Q&A Hero

Q: In playing the game Monopoly, the probability of a player landing on Park Place would be assessed using classical probability assessment.

Q: Managing orders, transportation, and distribution to provide goods and services is part of the _____ function of the Supply Chain Operations Reference (SCOR) model. a. plan b. source c. make d. deliver

Q: _____ refers to managing the flow of finished goods, materials, or components that may be unusable or discarded through the supply chain from customers toward either suppliers, distributors, or manufacturers for the purpose of reuse, resale, or disposal. a. Reverse logistics b. Response management c. Process design d. Scheduling

Q: Suppose a player is dealt 2 cards from a standard deck of 52 playing cards. To determine the probability of having a blackjack would involve classical probability.

Q: A product that is produced at Ramsey Manufacturing goes through three steps to be built. At step one, the components are assembled by technicians. At step two, the product is sanded, and at step three the product is painted. The product can become defective if any of these three steps is performed incorrectly. The three steps are done by different people in different locations. We let D1= defect introduced at step 1, D2= defect introduced at step 2, and D3= defect introduced at step three. Based on this situation these three events would be considered to be mutually exclusive.

Q: _____ inventory is inventory that has been ordered but is in transit. a. Pipeline b. Decoupling c. Buffer d. Anticipation

Q: In the context of measuring supply chain performance, the goal of sustainability measures is to: a. reduce the order cycle time for all customers. b. have a byproduct-free production process. c. have a carbon-neutral supply chain. d. minimize the time taken to fill a customer's order.

Q: Two football teams play in the Super Bowl. The event of team A winning and the event of team B winning can be said to be mutually exclusive.

Q: Which of the following best defines inventory turnover? a. It is the cost associated with repairs of goods that have been returned. b. It is the time taken to fill a customer's order. c. It is a measure of how quickly goods are moving through the supply chain. d. It is a measure of the number of perfect orders.

Q: A manufacturing company makes three types of products. Each time it makes a product, the item can be either good or defective and it can be either customized or standard. The events consisting of customized and defective would be considered mutually exclusive since they apply to different attributes of the product.

Q: Speedex, an automobile company, has an annual sales volume of $3 million, cost of goods sold equal to $2 million, total average on-hand inventory of $600,000, and 150 operating days in a year. What is the daily revenue earned by the company? a. $10,000 b. $20,000 c. $30,000 d. $40,000

Q: In most situations, there is no difference between the events and the elementary events.

Q: _____ is the discipline of managing the flow of materials and transportation activities to ensure adequate customer service at reasonable cost. a. Logistics b. Scheduling c. Procurement d. Integration

Q: Suppose a single die (a 6-sided cube with sides numbered 1 through 6) is rolled once. The event of interest is defined as rolling an even number. This can be said to be an elementary event.

Q: If two events are mutually exclusive, it is possible for them to also be independent of each other.

Q: _____ specialize in handling all aspects of customers giving back a manufactured good or delivered service and requesting their money back, repairing the manufactured good and giving it to the customer, and/or invoking the service guarantee. a. Certified suppliers b. Process designers c. Demand forecasters d. Return facilitators

Q: Josh Smith, the materials manager at a retail store, has determined that a particular product experienced 5 turns last year, with an annual sales volume of $15 million. What was the average inventory value for this product last year? a. $1 million b. $2.5 million c. $3 million d. $4.5 million

Q: If a company has the opportunity to bid on three contracts, A, B, and C, then the number of these contracts that are awarded to the company would be considered an elementary event.

Q: If the probability of one event occurring is .40 and the probability of a second event occurring is 0.60, then the probability that both events will occur must be 1.0 since that is the maximum value a probability can be.

Q: A(n) _____ is any entityreal or virtualthat coordinates and shares information between buyers and sellers. a. manufacturer b. franchisor c. intermediary d. investor

Q: A car salesman states that the probability that the dealership sells a car on a Saturday morning is .30. The method of probability assessment that he has used is most likely classical assessment.

