time.

A disadvantage of the​ fixed-period inventory system is​ that:

additional inventory records are required.

the average inventory level is decreased.

since there is no count of inventory during the review​ period, a stockout is possible.

it involves higher ordering costs than the fixed quantity inventory system.

orders usually are for larger quantities.

since there is no count of inventory during the review​ period, a stockout is possible.

Low-level coding means​ that:

the​ lowest-paid staff member in the production department performs the coding.

the top level of the BOM is below level zero and that BOMs are not organized around the finished product.

a component item is coded at the lowest level at which it appears in the BOM structure.

a final item has only a few levels in the BOM structure.

the code being used is the code for the lowest level in the BOM structure.

a component item is coded at the lowest level at which it appears in the BOM structure.

Which of the following is NOT a goal of JIT​ partnerships?

obtain improved quality and reliability

removal of unnecessary activities

removal of​ in-plant inventory

removal of​ in-transit inventory

All of the above are goals of JIT partnerships.

All of the above are goals of JIT partnerships.

A​ product-focused process is commonly used to​ produce:

​high-volume, low-variety products.

​low-variety products at either​ high- or​ low-volume.

​low-volume, high-variety products.

​high-volume, high-variety products.

​high-volume products of either​ high- or​ low-variety.

​high-volume, low-variety products.

Which of the following phrases best describes process​ focus?

Operators are less broadly skilled.

low​ volume, high variety

Finished goods are usually made to a forecast and stored.

low inventory

high fixed​ costs, low variable costs

low​ volume, high variety

The transfer of some of what are traditional internal activities and resources of a firm to outside vendors​ is:

outsourcing.

keiretsu.

offshoring.

a standard use of the​ make-or-buy decision.

not allowed by the ethics code of the Supply Management Institute.

outsourcing

Savings in the supply chain exert more leverage as the​ firm's net profit margin decreases.

True

False

True

Which of the following is NOT an opportunity for effective management in the supply​ chain?

accurate​ "pull" data

​vendor-managed inventory

CPFR

postponement

local optimization

local optimization

A fried chicken​ fast-food chain that acquired feed mills and poultry farms has performed which of the​ following?

horizontal integration

current transformation

backward integration

job expansion

forward integration

backward integration

The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders move through the supply chain.

True

False

True

The bullwhip​ effect:

occurs because of distortions in information in the supply chain.

results in increasing fluctuations at each step of the sequence.

increases the costs associated with inventory in the supply chain.

occurs as orders are relayed from retailers to distributors to wholesalers to manufacturers.

All of the above are true.

All of the above are true.

Which of the following is NOT an opportunity for effective management in the supply​ chain?

local optimization

CPFR

accurate​ "pull" data

postponement

​vendor-managed inventory

local optimization

Which of the following statements about ABC analysis is​ FALSE?

ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.

In ABC​ analysis, forecasting methods for​ "C" items may be less sophisticated than for​ "A" items.

Criteria other than annual dollar​ volume, such as high holding cost or delivery​ problems, can determine item classification in ABC analysis.

In ABC​ analysis, "A" items should have tighter physical inventory control than​ "B" or​ "C" items have.

ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings.

ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.

Which of the following is an element of inventory holding​ costs?

material handling costs

housing costs

​pilferage, scrap, and obsolescence

investment costs

All of the above are elements of inventory holding costs.

All of the above are elements of inventory holding costs.

In the basic EOQ​ model, if the cost of placing an order​ doubles, and all other values remain​ constant, the EOQ​ will:

increase by about​ 41%.

increase by​ 200%.

either increase or decrease.

​increase, but more data is needed to say by how much.

increase by​ 100%.

increase by about​ 41%

Which of the following statements regarding the production order quantity model is​ TRUE?

It minimizes inventory.

It relaxes the assumption that all the order quantity is received at one time.

It minimizes the total production costs.

It applies only to items produced in the​ firm's own production departments.

