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GSCM 520 Final Exam Guide

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Question 1.1. (TCOs 1 and 2) Current issues in OSCM do not include
(Points : 4)
coordinating relationships between organizations.
making senior management aware that OSCM can be a competitive
weapon.
the triple bottom line.
managing customer touch points.
increasing global supply chain employment.
Question 2.2. (TCO 1) Which of the following is not a characteristic
that distinguishes services from goods? (Points : 4)
Service jobs are unskilled.
A service is intangible.
Services are perishable.
Services are heterogeneous.
None of the above
(TCO 5) Which of the following are used to describe the degree of
error? (Points : 4)
Weighted moving average
Regression
Moving average
Forecast as a percent of actual
Mean absolute deviation
Question 4.4. (TCO 5) The way to build in greater flexibility in your
workers is to do which of the following? (Points : 4)
Pay higher wages to motivate a willingness to do a variety to tasks.
Provide a broader range of training.
Provide a wide variety of technology to augment workers skills.
Institute a pay for skills program.
Use part-time employees with specialized skills as needed.
Question 5.5. (TCO 6) Applicants for the Baldrige Award for total
quality management must submit an application of up to 50 pages that
details the processes and results of their activities under seven major
categories. Which of the following is one of those categories? (Points
: 4)
DMAIC
Analysis and remember management
Standardization
Control
Inspection protocols
(TCOs 3 and 7) Which of the following is considered a high-contact
service operation?
(Points : 4)
Online brokerage house
Internet sales for a department store
Physician practice
Telephone life insurance sales and service
Automobile repair
Question 7.7. (TCOs 7 and 8) Which of the following is a dynamic
lot-sizing technique that adds ordering and inventory carrying cost for
each trial lot size and divides by the number of units in each lot size,
picking the lot size with the lowest unit cost?
(Points : 4)
Economic order quantity
Lot-for-lot
Least total cost
Least unit cost
Inventory item averaging
Question 8.8. (TCOs 4 and 8) Which of the following is a dynamic
lot-sizing technique that calculates the order quantity by comparing
the carrying cost and the setup (or ordering) costs for various lot sizes
and then selects the lot size in which these are most nearly equal?
(Points : 4)
Kanban
Just-in-time system
MRP
Least unit cost
Least total cost
Question 9.9. (TCO 3) Which of the following is not an
improvement-driven reason to outsource? (Points : 4)
Improve risk management
Increase commitment in a noncore area
Shorten cycle time
Improve quality and productivity
Obtain expertise, skills, and technologies that are otherwise not
available
Question 10.10. (TCO 9) What transportation mode has very high
initial investment costs but gives a very low cost per mile for products
that are highly specialized and require no packaging? (Points : 4)
Highway
Rail
Water
Pipeline
Air
Page 2
Question 1.1. (TCO 4) a company has recorded the last 5 days of
daily demand on their only product. Those values are 120, 125, 124,
128, and 133. The time from when an order is placed to when it
arrives at the company from its vendor is 5 days. Assuming the basic
fixed-order quantity inventory model fits this situation and no safety
stock is needed, which of the following is the reorder point (R)?
(Points : 10)
120
126
630
950
1,200
Question 2.2. (TCO 4) If it takes a supplier 25 days to deliver an
order once it has been placed and the standard deviation of daily
demand is 20, which of the following is the standard deviation of
usage during lead time?
(Points : 10)
50
100
400
1,000
1,600
Question 3.3. (TCOs 3, 4, and 5) A company wants to forecast
demand using the simple moving average. If the company uses three
prior yearly sales values (i.e., year 2011 = 130, year 2012 = 110, and
year 2013 =160), which of the following is the simple moving
average forecast for year 2014?
(Points : 10)
100.5
122.5
133.3
135.6
139.3
Question 4.4. (TCO 5) If a firm produced a standard item with
relatively stable demand, the smoothing constant alpha (reaction rate
to differences) used in an exponential smoothing forecasting model
would tend to be in which of the following ranges?
(Points : 10)
5% to 10%
20% to 50%
20% to 80%
60% to 120%
90% to 100%
Question 5.5. (TCO 2) Various financial data for SunPath
Manufacturing for 2012 and 2013 follow.
What is the percentage change in the multifactor labor and raw
materials productivity measure for SunPath between 2012 and 2013?
-9.22
2.33
-0.53
-2.88
10.39
Question 6.6. (TCO 5) A company wants to forecast demand using
the weighted moving average. If the company uses two prior yearly
sales values (i.e., year 2012 = 110 and year 2013 = 130), and we want
to weight year 2012 at 10% and year 2013 at 90%, which of the
following is the weighted moving average forecast for year 2014?
(Points : 10)
120
128
133
138
142
Question 7.7. (TCO 5) If demand for product A were forecast at
1,000,000 units for the coming year and your factory has one machine
capable of producing 75,000 units per month, how much of product
A might you plan to acquire through outsourcing?
(Points : 10)
500
10,000
100,000
200,000
600
Question 8.8. (TCO 3) You have been called in as a consultant to set
up a Kanban control system. The first thing you do is to determine the
number of Kanban card sets needed. Your research shows that the
expected demand during lead time for a particular component is 1,200
per hour. You estimate the safety stock should be set at 5% of the
demand during lead time. The tote trays used as containers can hold
two units of stock and the lead time to replenish an order is 10 hours.
Which of the following is the number of Kanban card sets necessary
to support this situation?
(Points : 10)
5,000
5,500
6,300
6,500
7,000
Question 9.9. (TCO 7) In a work center, machine A has a 10-minute
setup time per batch and a 2 minute per unit run time. Machine B
performs the identical function but has a setup time of 30 minutes and
a 1-minute run time per unit. The work center makes products in
batches ranging from one unit to 100 units. Assuming capacity is not
a limitation on either machine, on which batches should machine B be
used?
(Points : 10)
All batches should be run on machine B.
Batches of more than 20 units should be run on machine B.
Batches of fewer than 80 units should be run on machine B.
Batches with up to 50 units should be run on machine B
No batches should be run on machine B.
Question 10.10. (TCO 8) If annual demand is 6,125 units, annual
holding cost is $5 per unit, and setup cost per order is $50, which of
the following is the EOQ lot size?
(Points : 10)
350
247
23
185
78
Page 3:
Describe a specific example of the trade-offs between any two of the
competitive dimensions. (Points : 30)
Distinguish between dependent and independent demand. How are
these demands treated differently? (Points : 30)
What is the difference between the concepts of design quality and
conformance quality? (Points : 30)
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GSCM 520 Week 1 Case Study The Tao of Timbuk2 (2


