GSCM 520 DeVry Entire Course

GSCM 520 DeVry Entire Course 

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GSCM 520 DeVry Week 1 Discussion 1 

Substantiate the Importance of Operations and Supply Chain Management (graded) 

What is operations and supply chain management? 


Competitive Dimensions of Operations and Supply Chain Strategies (graded) 

What are the competitive dimensions and specific parameters of operations and supply chain strategies? 


Forecast Planning for Supply Chain Management (graded) 

Does forecasting sometimes seem to be a little like magic? Where do all these plans and figures come from? In this 

week’s lesson, we learn about developing forecasts to predict materials, resources, and services. Why is forecasting 

so strategically important for operations and supply chains? Give examples of current forecasts you use at work or at 

home. 


Strategic Capacity Management (graded) 

How important is it to manage capacity for operations and supply chains? Is managing capacity different in 

manufacturing companies versus a service organization? Exactly how do we plan capacity within these organizations? 


Quality Management and Six Sigma (graded) 

Discuss how quality is measured and explain the different dimensions of quality.


Lean Supply Chains (graded) 

Define lean production and explain the advantages companies can obtain using lean methods and principles in the 

supply chains. 


Manufacturing Processes (graded) 

Explain the production process and describe the different types of process designs. 


Service Processes (graded) 

Explain the characteristics of service processes and how they are different from manufacturing processes. This section 

lists options that can be used to view responses. 


Sales and Operations Planning (graded) 

Explain the sales and operations planning process. How does this process improve manufacturing, logistics, service, 

and marketing planning and execution? 


Material Requirements Planning (graded) 

What inputs of information go into the MRP calculations? Please explain the explosion process. What do MRP systems 

produce as outputs? 


Inventory Management (graded) 


Global Sourcing (graded) 

Why is global sourcing an important consideration for supply chain management? 


Location Decisions (graded) 

Describe the factors and challenges of making location decisions. 

GSCM 520 DeVry Week 7 Discussion 2

Logistics and Distribution (graded) 

Explain the opportunities for improving distribution and logistics functions, and explain the challenges of transportation 

and logistics in supply chain management. 

GSCM 520 DeVry Week 1 Case Study 

Case—The 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? 

The Tao of Timbuk2 

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. 

You might want to use Microsoft Visio software for the final question of this case. See the Syllabus for tips on using MS 

Visio. You may already have Visio installed on your computer; if not, you can access the software from the iLab under 

Course Home. 

Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use 

the Dropbox, read these .next.ecollege.com/default/launch.ed?ssoType=DVUHubSSO2&node=184">step-by-step 

instructions or watch this Tutorial 

.next.ecollege.com/default/launch.ed?ssoType=DVUHubSSO2&node=232">Dropbox Tutorial. 

See the Syllabus section "Due Dates for Assignments & Exams" for due date information. 


Shouldice Hospital—A Cut Above 

Review the Shouldice Hospital case study on page 115 in the textbook. You can find the questions for this case study 

in Doc Sharing. 





instructions or watch this 

Case—Shouldice Hospital—A Cut Above (p. 115) 


· 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.) 


Select one of the following. 

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. 

Value Stream Mapping 

Review the Value Stream Mapping case study on page 428 in the textbook, and refer to the questions noted in Doc 

Sharing. 

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. 

You might want to use Microsoft Visio software to create a Value Stream Map. See the Syllabus for tips on using MS 

Visio. You may already have Visio installed on your computer; if not, you can access the software from the iLab under 

Course Home. 


from the presented case study of your choice. 



instructions or watch this .next.ecollege.com/default/launch.ed?ssoType=DVUHubSSO2&node=232">Dropbox 

Tutorial. 


Case—Quality Parts Company (p. 426) 


· 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 Company’s current system. 

· Outline a plan for introducing lean at Quality Parts Company. 

Case—Value Stream Mapping (p. 428) 


· 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? 

Case—Pro Fishing Boats—A 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? 


Toshiba’s Notebook Computer Assembly Line 

Review the Toshiba’s Notebook Computer Assembly Line case study on page 199 in the textbook and refer to the 

questions noted in Doc Sharing. 


from the presented case study. 




Case—Toshiba’s Notebook Computer Assembly Line (p. 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? 



1. Bradford Manufacturing 

Review the Bradford Manufacturing case study on page 270 in the textbook and refer to the questions noted in Doc 

Sharing. 

