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Practice Test Answer Key
1. Which of the following is considered a b. Lean – Lean and JIT are productivity systems.
productivity system? TQM and Six Sigma are quality management
a. TQM systems and Statistical Process control is a
b. Lean statistical method used in many disciplines.
c. Six Sigma
d. Statistical Process Control
2. Which of the following Customer a. Short delivery leadtime is most commonly
expectations would be in conflict with an achieved by carrying safety stock.
organizational goal of low inventory
investment?
a. Short delivery lead time
b. High quality levels
c. High flexibility to change
specifications
d. Low cost
3. Which of the following is not an element of c. The other three are listed as elements.
product performance?
a. Durability
b. Maintainability
c. Changeability
d. Reliability
4. “Voice of the Customer” refers to which of c. Voice of the customer is most commonly
the following? associated with unedited customer feedback.
a. All customer feedback received
through customer service
b. Marketing’s summary of customer
concerns
c. The exact customer’s words
d. Customer responses to a satisfaction
survey
5. The primary use for the House of Quality is a. This is the primary function of the HofQ.
a. To relate customer‐defined Choices b and c are unrelated to HofQ. Option d,
attributes to technical features although one element of the HofQ diagram, is not
b. To define the structure of the quality the primary function of the exercise.
organization
c. To define a framework for
understanding Lean Production
d. To collect customer opinions about
product satisfaction
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Basics of Supply Chain Management V3.0
Practice Test Answer Key
6. Which of the following is NOT a benefit of c. SPC is used to control a process so that bad
statistical Process control? product is not created. Option c describes
a. It adds value for the customer inspection.
b. It eliminates cost
c. It allows good product to be sorted
from bad
d. It finds the cause of variation before
bad product is made
7. Which of the following defines waste? b. In JIT/Lean literature, waste is defined as any
a. Anything that adds cost to the activity that does not add value, as perceived by
product the customer. Option a. would include activities
b. Anything that does not add value in that do add value. Options c and d are not related
the eyes of the customer to waste in JIT/Lean.
c. Anything that requires special
handling
d. Anything that cannot be automated
8. Which of the following is not an element of d. Taguchi methods are statistical methods
the House of Toyota? developed by Genichi Taguchi to improve the
a. Heijunka quality of manufactured goods, but are not
b. Jidoka specifically part of the House of Toyota.
c. Kaizen
d. Taguchi
9. Which of the following is one of the eight c. Although the other three options may be
generally accepted categories of waste? elements of the categories, only c is one of the
a. Inspection categories of waste.
b. Underproduction
c. Unused people skills
d. Material shortages
10. Which of the following is true about b. It does not build according to the actual flow of
Heijunka? customer orders. It takes the total volume of
a. It builds according to the actual flow orders in a period and levels them out so the same
of customer orders amount and mix are being made each day.
b. It does not build according to the
actual flow of customer orders
c. It builds according to the maximum
flow of customer orders
d. It builds according to the minimum
flow of customer orders
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Basics of Supply Chain Management V3.0
Practice Test Answer Key
11. All of the following are benefits of mixed‐ c. Mixed‐model scheduling depends on frequent
model scheduling EXCEPT setups, which on its own would decrease
a. Labour requirements are stabilized manufacturing efficiency.
b. Inventory is minimized
c. Manufacturing efficiency is
maximized
d. Demand on upstream suppliers is
smoother
12. A facility, function, department, or resource b. Per the Theory of Constraints, this is the
whose capacity is less than the demand definition of a bottleneck. The other three are
placed upon it is a alternative names for a constraint, which does not
a. Constraint necessarily have less capacity than demand.
b. Bottleneck
c. Capacity Constrained Resource
d. Drum
13. In throughput accounting, throughput is a. In the Theory of Constraints, throughput is
defined as recognized when money is generated from sales,
a. The rate at which a company not when the product is produced.
generates money through sales of a
product
b. The rate at which the production
line generates products
c. The length of time from when
material enters a production facility
until it exits
d. The length of time between
payment to a supplier, and receipt of
payment from a customer
14. Which TOC plant type would be best suited c. components and subassemblies flow into
to production of custom office furniture? several different end configurations of furniture in
a. V a many‐to‐many relationship.
