Deck 5: The Order Fulfillment Process: Managing the Physical Flow Infrastructure

Question 1

"Relationship management" as a part of the purchasing process includes which of the following tasks?

A) placement of the purchase order
B) communication
C) performance monitoring
D) supplier payment

Answer 1

performance monitoring

Question 2

________ determines how much and when to make specific products.

A) Inventory control
B) Forecasting
C) Scheduling
D) Quality control

Answer 2

Inventory control

Question 3

________ creates value for customers by transforming capital, technology, labor, and materials into more highly valued products and services.

A) Operations management
B) Customer service management
C) Logistics management
D) Development management

Answer 3

Operations management

Question 4

A ________ specifies the overall terms of agreement for a given time period, often 1 or more years and the total quantity purchased.

A) selection approval
B) expedite order
C) limited purchase order
D) blanket order

Question 5

In a well-managed purchasing department, expediting a purchase order occurs typically on a ________percentage of material shipments.

A) large
B) small
C) routine
D)

Question 6

Knowledge management is a purchasing skill that modern sourcing professionals require and would include one of the following _________.

A) new commodity technology
B) alternative designs
C) supplier capacity and capabilities
D) downstream processes

Question 7

________design is a manufacturing activity that refers to the technology selection and work design that is based on production volumes, financial resources, and labor cost.

A) Process
B) Product
C) Facility
D) Material

Question 8

A ________ is used to clearly describe and communicate needs to sourcing and includes vital information such as item description, purchase quantity, and delivery date.

A) MRP
B) purchase order
C) purchase requisition
D) supplier selection form

Question 9

The text refers to four practices that are elements of a strong supplier performance monitoring process. They include all of the following except ________.

A) contract information
B) technology improvements of the commodity
C) part type or commodity information
D) current status of the PO

Question 10

Supplier certification suggests that the supplier ________.

A) meets the requirements of an international standard
B) meets government regulations for the commodity
C) has achieved on-time delivery requirements
D) is capable of consistently shipping high quality material

Question 11

The function of ________ is to transport and store goods, assuring that inbound materials are available for operations and that outbound finished products are available to the customer.

A) logistics
B) material planning
C) purchasing
D) production

Question 12

"Transaction management" as a part of the purchasing process includes which of the following tasks?

A) monitoring supplier improvement
B) price determination
C) evaluation
D) approval

Question 13

________ provides an estimate of what products need to be produced and when they need to be produced.

A) Inventory control
B) Forecasting
C) Scheduling
D) Quality control

Question 14

The non-profit organization, Supply Chain Council proposes a supply chain reference model as a business standard. All of the following processes are key elements of this model except ________.

A) plan
B) finance
C) deliver
D) return

Question 15

Dock-to stock refers to __________.

A) a just-in-time material delivery process
B) supplied material requires inspection than movement to the stockroom
C) supplied material is directed to stock and not the manufacturing floor
D) the normal process flow of procured material

Question 16

All of the following are major steps in the supplier selection process except ________.

A) identification
B) development
C) approval
D) monitoring

Question 17

________ relies on market forces to get suppliers to offer a low price.

A) Competitive bidding
B) Supplier selection
C) Reverse auctions
D) Negotiation

Question 18

All of the following are typical steps in the purchasing process except __________.

A) ERP information system
B) supplier selection
C) transaction management
D) relationship management

Question 19

Process management is a purchasing skill that modern sourcing professionals require. All of the following are elements of supplier process management except ________.

A) improvement of the sourcing process
B) manage collaborative processes
C) initiate supplier development efforts
D) minimize purchasing costs

Question 20

The three operation functions, ________, ________, and ________, are responsible for the "order fulfillment" process.

A) purchasing, production and quality assurance
B) material control, production, quality assurance
C) material control, production, logistics
D) purchasing, production and logistics

Question 21

The order fulfillment cycle consists of order entry, order picking, packaging, and shipment.

Question 22

Dwell time ratio evaluates the number of days inventory sits idle compared to the number of days the inventory is moving..

Question 23

Logistical managers can select from six general modes of transportation: rail, motor carrier, pipeline, airplane, ship, or cyberspace.

Question 24

Customer service in logistics focuses on understanding what customers want and measuring logistics performance against these customer requirements.

Question 25

It is typical for warehouses and distribution centers to perform light manufacturing or assembly.

Question 26

A major goal of lean operations is to identify and eliminate waste.

Question 27

The Japanese term, Jidoka suggests that only manufacturing management can stop the production line.

Question 28

Reduction of inventory often creates a risk to lean operations

Question 29

The text suggests that lean practices and principles should be practiced upstream by its critical suppliers.