2. Brunswick Motors 

Review the Brunswick Motors case study on page 300 in the textbook and refer to the questions noted in Doc Sharing. 





instructions or watch this .next.ecollege.com/default/launch.ed?ssoType=DVUHubSSO2&node=232">Dropbox 

Tutorial.


Case—Bradford Manufacturing (p. 270) 

· 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. 

Case—Brunswick Motors (p. 300) 

· 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? 



Inventory Management at Big10 Sweater 

Review the Inventory Management at Big10 Sweater case study on page 395 in the textbook and refer to the questions 

noted in Doc Sharing. 

Grainger: Reengineering the China/U.S. Supply Chain 

Review the Grainger: Reengineering the China/U.S. Supply Chaincase study on page 455 in the textbook and refer to 

the questions noted in Doc Sharing. 






Case—Inventory 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? 

Case—Grainger: 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? 


Distribution Center Location—Grainger 

Review the Distribution Center Location—Graniger case study on page 477 in the textbook and refer to the questions 

noted in Doc Sharing. 






Case—Distribution Center Location-Grainger (p.477) 

Please address the following: 

Relative to the U.S. distribution network, calculate the costs associated with running the existing 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. 

GSCM 520 DeVry Week 1 Quiz 

Question 1.1.(TCO 1) One reason for studying operations and supply chain management (OSCM) is which of the 

following?(Points : 5) 

o 

o 

o 

o 

o 

OSCM is essential for understanding organizational behavior. 

Most business graduates do OSCM work regardless of their job title. 

All managers should understand the basic principles that guide the design of transformation processes. 

OSCM is a required course in all business degree programs. 

OSCM is the most rigorous business discipline. 

Question 2.2.(TCOs 1 and 2) A major competitive dimension that forms a company's strategic operational 

competitive position in their strategic planning is which of the following?(Points : 5) 

o 

o 

o 

o 

o 

Cost price 

Focus 

Automation 

Straddling 

Activity-system mapping 

Question 3.3.(TCO 2) When a company seeks to match the benefits of a successful position while maintaining its 

existing position in offering customers a variety of differing services, what is this process called?(Points : 5) 

o 

o 

o 

o 

Operations capability analysis 

Straddling 

Order qualifying 

Order winning

o 

Inter-functional analysis 

Question 4.4.(TCO 2) Which of the following is a partial measure of productivity?(Points : 5) 

o 

o 

o 

o 

o 

Output/Materials 

Output/(Labor + Capital + Energy) 

Output/All resources used 

Output/Inputs 

All of the above 

Question 5.5.(TCO 2) If all you knew about a production system was that total daily output was 400 units and the 

total labor necessary to produce the 400 units was 350 hours, what kind of productivity measure could you use to 

compute productivity?(Points : 5) 

o 

o 

o 

o 

o 

Partial measure 

Multifactor measure 

Total measure 

Global measure 

All of the above 

Question 6.6.(TCO 2) The total output from a production system in 1 day is 500 units and the total labor necessary 

to produce the 500 units is 350 hours. Using the appropriate productivity measure, which of the following numbers 

represents the resulting productivity ratio?(Points : 5) 

o 1.000 

o 1.428 

o 0.700 

o 0.411 

o None of the above 


Question 1.1.(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?(Points : 3) 

o 

o 

o 

o 

o 

Average demand for a period 

A trend 

Seasonal elements 

Past data 

Autocorrelation 

Question 2.2.(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?(Points : 3) 

o 

o 

o 

o 

o 

Forecast error 

Autocorrelation 

Previous demand 

Consistent demand 

Repeat demand 

Question 3.3.(TCO 5) Which of the following forecasting methodologies is considered a causal forecasting 

technique?(Points : 3) 

o 

Exponential smoothing

o 

o 

o 

o 

Weighted moving average 

Linear regression 

Historical analogy 

Market research 

Question 4.4.(TCO 5) Which of the following forecasting methods uses executive judgment as its primary 

component for forecasting?(Points : 3) 

o 

o 

o 

o 

o 

Historical analogy 

Time series analysis 

Panel consensus 

Market research 

Linear regression 

Question 5.5.(TCO 5) In business forecasting, what is usually considered a long-term time period?(Points : 3) 

o 

o 

o 

o 

o 

Three months or longer 

Six months or longer 

One year or longer 

Two years or longer 

Ten years or longer 

Question 6.6.(TCO 5) In general, which forecasting time frame best identifies seasonal effects?(Points : 3) 

o 

o 

o 

o 

o 

Short-term forecasts 

Quick-time forecasts 

Long range forecasts 

Medium term forecasts 

Rapid change forecasts 

Question 7.7.(TCO 5) The ability to rapidly and inexpensively switch production from one product to another 

enables what are sometimes referred to as(Points : 3) 

o 

o 

o 

o 

o 

economies of scale 

economies of size 

economies of shape. 

