CPIM基础部分习题.doc

Question Number: 1The basic elements of the supply chain include:A）supply, manufacture,distribution. B) design, manufacture, inventory.C) engineer, design, manufacture. D) supply, engineer, manufacture.The correct answer is: AEven though different companies produce different products, the basic elements are the same: supply, manufacture, and distribution.Question Number: 2In order to maximize profit, a company must have all of the following objectives except:A) Best customer service B) Most accurate production forecastC) Lowest inventory investment D) Lowest distribution costThe correct answer is: BA company, to maximize profits, must have the lowest production cost, best customer service, lowest inventoryinvestment, and lowest distribution costs. While an accurate production forecast will contribute to low production costs, it will not guarantee the lowest production costs.Question Number: 3BASICS OF SUPPLY CHAIN MGMT (BSCM) :Businesswide ConceptsThe inventory turns ratio measures:the amount of inventory needed to A) support sales growth.B) obsolete inventory as a percent of sales.C) how effectively inventory is being used.D) the amount of space needed to store inventory.The correct answer is: CThe inventory turns ratio measures how effectively inventories are being used. It is calculated by dividing annual cost of goods sold by average inventory in dollars.Question Number: 4Process specifications can be best defined as a document which:A) shows how the product will appear. B) shows the steps needed to produce the end item.C) details the capacity available at a work center. D) flow charts various processes.The correct answer is: BProcess specifications describe the steps needed to make an end product. They are usually printed on a routingsheet or kept in the database for online access.Question Number: 5BASICS OF SUPPLY CHAIN MGMT (BSCM) :Businesswide ConceptsA companys strategic plan: A) provides the manufacturing plan for families of end items.B) outlines the sales plan for the next year.C) is a statement of goals and objectives for a long range period.D) outlines new products for the next year.The correct answer is: CWhile strategic plans do provide for manufacturing, sales, and new product plans, they really provide the overall direction for the company. The result is a statement of goals and objectives for 2-5 years, and sometimes 10 years.Question Number: 6In which of the following manufacturing environments would consumer products, such as film, food, etc. beclassified?A) Assemble-to-order B) Engineer-to-orderC) Make-to-order D) Make-to-stockThe correct answer is: DConsumer products are generally considered make-to-stock. There are a few standard items assembled from many components.Question Number: 7Many different end items are made from a small number of components. What manufacturing environment would this be?A) Make-to-stock B) Make-to-orderC) Assemble-to-order D) Engineer-to-orderThe correct answer is: BMake-to-order companies typically make many end items from a small number of components. The schedule isdeveloped from actual customer orders.Question Number: 8The purpose of a strategic business plan is to:plan production A) by product family. B) plan for business changes which take a long time.C) establish customer requirements over the long term. D) establish order promising strategies.The correct answer is: BStrategic plans are used for long term planning (2-10 years). They are used to allow time to plan for changes which take a long time to occur. These might include new plants or distribution centers.Question Number: 9BASICS OF SUPPLY CHAIN MGMT (BSCM) :Businesswide ConceptsAggregate inventory management is concerned with:A) managing inventory items and how they are used. B) establishing the production plan.C) the cost and benefits of carrying the different classes of inventory.D) the distribution network and the movement of inventory.The correct answer is: CAggregate inventory management is concerned with the cost and benefit of carrying raw materials,work-in-process, and finished goods inventory. It is financially oriented.Question Number: 10Which of the following are objectives of inventory?I. Maximize customer serviceII. Efficient transactionIII. Low cost plan operationsIV. Minimum inventory investmentA) I, II, and III B) I, III, and IVC) I, II, and IV D) II, III, and IVThe correct answer is: BIn order to maximize profits, a company must manage inventories, provide great customer service, and haveefficient plant operations, while minimizing the amount of capital used for inventory.Question Number: 11Which of the following would be included in the cost of carrying inventory?Heating and I. lighting a warehouseII. Obsolete inventoryIII. Labor to move materialIV. Damaged inventoryA) I, II, and III B) II, III, and IV C) I, III, and IV D) I, II, III, and IVThe correct answer is: DAll of the above costs would be included in the cost of inventory. Any costs incurred as the result of havinginventory should be included.Question Number: 12Which of the following best describes a normal distribution?A) Most values clustered near a central point B) Warehouses centrally located to marketsC) Values accumulated at six sigma D) A critical ratio of 1.0The correct answer is: ANormal distribution refers to the statistical distribution of values where the majority of values will accumulatearound the mean. The resulting graph is shaped like a bell. It is often known as a bell curve.Question Number: 13Based on the following information, what would the safety stock need to be to ensure product is in stock 99.9999% of the time? MAD = 100,On hand = 200.Weekly demand = 400A) 100 B) 300 C) 500 D) 600The correct answer is: CTo ensure coverage of product 99.9999% of the