b. A
c. T
d. I
15. Each of the following is one of the five c. the Five steps are
focusing steps in Theory of Constraints • Identify the constraint
EXCEPT • Exploit the constraint
a. Identify the constraint • Subordinate everything else to the
b. Exploit the constraint constraint
c. Minimize the constraint • Elevate the constraint
d. Start over • Start over
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Basics of Supply Chain Management V3.0
Practice Test Answer Key
16. In Theory of Constraints, the “rope” refers to c. From the TOC reference material.
which of the following?
a. The schedule established at the
constraint
b. The inventory in place to support
throughput performance
c. The information flow from the
constraint to material release
d. The signal to ship the customer
17. A production line’s least productive work c. Because market demand is significantly below
center produces at 800 pieces per day, and the production line’s capacity, the market is
market demand is 500 pieces per day. restricting the line’s ability to produce more goal
Which of the following is true? units.
a. The work center is a capacity‐
constrained resource
b. The work center is a bottleneck
c. The market is a constraint
d. The market is a bottleneck
18. All of the following are ways to exploit the b. A queue of inventory should be maintained
constraint EXCEPT ahead of the constraint to ensure the resource is
a. Stagger work breaks to run the never idle waiting for material
resource continuously
b. Reduce the inventory queue in front
of the resource
c. Ensure material quality is good
before it goes into the resource
d. Schedule time for preventive
maintenance to ensure maximum
availability
19. Which of the following is not a type of buffer b. “Quality” is not a type of buffer defined in
in Theory of Constraints? Theory of Constraints.
a. Stock buffers
b. Quality buffers
c. Protective capacity
d. Time buffers
20. Which of the following is not a method used c. Elevating the constraint refers to increasing the
to elevate the constraint? throughput of the constraint. Reducing the
a. Add new equipment inventory queue is not a method to increase
b. Make productivity improvements throughput.
c. Reduce the inventory queue in front
of the resource
d. Reorganize
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Basics of Supply Chain Management V3.0
Practice Test Answer Key
21. According to throughput accounting, when is d. Throughput accounting assumes that value is
value recognized by an organization? recognized only when something is SOLD.
a. When the product is put into
finished goods inventory
b. When the product is shipped to the
customer
c. When the product is backflushed
d. When the product is sold
22. Theory of Constraints relies on three global a. T I & OE, as defined by the Theory of
measures for financial analysis of business Constraints.
decisions. Those three measures are
a. Throughput, Investment, Operating
Expense
b. Throughput, Inventory, Overhead
Expense
c. Throughput, Investment, Overhead
Expense
d. Throughput, Inventory, Operating
Efficiency
23. The process of combining statistical d. Per the supplemental definitions in the 2009
forecasting techniques and judgement to Exam Content Manual for BSCM.
construct demand estimates for products or
services across the supply chain from the
supplier’s raw materials to the consumer’s
needs is called
a. Delphi Method
b. Seasonal Forecasting
c. Sales and Operations Planning
d. Demand Planning
24. In lean, the resource that is scheduled based a. Per the supplemental definitions in the 2009
on the customer demand rate for that Exam Content Manual for BSCM.
specific value stream is known as the
a. Kanban
b. pacemaker
c. bottleneck
d. constraint
25. A sales person promises immediate delivery d. Any of the objectives listed may have to be
to a customer in order to provide a high compromised to meet the stated objective.
level of customer service. This in conflict Option a would occur if production lines had to be
with objective? interrupted to expedite orders, option c would be
a. Maximizing production efficiency compromised by the need to carry finished goods
b. Minimizing cost safety stock, and option b would be compromised
c. Minimizing inventory investment by both of these options.
d. All of the above
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Basics of Supply Chain Management V3.0
Practice Test Answer Key
26. The critical chain method would be most b. Critical Chain method—In the theory of
applicable to which of the following constraints, a network planning technique for the
processes? analysis of a project’s completion time, used for
a. Financial management planning and controlling project activities.