economies of scope. 

economies of shipping. 

Question 8.8.(TCO 5) If the best operating level of a piece of equipment is at a rate of 400 units per hour and the 

actual output during an hour is 300 units, which of the following is the capacity utilization rate?(Points : 3) 

o 0.75 

o 1.00 

o 1.33 

o 2.33300 

Question 9.9.(TCO 5) The capacity focus concept can be put into practice through a mechanism called which of 

the following?(Points : 3) 

o 

o 

o 

o 

o 

Best operating level (BOL) 

Plant within a plant (PWP) 

Total quality management (TQM) 

Capacity utilization rate (CUR) 

Zero-changeover-time (ZXT)

Question 10.10.(TCO 5) At a decision point in a decision tree, which machine would you select when trying to 

maximize payoff when the anticipated benefit of selecting machine A is $45,000 with a probability of 90%, the expected 

benefit of selecting machine B is $80,000 with a probability of 50%, and the expected benefit of selecting machine C is 

$60,000 with a probability of 75%?(Points : 3) 

o Machine B 

o Machine C 

o You would be indifferent between machines A and C. 

o You would be indifferent between machines A and B 


Question 1.1.(TCO 6) The philosophical leaders of the quality movement, Philip Crosby, W. Edwards Deming, and 

Joseph M. Juran, had the same general message about what it took to achieve outstanding quality. Which of the 

following was not part of that message?(Points : 3) 

o 

o 

o 

o 

o 

Quality is free 

Leadership from senior management 

Customer focus 

Total involvement of the workforce 

Continuous improvement 

Question 2.2.(TCO 6) Fishbone diagram as part of a six-sigma quality improvement process might be found in 

which DMAIC category?(Points : 3) 

o 

o 

o 

o 

o 

Define 

Measure 

Analyze 

Improve 

Control 

Question 3.3.(TCO 6) A Pareto chart as part of a six-sigma quality improvement process might be found in which 

DMAIC category?(Points : 3) 

o 

o 

o 

o 

o 

Define 

Measure 

Analyze 

Improve 

Control 

Question 4.4.(TCO 6) Which of the following is not an analytical tool used in six-sigma quality improvement 

programs?(Points : 3) 

o 

o 

o 

o 

o 

Flow charts 

Run charts 

Control charts 

Pareto diagrams 

Decision diagrams 

Question 5.5.(TCO 6) The Malcolm Baldrige award selection process helps improve quality and productivity by 

which of the following means?(Points : 3) 

o 

o 

Stimulating foreign based suppliers of American companies to improve quality 

Reporting quality levels among American firms

o 

o 

o 

Identifying American firms with the most difficult quality problems 

Providing feedback to applicants by the examiners 

Helping Baldrige award winners increase their sales 

Question 6.6.(TCO 3) In the textbook, Toyota's Fujio Cho identified which of the following types of waste to be 

eliminated?(Points : 3) 

o 

o 

o 

o 

o 

Underproduction 

Excess quality 

Preventive maintenance 

Product defects 

Kaizen 

Question 7.7.(TCO 3) In a lean production system we expect to see which of the following?(Points : 3) 

o 

o 

o 

o 

o 

No extra inventory 

Extra inventory of critical parts held just-in-case 

More parts and fewer standardized product configurations 

Managers being held responsible for quality of the work turned out 

Closer management-labor relationships 

Question 8.8.(TCO 3) In the textbook, Toyota's Fujio Cho identified which of the following types of waste to be 

eliminated?(Points : 3) 

o 

o 

o 

o 

o 

Excess quality 

Motion 

Excess capacity 

Underproduction 

Excess demand 

Question 9.9.(TCO 3) Group technology (GT) is credited with which of the following benefits?(Points : 3) 

o 

o 

o 

o 

o 

Reducing waiting time between process operations 

Improving inventory discipline 

Reducing required workforce skills 

Improved labor relations 

Improved small group functioning 

Question 10.10.(TCO 3) To implement lean production schedules, a firm would do which of the following?(Points 