Q: Which of the following is true of purchasing? a. It can have a significant impact on total supply chain costs. b. It is critical to satisfy employees' needs and expectations. c. The delivery of goods and services is the responsibility of the purchasing function of a supply chain. d. The principal goal of purchasing is to source products from a single supplier to avoid capacity risks.

Q: A car salesman has noted that the probability that the dealership sells a car on a Saturday morning is .30. Then the probability of the dealership not selling a car on Saturday morning is .70.

Q: ProShopper, a sportswear store, held an average sportswear inventory of $10 million last year and reported an inventory turnover of 5 times per year. What was its cost of goods sold? a. $10 million b. $20 million c. $40 million d. $50 million

Q: TekSupply Inc., an automobile parts supplier, held an average automobile parts inventory of $4 million last year. Its cost of goods sold was $25 million. Therefore, the automobile parts experienced an inventory turnover of _____ turns last year. a. 2.5 b. 4.25 c. 6.25 d. 9.5

Q: Explain why it is possible for two managers to assess different values for the probability that a supplier will fail to deliver a shipment on time.

Q: Which of the following is true of order amplification? a. Order amplification in the supply chain leads to the bullwhip effect. b. Large order sizes can help manage order amplification. c. Order amplification decreases as one moves back up the supply chain away from the retail customer. d. Increasing price fluctuations can help manage order amplification.

Q: Explain what is meant by the term mutually exclusive events. Cite an example.

Q: Which of the following is NOT true about returns of sold goods? a. The key idea of returns is to reduce consumer risk when purchasing items on-line. b. In many situations, moving an item backwards in the supply chain is more costly than moving new products forward in the supply chain. c. Returned items can resold as new, refurbished, repaired, or recycled. d. The cost of returns averages between 7 to 10 percent of the cost of goods sold, but it is decreasing.

Q: Assume that a standard deck of 52 playing cards is randomly shuffled and the first 2 cards are dealt to you. What is the probability that you have a blackjack? A blackjack is where one card is an ace and the other card is worth 10 points. The 10-point cards are kings, queens, jacks and 10's.

Q: The accountant for a large U.S. company is interested in finding the probability that an account will have an incorrect balance due to being overstated or being understated. To find this probability, which probability rule is she likely to use?

Q: List three methods of assessing probabilities and indicate which is least likely to be used in business decision making.

Q: Air shipments have the lowest transportation cost and can carry unlimited weight.a. Trueb. False

Q: Electronic data interchange and Internet links decrease the velocity of supply chains. a. True b. False

Q: A distributor of outdoor yard lights has four suppliers. This past season she purchased 40% of the lights from Franklin Lighting, 30% from Wilson & Sons, 20% from Evergreen Supply, and the rest from A. L. Scott. In prior years, 3% of Franklin's lights were defective, 6% of the Wilson lights were defective, 2% of Evergreen's were defective, and 8% of the Scott lights were defective. When the lights arrive at the distributor, she puts them in inventory without identifying the supplier. Suppose that a defective light string has been pulled from inventory; what is the probability that it was supplied by Franklin Lighting? A) 0.33 B) 0.45 C) 0.18 D) 0.29

Q: Parts and Materials for the skis made by the Downhill Adventures Company are supplied by two suppliers. Supplier A's materials make up 30% of what is used, with supplier B providing the rest. Past records indicate that 15% of supplier A's materials are defective and 10% of B's are defective. Since it is impossible to tell which supplier the materials came from once they are in inventory, the manager wants to know which supplier most likely supplied the defective materials the foreman has brought to his attention. Provide the manager this information. A) Supplier A B) Supplier B C) Both are equally likely D) Cannot be determined from this information

Q: Import tariffs help in preventing the dumping of low-cost products in the domestic economy. a. True b. False

Q: Vegetables from the summer harvest are currently being processed at Skone and Conners Foods, Inc. The manager has found a case of cans that has not been properly sealed. There are three lines that processed cans of this type, and the manager wants to know which line is most likely to be responsible for this mistake. Provide the manager this information. Line Contribution to Total Proportion Defective 1 0.40 0.05 2 0.35 0.10 3 0.25 0.07 A) Line 1 B) Line 2 C) Line 3 D) Cannot be determined from this information