It relaxes the assumption that the demand rate is constant.

It relaxes the assumption that all the order quantity is received at one time.

The purpose of safety stock is​ to:

protect the firm from a sudden decrease in demand.

eliminate the possibility of a stockout.

control the likelihood of a stockout due to variable demand​ and/or lead time.

replace failed units with good ones.

eliminate the likelihood of a stockout due to erroneous inventory tally.

control the likelihood of a stockout due to variable demand​ and/or lead time.

The main trait of a​ single-period model is​ that:

supply is limited.

the cost of a shortage cannot be determined accurately.

it has the largest EOQ sizes.

the order quantity should usually equal the expected value of demand.

inventory has limited value after a certain period of time.

inventory has limited value after a certain period of time.

All EXCEPT which of the following statements about ABC analysis are​ true?

ABC analysis suggests that all items require the same high degree of control.

ABC analysis is an application of the Pareto principle.

ABC analysis suggests that there are the critical few and the trivial many inventory items.

ABC analysis categorizes​ on-hand inventory into three groups based on annual dollar volume.

In ABC​ analysis, inventory may be categorized by measures other than dollar volume.

ABC analysis suggests that all items require the same high degree of control.

The two most basic inventory questions answered by the typical inventory model​ are:

timing of orders and cost of orders.

ordering cost and carrying cost.

timing of orders and order quantity.

order quantity and cost of orders.

order quantity and service level.

timing of orders and order quantity.

Low-level coding means​ that:

the code being used is the code for the lowest level in the BOM structure.

the top level of the BOM is below level zero and that BOMs are not organized around the finished product.

a component item is coded at the lowest level at which it appears in the BOM structure.

a final item has only a few levels in the BOM structure.

the​ lowest-paid staff member in the production department performs the coding.

a component item is coded at the lowest level at which it appears in the BOM structure.

Concerning relationships with​ suppliers, which of the following combinations is critical to the success of​ JIT?

close relationships with trust

close relationships with skepticism

distant relationships with trust

distant relationships with skepticism

none of the above

close relationships with trust

What is one of the tools that is particularly useful in reducing system nervousness in an MRP​ system?

lot sizing

time phasing

time fences

closed loop system

modular bills

time fences

Enterprise resource planning​ (ERP):

automates and integrates the majority of business processes.

does not integrate well with functional areas other than operations.

seldom requires software upgrade or enhancement.

is inexpensive to implement.

all of the above

automates and integrates the majority of business processes.

Which of the following is generally found in most Lean​ environments?

a push system for high margin items and a pull system for low margin items

pull systems

a push or pull​ system, depending upon the rate of demand

push systems

a push system for purchased parts and a pull system for manufactured parts

pull systems

Which one of the following is a characteristic of a JIT​ partnership?

​third-party logistics never used

removal of incoming inspection

frequent deliveries in large lot quantities

active pursuit of vertical integration

maximal product specifications imposed on supplier

removal of incoming inspection

How can a reduction of​ in-transit inventory be​ encouraged?

supplier location near plants

low carrying costs

​low-cost, global suppliers

use of​ trains, not trucks

high setup costs

supplier location near plants

Lean operations are known for​ their:

supplier partnerships.

employee development.

challenging jobs.

supplier education.

All of the above are attributes of lean operations.

All of the above are attributes of lean operations.

Which of the following industries is most likely to have low equipment​ utilization?

restaurants

steel manufacturing

commercial baking

auto manufacturing

television manufacturing

restaurants

An assembly line is an example of​ a:

line process.

​product-focused process.

​process-focused process.

repetitive process.

specialized process.

repetitive process.

Which of the following phrases best describes product​ focus?

high inventory

high fixed​ costs, low variable costs

Finished goods are usually made to order.

Processes are designed to perform a wide variety of activities.

low​ volume, high variety

high fixed​ costs, low variable costs

A grocery store is attempting to implement a kanban system. Which of the following would NOT be an application of​ kanbans?