: 3) 

o 

o 

o 

o 

o 

Have excess capacity 

Force demand 

Hire a consultant 

Bottom-up management 

Implement Kanban groups 


Question 1. 1. (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 six tasks that make up the job are 4, 6, 7, 2, 6, and 5 minutes 

and the cycle time is 10 minutes? (Points : 3) 

o 

Three

o 

o 

o 

o 

Five 

Six 

Eight 

None of the above 

Question 2. 2. (TCO 7) You have just determined the actual number of workstations that will be used on an 

assembly line to be eight using the assembly-line balancing procedure. The cycle time of the line is 10 minutes and the 

sum of all that tasks required on the line is 60 minutes. Which of the following is the correct value for the resulting line's 

efficiency? (Points : 3) 

o 0.500 

o 0.650 

o 0.750 

o 0.850 


Question 3. 3. (TCO 7) Which of the following is not a step in developing a manufacturing cell layout? (Points : 3) 

o 

o 

o 

o 

o 

Grouping parts into families that follow a common sequence of steps 

Identifying dominant flow patterns of parts families as a basis for location of processes 

Physically grouping machines and processes into cells 

Disposing of left-over machinery and outsourcing ungrouped processes 


Question 4. 4. (TCO 7) A difference between project and continuous flow categories of process flow structures is 

which one of the following? (Points : 3) 

o 

o 

o 

o 

o 

The size and bulk of the product 

Discrete parts moving from workstation to workstation 

Degree of equipment specialization 

Being a Virtual Factory 

Profit per unit 

Question 5. 5. (TCO 7) Which of the following is a basic type of process structure? (Points : 3) 

o 

o 

o 

o 

o 

Process flow diagram 

Product matrix 

Process matrix 

Work center 

Manual assembly 

Question 6. 6. (TCO 7) Which of the following is a suggestion for managing queues that are mentioned in the 

textbook? (Points : 3) 

o 

o 

o 

o 

o 

Put up a serpentine lane to keep people from jumping ahead in line. 

Use humor to defuse a potentially irritating situation. 

Segment the customers. 

Assure customers that the wait is fair and inform them of the queue discipline. 

Tell people in the queue that each will be served as soon as possible. 

Question 7. 7. (TCO 7) Which of the following is not a suggestion for managing queues presented in the textbook? 

(Points : 3) 

o 

o 

o 

o 

Train your servers to be friendly. 

Segment the customers. 

Determine an acceptable waiting time for your customers. 

Inform your customers of what to expect.

o 

Encourage customers to come during slack periods. 

Question 8. 8. (TCO 7) Which of the following is not a queue discipline discussed in the textbook? (Points : 3) 

o 

o 

o 

o 

o 

First come, first served 

Last in, first out 

Limited needs 

Shortest processing time 

Best customer first 

Question 9. 9. (TCO 7) A roller coaster ride in an amusement park employs which type of queuing system line 

structure? (Points : 3) 

o 

o 

o 

o 

o 

Single channel, single phase 

Single channel, multiphase 

Multichannel, single phase 

Multichannel, multiphase 


Question 10. 10. (TCO 7) Which of the following is a characteristic that can be used to guide the design of service 

systems? (Points : 3) 

o 

o 

o 

o 

o 

Services cannot be inventoried. 

Services are all similar. 

Quality work means quality service. 

Services businesses are inherently entrepreneurial. 

Even service businesses have internal services. 


