SCMngmt- Test 2

A healthcare clinic, has 3 departments. Travel distance between department A and B is 150 feet; between A and C is 200 feet; between B and C is 300 Feet. The estimated number of trips per day (for staff and patients) between departments is: 1000 from A to B; 2000 from A to C; and 3000 from B to C. What is the total load-distance in the facility under the current layout

1,450,000

What is the correct order of steps when for Systematic Layout Planning using a REL chart?

I Identify how important it is for each department to be close to every other department
II Using a schematic of the current or proposed layout, connect the departments using lines
III Put the importance information in a matrix

I, III, II

A facility consists of 3 departments: A, B and C. They are located in a row: A next to B, B next to C. Trips between departments are: A&B 15, A&C 20, B&C 10. What is the load-distance (LD) score for this facility as it is currently laid out

A facility consists of 3 departments: A, B and C. They are located in a row: A next to B, B next to C. Trips between departments are: A&B 15, A&C 20, B&C 10. Which of the following is true

Swapping the location of departments B and A (so that B is next to A and A is next to C) is a better layout than the current layout because it changes the load distance score to 55

Once capacity decisions have been made,

it is difficult to change them in the short term

Design capacity is usually _____ effective capacity

more than

UTILIZATION refers to

How well available capacity is being used

“When producing more, will result in an increase in per unit costs” is a situation refrerred to as

Diseconomies of scale

A student union just replaced a large cafeteria with food court containing a number of small specialty storefronts (a pizza place, a taco stand, a deli). This is an example of

Facility focus

In a commercial bakery, inputs are received in bulk, which results in low transportation costs per ton. Outputs (such as donuts) are perishable and require special handling during transport. We would expect this operation

to locate near customers

Your new customer, a company that owns two midsized hospitals, has asked you to open a distribution center(DC) to serve the hospitals. It has requested that you locate the DC in the location that minimizes transportation cost (truckload miles) from the DC to the hospitals. The hospitals are in Jonesville and Smithtown. On an X,Y coordinate Jonesvilles location is (350, 300) and Smithtown’s is (300, 300). The estimated number of monthly truckloads to Jonesville is 20. The estimated number of monthly truckloads to Smithtown is 30. What are the XY coordinates for the optimal DC location?

320, 300

See Location Analysis PowerPoint Slides on Center of Gravity Method

You have 3 stores: Jonesville, Smithtown and Franklin. You are considering opening a distribution center in Washington or Jefferson. The distance from each store to Washington is: Jonesville 10, Smithtown 20, Franklin 15.

The distance from each store to Jefferson is: Jonesville 10, Smithtown 10, Franklin 20.

The estimated truckloads that each store requires are: Jonesville 5, Smithtown 10, Franklin 5.

The best location is ____ with a load-distance score of ___

Jefferson 250

Factors that should be considered when developing sales and operations plans include:

Available capacity, Available cash, and Market share objectives

In a level aggregate plan ___ varies and ____ stays steady

Planned inventory, planned output

Which of the following would cause a company to pursue a CHASE aggregate planning approach?
I. High recruiting and training costs
II. Highly skilled labor force
III. Low customers’ switching costs

III

Capacity based options for aggregate planning include all of the following EXCEPT

Building inventory ahead of planned demand

Which of the following would cause a company to pursue a LEVEL aggregate planning approach?
I. High Recruiting and training costs
II. High costs of idling and restarting equipment
III. High risk of inventory going obsolete quickly

I and III

Differences between and aggregate plan and a master schedule include which of the following?

An aggregate plan looks further into the future than a master schedule

Using price discounts to encourage customers to buy during off-peak periods is an example of?

Demand shifting

A hybrid aggregate plan

uses a combination of level and chase approaches

Which forecasting method assumes that next period’s forecast is equal to this period’s actual value?

Naive

Which forecasting method would most likely seek to develop a consensus among group of experts?

Qualitative

What are the two categories of quantitative models?

Causal and time series

A firm has the following order history over the last 6 months:
January 120
February 95
March 75
April 75
May 150
June 100

What would be a 4-month simple moving average forecast for July?

100

(100+150+75+75+)/4

A firm has the following order history over the last 6 months.
January 75
February 90
March 135
April 80
May 115
June 110

What would be a 3-month weighted moving average forecast for July, using weights of 40% for the most recent month, 30% for the month preceding the most recent month, and 30% for the month preceding that one?

102.5

Which of the following is the LEAST useful sales forecasting model to use when sales are increasing?

8 week simple moving average

Suppose that you are using a four-period simple moving average to forecast sales. Actual sales have been decreasing by 10% every period. How will your forecasts perform?

Forecasts will be higher than actual

In exponential smoothing, what values can the smoothing constant (alpha)have?

[0, 1]

In exponential smoothing, which of the following values for alpha would generate the most stable forecast — one that is not very reactive to trends or sudden shifts in demand?

0.20

(smaller the better)

Suppose that Sally’s company uses exponential smoothing to make forecasts. Further suppose that last period’s demand forecast was for 19,000 units, and actual demand was 22,000 units. Sally’s company uses a smoothing constant (alpha) equal to 40%. What should be the forecast for this period?

20,200

Joe’s Equipment Distributors sells “Low and Loud” brand lawnmowers.

1999 2000
Fall 50 80
Winter 150 450
Spring 500 600
Summer 400 490

What is the average seasonal index for fall? Since the regression slope and intercept are not given, use the method in the text to answer this question.