An empty doughnut tray signaling the bakery to produce 2 dozen glazed doughnuts.

A red light on top of the​ cashier's lane signals that the cashier needs additional change replenished.

A line of 5 people in the Chinese department signaling the department to heat 5 orders of crab rangoon.

The meat department stocking up on turkeys before Thanksgiving.

All of the above are kanban applications.

The meat department stocking up on turkeys before Thanksgiving.

Which of the following industries is most likely to have low equipment​ utilization?

television manufacturing

restaurants

commercial baking

auto manufacturing

steel manufacturing

restaurants

Which of the following is one of the four principles of bottleneck​ management?

Bottlenecks should be moved to the end of the system process.

Lost time at a​ non-bottleneck is lost system capacity.

Increased​ non-bottleneck capacity is increased system capacity.

Increasing capacity at bottleneck stations is a mirage.

Release work orders to the system at the​ bottleneck's capacity pace.

Release work orders to the system at the​ bottleneck's capacity pace.

Utilization will typically be lower than efficiency​ because:

effective capacity is less than design capacity.

expected output is less than rated capacity.

effective capacity is greater than design capacity.

expected output is less than actual output.

effective capacity equals design capacity.

effective capacity is less than design capacity.

Which of the following is FALSE regarding repetitive​ processes?

They include the assembly of basically all automobiles.

They use modules.

They allow easy switching from one product to the other.

They have more structure and less flexibility than a job shop layout.

They are the classic assembly lines.

They allow easy switching from one product to the other.

In mass service and professional​ service, the operations manager should focus extensively​ on:

automation.

human resources.

cost-cutting initiatives.

equipment maintenance.

sophisticated scheduling.

human resources.

Which of the following are all strategies for improving productivity in​ services?

high​ interaction, mass​ customization, service​ factory, and​ just-in-time

lean​ production, strategy-driven​ investments, automation, and process focus

reduce​ inventory, reduce​ waste, reduce​ inspection, and reduce rework

​separation, self-service,​ automation, and scheduling

process​ focus, repetitive​ focus, product​ focus, and mass customization focus

​separation, self-service,​ automation, and scheduling

​Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per​ day, five days per week. Due to regularly scheduled preventive​ maintenance, the firm expects the machine to be running during approximately​ 95% of the available time. Based on experience with other​ products, the firm expects to achieve an efficiency level for the cranks of​ 75%. What is the expected weekly output of cranks for this​ company?

4275

Which of the following statements regarding fixed costs is​ TRUE?

Fixed costs are those costs associated with direct labor and materials.

Fixed costs rise by a constant amount for every added unit of volume.

Fixed costs equal variable costs at the​ break-even point.

Fixed cost is the difference between selling price and variable cost.

While fixed costs are ordinarily constant with respect to​ volume, they can​ "step" upward if volume increases result in additional fixed costs.

While fixed costs are ordinarily constant with respect to​ volume, they can​ "step" upward if volume increases result in additional fixed costs.

What is the ability to respond with little penalty in​ time, cost, or customer​ value?

flexibility

repetitive process

mass customization

postponement

flexibility

Which of the following statements is NOT​ true?

Selecting the best equipment requires understanding the specific industry and available processes and technology.

Adding flexibility to the production process can be a major competitive advantage. Building flexibility into a production process is usually​ inexpensive, but difficult.

Selection of a particular process strategy requires decisions about equipment and technology.

The selection of equipment requires considering​ cost, cash​ flow, market​ stability, quality,​ capacity, and flexibility.

Adding flexibility to the production process can be a major competitive advantage. Building flexibility into a production process is usually​ inexpensive, but difficult.

What company has used process flexibility to allow it to become the industry leader at responding to market dynamics by modifying production volume and product​ mix?