b. Project Management
c. Supply chain management
d. Demand Management
27. All of the following are aspects of green b. Design for Maintainability is not one of the
manufacturing EXCEPT listed aspects of green manufacturing.
a. Design for disassembly
b. Design for maintainability
c. Design for remanufacture
d. Design for reuse
28. Which production environment is most b. Since demand is declining, making products only
appropriate for a company whose products when there is a customer order avoids the risk of
are in the decline phase? obsolete inventory.
a. Make to stock
b. Make to order
c. Assemble to order
d. Engineer to order
29. An “engineer to order” environment would a. in the introduction phase, future demand is
be most appropriate for a company with uncertain and engineering changes are likely, so
products in which product lifecycle phase? the risk of obsolete inventory is high.
a. Introduction
b. Growth
c. Maturity
d. Phase‐out
30. In a make or buy analysis, the cost to make c. landed cost includes product cost, logistics cost
the product should be compared to & duties or fees incurred.
a. The purchased cost
b. The product cost
c. The landed cost
d. The standard cost
31. Which of the 4 P’s would marketing d. Place refers to placing the product in the
management use to make decisions about correct delivery channels. For example, will
the most appropriate delivery channels? the products be sold online, through a
a. Product catalogue, or from a retailer? What delivery
b. Price speed does the market demand? What
c. Promotion delivery modes are available and appropriate?
d. Place e.g., some products may need to be offered
through more than one channel – books online
and bookstores – different market segments.
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Basics of Supply Chain Management V3.0
Practice Test Answer Key
32. Mean absolute deviation can be used to b. MAD is not used to address the other three
analyze forecast error and plan safety stock issues.
by
a. Evaluating the minimum and
maximum forecast error
b. Determining how closely the
distribution of error is concentrated
around the average
c. Comparing the number of stockouts
to total sales
d. Tracking the bias of the forecast
error
33. Which of the following is NOT true about d. A larger smoothing constant applies more
exponential smoothing forecasts weight to the most recent demand.
a. It is a type of weighted moving New forecast =
average forecast α(latest demand) + (1‐α)(previous forecast)
b. It uses a smoothing constant to
provide weighting to the most
recent period’s results
c. It requires a relatively small amount
of historical data
d. A smaller smoothing constant would
make the forecast more responsive
to recent changes
34. Which capacity management technique is b. RCCP is used to validate the Master Schedule.
used to validate the Master Schedule?
a. Resource Planning
b. Rough Cut Capacity Planning
c. Capacity Requirements Planning
d. Input/Output Control
35. Which priority management technique is a. The other three techniques are used for
concerned with product groups or families? increasing detail of the product structure.
a. Sales & Operations Planning
b. Master Scheduling
c. Material Requirements Planning
d. Production Activity Control
36. Which of the following is NOT an output of c. Planning parameters are an input to the MRP.
MRP?
a. Planned Purchase Releases
b. Planned Shop Releases
c. Planning Parameters
d. Action Notices
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Basics of Supply Chain Management V3.0
Practice Test Answer Key
37. The category of inventory management that d. The other options are operational level issues.
is concerned with business level impacts is
a. Item inventory
b. Distribution inventory
c. Work in process inventory
d. Aggregate inventory
38. A company has 1,000 units on hand, and a. Average daily usage = 24,000/240=100
annual usage is 24,000. There are 240 work DoS = 1000/100 = 10 days of supply
days in the year. The inventory days of
supply on hand is
a. 10
b. 24
c. 42
d. 100
39. The sequence of customers who in turn c. Per the APICS Dictionary definition.
consume the output of each other is called
the
a. Supply Chain
b. Supply Network
c. Customer Chain
d. Customer Network
40. All of the following are reasons for using d. This option would most commonly use private
public warehouses EXCEPT warehouses.
a. Accommodating seasonal demand
b. Servicing regional requirements
c. Adjusting warehouse capacity
quickly to handle new product
introductions
d. Servicing high‐volume, mature
markets
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