Question 1. 1.(TCO 8) In an overview of the major operations planning activities in a typical service organization, 

which of the following activities follows aggregate sales and operations planning? (Points : 3) 

o 

o 

o 

o 

o 

Process planning 

Workforce scheduling 

Master scheduling 

Materials requirements planning 

Order scheduling 

Question 2. 2.(TCO 8) The main purpose of aggregate operations planning is to specify the optimal combination 

of which of the following? (Points : 3) 

o 

o 

o 

o 

o 

Workforce levels and inventory on hand 

Inventory on hand and financing costs for that inventory 

The strategic plan and the products available for sale 

The workforce level and the degree of automation 

Operational costs and the cash flow to support operations 

Question 3. 3.(TCO 8) In conducting aggregate operations planning, there are a number of required inputs. Which 

of the following are inputs considered external to the firm? (Points : 3) 

o 

o 

o 

Competitor behavior and economic conditions 

Market demand and inventory levels 

Subcontractor capacity and current workforce

o 

o 

Economic conditions and current physical capacity 

Raw material availability and inventory levels 

Question 4. 4.(TCO 8) From an operational perspective, yield management is least effective under which of the 

following circumstances? (Points : 3) 

o 

o 

o 

o 

o 

Demand can be segmented by customer. 

The product can be sold in advance. 

Demand is highly variable. 

Fixed costs are high and variable costs are low. 

Demand is stable and close to capacity. 

Question 5. 5.(TCO 8) A BOM file is also called which of the following? (Points : 3) 

o 

o 

o 

o 

o 

Product tree 

Stocking plan 

Inventory usage record 

Production parts plan 

Time bucket schedule 

Question 6. 6.(TCO 8) Which of the following is an input to the master production schedule (MPS)? (Points : 3) 

o 

o 

o 

o 

o 

Inventory records file 

The aggregate plan 

The bill of materials 

The exception report 

Planned order schedules 

Question 7. 7.(TCO 8) Which of the following is one of the main purposes of a MRP system? (Points : 3) 

o 

o 

o 

o 

o 

To educate personnel in basic work rules 

To determine the amount of materials needed to produce each end item. 

To stimulate the work force 

To decrease labor requirements 

To increase inventory accuracy 

Question 8. 8.(TCO 8) Which of the following is an input to the master production schedule? (Points : 3) 

o 

o 

o 

o 

o 

Bill of materials (BOM) file 


Exception reports 

Planned-order schedules 


Question 9. 9.(TCO 8) Which of the following is an input file necessary to run an MRP system? (Points : 3) 

o 

o 

o 

o 

o 

Exception report 

Computer-aided-design files 


Personnel files 

Planned order schedule 

Question 10. 10.(TCO 8) In an MRP program, the program accesses the status segment of an inventory record 

according to specific periods called which of the following? (Points : 3) 

o 

Cubed time units

o 

o 

o 

o 

Time buckets 

BOM units 

Time modules 

Time lines 


Question 1.1.(TCO 4) Which of the following is one of the categories of manufacturing inventory?(Points : 3) 

o 

o 

o 

o 

o 

Economic Order Inventory 

Work-in-process 

Quality units 

JIT Inventory 

Re-order point 

Question 2.2.(TCO 4) When developing inventory cost models, which of the following are not included as costs to 

place an order?(Points : 3) 

o 

o 

o 

o 

o 

Phone calls 

Taxes 

Clerical 

Calculating quantity to order 

Postage 

Question 3.3.(TCO 4) In making any decision that affects inventory size, which of the following costs do not need 

to be considered?(Points : 3) 

o 

o 

o 

o 

o 

Holding costs 

Setup costs 

Ordering costs 

Fixed costs 

Shortage costs 

Question 4.4.(TCO 4) Which of the following are fixed-order quantity inventory models?(Points : 3) 

o 

o 

o 

o 

o 

Economic order quantity model 

The ABC model 

Periodic replenishment model 

Cycle counting model 

P model 

Question 5.5.(TCO 4) Which of the following is the set of all cost components that make up the fixed-order quantity 

total annual cost (TC) function?(Points : 3) 

o 

o 

o 

o 

o 

Annual purchasing cost, annual ordering cost, fixed cost 

Annual holding cost, annual ordering cost, unit cost 

Annual holding cost, annual ordering cost, annual purchasing cost 

Annual lead time cost, annual holding cost, annual purchasing cost 

Annual unit cost, annual set up cost, annual purchasing cost 

Question 6.6.(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?(Points : 

