OPS 571 Wk 6 – Apply: Week 6 Exam

Complete the Week 6 Exam in McGraw-Hill Connect.

Facility location analysis considers the competitive imperative of lowest total cost.

Which of the following is an improvement-driven reason for outsourcing?

Multiple Choice

Shorten cycle time.

Improve effectiveness by focusing on what the firm does best.

Increase product and service value by improving response to customer needs.

Turn fixed costs into variable costs.

Reduce costs through a lower cost structure.

A free trade zone is typically a closed facility into which foreign goods can be brought without being subject to the usual customs requirements.

Which of the following of Fisher’s product categories includes fashionable clothing, personal computers, and other products that typically have a very brief life cycle?

Multiple Choice

Functional products

Dysfunctional products

Innovative products

Bullwhip products

Value density products

Ownership costs include which of the following costs?

Multiple Choice

Environmental costs

Warranty costs

Supply chain costs

Quality costs

Taxes

In Hau Lee’s uncertainty framework to classify supply chains, a supply chain for innovative products with a stable supply process is called which of the following?

Multiple Choice

Efficient

Forward looking

Agile

Risk hedging

Responsive

Plant A is located at the (X, Y) coordinates of (200, 500) and has a volume of shipping of 400 units a day. Plant B is located at the (X, Y) coordinates of (300, 100) and has a volume of shipping of 300 units a day. Using the centroid method, which of the following is the X coordinate for the new plant location?

Multiple Choice

About 208

About 227

About 243

About 389

X coordinate cannot be computed from the data given.

Inventory turnover and weeks of supply are mathematically the inverse of one another.

The optimal strategy for functional products is to use an efficient supply chain.

Which of the following is not an infrastructure criteria used in facility location analysis?

Multiple Choice

Adequate school system

Adequate health care

Adequate transportation

Adequate low cost labor

Adequate public utility systems

Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of low wage costs and/or skill levels.

Which of the following is not an improvement-driven reason for outsourcing?

Multiple Choice

Improve quality and productivity.

Enhance effectiveness by focusing on what you do best.

Improve risk management.

Obtain expertise, skills, and technologies not otherwise available.

Improve credibility and image by associating with superior providers.

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should be excluded from the analysis?

Multiple Choice

Historical costs

Inbound distribution costs

Land

Construction

Regional costs

Facility location analysis considers proximity to customers important to timeliness of deliveries.

In facility location decision making, matching the educational and skill levels of the labor pool to a company’s needs is even more important than the labor pool’s willingness and ability to learn.

Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally.

In the logistics-systems design matrix, volume, cost and speed of delivery are three variables (assume three levels: low, moderate or high) used to describe attributes of transportation modes. Rail is associated with

Multiple Choice

moderate volume, moderate speed and high cost

moderate volume, high speed and high cost

high volume, moderate speed and low cost

low volume, high cost and low speed

high volume, high speed and high cost

An organizationally driven reason for outsourcing is that it can transform the organization.

In Hau Lee’s uncertainty framework to classify supply chains, a supply chain for functional products with an evolving supply process is called which of the following?

Multiple Choice

Efficient

Forward looking

Agile

Risk hedging

Responsive

If the average aggregate inventory value is $45,000 and the cost of goods sold is $10,000, which of the following is weeks of supply?

Multiple Choice

45,000

234

120

23.4

4.5

Strategic sourcing is the development and management of supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of the business.

Outsourcing is the act of moving some of a firm’s internal activities and decision responsibility to outside providers.

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following are hidden costs that should be included in the analysis?

Multiple Choice

Becoming less responsive to the customer

Supplier costs

Taxes

Construction costs

Product life cycle costs

Logistics is a term that refers to the management functions that support the complete cycle of material flow, from the purchase and internal control of production materials; to the planning and control of work-in-process; to the purchasing, shipping, and distribution of the finished product.

Capability sourcing refers to outsourcing the functions that a company does best to trusted key partners.