Toyota

Harley Davidson

Honda

Walmart

Honda

What is a drawing of the movement of​ material, product or​ people? Part 2

flowchart

AIS

process chart

RFID

flowchart

What is a flowchart with time added on the horizontal​ axis?

process chart

service blueprinting

process mapping

CNC CNC

process mapping

Which of the following is NOT a tool for process analysis and​ design?

flowchart

process mapping

Pareto chart

process chart

Pareto chart

Which of the following statements is NOT true regarding the process analysis​ tools?

Process mapping is another name for​ time-function mapping.

​Time-function mapping extends​ value-stream mapping to include suppliers.

Service blueprinting is designed to help focus on the customer interaction part of the process.

A process chart is different than a flowchart.

​Time-function mapping extends​ value-stream mapping to include suppliers.

Which service strategy describes structuring services so customers must go where the service is​ offered?

Modules

Structure

Separation

Focus

Separation

Which of the quadrants in the service process matrix has high labor intensity and high​ customization?

service factory

professional service

mass service

service shop

professional service

Which of the quadrants in the service process matrix has low labor intensity and low​ customization?

service shop

professional service

service factory

mass service

service factory

A fast food restaurant is an example of

high customization and low degree of labor.

high customization and high degree of labor.

low customization and high degree of labor.

low customization and low degree of labor.

low customization and low degree of labor.

In many​ applications, human quality inspectors can be replaced effectively by

FMS.

vision systems.

automated storage and retrieval systems.

RFID tags.

vision systems.

What is an electronically guided and controlled cart used to move​ materials?

AIS

RFID

AGV

CNC

AGV

Which of the following is NOT a production technology that enhances production and​ productivity?

vision systems

process control

automatic identification systems

service blueprinting

service blueprinting

Which of the following statements is NOT true regarding production​ technologies?

Robots are mechanical devices that use electronic impulses to activate motors and switches.

Vision systems combine video cameras and computer technology and are often used in inspection roles.

Flexible manufacturing systems and​ computer-integrated manufacturing are increasing the distinction between​ low-volume/high-variety and​ high-volume/low-variety production.

CNC is machinery with its own computer and memory.

Flexible manufacturing systems and​ computer-integrated manufacturing are increasing the distinction between​ low-volume/high-variety and​ high-volume/low-variety production.

Which of the following is NOT an example of​ technology's impact on the financial services​ industry?

RFID

Internet stock trading

electronic funds transfer

debit cards

RFID

Which of the following is an example of​ technology's impact on​ wholesale/retail trade​ industry?

automatic teller machines

automatic toll booths

interactive TV

​bar-coded data

​bar-coded data

Which of the following is NOT an example of an advancement of service​ technology?

Retinal security scanners at airports

Electronic​ check-in/check-out at hotels

Automatic teller machines​ (ATMs) at banks

All of the above are examples of advancements of service technology

All of the above are examples of advancements of service technology

Which statement best represents the impact of technology advancements for service and manufacturing​ industries?

Technology advancements have not improved productivity in service industries

Technology advancements have not improved productivity in manufacturing industries

Technology advancements have improved productivity in service and manufacturing industries

Technology advancements have increased labor hours in service and manufacturing industries

Technology advancements have improved productivity in service and manufacturing industries

Which of the following statements is NOT true regarding process​ redesign?

Process redesign is also called process reinvention.

Effective process redesign works only if the basic process and its objectives are reexamined.

Process redesign also focuses on those activities that cross functional lines.

Process redesign is also called process reengineering.

Process redesign is also called process reinvention.

What is the fundamental rethinking of business processes to bring about dramatic improvements in​ performance?

process analysis

process redesign

process design

process strategy

process redesign

What types of processes are often neglected with regard to process​ re-design?