Papers)

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This Tutorial contains 2 Papers of this Assignment (written in
different ways)
GSCM 520 Week 1 Case Study The Tao of Timbuk 2
GSCM520 Case Study The Tao of Timbuk 2
CaseThe Tao of Timbuk2 (p. 43)
In a three-page paper, answer the following.
Consider the two categories of products that Timbuk2 to makes
and sells. For the custom messenger bag, what are the key competitive
dimensions that are driving sales? Are their competitive priorities
different for the new laptop bags sourced in China?
Compare the assembly line in China to that in San Francisco
along the following dimensions: (1) volume or rate of production, (2)
required skill of the workers, (3) level of automation, and (4) amount
of raw material and finished goods inventory.
Draw two diagrams, one depicting the supply chain for those
projects sourced in China and the other depicting the bags purchased
in San Francisco. Show all the major steps, including raw material,
manufacturing, finished goods, distribution inventory, and
transportation. Other than manufacturing costs, what other course
should Timbuk2 consider when making the sourcing decision?
Review the the Tao of Timbuk2 case study on page 43 in the
textbook. You can find the questions for this case study in Doc
Sharing.
Compose an APA-formatted Word document, no more than three
pages in length; please answer each of the questions in the presented
case study.
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GSCM 520 Week 1 Quiz

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GSCM 520 Week 1 Quiz
1. Question : (TCO 1) The Goods-Services Continuum
consists of which set of the following categories?
2. Question : (TCOs 1 and 2) Which of the following is a
measure of operations and supply management efficiency used by
Wall Street?
3. Question : (TCO 2) In development of an operations and
supply chain strategy, which of the following may be an important
product-specific criteria to consider?
4. Question : (TCO 2) Which of the following is a
multifactor measure of productivity?
5. Question : (TCO 2) Which of the following is a total
measure of productivity?
6. Question : (TCO 2) The total output from a production
system in one day is 900 units and the total labor necessary to produce
the 900 units is 900 hours. Using the appropriate productivity
measure, what is the resulting productivity ratio?
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GSCM 520 Week 2 Case Study Shouldice Hospital A