3)

o 909 

o 707 

o 634 

o 500 

o 141 

Question 7.7.(TCO 4) If the average aggregate inventory value is $100,000 and the cost of goods sold is $450,000, 

which of the following is inventory turnover?(Points : 3) 

o 19.23 

o 4.5 

o 0.8654 

o 0.2222 


Question 8.8.(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?(Points : 3) 

o 

o 

o 

o 

o 

Efficient 

Forward looking 

Agile 

Risk hedging 

Responsive 

Question 9.9.(TCO 3) Which of the following is an organizationally driven reason for outsourcing?(Points : 3) 

o 

o 

o 

o 

o 

Improve effectiveness by focusing on what the firm does best 

Turn fixed costs into variable costs 

Reduce costs through lowered cost structure and increased flexibility 

Improve risk management 

Improve credibility and image by associating with superior providers 

Question 10.10.(TCO 3) Which of the following is an improvement-driven reason for outsourcing?(Points : 3) 

o 

o 

o 

o 

o 

Shorten cycle time 

Improve effectiveness by focusing on what the firm does best 

Increase product and service value by improving response to customer needs 

Turn fixed costs into variable costs 

Reduce costs through a lower cost structure 


Question 1. 1. (TCO 9) Which of the following is not a criterion that influences manufacturing plant or warehouse 

facility location decisions? (Points : 5) 

o 

o 

o 

o 

o 

Proximity to customers 

Historical cost 

Infrastructure of a country 

Quality of labor 

Business climate 

Question 2. 2. (TCO 9) Which of the following is a criterion that influences manufacturing plant or warehouse facility 

location decisions? (Points : 5) 

o 

Proximity to customers

o 

o 

o 

o 

Corporate policy 

Competitor's locations 

Competitive advantage 

Host community politics 

Question 3. 3. (TCO 9) One of the objectives of facility location analysis is to select a site with the lowest total cost. 

Which of the following are hidden costs that should be included in the analysis? (Points : 5) 

o 

o 

o 

o 

o 

Becoming less responsive to the customer 

Supplier costs 

Taxes 

Construction costs 

Product life cycle costs 

Question 4. 4. (TCO 9) An example of a trading bloc is which of the following? (Points : 5) 

o 

o 

o 

o 

o 

Central American Free Trade Agreement countries 

Free trade zones 

ISO-9000 companies 

American Production and Inventory Control Society 

Wal-Mart and its suppliers 

Question 5. 5. (TCO 9) The centroid method for plant location uses which of the following data? (Points : 5) 

o 

o 

o 

o 

o 

Volume of goods to be shipped between existing points 

Inbound transportation costs 

Transport times between facilities 

Correlation matrix of existing facilities 

Probabilities and payoffs 

Question 6. 6. (TCO 9) Plant A is located at the (X, Y) coordinates of (200, 500) and has a volume of shipping of 

400 units a day. Plant B is located at the (X, Y) coordinates of (300, 100) and has a volume of shipping of 300 units a 

day. Using the centroid method, which of the following is the X coordinate for the new plant location? (Points : 5) 

o About 208 

o About 227 

o About 243 

o About 389 

o X coordinate cannot be computed from the data given. 

GSCM 520 DeVry Final Exam 

Question 1. 1. (TCOs 1 and 2) A major competitive dimension that forms a company's strategic operational 

competitive position in their strategic planning is which of the following? (Points : 4) 

o 

o 

o 

o 

o 

Cost or price 

Focus 

Automation 

Straddling 

Activity-system mapping 

Question 2. 2. (TCO 1) One of the package of features that make up a service is (Points : 4)

o 

o 

o 

o 

o 

appearance. 

facilitating goods. 

packaging. 

cost. 

implied use. 

Question 3. 3. (TCO 5) You are using an exponential smoothing model for forecasting. The running sum of the 

forecast error statistics (RSFE) are calculated each time a forecast is generated. You find the last RSFE to be 34. 

Originally, the forecasting model used was selected because its relatively low MAD of 0.4. To determine when it is time 

to reevaluate the usefulness of the exponential smoothing model, you compute tracking signals. Which of the following 

is the resulting tracking signal? (Points : 4) 

o 85 

o 60 

o 13.6 

o 12.9 

o 8 

Question 4. 4. (TCO 5) The way to build in greater flexibility in your workers is to do which of the following? (Points 

: 4) 

o 

o 

o 

o 

o 

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) The Malcolm Baldrige National Quality Award is given to organizations that have done 

which of the following? (Points : 4) 

o 

o 

o 

o 

o 

Instituted a six-sigma approach to total quality control 

Demonstrated a high level of product quality 

Demonstrated outstanding quality in their products and processes 

Have a world-class quality control function 

Most significantly improved their product quality levels 

Question 6. 6. (TCOs 3 and 7) Which of the following is considered a high-contact service operation? (Points : 

