TAKE HOME FINAL EXAM (due June 11, 2002) Dr. Greg Magnan MBA 518, Spring 2002 NAME:
Select the best answer for each multiple-choice question. Please ask for clarification if you are not sure what the question is asking. Do NOT make the questions harder than they are! The exam has a total of 32 points possible (8 1-point multiple choice, 4 3-point short answer, and 3 4-point short answer). If you are submitting the exam as a group (maximum of four per group), only one submission is necessary. All should complete the Project Rating Form at the end of the exam.
1. Which of the following is not an objective of aggregate planning?
a. minimize production costs. b. maximize customer service c. maximize inventory costs d. minimize backorders
2. The master production schedule (MPS) usually states the production of a company’s:
a. raw materials b. work in process inventory c. components d. finished goods e. none of the above
3. Which of the following statements is false:
a. the purchasing department is solely responsible for managing a firm’s supply chain b. e-procurement lowers ordering costs, thereby reducing order quantities c. the primary competitive priorities are cost, quality, delivery and flexibility d. MRP systems are the pre-cursors to today’s ERP systems e. none of the above, all are true
4. Material requirements planning (MRP) systems are advantageous in that they:
a. allow firms to purchase most component parts, rather than manufacture them internally. b. assure that sufficient safety stocks are on hand for unexpected delays from vendors. c. result in lower negotiated prices from vendors. d. work to ensure material and component availability, while cutting inventory investment.
5. Which of the following is not an input required for MRP calculations:
a. bill of materials (BOM) file b. inventory master file c. demand forecast d. master production schedule
Page 1 6. Which one of the following items experiences dependent demand?
a. Finished products/goods. b. Sales of ice cream at a local grocery. c. Original equipment automobile water pumps. d. Ford's auto sales to dealers. e. None of these.
7. Which of the following is not a characteristic of the new “partnership” model of purchasing?
a. long term relationships b. fewer vendors c. infrequent deliveries d. small quantities e. all are characteristics of the partnership model
8. Supply chain management (SCM) is characterized by all of the following except:
a. emphasis on joint reduction in channel inventories b. information sharing c. coordination between firms in the chain d. reduced supply base e. ALL of the above are SCM characteristics
Short Answer Section
This section is worth 24 points in total. Questions 11-16 are worth 3 points and should be no longer than two paragraphs and questions 17-19 are worth 4 points. Please type your responses (double- spaced). Be sure to address the questions! [A “paragraph” need not be a full page in length--about 3 or 4 sentences will work. If you want to write more you can, although full credit can be earned with 3- 4 sentence paragraphs.]
CHOOSE FOUR 3-POINT QUESTIONS FROM 11-16 [total of 12 points]
11. What is Supply Chain Management? Why is it important to businesses in today’s market? What new technologies are helping companies manage their supply chains?
12. Why is “visibility” important to manufacturing planning and managing supply chains?
13. From the article, “What Is The Right Supply Chain For Your Product” (Fisher, 1997), why should the “nature of demand” have any affect on supply chain design? Is it rational for firms to maintain separate supply chains for different products?
14. What role does the operations/manufacturing function play in a company? What is its contribution to the competitiveness of a firm?
15. From the article, “Making Supply Meet Demand in an Uncertain World,” (Fisher, et al., 1994), what are the relationships between demand uncertainty and production planning? What are the affects on the system of product proliferation? (p. 86)
16. In “The Superefficient Company,” Hammer (2001) notes that the supply chain management challenge is one of people and processes (p. 85). What does he mean? How can this information help firms struggling in their supply chain journey?
Page 2 ANSWER THE FOLLOWING 4-POINT QUESTIONS (17-19) [total of 12 points]
Questions 17-19 are worth 4 points and should be no longer than three paragraphs. Be sure to address the questions! [Generally, the answers to these questions should be about one page, double-spaced.]
17. From the article, “Under Fire,” why does the burden for enforcing labor standards often fall to large companies? What conditions are the inspectors or the non-profit accrediting agencies hoping to change? What are the challenges in making the changes? From the sourcing company’s perspective, which function(s) should be responsible for drafting and enforcing these policies?
For one point of extra credit, read “Worked Till They Drop” from the 5/13/02 Washington Post and incorporate this article into your answer.
18. Describe the relationship between Lean Manufacturing and:
quality management plant layout inventory management supply chain management competitive priorities
19. From the article, “The Great Inventory Correction”, identify why inventory levels increased and the steps firms are taking to avoid this problem in the future. In your response use at least 8 terms that appear in the article and we talked about in the course.
[end of exam]
Page 3 PLANT TOUR PROJECT RATING FORM Operations Management Spring, 2002
As noted in the syllabus, you have an opportunity to evaluate the contribution of your teammates on your class project. Be sure to include and rate yourself!
Please evaluate performance by assigning a letter grade (A, B, C, D, F) for each category. All information will remain confidential and may be used to adjust the project score of team members that are consistently rated low.
Company:______Your Name:______
Member Name Dependability Attitude / Support for Overall contribution Others
Additional Comments:
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