Cut Above

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GSCM 520 Week 2 Case Study Shouldice Hospital A Cut Above
Review the Shouldice Hospital case study. You can find the
questions for this case study in Doc Sharing.
Compose an APA-formatted Word document, no more than three
pages in length; please answer each of the questions in the presented
case study.
In a three-page paper, answer the following.
How well does the hospital currently utilize its beds?
Develop a similar table to show the effects of adding operations on
Saturday. (Assume that 30 operations would still be performed each
day.) How would you affect the utilization of the bed capacity? Is this
capacity sufficient for the additional patients?
Now look at the effect of increasing the number of beds by
50%. How many operations could the hospital perform per day before
running out of bed capacity? (Assume operations are performed 5
days per week, with the same number performed on each day.) How
well will the new resources be utilized relative to the current
operation? Could the hospital really perform that many operations?
Why? (Hint: look at the capacity of the 12 surgeons and the five
operating rooms.)
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GSCM 520 Week 2 Quiz

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GSCM 520 Week 2 Quiz
1. Question : (TCO 5) In most cases, demand for products
or services can be broken down into several components. Which of
the following is not considered a component of demand?
2. Question : (TCO 5) In most cases, demand for products or
services can be broken into several components. Which of the
following is considered a component of demand?
3. Question : (TCO 5) Which of the following forecasting
methodologies is considered a time series forecasting technique?
4. Question : (TCO 5) Which of the following forecasting
methods uses executive judgment as its primary component for
forecasting?
5. Question : (TCO 5) In business forecasting, what is
usually considered a medium-term time period?
6. Question : (TCO 5) In general, which forecasting time
frame best identifies seasonal effects?
7. Question : (TCO 5) Capacity planning that involves
hiring, layoffs, some new tooling, minor equipment purchases, and
subcontracting is considered which one of the following planning
horizons?
8. Question : (TCO 5) If the actual output of a piece of
equipment during an hour is 500 units and it's best operating level is
at a rate of 400 units per hour, which of the following is the capacity
utilization rate?
9. Question : (TCO 5) When deciding to add capacity to a
factory, which of the following need not be considered?
10. Question : (TCO 5) Which of the following models uses a
schematic model of the sequence of steps in a problem and the
conditions and consequences of each step?
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GSCM 520 Week 3 Case Study Pro Fishing Boats

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Pro Fishing Boats
Review the Pro Fishing Boats case study on page 428 in the
textbook, and refer to the questions noted in Doc Sharing.
CasePro Fishing BoatsA Value Stream Mapping Exercise (p.
428)
Create a value stream map (VSM) of this supply chain. What
other information is needed?
Where are there risks for supply chain disruptions or stoppages
to the flow of materials?
Where do opportunities reside in improving supply chain
operations, and how has VSM helped to reveal these?
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GSCM 520 Week 3 Case Study Quality Parts Company (2


Papers)

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This Tutorial contains 2 Papers of this Assignment (written in
different ways)
GSCM 520 Week 3 Case Study Quality Parts Company
Quality Parts Company
Review the Quality Parts Company case study on page 426 in the
textbook, and refer to the questions noted in Doc Sharing.
In a three-page paper, answer the following.
Which of the changes being considered by the manager of
Quality Parts Company are counter to the lean philosophy?Make
recommendations for lean improvements in such areas as
scheduling, layout, kanban, task groupings, and inventory. Use
quantitative data as much as possible; state necessary
assumptions.Sketch the operation of a pull system for running
Quality Parts Companys current system.
Outline a plan for introducing lean at Quality Parts
Company.
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GSCM 520 Week 3 Case Study Value Stream Mapping

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In a three-page paper, answer the following.
Eliminating the queue of work dramatically quickens the time it
takes a part to flow through a system. What are the disadvantages
of removing those cues?
How do you think the machine operators would react to the
change?
What would you do to ensure that the operators were busy?
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GSCM 520 Week 3 Quiz