Q: Technology upgrades and backup systems and sites can help mitigate security risks. a. True b. False

Q: A high average inventory value reduces the chances of inventory obsolescence. a. True b. False

Q: Until the summer of 2006, the real estate market in Fresno, California, had been booming, with prices skyrocketing. Recently, a study showed the sales patterns in Fresno for single-family homes. One chart presented in the commission's report is reproduced here. It shows the number of homes sold by price range and number of days the home was on the market.Using the relative frequency approach to probability assessment, what is the probability that a house will be on the market more than 7 days?A) 0.31B) 0.099C) 0.58D) 0.48

Q: Drake Marketing and Promotions has randomly surveyed 200 men who watch professional sports. The men were separated according to their educational level (college degree or not) and whether they preferred the NBA or the National Football League (NFL). The results of the survey are shown: Sports Preference College Degree No College Degree NBA 40 55 NFL 10 95 Suppose a survey participant is randomly selected and you are told that he has a college degree. What is the probability that this man prefers the NFL? A) 0.5250 B) 0.2000 C) 0.6050 D) 0.5880

Q: Indicate whether the statement is true or false.Cash-to-cash conversion cycle is the average time to convert a dollar spent to acquire raw materials into a dollar collected for a finished good.a. Trueb. False

Q: _____ inventory consists of partially completed products in various stages of completion that are awaiting further processing. a. Raw materials b. Work-in-process c. Finished-goods d. Safety stock

Q: CraftWare Inc., a furniture manufacturer, uses ABC analysis to define its inventory value. The inventory contains wood, cast iron, adhesive, and carbon fiber. If wood accounts for 50 percent of the items and 5 percent of the total dollar value; carbon fiber accounts for 10 percent of the items and 60 percent of the total dollar value; cast iron accounts for 25 percent of the items and 18 percent of the total dollar value; and adhesive accounts for 15 percent of the items and 17 percent of the total dollar value, _____ can be classified as a class C item. a. wood b. carbon fiber c. cast iron d. adhesive

Q: Hubble Construction Company has submitted a bid on a state government project that is to be funded by the federal government's stimulus money in Arizona. The price of the bid was predetermined in the bid specifications. The contract is to be awarded on the basis of a blind drawing from those who have bid. Five other companies have also submitted bids. Suppose that there are two contracts to be awarded by a blind draw. What is the probability of Hubble winning both contracts? Assume sampling with replacement. A) 0.2778 B) 0.1667 C) 0.6944 D) 0.0278

Q: The demand for bread in Ahoma City ranges from 100 to 120 tons per day, every day of the year. The demand is easily satisfied on a daily basis. This demand for bread can be categorized as _____ demand. a. static b. overfull c. unwholesome d. dynamic

Q: _____ applies to inventory situations in which one order is placed for a good in anticipation of a future selling season where demand is uncertain. a. A fixed-period inventory system b. A fixed-quantity inventory system c. The deliver-lag inventory model d. The single-period inventory model

Q: A local FedEx/Kinkos has three black-and-white copy machines and two color copiers. Based on historical data, the chances that each black-and-white copier will be down for repairs is 0.10. The color copiers are more of a problem and are down 20% of the time each. If a customer wants both a color copy and a black-and-white copy, what is the probability that the necessary machines will be available? (Assume that the color copier can also be used to make a black-and-white copy if needed.) A) 0.04 B) 0.96 C) 0.47 D) 0.42

Q: In the context of inventory costs, _____ costs are incurred as a result of the work involved in configuring tools, equipment, and machines within a factory to produce an item. a. setup b. holding c. stockout d. unit

Q: A single-period inventory problem can be solved using a technique called _____ analysis. a. marginal economic b. total cost c. critical value d. reorder point

Q: Men have a reputation for not wanting to ask for directions. A Harris study conducted for Lincoln Mercury indicated that 42% of men and 61% of women would stop and ask for directions. The U.S. Census Bureau's 2012 population estimate was that for individuals 18 or over, 48.2% were men and 51.8% were women. This exercise addresses this age group. Given that a driver stops to ask for directions, determine the probability that the driver was a man. A) 0.518 B) 0.420 C) 0.316 D) 0.390

Q: In the context of ABC inventory analysis, which of the following statements is true of class A items? a. They require close control by operations managers. b. They comprise less than 30 percent of the total dollar usage. c. They can be managed using automated computer systems. d. They account for more than 50 percent of inventory items.