Automated processes

Reengineered processes

​Cross-functional processes

Expensive processes

Cross-functional processes

Which of the following approaches may use subcontracting to accommodate excess​ demand?

leading demand with incremental expansion

following demand with incremental expansion

leading demand with a​ one-step expansion

Subcontracting should never be used to accommodate excess demand.

following demand with incremental expansion

Which of the following approaches makes new capacity a larger increase at the beginning of the​ period?

leading demand with a​ one-step expansion

leading demand with incremental expansion

lagging demand with incremental expansion

attempts to have an average capacity that straddles demand with incremental expansion

leading demand with a​ one-step expansion

In​ manufacturing, excess capacity can be used to

do fewer​ setups, lengthen production​ runs, and drive down inventory costs.

do fewer​ setups, shorten production​ runs, and drive down inventory costs.

do more​ setups, lengthen production​ runs, and drive down inventory costs.

do more​ setups, shorten production​ runs, and drive down inventory costs.

do more​ setups, shorten production​ runs, and drive down inventory costs.

The most aggressive and risky approach to capacity planning is

attempts to have an average capacity that straddles demand with incremental expansion.

leading demand with​ one-step expansion.

lagging demand with incremental expansion.

leading demand with incremental expansion.

leading demand with​ one-step expansion.

Which of the following is a requirement to be able to compute expected monetary​ value?

the probability of each decision alternative is known

the probability of each state of nature is known

each decision alternative needs at least two states of nature

each state of nature is equally likely to occur

the probability of each state of nature is known

What does EMV stand​ for?

expected maintenance volume

expected monetary value

expected machine valuation

enterprise management valuation

expected monetary value

A supply chain ends with

manufacturers.

a satisfied customer.

suppliers.

distributors.

a satisfied customer.

Which of the following statements is NOT​ true?

An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.

A supply chain includes​ suppliers; manufacturers​ and/or service​ providers; and​ distributors, wholesalers,​ and/or retailers who deliver the product​ and/or service to the final customer.

The objective of supply chain management is to coordinate activities within the supply chain to maximize the supply​ chain's competitive advantage and benefits to the ultimate consumer.

Supply chain management describes the coordination of all supply chain​ activities, starting with raw​ materials, and ending with a satisfied customer.

An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.

Which of the following industries has the highest supply chain cost as a percentage of​ sales? Part 2

restaurants

automobile

petroleum

metals

petroleum

Prior to embarking on supply chain​ design, operations managers must first consider

what kind of distribution network to have.

how to select suppliers.

how to manage supply chain inventory.

​"make-or-buy" and outsourcing decisions.

​"make-or-buy" and outsourcing decisions.

What is transferring a​ firm's activities that have traditionally been internal to external​ suppliers?

​make-or-buy

keiretsu network

vertical integration

outsourcing

outsourcing

The advantage of having few suppliers is to

take advantage of diseconomies of scale.

pursue low cost.

look for​ short-term attributes.

form a​ long-term relationship.

form a​ long-term relationship.

The advantage of having many potential suppliers is their willingness to

participate in JIT.

provide technical expertise.

offer lower prices in the short term.

provide innovations.

offer lower prices in the short term.

What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a​ distributor?

vertical integration

outsourcing

horizontal integration

virtual companies

vertical integration

Which of the following strategies is part​ collaboration, part purchasing from few​ suppliers, and part vertical​ integration?

joint ventures

virtual companies

horizontal integration

keiretsu networks

keiretsu networks

Which of the following could reduce distribution​ risk?

​cross-country diversification

secure IT systems

careful​ selection, monitoring and effective contracts with penalties

use multiple suppliers

careful​ selection, monitoring and effective contracts with penalties

Which of the following mitigation tactics could reduce economic​ risk?

purchasing contracts that address price fluctuations

multiple transportation modes and warehouses

franchising and licensing

subcontractors on retainer

purchasing contracts that address price fluctuations

Which of the following mitigation tactics is NOT designed to reduce the risk of information loss or​ distortion?

alternate sourcing

training of supply chain partners on the proper interpretations and use of information

redundant databases

secure IT systems

alternate sourcing

Which of the following statements is true regarding​ cross-sourcing?