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GSCM 520 Week 3 Quiz
1. Question : (TCO 6) An analytical tool used in six-
sigma quality improvement programs is which of the following?
2. Question : (TCO 6) Which of the following is not an
analytical tool used in six-sigma quality improvement programs?
3. Question : (TCO 6) An opportunity flow diagram as
part of a six-sigma quality improvement process might be found
in which DMAIC category?
4. Question : (TCO 6) Failure mode and effect analysis
are used in six-sigma projects. It involves which of the following?
5. Question : (TCO 6) Which of the following are eligible
companies to be considered for the Baldrige award?
6. Question : (TCO 3) In the textbook, Toyota's Fujio
Cho identified which of the following types of waste to be
eliminated?
7. Question : (TCO 3) An activity where the parts that go
into each unit of a product are periodically removed from
inventory and accounted for based on the number of units
produced is called which of the following?
8. Question : (TCO 3) Which of the following are
elements that address elimination of waste under lean
production?
9. Question : (TCO 3) In setting up a Kanban control
system, you need to determine the number of Kanban card sets
needed. If the expected demand during lead time is 25 per hour,
the safety stock is 20% of the demand during lead time, the
container size is five, and the lead time to replenish an order is 5
hours, what is the number of Kanban card sets needed?
10. Question : (TCO 3) To implement lean production
schedules, a firm would do which of the following?
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GSCM 520 Week 4 Case Study Toshibas Notebook


Computer Assembly Line

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Task
In a three-page paper, answer the following. Pg 199
What is the daily capacity of the assembly-line design by the
engineers?
When it is running at maximum capacity, what is the efficiency
of the line relative to its use of labor? Assume that the supporter
is not included in efficiency calculations?
How should the line be redesigned to operate at the initial 250
units per day target, assuming that no overtime will be used?
What is the efficiency of your new design?
What other issues might Toshihiro consider when bringing a new
assembly line up to speed?
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GSCM 520 Week 4 Quiz

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GSCM 520 Week 4 Quiz
1. Question : (TCO 7) Using the assembly-line balancing
procedure, which of the following is the required cycle time in
minutes per unit if the daily production time is 480 minutes and
the required daily output is 50 units?
2. Question : (TCO 7 ) Using the assembly-line balancing
procedure, which of the following is the theoretical minimum
number of workstations if the task times for the eight tasks that
make up the job are 7, 4, 7, 8, 9, 4, 3 and 6 minutes and the cycle
time is 8 minutes?
3. Question : (TCO 7) Which of the following is not a
step in developing a manufacturing cell layout?
4. Question : (TCO 7) Assume a fixed cost for a process
of $15,000. The variable cost to produce each unit of product is
$10 and the selling price for the finished product is $25. Which of
the following is the number of units that has to be produced and
sold to break-even?
5. Question : (TCO 7) According to Little's law, which of
the following can be used to estimate work-in-process inventory?
6. Question : (TCO 7) Which of the following is a
suggestion for managing queues that are mentioned in the
textbook?
7. Question : (TCO 7) Which of the following is not a
suggestion for managing queues presented in the textbook?
8. Question : (TCO 7) Buying a ticket for a college
football game where there are multiple windows to buy the ticket
at features which type of queuing system line structure?
9. Question : (TCO 7) Machine breakdown and repair in
a 12-machine factory having one repair mechanic would develop
which type of queuing system line structure concerning machine
breakdowns?
10. Question : (TCO 7) Assume the service rate for a
queue in a truck-loading operation is two trucks per hour. Using
the infinite queuing notion for the models presented in the
textbook, which of the following is the average service time?
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GSCM 520 Week 5 Case Study Bradford Manufacturing

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Prepare an aggregate plan for the coming year, assuming that the
sales forecast is perfect. Use the spreadsheet Bradford
Manufacturing. In the spreadsheet, an area has been designated
for your aggregate plan solution. Supply the number of packaging
lines to run and the number of overtime hours each quarter. You
will need to set up the course calculations in the spreadsheet.
Review your solution carefully and defend your answers.
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GSCM 520 Week 5 Case Study Brunswick Motors

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GSCM 520 Week 5 Case Study Brunswick Motors
Assume that Phil wants to minimize his inventory requirements.
Assume that each order will be only for what is required for a
single period. Using the forms in the case, calculate the net
requirements and planned order releases for the gearboxes and
input shafts. Assume that the lot sizing is done using a lot for lot.
Calculate a schedule using lease-total-cost lot sizing. What are
the savings with this new schedule?
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GSCM 520 Week 5 Quiz