Q: Using the data regarding the inventory management of a stock-keeping unit shown in the following table, it can be concluded that the economic time interval for establishing an optimal policy for a fixed-period system (FPS) under the model assumptions is:Demand12,000 units per yearOrder Cost$50 per orderInventory-Holding Cost$0.5 per unit per yearLead Time2 weeksStandard Deviation in Weekly Demand7Service Level95 percenta. less than or equal to 3 weeks.b. more than 3 weeks but less than or equal to 6 weeks.c. more than 6 weeks but less than or equal to 9 weeks.d. more than 9 weeks.

Q: Suppose a quality manager for Dell Computers has collected the following data on the quality status of disk drives by supplier. She inspected a total of 700 disk drives.What is the probability of a defect given that company B supplied the disk drive?A) 0.077B) 0.28C) 0.021D) 0.76

Q: Setup costs include costs associated with maintaining storage facilities, such as gas and electricity, taxes, and insurance.a. Trueb. False

Q: Marketing and operations prefer high inventory levels, whereas finance would prefer small inventories. a. True b. False

Q: The single-period inventory model applies to inventory situations where demand is uncertain. a. True b. False

Q: The URS construction company has submitted two bids, one to build a large hotel in London and the other to build a commercial office building in New York City. The company believes it has a 40% chance of winning the hotel bid and a 25% chance of winning the office building bid. The company also believes that winning the hotel bid is independent of winning the office building bid. What is the probability the company will lose both contracts? A) 0.55 B) 0.45 C) 0.10 D) 0.75

Q: In the context of using technology to manage inventories, radio-frequency identification (RFID) chips offer an accuracy of less than 70 percent. a. True b. False

Q: In a fixed-order-quantity system, when demand is uncertain, using economic order quantity (EOQ) based only on the average demand will result in a low probability of a stockout. a. True b. False

Q: In the Pareto Principle, a vital few control a high percentage of the wealth. a. True b. False

Q: Three events occur with probabilities P(E1) = 0.35, P(E2) = 0.15, P(E3) = 0.40. If the event B occurs, the probability becomes P(E1|B) = 0.25, P(B) = 0.30. Assume that E1, E2, and E3are independent events. Calculate P(E1and E2and E3). A) 0.575 B) 0.075 C) 0.021 D) 0.475

Q: Radio-frequency identification (RFID) chips allow firms to track individual containers. a. True b. False

Q: Single-period inventory models are used in situations involving items that can be carried in inventory and sold in future periods. a. True b. False

Q: Micron Technology has sales offices located in four cities: Dallas, Seattle, Boston, and Los Angeles. An analysis of the company's accounts receivables reveals the number of overdue invoices by days, as shown here. Days Overdue Dallas Seattle Boston Los Angeles Under 30 days 137 122 198 287 30-60 days 85 46 76 109 61-90 days 33 27 55 48 Over 90 days 18 32 45 66 Assume the invoices are stored and managed from a central database. If a randomly selected invoice is from the Los Angeles office, what is the probability that it is 60 or fewer days overdue? A) 0.2702 B) 0.0231 C) 0.3461 D) 0.7765

Q: Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is: a. the order quantity divided by the number of inventory cycles per year. b. the annual demand divided by the number of inventory cycles per year. c. half of the order quantity. d. half of the annual usage.