Question 30

Third-party logistics (3PL) is the insourcing of a business's logistics operations.

Question 31

Distribution centers are used when many different items from diverse production sites are to be stored in a single location.

Question 32

A "kanban" system is a visual system that triggers production only when parts are needed downstream.

Question 33

The term LTL related to truck transportation is defined as a full truckload.

Question 34

Usually a JIT manufacturing system improves productivity AND reduces waste.

Question 35

Distribution management is concerned with the inbound movement and storage of raw materials, purchased components and subassemblies.

Question 36

The principles of 5S prevented Toyota from achieving lean production

Question 37

One of the benefits of outsourcing is that it permits a business to invest in a few specific skills while relying on outsource partners to perform other vital activities.

Question 38

A "pull" or "kanban" system of manufacturing is driven by the amount of received inventory.

Question 39

A major element of the Toyota production system is JIT.

Question 40

Logistics is the art and science of moving things from one point to another and storing them along the way.

Question 41

Fill in the Blank(s)
In production, inventory is reduced to minimal levels and material flows are synchronized so that as one item moves out of a workstation, another is ready to move in.

Question 42

Purchasing converts sourced inputs into a product or service that customers value.

Question 43

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Supplier focuses on improving the supplier's ability to produce high-quality products so that inspections can be eliminated.

Question 44

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converts sourced inputs into a product or service that customers value.

Question 45

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Today's focus on competencies has led many companies to outsource value-added activities such as light assembly, inventory management, and distribution services.

Question 46

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Using 3 and sharing logistics services can improve logistical efficiency.

Question 47

Fill in the Blank(s)
main role is to manage storage and transportation to achieve outstanding levels of order fulfillment.

Question 48

Lean operations depend on incremental productivity gains and consistent innovation.

Question 49

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To avoid delivery problems, many companies build clauses into the purchasing agreement.

Question 50

Fill in the Blank(s)
The supplier selection process is characterized by four stages: identification, , approval, and monitoring.

Question 51

At world class companies, education and training are the foundation for successful human resource policies.

Question 52

To maximize transport efficiencies, more companies are experimenting with shared logistics services.

Question 53

Making and delivering a valued product or service is the responsibility of purchasing, customer service, and logistics.

Question 54

Highlight with detail the most important contributions of purchasing, manufacturing and logistics in the making and delivering of a product or service.
a. Purchasing acquires the inputs used to support production and day-to-day business activities.
b. Production converts sourced inputs into a product or service that customers value.
c. Logistics transports and stores goods, assuring that inbound materials are available for operations and that outbound finished products are available when and where the customer wants to buy them.
Fill in the Blank(s) (Blank Identified in RED)

Question 55

Fill in the Blank(s)
The goal of operations is to identify and eliminate waste wherever it is found.

Question 56

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The purchasing function is also called or supply management.

Question 57

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Certified suppliers are often referred to as to-stock suppliers. Inspections are only performed if problems occur in the future.

Question 58

Fill in the Blank(s)
acquires the inputs used to produce a finished good or service.

Question 59

Logistics' main role is to manage storage and transportation to achieve outstanding levels of order fulfillment.

Question 60

Elaborate on the "lean" principle of 5S. Explain each and how they contribute to a lean operation.

Question 61

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consolidates and stages inventory so that customer service levels can be raised while production and transportation scale economies are obtained.

Question 62

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performs the vital storage function, decoupling manufacturing from consumption and making product available when it is needed.

Question 63

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Physical distribution focuses on the transportation and storage of finished products from point of manufacture to where customers wish to acquire them.

Question 64

Fill in the Blank(s)
Logistical managers can select from six general modes of transportation: , air, ship, or cyberspace.

Question 65

Fill in the Blank(s)
A measure known as the ratio evaluates the number of days inventory sits idle compared to the number of days the inventory is moving.

Question 66

Fill in the Blank(s)
is the art and science of moving things from one point to another and storing them along the way.

Question 67

Fill in the Blank(s)
A "pull" or "kanban" system is driven by demand, and it requires control and discipline to assure that materials arrive just in time to be used in production, to produce subassemblies just in time to be used in the final assembly process, and to deliver finished goods just in time to be used by the customer.

Question 68

Fill in the Blank(s)
allows a company to invest in a few specific skills while relying on outsource partners to perform other vital activities.

Question 69

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Often, the greatest opportunity for eliminating waste is .

Question 70

Fill in the Blank(s)
The JIT practice of or line stop-allows workers to stop the production line when a quality problem occurs.