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Questions # 1:

The supply manager for a semiconductor company receives an emergency phone call from the firm's factory manager, who states that the manufacturing equipment is down and that a replacement part is needed as soon as possible. The supply manager checks the stock for this part but finds nothing. In this situation, the supply manager should do which of the following?

Options:

A.

Ask the factory manager to perform an equipment failure analysis in order to understand the root cause of the equipment failure

B.

Perform a cost analysis to examine if it is better to expedite the part or wait for the part's scheduled arrival date

C.

Contact the equipment supplier and ask it to coordinate an expedited delivery of the part as soon as possible

D.

Verify with the warehouse manager if there is an extra spare part in stock that was not correctly registered in the stock database system

Expert Solution
Questions # 2:

A firm completes its near level production, five-month demand plan for the next business planning cycle:

Month 1Month 2Month 3Month 4Month 5

Demand Forecast15,00020,00025,00025,00018,000

Production Plan (Regular Time)20,00020,00020,00020,00018,000

Production Plan (Overtime)5,000

Ending Inventory5,0005,000

Average Inventory2,5005,0002,500

Workforce PlanningStarting WorkforceMonth 1Month 2Month 3Month 4Month 5

Hires7

Layoffs2

Actual Workforce Size132020202018

Regular Time Hours Required2,0002,0002,0002,0001,800

Overtime Hours Required500

Costs

Regular time cost per unit$15

Overtime cost per unitS25

Monthly inventory cost per unit$1

Cost of hire$1,500

Cost of layoffS400

What is the cost of this demand plan?

Options:

A.

$1,605,000

B.

$180,800

C.

$1,606,300

D.

$1,616,300

Expert Solution
Questions # 3:

A supplier with a previously good performance record has recently been shipping parts with a number of flaws, making them unusable for production. The firm’s supply manager would like to resolve these problems before taking more drastic measures. Which of the following actions should the supply manager take FIRST’

Options:

A.

Explore possible root causes, including changes in the supplier's production processes

B.

Ask engineering to review tolerances on non-critical specifications and relax them if possible

C.

Test the parts at an independent laboratory and notify the supplier of the results

D.

Re-work the parts in-house and bill the supplier for any costs incurred

Expert Solution
Questions # 4:

A supply manager is reviewing safety stock for a particular unit. The unit is small, Inexpensive, non-perishable, and easily stored, but is critical to the firm's manufacturing process. The following information is known about this unit:

Maximum lead time = 8 Days

Average lead time = 3 Days

Maximum daily usage = 6,000 Units

Average daily usage = 4,000 Units

What is the maximum safety stock that should be maintained for this unit?

Options:

A.

12,000

B.

10,000

C.

36,000

D.

48,000

Expert Solution
Questions # 5:

A company is expanding its production capability. A project manager is assigned to bring a team of stakeholders together to conduct an analysis of the situation and develop a plan. During the analysis, the project manager gains an understanding of what resources stakeholders are willing to commit, the stakeholders' expectations, and what the stakeholders have to gain from the project. This analysis is MOST likely to identify which of the following?

Options:

A.

Potential conflicts that could impede the project's success

B.

Additional resources that will be needed to finalize the project

C.

How much time there is to complete the project

D.

The roles and responsibilities of each stakeholder in the project

Expert Solution
Questions # 6:

A wine bar which also serves tapas and sandwiches notices that its customer volume fluctuates significantly (depending on convention tourism and hotel night stays) and that wait times for seating are growing longer. As a result, managing demand for perishable food products is becoming more challenging.

Which of the following would be MOST useful in this scenario?

Options:

A.

Least squares regression

B.

Winters model

C.

Single period model

D.

Box-Jenkins method

Expert Solution
Questions # 7:

An organization has a forecast for June of 125 units. However, 140 units actually sell. What is the exponential smoothing forecast for July if the alpha is 0.2?

Options:

A.

137 units

B.

130 units

C.

53 units

D.

128 units

Expert Solution
Questions # 8:

XYZ Company engages a freight bureau to conduct an audit of its freight forwarder. How can XYZ BEST utilize the information obtained from this review?

Options:

A.

Assess the freight forwarder's staffing needs

B.

Confirm adherence to regulations and industry standards

C.

Achieve cost savings on future freight invoices

D.

Identify instances where the freight forwarder violated XYZ's policies

Expert Solution
Questions # 9:

An organization purchases material from several countries. These materials are assembled into products and sold in several other countries. This firm's product specifications will MOST likely reference

Options:

A.

International standards

B.

Incoterms® 2010 rules

C.

North American Free Trade Act

D.

exchange rates

Expert Solution
Questions # 10:

At the beginning of each year, a large firm’s indirect procurement organization holds a brainstorming session. These sessions produce many great ideas and foster support among the procurement team. However, after a few years, support for the brainstorming sessions begins to diminish, and the projects discussed are pushed aside in order to deal with more pressing issues. In this situation, which of the following would be the BEST course of action to take?

Options:

A.

Discontinue the brainstorming sessions and urge employees to make improvements within their areas of responsibility as they see opportunities arise

B.

Ask other functional areas to suggest improvement projects, and dedicate resources to support these initiatives

C.

Create a center of excellence with select managers committed to implementing the ideas discussed in the brainstorming sessions

D.

Assign functional project managers to work on the brainstorming project

Expert Solution
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