Q: In the context of inventory management, a(n) _____ is a single item or asset stored at a particular location. a. stock-keeping unit b. make-to-stock product c. average lead stock d. buffer stock

Q: In the context of inventory costs, _____ costs can reflect lost sales for external customers or costs associated with interruptions to assembly lines for internal customers. a. holding b. stockout c. ordering d. setup

Q: _____ inventory is an additional amount of inventory that is kept over and above the average amount required to meet demand. a. Seasonal b. Work-in-process c. Finished-goods d. Safety stock

Q: The college basketball team at West Texas State University has 10 players; 5 are seniors, 2 are juniors, and 3 are sophomores. Two players are randomly selected to serve as captains for the next game. What is the probability that both players selected are seniors? A) 0.22 B) 0.33 C) 0.50 D) 0.66

Q: A buyer for a department store orders sweaters about 6 months before the winter season. The store plans to hold a March clearance sale to sell any surplus goods by February 29. Each piece costs $100 per pair and sells for $120 per pair. At the sale price of $60 per pair, it is expected that any remaining stock can be sold during the March sale. Assume that a uniform probability distribution ranging from 250 to 450 items describes the demand. The expected demand is 300. In the context of the single period inventory system, the optimal order size Q must satisfy the condition _____. a. P(demand ≤ Q*) = 1/2 b. P(demand ≤ Q*) = 1/3 c. P(demand ≤ Q*) = 1/4 d. P(demand ≤ Q*) = 1/5

Q: Ponderosa Paint and Glass carries three brands of paint. A customer wants to buy another gallon of paint to match paint she purchased at the store previously. She can't recall the brand name and does not wish to return home to find the old can of paint. So she selects two of the three brands of paint at random and buys them. Her husband also goes to the paint store and fails to remember what brand to buy. So he also purchases two of the three brands of paint at random. Determine the probability that both the woman and her husband fail to get the correct brand of paint. (Hint: Are the husband's selections independent of his wife's selections?) A) 3/2 B) 2/3 C) 1/9 D) 3/4

Q: _____ inventory is inventory that results from purchasing or producing in larger lots than are needed for immediate consumption or sale. a. Finished-goods b. Stockout c. Cycle d. Work-in-process

Q: In the context of a fixed-order-quantity system, stockouts occur whenever the lead-time demand _____. a. exceeds the reorder point b. exceeds the work-in-process inventory c. becomes equal to the finished-goods inventory d. becomes equal to the break-even point

Q: The Jack In The Box franchise in Bangor, Maine, has determined that the chance a customer will order a soft drink is 0.90. The probability that a customer will order a hamburger is 0.60. The probability that a customer will order french fries is 0.50. The restaurant has also determined that if a customer orders a hamburger, the probability the customer will also order fries is 0.80. Determine the probability that the order will include a hamburger and fries. A) 0.45 B) 0.58 C) 0.68 D) 0.48

Q: Which of the following statements is true of the independent demand for a stock-keeping unit (SKU)? a. It needs to be calculated using the forecast of dependent demand. b. It is affected by the demand of other SKUs. c. It is directly related to the demand of raw materials. d. It needs to be forecasted.

Q: Based on weather data collected in Racine, Wisconsin, on Christmas Day, the weather had the following distribution: Event Relative Frequency Clear & dry 0.20 Cloudy & dry 0.30 Rain 0.40 Snow 0.10 Supposing next Christmas is dry, determine the probability that it will also be cloudy. A) 0.45 B) 0.50 C) 0.60 D) 0.70

Q: In the context of inventory costs, _____ costs can reflect backorders or service interruptions for external customers. a. holding b. stockout c. ordering d. setup

Q: Jaes Shoes is considering a change of their current inventory control system for sneakers. The information regarding the neckties is: Demand = 1000 pairs/week; Lead time = 3 weeks; Order cost = $20/order; Holding cost = $10.00/pair/yr; Cycle service level = 95%; Standard deviation of weekly demand = 48; and Number of weeks per year = 52. To calculate the relative frequency use the following values: _____. a. Number of Days and Standard Deviation of Weekly Demand b. Units Sold and Demand c. Units Sold and Number of Days d. Lead Time and Holding Cost