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GSCM 520 Week 5 Quiz
1. Question : (TCO 8) In an overview of the major
operations planning activities in a typical logistics organization,
which of the following activities follows aggregate sales and
operations planning?
2. Question : (TCO 8) The main purpose of aggregate
operations planning is to specify the optimal combination of
which of the following?
3. Question : (TCO 8) Which of the following is
considered a pure production planning strategy?
4. Question : (TCO 8) From an operational perspective,
yield management is most effective under which of the following
circumstances?
5. Question : (TCO 8) Which of the following industry
types have high expected benefits from the application of MRP?
6. Question : (TCO 8) A product tree can do which of the
following?
7. Question : (TCO 8) Which of the following is most
closely related to the reason a firm might implement MRP?
8. Question : (TCO 8) Which of the following is an input
to the master production schedule?
9. Question : (TCO 8) Which of the following is an input
file necessary to run an MRP system?
10. Question : (TCO 8) Which of the following files allows
us to retrace a material requirement upward in the product
structure through each level, identifying each parent item that
created the demand?
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GSCM 520 Week 6 Case Study Grainger Reengineering


the China U.S. Supply Chain

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CaseGrainger: Reengineering the China/U.S. Supply Chain
(p.457)
Please address the following.
Evaluate the current China/Taiwan logistics costs. Assume a
current total volume of 190,000 CBM and that 89% is shipped
direct from the supply is plants in containers. Using the data from
the case and assume that the supplier-loaded container is 85%
full. Assume that consolidation centers are run at each of the four
port locations. The consolidation centers only use 40-foot
containers and fill them to 96% capacity.
Assume that it costs $480 to ship a 20-foot container and $600 to
ship a 40-foot container. What is the total cost to get the
containers to the United States? Do you include U.S. port costs in
this part of the analysis?
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GSCM 520 Week 6 Case Study Inventory Management at


Big10Sweater

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CaseInventory Management at Big10Sweater (p.395)
Please address the following.
Using the data provided in the text, calculate how much Rhonda
and Steve made for taxes last year.
What was your reasoning behind using the aggregate demand
forecasts when determining the size of your order rather than the
individual school forecasts? Should you rethink this or is there a
sound basis for doing it this way?
How many sweaters should you order this year? Write down
your order by individual school. Document your calculations in
your spreadsheet. Calculate this based on the aggregate forecasts
and also the forecast by individual school.
What do you think they could make this year? They are paying
for $40,000 and you expect your benefit package addition would
be about $1000 per year. Assume that they ordered based on the
aggregate forecasts.
How should the business be developed in the future?
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GSCM 520 Week 6 Quiz

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GSCM 520 Week 6 Quiz
1. Question : (TCO 4) Which of the following is one of
the categories of manufacturing inventory?
2. Question : (TCO 4) When material is ordered from a
vendor, which of the following is not a reason for delays in the
order arriving on time?
3. Question : (TCO 4) In making any decision that affects
inventory size, which of the following costs do not need to be
considered?
4. Question : (TCO 4) Which of the following are fixed-
time period inventory models?
5. Question : (TCO 4) Assuming no safety stock, what is
the reorder point (R) given an average daily demand of 78 units
and a lead time of 3 days?
6. Question : (TCO 4) If annual demand is 50,000 units,
the ordering cost is $25 per order, and the holding cost is $5 per
unit per year, which of the following is the optimal order quantity
using the fixed-order quantity model?
7. Question : (TCO 4) If the average aggregate inventory
value is $1,200,000 and the cost of goods sold is $600,000, which of
the following is weeks of supply?
8. Question : (TCO 3) In Hau Lee's uncertainty
framework to classify supply chains, a supply chain for functional
products with a stable supply process is called which of the
following?
9. Question : (TCO 3) Which of the following is an
organizationally driven reason for outsourcing?
10. Question : (TCO 3) 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?
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GSCM 520 Week 7 Case Study Distribution Center


Location-Grainger

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GSCM 520 Week 7 Case Study Distribution Center Location-
Grainger
CaseDistribution Center Location-Grainger (p.477)
Please address the following:
system. Assume that 40% of the volume arrives in Seattle
and 60% in Los Angeles, and the port processing fee for
federal processing at both locations is $5.00 per CBM.
Assume that everything is transferred to the Kansas City
distribution center by rail, where it is unloaded and quality
checked. Assume that all volume is then transferred by
truck to the nine existing warehouses in the United States.
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