2nd week

1.
Question 1
Inventory turnover ratio is directly proportional to periods of inventory.

1 point

True

False

2.
Question 2
Acme Inc., has decided to achieve four inventory turnovers during FY2018. Based on this,
calculate how many months’ worth of inventory Acme Inc. should hold.

1 point

0.25

None of the above

3.
Question 3
When we order inventories too often, the ordering costs will be _____, but inventory holding cost
will be _____. (Fill in the blanks).

1 point

Low, low

Low, high

High, low
High, high

4.
Question 4
The total cost of holding inventories in the EOQ model include ____.

1 point

A. Costs of ordering inventories

B. Costs of holding inventories

Both A and B

Neither A nor B

5.
Question 5
When the rate of replenishment is less than infinity but more than demand, the EMQ will be ____
the EOQ.

1 point

Greater than

Less than

Equal to

None of the above

6.
Question 6
Starfield Inc., orders planetary probes from its supplier Intergalactic at a cost of $1.50/probe.
Starfield consumes the probes at the rate of 300/day and 365 days per year. Every time Starfield
orders from Intergalactic it incurs a cost of $12. Starfield also faces an interest rate of 10% per
year. Because the planetary probes are tiny storage costs are negligible. How many probes
should Starfield order to minimize its costs?

1 point
219

854

4186

6279

7.
Question 7
On-hand inventory and Inventory position are exactly the same, when_____. (Fill in the blank)

1 point

On-hand inventory is greater than zero

On-hand inventory becomes zero

There are no other orders still waiting to be delivered

None of the above

8.
Question 8
In a periodic review system, inventory is reviewed_____. (Fill in the blank)

1 point

Infrequently

Constantly

Randomly

At fixed time intervals

9.
Question 9
If tolerance for stock outs for Acme Inc. is 1%, then its service level will be _____. (Fill in the
blank)

1 point

1%

99%

Insufficient information

None of the above

10.
Question 10
Acme Inc. has decided to adopt an order up to level policy to manage its inventory. For a certain
product, its inventory position is 200 units, its reorder point is 100 units, and its Economic Order
Quantity (EOQ) is 300 units. Calculate the Order Up to Level for this product?

1 point

100

300

400

500

I, Pradeep Kumar Bolisetty, understand that submitting another’s work as my own

1.
Question 1
Why do organizations hold inventories?

A. To achieve transactional efficiency

B. A result of speculation of price fluctuation

C. Hedge to protect against uncertainty in demand and/or supply

D. Strategic positioning

1 point

A and B

B and C

A, B, C and D

None of the above

2.
Question 2
What will be Acme Inc., inventory turnover ratio if it decides to maintain an average of one
months' worth of inventory in its warehouses during FY2018?

1 point

12

3.
Question 3
Which of the following are components of inventory holding costs?

1 point
Storage costs

Cost of working capital tied with inventories

Both A and B

None of the above

4.
Question 4
If the exact quantity calculated by the EOQ model is ordered, then the inventory carrying costs
are _____ ordering costs. (Fill in the blank)

1 point

Greater than

Less than

Equal to

None of the above

5.
Question 5
When the rate of replenishment is less than infinity but more than demand, the EMQ will be ____
the EOQ.

1 point

Greater than

Less than

Equal to
None of the above

6.
Question 6
Starfield Inc., orders planetary probes from its supplier Intergalactic at a cost of $1.50/probe.
Starfield consumes the probes at the rate of 300/day and 365 days per year. Every time Starfield
orders from Intergalactic it incurs a cost of $12. Starfield also faces an interest rate of 10% per
year. Because the planetary probes are tiny storage costs are negligible. How many probes
should Starfield order to minimize its costs?

1 point

219

854

4186

6279

7.
Question 7
On-hand inventory and Inventory position are exactly the same, when_____. (Fill in the blank)

1 point

On-hand inventory is greater than zero

On-hand inventory becomes zero

There are no other orders still waiting to be delivered

None of the above

8.
Question 8
In a continuous review system, inventory is reviewed _____. (Fill in the blank)

1 point
Infrequently

Constantly

Randomly

On fixed time intervals

9.
Question 9
Safety stocks need to be maintained to take care of uncertainty of ______. (Fill in the blank)

1 point

A. Demand

B. Lead time

Both A and B

Neither A Nor B

10.
Question 10
Acme Inc., has an order up to level policy for managing its inventory. At a certain time for Product
X, its reorder point is 90 units, Order Up to Level is 100 units, and its inventory position is 80
units. Determine order quantity for product X?

1 point

10

20

30
1.
Question 1
Switzerland’s coffee exports have higher value per pound because?

1 point

Switzerland grows its coffee at the higher altitudes of the Alps

Switzerland uses civets to pick coffee beans

Swiss coffee exports are predominantly processed coffee pods

Switzerland has higher taxation rates

2.
Question 2
The location of a supplier is important because?

1 point

It affects the color of the product

It affects the chemical composition of the product

It affects the quantity of the product

It affects the cost of transportation

3.
Question 3
Currency hedging is used to protect against?

1 point

Labor unrest at a supplier

Changes in foreign exchange rates

Natural disaster affecting the supply chain

4.
Question 4
Supply chain logistics are concerned with?

1 point

Transportation, location

Transportation, storage

Storage, value addition

Storage, location

5.
Question 5
What are the three characteristics of transactions between companies and their suppliers?

1 point

Frequency of Transaction, Asset Specificity, Uncertainty

Frequency of Transaction, Asset Specificity, Safety

Frequency of Transaction, Uncertainty, Production rate

Asset Specificity, safety, Production rate

6.
Question 6
Which factors must be considered in make-or-buy decisions?
1 point

Strategic, Risks, Economic factors

Quality, Strategic, Risks

Economic factors, Quality, Strategic

Economic factors, Risks, Quality

7.
Question 7
Charlie Outboard Engines uses metal gaskets in its boat motors. One of the components of the
motor is a metal gasket which can be manufactured in-house or obtained from numerous
suppliers who supply automobile manufacturers and can produce the gaskets cheaper. Charlie
should?