time, it would require 5 MAD for safety stock.Therefore: 5 * 100 = 500.Question Number: 14Each distribution center places orders from central supply as they are needed. This is called:A) pull system. B) push system.C) Just-in-Time delivery. D) supply chain management.The correct answer is: AWhen each distribution center orders from central supply or the factory independently of what other distributioncenters are doing, it is called a pull system. The advantage is that coordination and communication is lessexpensive. The disadvantage is that the lack of coordination causes problems with customer service and inventories.Question Number: 15A company makes all decisions regarding forecasting and orders centrally for its distribution network. Thiscompany is using which of the following systems?A) Pull system B) Push systemC) Just-in-Time D) Time phased order pointThe correct answer is: BThe push system pushes inventory to distribution centers by making stocking decisions centrally. The advantage is that inventory is sent where it is needed most. The disadvantage is that the coordination is more expensive than the pull system.Question Number: 16A company wants to store 15,000 cartons with 20 cartons on each pallet. The warehouse is set up to store pallets 5 high. How many pallet positions are needed?A) 150 B) 500 C) 750 D) 3000The correct answer is: AThe number of pallet positions can be calculated by dividing the number of cartons of storage needed by thenumber of cartons per pallet which equals the total number of pallets needed.Divide the total number of pallets needed by the number of pallets stacked height which equals the number ofpositions needed. For this problem: 15,000/ 20 = 750 pallets needed; 750/ 5 = 150 positions. Question Number: 17All of the following are basic grouping methods to store and locate stock in a warehouse except:Items A) related functionally B) Items in sequential SKU number C) Items which are physically similar D) Items which are fast movingThe correct answer is: BThe purpose of grouping items in a warehouse is to be more productive in storage and in the picking process. Items which have sequential SKU numbers may have nothing to do with each other. As a result, this would not be a criteria for grouping.Question Number: 18What is the major disadvantage of a fixed location warehouse?A) Put away time is increased B) Cube utilization is poorC) Dock time is increased D) Material handling costs riseThe correct answer is: BFixed location warehouses offer poor cube utilization because pallet locations are left empty when the productassigned to the location is out of stock. Generally, fixed locations are used in small warehouses with lowthroughput.Question Number: 19Which of the following are advantages of point of use storage?I. Ease of controlII. Material handling is reducedIII. Storage costs are reducedIV. Material is accessible at all timesA) I, II, and III B) II, III, and IV C) I, III, and IV D) I, II, III, and IVThe correct answer is: BAll are advantages of point-of-use storage except ease of control, which is an advantage of central storage.Question Number: 20Which of the following are advantages of using central storage?I. Ease of controlII. Costs are reducedIII. Inventory record accuracy is easier to attainIV. Safety stock is reducedA) I, II, and III B) I, III, and IV C) II, III, and IV D) I, II, III, and IVThe correct answer is: BCosts are not reduced with central storage. There are labor costs, racking, paper system, and other costs associated with central storage.Question Number: 21Which of the following best describes cycle counting?A) A process to reduce cycle time B) Set up reduction to shorten the production cycleC) Counting inventory on a pre-determined schedule D) Conducting a time study at a work centerThe correct answer is: CCycle counting is used to count inventory on a pre-determined schedule for the purpose of identifying errors and taking corrective action so the error will not occur again.Question Number: 22The movement of finished goods from production to the customer is:A) physical supply. B) supply chain.C) physical distribution. D) conversion cycle.The correct answer is: CPhysical distribution is the actual movement of goods from production to the customer. Physical supply is themovement of raw material from the supplier to manufacturing.Question Number: 23All of the following activities are part of the physical distribution system except:A) Transportation B) WarehousingC) Material handling D) Forecasting of customer ordersThe correct answer is: DPhysical distribution includes the activities of transportation, distribution, inventory, warehousing, materialhandling, packaging, and order processing. Forecasting is not a physical distribution activity.Question Number: 24Trucks, as a mode of transportation, are best suited for:moving small quantities to widely A) dispersed markets.B) moving large quantities to widely dispersed markets.C) moving small quantities to narrowly dispersed markets.D) moving large quantities to narrowly dispersed markets.The correct answer is: ATrucks are best when there is a need to move small quantities to widely dispersed markets. Trains are better formoving large quantities.Question Number: 25For a given product, the line haul cost is $1.50 per mile. The product will move 400 miles. If 40,000 pounds arebeing shipped, what is the cost per hundred weight?A) 1.00 B) 1.50 C) 2.00 D) 2.50The correct answer is: BThe truck will cost $600 to move 400 miles ($1.50 * 400 miles).To calculate the cost per hundred weight: Divide the total cost for the truck by 400. (40,000 pounds divided by 100). Therfore: $600 divided by 400 = $1.50/cwt.Question Number: 26Which of the following best describes the purpose of a