4) 

o 

o 

o 

o 

o 

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) 

o 

o 

o 

o 

o 

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) 

o 

o 

o 

o 

o 

Kanban 

Just-in-time system 

MRP 

Least unit cost 

Least total cost 

Question 9. 9. (TCO 3) When considering outsourcing, what should firms be sure to avoid? (Points : 4) 

o 

o 

o 

o 

o 

Losing control of noncore activities that don't distinguish the firm 

Allowing outsourcing to develop into a substitute for innovation 

Giving the outsourcing partner opportunities to become a strong competitor 

Allowing employees transferred to the outsourcing partner to rejoin the firm 

Adverse corporate tax implications of asset transfers to the outsourcing partner 

Question 10. 10. (TCO 9) In which of the following situations should we not use the transportation method of linear 

programming? (Points : 4) 

o 

o 

o 

o 

o 

To find a new site location for a plant 

To minimize costs of shipping n units to m destinations 

To maximize profits of shipping n units to m destinations 

To determine which corner of a street intersection to locate a retail service facility 

To locate a finished goods distribution warehouse 

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)? 

o 120 

o 126 

o 630 

o 950 

o 1,200 

Question 2. 2. (TCO 4) You would like to use the fixed-time period inventory model to compute the desired order 

quantity for a company. You know that vendor lead time is 5 days and the number of days between reviews is 7. Which 

of the following is the standard deviation of demand over the review and lead time if the standard deviation of daily 

demand is 8? 

o About 27.7 

o About 32.8 

o About 35.8 

o About 39.9 

o About 45.0 

Question 3. 3. (TCOs 3, 4, and 5) If the average aggregate inventory value is $45,000 and the cost of goods 

sold is $10,000, which of the following is weeks of supply? 

o 45,000 

o 234 

o 120 

o 23.4

o 4.5 

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? 

o 5% to 10% 

o 20% to 50% 

o 20% to 80% 

o 60% to 120% 

o 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? 

2012 2013 

Output: Sales: $300,000 $330,000 

Inputs: Labor: $40,000$43,000 

Raw Materials: $45,000$51,000 

Energy:$10,000$9,000 

Capital Employed: $250,000 $262,000 

Other $2,000 $6,000 

o -9.22 

o 2.33 

o -0.53 

o -2.88 

o 10.39 

Question 6. 6. (TCO 5) A company wants to forecast demand using the weighted moving average. If the company 

uses three prior yearly sales values (i.e., year 2011 = 160, year 2012 = 140, and year 2013 = 170), and we want to 

weight year 2011 at 30%, year 2012 at 30%, and year 2013 at 40%, which of the following is the weighted moving 

average forecast for year 2014? 

o 170 

o 168 

o 158 

o 152 

o 146 

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? 

o 500 

o 10,000 

o 100,000 

o 200,000 

o 600 

Question 8. 8. (TCO 3) You have been called in as a consultant to set up a Kanban control system. The first thing 

to 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 150 per hour. You estimate the safety stock should be set at 25% of the demand

during lead time. The tote trays used as containers can hold eight units of stock and the lead time it takes to replenish 

an order is 2 hours. Which of the following is the number of Kanban card sets necessary to support this situation? 

o 42 

o 47 

o 68 

o 89 

o 94 

Question 9. 9. (TCO 7) Using the cut-and-try method for aggregate operations planning, we can determine the 

production requirement in units of product. If the beginning inventory is 100 units, the demand forecast is 1,200, and 

the necessary safety stock is 20% of the demand forecast, which of the following is the production requirement? 

o 1,200 

o 1,300 

o 1,340 

o 1,500 

o 1,540 

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? 

o 350 

o 247 

o 23 

o 185 

o 78 

Question 1. 1. (TCOs 1, 2, and 5) Discuss the role of efficiency and effectiveness in the creation of value. (Points 

: 30) . 

Question 2. 2. (TCOs 3, 5, and 6) Describe the relationship between capacity utilization and quality in a service 

operation. (Points : 30) 

Question 3. 3. (TCOs 4, 6, and 7) Describe the aggregate sales and operations planning process. (Points : 30)

GSCM 520 DeVry Entire Course

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