1 point

Outsource the production

Make it in house

Indifferent between A or B

None of the above

8.
Question 8
Demand variability for a product may be caused by?

1 point

Natural variations in customers usage of the product

Trade promotions offered by manufacturers to retailers

Discounted Sales and marketing promotions offered to consumers

9.
Question 9
Foxtrot Machining supplies metal housings used by kitchen blender makers. Foxtrot experiences
large variations in demand for the housings and yet it is known that demand for blenders is
relatively stable. Which of the following is not a likely reason for this discrepancy?

1 point

Frequent sales offered by retail stores on blenders

Bulk discounts offered by Foxtrot to blender manufacturers

Increased use of blenders for making smoothies

All of the above

10.
Question 10
A supplier Lima plans to reduce the package sizes it delivers to its customers. Will this magnify
the bullwhip effect?

1 point

Yes

No

Can’t say

Data insufficient

1.
Question 1
How did Edward Deming contribute in Japan’s post-war industrial revival?
1 point

Through his studies of scientific management

Through his studies of time and motion analysis to improve efficiency

Through quality control

None of the above

2.
Question 2
Which of the following is not an element of Deming’s system of profound knowledge?

1 point

Theory of constraints

Psychology of change

Appreciation of a system

Understanding of variation

3.
Question 3
Which of the following is a value adding activity?

1 point

None of the above

Acme Inc. received a complaint from client for a product that needs rework

Acme Inc. reworked a finished product at the customer’s expense because its client changed
product specification after product was manufactured
Acme Inc. needs to move goods from warehouse A to warehouse B as warehouse A needs
repairs

4.
Question 4
Which of the following is a value adding activity?

1 point

A chef in a restaurant has to move around in a kitchen to find correct utensils

A worker in a factory has to visit store room to collect required tools

A call center operator writes down the length of each call in a log book.

None of the above

5.
Question 5
Which of the following is non-value adding activity?

1 point

Product design team at Acme Inc. incorporated extra features in a product that client has not
asked for

All of the above

Acme Inc. has to transport its workers from plant A to plant B because of incorrect production
plan

Workers at Acme Inc. waited for two hours due to power outage

6.
Question 6
The two pillars of Toyota Production System (TPS) are ____ and ____. (Fill in the blanks)

1 point

Stability and standardization

Jidoka and Just-in-time (JIT)

None of the above

7.
Question 7
Removing all items not needed for current production operations is called as ____ in 5S
philosophy. Chose the correct option. (Fill in the blank)

1 point

Seiri

Seiton

Seiso

Seiketsu

8.
Question 8
Keeping everything, every day, swept and clean means ____ in 5S philosophy. Chose the
correct option. (Fill in the blank)

1 point

Seiton

Seiso

Seiketsu

A. Seiri

9.
Question 9
Kaizen involves a large group working on continuous improvement initiatives across a firm.

1 point

True

False

10.
Question 10
Ishikawa diagrams are also known as ____. (Fill in the blank)

1 point

Fishbone diagram

Block diagram

Both A and B

None of the above

Peer Review Assignment for 3rd week

1. Harting USA outsources the manufacture of some components of non core competency to
suppliers. the reason for harting's localization strategy is that it was strictly driven to reach enough
volumes to be able to support manufacturing in north America. the second significant factor in the
decision was being close to their customers in north America demanding>how they can really
achieve their requirements? Reduce the delays and the lead time in bringing the product into the
[Link] helps in the customization and the little tweaks here and there as demanded by the
customers. By having the manufacturing capabilities close to the customers, they would be able to
react to their needs a lot quickly.

2. There is a high asset specifically and a low uncertainty's she told that they never want to
outsource what they would consider core competency product that they really want to bring their
customer a high level of value, but thy are really not threatening their core competency. Where the
company really take pride in what they do and if it is something that a contract manufacture could
also [Link], from thereat view, they are looking to use their internal as much as possible if it fits to
the internal [Link] f it fits then they will try to keep it internal as much as possible but if it does
not, the company will outsource it accordingly. The company has a very stringent supplier
qualification program. Every supplier that they take onboard., those they share any technical
information are under very strict non disclosure agreements. they have to sign before the company
shares any information with them. She mentioned that has to do with the core competency ,they
will not outsource level of technology that really going to be the potential threatening the vision

3. The variability when you are dealing with the supply chain that you really never know what the
problem is going to come from [Link] how do you control especially, those critical components to
your business with your supply chain, companies that are typically outsource their production and
product are typically more lenient into how they record their data, how they monitor that and how
they manage. so, just because they are effectively doing this production in housesit does not mean
that they are effective going to put source that. having the awareness of hoe ready is the company
to outsource your product is very critical to the source and the success do the partnership in their
long term. The readiness of customers to release source product of the supplier. many times if they
are deciding to go for the internal sourcing. anymore, when they look into our sourcing they never
want to outsource what they would consider core competency.