distribution warehouse?A warehouse to store goods for A) long periods of time B) A storage warehouse for floor stockC) A warehouse to move and mix goods D) A supply chain warehouse for regional storageThe correct answer is: CA distribution warehouse is used primarily to break down large lots into smaller lots for shipment. A generalwarehouse is used for long term storage.Question Number: 27Which of the following are the roles which warehouses serve?I. Transportation consolidationII. Inventory efficiencyIII. Product mixingIV. Customer serviceA) I, II, and III B) I, III, and IV C) II, III, and IV D) I, II, III, and IVThe correct answer is: BWarehouses serve three important roles:1) Transportation consolidation - consolidate small shipments (LTL) into large shipments (TL)2) Product mixing - group a variety of products into one order3) Customer service - allows products to be placed closer to the customerInventory will typically rise with an increase in the number of warehouses.Question Number: 28A market boundary can be defined as the:geographic boundary A) of a region.B) line where the laid down cost is the same from two supply sources.C) line where shipments in one distribution center equals another.D) mileage boundary where shipment costs exceed the margin to be gained.The correct answer is: BA market boundary is the line where the laid down cost from two supply sources is equal. The laid-down cost is the delivered cost of a product to a geographic point.Question Number: 29As a company increases the number of warehouses from one to two, there is an impact on safety stock. Safetystock will:A) increase by a factor of 2. B) decrease by half.C) increase, and the percent can be calculated. D) decrease by a calculated percentage.The correct answer is: CThe safety stock will increase by an amount which can be calculated, but it will not double automatically. Theamount of the increase will depend on service levels by part, the demand variation, and other factors. As thenumber of warehouses increases, demand at each will decrease, causing greater variations in product demand.Therefore, safety stock will increase appropriately.Question Number: 30The Just-in-Time philosophy can be best defined as:A) Delivering goods just before they are needed B) Fulfilling customer orders just as they are neededC) Manufacturing without inventory D) Elimination of wasteThe correct answer is: DThe Just-in-Time philosophy is concerned with the elimination of waste or non-value activities. Maintaining large inventories is just one of many non-value added activities.Question Number: 31The Toyota Motor Company identified seven sources of waste in manufacturing. Which of the following represent those sources of waste?I. ProcessII. OverproductionIII. Wait-timeIV. MovementA) I, II, and III B) I, II, and IV C) II, III, and IV D) I, II, III, and IVThe correct answer is: DThe seven sources of waste identified by Toyota are Process, Methods, Movement, Product Defects, Waiting times, Overproduction, and Inventory.Question Number: 32To achieve necessary quality levels in a JIT environment, quality must be:A) built into the product by operators. B) inspected at multiple points.C) ensured by the quality control lab. D) an inspectors function.The correct answer is: AQuality must be the operators responsibility. They are the only ones who can make sure defects are not built into the product. They must be allowed to stop the process when defects are found.Question Number: 33In order to reduce the number of transactions which occur in a JIT environment, companies use a system called:A) transaction prevention. B) pre-deduct.C) backflushing. D) bar coding.The correct answer is: CBackflushing is a system for doing inventory and labor transactions based on the finished goods production. With this system, one transaction will create the many issues transactions for inventory. This process works best when the lead time for the product is short and the product flows down a production line.Question Number: 34The annual cost of goods sold for a company is $40 million and the average inventory is $10 million. By how much would the inventory need to be reduced to have annual inventory turns equal 20 turns?A) $2 million B) $4 million C) $6 million D) $8 millionThe correct answer is: DIn order for a company with cost of goods sold of $40 million to turn the inventory 20 times annually, the inventory would have to be valued at $2 million (40/20). Since the average inventory is currently valued at $10 million, the inventory would need to be reduced by $8 million.Question Number: 35A company wants to produce 1000 units over the next four months using a level strategy. The months have 20, 21, 19 and 22 working days in each one. Based on this strategy, how much would be produced in the first month?A) 244 B) 254 C) 260 D) 262The correct answer is: ATo find the answer: Divide the planned production (1000) by the number of days available in the four months (82) to find the daily ; production rate (12.2). Multiply the daily production rate (12.2) by the number of days in the first month (20) to obtain the first months production (244).Question Number: 36System nervousness is caused by:A) the inability of the planner to remain calm. B) requirements changing rapidly.C) constant demands by manufacturing for long production runs.D) purchased materials which do not arrive on time.The correct answer is: BSystem nervousness is caused by requirements which change rapidly and usually by small amounts. The planner must, in these cases, apply judgement to the situation before changing the plans to accommodate the change.Question Number: 37A component has a fixed cost of $1,000 and a variable cost of $5.00 per unit to produce. What would the average cost per un