​Cross-sourcing develops the ability to produce goods or services previously purchased or actually buying a supplier or distributor.

​Cross-sourcing enhances technological skills.

​Cross-sourcing describes suppliers who become part of a company coalition.

​Cross-sourcing uses one supplier for a component and a second supplier for another​ component, where each supplier acts as a backup for the other.

​Cross-sourcing uses one supplier for a component and a second supplier for another​ component, where each supplier acts as a backup for the other.

Which of the following statements is NOT true regarding the bullwhip​ effect?

Inaccurate information results in distortions and​ fluctuations, causing what is known as the bullwhip effect.

The bullwhip effect occurs as order are relayed from​ retails, to​ distributors, to​ wholesalers, to​ manufacturers, with fluctuations decreasing at each step in the sequence.

Bullwhip fluctuations in the supply chain decrease customer service and profitability.

Bullwhip fluctuations in the supply chain increase the costs associated with​ inventory, transportation, shipping and receiving.

The bullwhip effect occurs as order are relayed from​ retails, to​ distributors, to​ wholesalers, to​ manufacturers, with fluctuations decreasing at each step in the sequence.

What is a​ long-term purchase commitment to a supplier for items that are to be delivered against​ short-term releases to​ ship?

advanced shipping notice

blanket order

drop shipping

postponement

blanket order

A lawnmower assembly plant uses a variety of​ nuts, bolts,​ screws, and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule. This is an example of

single stage control of replenishment.

postponement.

​e-procurement.

​vendor-managed inventory.

​vendor-managed inventory.

The​ do-it-yourselfer plucked a gallon can of base paint from the shelf of the local hardware store and handed it to​ Keith, the cheerful clerk at the paint counter. Their eyes met briefly and the​ do-it-yourselfer silently handed over sample​ 150C-1, Musical​ Mist, to the clerk. It was impractical to keep several gallons of every possible color on the shelves at the hardware​ store, so the paint manufacturer had created clever workaround. The workaround was a​ computer-based system that added predetermined quantities of pigments to a gallon can of base paint depending on the desired​ shade, in this​ case, Musical Mist. The hardware store now needed to stock only the base​ paint, this​ machine, and a small supply of paint pigments in order to create the thousands of colors in its catalog. This scenario is a prime example of

drop shipping.

the bullwhip effect.

postponement.

​vendor-managed inventory.

postponement.

Which of the following is the first stage of supplier​ selection?

contracting

supplier evaluation

negotiations

supplier development

supplier evaluation

Which negotiation strategy bases price on a​ published, auction, or index​ price?

​market-based price model

competitive bidding

​cost-based price model

​supply-based price model

​market-based price model

With regard to the​ cost-based price model negotiation​ strategy, which of the following is​ true?

Prices are based in some way upon market standards agreed to by both supplier and purchaser.

Prices float based on what the customer is willing to pay.

Potential suppliers each submit quotations as to​ price, delivery, and so on.

Prices are based upon supplier costs.

Prices are based upon supplier costs.

Which of the following is TRUE regarding the steps to reducing setup​ times?

The standardization of both tooling and work procedures is advantageous to setup time reduction.

The cycle of steps is repeated until setup time is reduced to under a minute.

The first step involves performing as much setup preparation as possible while the​ process/machine is operating.

Move material closer and improve material handling are done before operator training.

All of the above are true.

All of the above are true.

Which of the following is NOT one of the benefits accrued from a centralized purchasing​ function?

Devote more resources to the supplier selection and negotiation process.

Increase the duplication of tasks.

Leverage purchase volume for better pricing.

Maintain professional control over the purchasing process.

Increase the duplication of tasks.

Trucking

does not play a role in multimodal shipping.

is increasingly using computers to manage its operations.

is the least used transportation mode for manufacturing goods.

is one of the least flexible transportation modes.

is increasingly using computers to manage its operations.